MGX RESOURCES LIMITED — Capital/Financing Update 2002

Dec 17, 2002

Mount Gibson Iron Limited

ABN 87 008 670 817

First Floor, 7 Havelock Street West Perth 6005, Western Australia

PO Box 55, West Perth WA 6872

Telephone: 61-8-9485 2355 Facsimile: 61-8-9485 2305 E-mail: admin@mtgibsoniron.com.au

18 December 2002

Mount Gibson Iron

1300 300 021 VIA FACSIMILE:

No. Pages $=$ 1

The Manager Company Announcements Australian Stock Exchange Limited Level 10, 20 Bond Street SYDNEY NSW 2000

END OF ESCROW PERIOD ON SHARES AND OPTIONS

Mount Gibson Iron Limited wishes to advise that the following shares and options will no longer be subject to escrow.

4,000,000 ordinary fully paid Shares issued to Kingstream Steel Limited (Subject to Deed of Company Arrangement) ("Kingstream") on 1 August 2002 as part payment for the Tallering Peak iron deposits were subject to a voluntary escrow period of up to 12 months. The voluntary escrow has been terminated early by mutual agreement, and as part of an agreement by Kingstream to subunderwrite \$2,125,000 of the Company's Rights Issue announced on 16 December 2002.

525,000 Options exerciseable at 25 cents each on or before 31 December 2003 were subject to escrow by the ASX when the Company was re-instated to official quotation in January 2002. The escrow period ends on 17 January 2003 and the Company will apply for listing of these Options on that date.

Yours sincerely, MOUNT GIBSON IRON LIMITED

Angela Dent Company Secretary

Mr Brian Johnson, Enquiries: Managing Director Telephone: 08-9485 2355 brianjohnson@mtgibsoniron.com.au E-mail: