MGX RESOURCES LIMITED — Capital/Financing Update 2003

Feb 12, 2003

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

13 February 2003

Mount Gibson Iron

VIA FACSIMILE: 1300 300 021

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

No. Pages $=$ $\blacksquare$

TALLERING PEAK HEMATITE PROJECT - CONTRACT LET FOR IRON ORE STORAGE FACILITIES AT PORT OF GERALDTON

Mr Brian Johnson, Managing Director of Mount Gibson Iron Limited, announced today that the development phase of the Tallering Peak Hematite Project had commenced with the acceptance of the tender of Broad Construction Services Pty Ltd to design and construct iron ore storage facilities at the Port of Geraldton. Broad is a member of the Leighton Holdings Group and specialises in the construction of commercial and industrial buildings.

Engineering design will be undertaken immediately, with construction expected to commence in March 2003 and be completed by the end of August 2003.

The cost of the storage facilities will be approximately \$4,900,000.

The facilities will have the capacity to store up to 150,000 tonnes of iron ore under cover and will include a dust extraction system to comply with environmental requirements.

Mr Johnson said that the Geraldton Port Authority had recently appointed Engineers to modify their existing shiploader and materials handling systems to meet current environmental standards and with the current dredging program on schedule, all port facilities should be ready for shipping iron ore in the third quarter of 2003.

Yours sincerely, MOUNT GIBSON IRON LIMITED

Angela Dent Company Secretary

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