MGX RESOURCES LIMITED — Capital/Financing Update 2005

Apr 3, 2005

VIA: WWW.ASX.ONLINE.COM

4 April 2005

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

No. Pages = $1$

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

SUBJECT: MOUNT GIBSON IRON LIMITED - NOTICE UNDER SECTION 708A(5)(e)

Mount Gibson Iron Limited ("Company") advises that in accordance with its announcement dated 24 March 2005, it has issued 20,000,000 fully paid ordinary shares at an issue price of \$0.85 per share ("New Shares"). The placement raised \$17 million before costs and expenses.

The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 ("Corporations Act") that:

• $(1)$ the Company issued the New Shares without disclosure to investors under Part 6D.2 of the Corporations Act:
• $(2)$ as at the date of this notice, the Company has complied with:
• $(a)$ the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and
• section 674 of the Corporations Act; and (b) -
• $(3)$ except as may be set out in this notice, as at the date of this notice there is no other information that is "excluded information" within the meaning of section 708A(7) of the Corporations Act which it is reasonable for investors and their professional advisers to expect to find in a disclosure document.

Signed for and on behalf of Mount Gibson Iron Limited

de

John Arbuckle Company Secretary

Enquiries: Mr Brian Johnson Managing Director Telephone: 61 8 9485 2355 Email: admin@mtgibsoniron.com.au