MGX RESOURCES LIMITED — Capital/Financing Update 2014

Mar 6, 2014

==> picture [595 x 77] intentionally omitted <==

----- Start of picture text ----- SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE7 March 2014----- End of picture text -----

GINDALBIE FURTHER STRENGTHENS CASH RESERVES AFTER COMPLETING SALE OF SHINE PROJECT TO MT GIBSON IRON

Upfront cash payment of $12M received following satisfaction of all conditions precedent

Gindalbie Metals Limited (ASX: GBG – “Gindalbie”) is pleased to advise that the previously announced sale of its 100%-owned Shine Hematite DSO Deposit, located 40km north-east of the Karara Project, to Mount Gibson Iron Limited (ASX: MGX) has been completed, with the Company receiving the $12 million cash consideration.

Mt Gibson reached agreement to acquire the iron ore rights over the Shine tenements in December last year for total consideration of $15 million plus a trailing price participation royalty. In addition to the $12 million upfront payment, a further milestone payment of $3 million is due on the first commercial sale of iron ore – effectively a non-refundable pre-payment on the price participation royalty.

Under this royalty, on a month average for every A$1 the Platt’s 62% price is above A$115 per tonne Gindalbie will receive an additional A$0.20 per tonne sold with the $3 million having been prepaid under the milestone payment.

The sale crystallises significant upfront value for one of Gindalbie’s 100%-owned assets in the Midwest region and represents a positive outcome for shareholders. The proceeds of the sale will further strengthen Gindalbie’s balance sheet, and increase its cash resources which stood at $35.5 million at the end of the December 2013 Quarter.

The sale of the Shine Project is consistent with the continued focus on completing the ramp-up of the Karara magnetite project to Stage 1 capacity.

ENDS

On behalf of:

Released by : Nicholas Read Read Corporate Telephone: (+61-8) 9388 1474 Mobile: (+61) 419 929 046

Mr Dale Harris Managing Director

Mr Michael Weir Manager Corporate and Investor Relations Telephone: (+61-8) 9480 8700 www.gindalbie.com.au

==> picture [595 x 56] intentionally omitted <==

----- Start of picture text ----- Level 9, London House PO Box 7200, Cloisters Square, T: +61-8 9480 8700 ASX: GBG216 St Georges Tce Perth PERTH Western Australia 6850 F: +61-8 9480 8799 Issued Shares: 1.49BWestern Australia, 6000 W: www.gindalbie.com.au E: gbg@gindalbie.com.au----- End of picture text -----