MGX RESOURCES LIMITED — Capital/Financing Update 2022

Jun 30, 2022

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ASX ANNOUNCEMENT

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Mount Gibson Iron Limited

ABN 87 008 670 817

Level 1, 2 Kings Park Road West Perth 6005, Western Australia PO Box 55, West Perth WA 6872 Telephone: 61-8-9426-7500 Facsimile: 61-8-9485 2305 E-mail: admin@mgx.com.au

ASX Code : MGX

1 July 2022

June 2022 Quarter Production Update

• Ore production and shipping volumes at Koolan Island have increased significantly as mining access to the high grade Main Pit orebody steadily expanded over the June 2022 quarter, in line with the mine plan.

• Quarterly ore sales trebled to 0.71 million wet metric tonnes (Mwmt) for the June quarter in comparison to the previous quarter, taking Group full year ore sales to 1.65 Mwmt, including 1.35 Mwmt from Koolan Island. Mount Gibson was targeting sales of 1.5 Mwmt from Koolan Island for the 2021/22 financial year and the two-shipment shortfall is expected to be recouped in the coming half-year.

• Shipping grades increased steadily over the June quarter and are now consistently around 65% Fe , in line with the mining and sales plan.

• Mount Gibson Iron Limited (• The waste to ore mine stripping ratio at Koolan Island continued to reduce during Mount Gibson ) provides the following ore sales information for the June quarter 2022, ahead of the planned release of the June Quarter Activities Report in mid-July. the quarter and is currently around 5:1 with the average for the June 2022 half-year being slightly above 7:1. This compares with the stripping ratio of 17:1 in the December 2021 half-year period. The waste:ore stripping ratio is forecast to reduce further to average approximately 2:1 in the coming 2022/23 financial year, being around 3.5:1 in the first half and 1:1 in the second half.

  • The June 2022 Quarterly Activities Report will be released in the second half of July 2022.

Mount Gibson Chief Executive Officer Peter Kerr said: “We are pleased to confirm the continuing operational improvement at Koolan Island where we remain on track to deliver substantially improved sales, cost performance and cashflow over the coming four to five years of mine life.”

As previously reported, Mount Gibson has largely completed the elevated phase of waste stripping within the Koolan Island Main Pit and has re-established mining access to the high grade orebody.

Ore sales trebled in the June 2022 quarter to nine shipments, totalling over 0.7 Mwmt (up from 0.2 Mwmt in the March 2022 quarter), and shipped grades steadily improved. Three of four shipments completed in the month of June averaged 65% Fe, compared with an average of 63% Fe for other shipments in the quarter. Shipments are now expected to consistently average circa 65% Fe going forward.

Group ore sales for the year totalled 1.65 Mwmt, comprising 1.35 Mwmt from Koolan Island and 0.30 Mwmt from the Shine operation in the Mid-West.

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Sales at Koolan Island for the 2021/22 financial year were slightly lower than the 1.5 Mwmt target by two shipments due to mining delays as ground support work was completed in certain areas, and also as a result of adverse productivity impacts from COVID-related personnel absenteeism. Mining performance has improved through June and COVID-related absenteeism, which peaked at approximately 15% in May, has returned to under 5% in line with Western Australian community infection rates and success of the site’s COVID-related procedures.

Mount Gibson continues to expect Koolan Island to deliver substantially higher ore production, sales and operating cashflows in the coming quarters and 2022/23 financial year. Guidance for the coming financial year will be provided with the Company’s upcoming financial releases, including its 2021/22 annual financial results to be published in August.

Full details of Mount Gibson’s June 2022 quarter and full year operating performance will be available in the Company’s June Quarter Activities Report scheduled for release in the second half of July.

Authorised by: Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +61-8-9426-7500

For more information: John Phaceas Manager Investor & External Relations +61-8-9426-7500 +61-(0)411-449-621

www.mtgibsoniron.com.au

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