MGX RESOURCES LIMITED — Director's Dealing 2006

Jan 16, 2006

VIA: WWW.ASX.ONLINE.COM

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: 61-8-9426-7500 Facsimile: 61-8-9485 2305 E-mail: admin@mtgibsoniron.com.au

17 January 2006

No. Pages $= 3$

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

APPENDIX 3Y NOTICE

Please find attached an Appendix 3Y Notice for a Director of Mount Gibson Iron Limited, Mr Brian Johnson, following the transfer of 5,000,000 Mount Gibson Iron Limited Options, which will not vest until 31 December 2006, to a family trust controlled by his wife.

Yours sincerely, MOUNT GIBSON IRON LIMITED

$\mathscr{D}^2$

Angela Dent Company Secretary

Rule 3.19A.2

Appendix 3Y Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

Name of entity	MOUNT GIBSON IRON LIMITED
JABN	87 008 670 817

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Brian Godfrey Johnson
Date of last notice	27 May 2005

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
Date of change	13 January 2006
No. of securities held prior to change	A: 5,000,000 B: 5,000,000
Class	A: unlisted options exercisable after 31 December 2005 (providing continuing as a Director on that date) and on or before 31 December 2007 at 50 cents B: unlisted options exercisable after 31 December 2006 (providing continuing as a Director on that date) and on or before 31 December 2008 at 55 cents
Number acquired
Number disposed	B: 5,000,000
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	\$350,000

⁺ See chapter 19 for defined terms.

No. of securities held after change	A: $5,000,000$
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Sale of options to Mr Johnson's wife's family trust

Part 2 - Change of director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract
Nature of interest
Name of registered holder
(if issued securities)
Date of change
No. and class of securities to which
interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value/Consideration Note: If consideration is non-cash, provide details and
an estimated valuation.
Interest after change

$+$ See chapter 19 for defined terms.