MGX RESOURCES LIMITED — Investor Presentation 2012

Jun 20, 2012

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

MOUNT GIBSON IRON LIMITED
----- End of picture text -----

1

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Disclaimer
----- End of picture text -----

This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited.

This Document is not a Prospectus nor an Offer to Subscribe for Shares.

Mount Gibson Iron Limited and its subsidiaries (“ MGI ”) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGI and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that cannot be excluded.

This document contains reference to certain forecasts, projections, intentions, expectations and plans of MGI, which may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ.

The performance and operations of MGI may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGI and its directors.

No representation or warranty (expressed or implied) is made by MGI or any of its respective directors, officers, employees, advisers or agents that any forecasts, projections, intentions, expectations or plans set out in this document will be achieved, either totally or partially, or that any particular rate of return will be achieved.

Investments in shares in MGI is considered highly speculative.

2

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Company overview
----- End of picture text -----

Australia based multi-operation quality hematite iron ore producer exporting to China

• …...

• Leadership renewal

• Board and Management

• ………………….

• Quality assets Optimising existing opportunities

• …….…..

• Financial position Strong balance sheet and cash flow

• generation

• ………………………………..

• Strategy

• Positioning for growth

Four key areas driving future corporate value

3

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Company overview
----- End of picture text -----

Currently Australia’s fifth largest iron ore exporter by volume

• Issued capital

• Market cap[1]

• Cash @ 31 Dec 2011

• Total debt[2]

• Index

• Finance facilities

1085.5 million shares, 2 million options A$944 million

A$421 million

nil

S&P/ASX 200

A$115m (equipment leases and A$65m contingent debt)

Financials(year ended 30 June)	Financials(year ended 30 June)		2007	2008	2009	2010	2011	1stH 2012
•	Sales volume	MWMT	2.5	5.5	5.4	6.5	5.2	2.84
•	Sales	A$ m	163	433	425	536	672	377
•	NPAT	A$ m	483	113	43	132	239	121
•	EPS	cps	7.4	14.1	4.6	12.3	22.1	11.4

Shareholders

• APAC Resources 27.4%

• Shougang Fushan 15.1%

Institutions represent ~34% of total shareholding

Notes:

• 1 Share price of $0.87 as at 19 June 2012

• 2 As at 31 December 2011

• 3 Includes $19 million NPAT on sale of magnetite project

4

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Leadership renewal
----- End of picture text -----

Board – Renewal well underway with mining, construction and M&A experience

• Geoffrey Hill - Chairman

• • Russell Barwick

• Paul Dougas

• Alan Jones

• Li Shaofeng

• Chen Zhouping

• Lee Seng Hui

• Simon Bird

Management – Senior executive skills base being broadened

• Jim Beyer

• David Stokes

• Alan Rule

• CEO, formally appointed to role in May 2012 Company Secretary and General Counsel CFO, executive search for successor well advanced

• Dedicated Human Resources, External Relations, Health & Safety managers appointed

• • Increasing exploration experience base

The organisation’s capability continues to be strengthened

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets – optimising existing opportunities
----- End of picture text -----

==> picture [313 x 434] intentionally omitted <==

Koolan Island – up to 4 Mtpa production

• Reserves 32.1 Mt at 64% Fe, low contaminants (at 30 June 2011)

• Commenced mining premium Main Pit ore in November 2011

• Planning underway to define pathway from ~3Mtpa to ~4Mtpa

• Transition to owner mining complete

Mid West Region Tallering Peak, Extension Hill & Geraldton Port facilities Up to 6 Mtpa production region

Tallering Peak

Extension Hill

• Reserves 5.4 Mt at 61.2% Fe (at 30 June 2011)

• Reserves 14.5 Mt at 59.5% Fe (at 30 June 2011)

• Targeting ~2.5 Mt production in FY2013

• Annual production ~3Mtpa

• Road and rail commenced November 2011

• Strip ratio reduces significantly after FY2012

• First ore sales Dec 2011

• Strong cash generating asset over next 12 months

• Low strip ratio

• Operationally robust and conventional

• T1 area – potential 3-9 months additional production

• • T1 drilling underway

• Immediate cash generator

• • Mt Gibson Range DSO upside

6

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets - Koolan Island
----- End of picture text -----

• Mount Gibson’s flagship asset

• Premium products

• Simple logistics – no rail, standalone shiploading facilities

• Remaining mine life of ~8years at ~3Mtpa

• Detailed planning underway to define pathway to ~4Mtpa

• Transition to owner mining complete

• Main Pit now primary ore source

==> picture [489 x 227] intentionally omitted <==

==> picture [236 x 123] intentionally omitted <==

==> picture [241 x 121] intentionally omitted <==

7

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets - Koolan Island
----- End of picture text -----

• Main Pit the mainstay of production

• • Seawall complete late 2011

• Main Pit mining commenced late 2011

• • Mining currently focused in western end of Main Pit

• Dewatering to open up reserves in central and eastern areas of Main Pit

• • Satellite pits at Mullet Acacia, Acacia East

==> picture [512 x 325] intentionally omitted <==

----- Start of picture text -----

Acacia East
(planned) East Pit
Mullet Acacia (completed)
Barramundi
(completed)
Main Pit
Current
mining area
----- End of picture text -----

8

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets – Mid-West
----- End of picture text -----

==> picture [573 x 427] intentionally omitted <==

9

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets – Geraldton Port
----- End of picture text -----

• Port facility upgrades completed May 2012

• Significantly reduces rail/shipping constraints

• MGI nominal export capacity doubled to 6Mtpa

• Rail unloader commissioning and ramp-up commenced midMay 2012

• Nominal rail unloader capacity 3,000tph

• 240,000t MGI Shed 5 commissioned April 2012

• Total MGI port storage capacity trebled to 360,000t (6 Panamax shipments)

• 50 year lease - valuable long term asset

==> picture [495 x 331] intentionally omitted <==

----- Start of picture text -----

Rail Unloader
MGI
Shed
MGI
4
Shed 5
----- End of picture text -----

A strategic asset, essential to get product to market

10

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets – Extension Hill
----- End of picture text -----

• First ore sales December 2011

• Diversified customer base (Glencore, Rizhao Steel)

• Simple, low cost operation, life of mine strip ratio ~1:1

• Strong cash generator

• Significant stockpiles built up during port/rail works

• ~5 year life at 3Mtpa

• Potential to exceed 3Mtpa

• DSO potential in Mt Gibson Range

==> picture [168 x 186] intentionally omitted <==

==> picture [282 x 185] intentionally omitted <==

==> picture [483 x 206] intentionally omitted <==

11

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Quality assets – Tallering Peak
----- End of picture text -----

• Mining scheduled for completion in mid 2013

• • Targeting ~2.5Mt production in FY’13

• • Heritage approval granted to access T1 prospect

• • 50 hole RC drilling program at T1 underway

• • Potential 3-9 months T1

• additional production at T1

• • Shipping from low-grade stockpiles to continue into FY’14

12

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Strategy – Positioning for Growth
----- End of picture text -----

Optimising existing business, getting set for M&A and exploration-driven growth

PRIORITIES

• Build up and establish new executive team

• Optimise existing assets to maximise cash generation

• Reinvigorate the exploration strategy in footprint and farm-in opportunities, particularly to capitalise on export capacity in Mid West

• Evaluate opportunities in carbon steel materials in Australia and overseas — Target assets that:

o complement existing business o lift Mount Gibson production to +10 Mtpa o extend production profile (>15 years) and lower cost o produce quality sought-after products o are at pre-feasibility or feasibility stage o can be funded and developed from internal strong cash flows

13

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Summary
----- End of picture text -----

Disciplined business strategy

Mount Gibson has…

First mover status & access to  existing infrastructure

 Proven operational performance

 Divested high risk, high cost and capitally intensive assets  Focused growth plan  Protected the business in adverse market environment

Strong cash flow generation

 Established DSO products

 Growing FY2013 production profile Clean & strong balance sheet

Reinvestment of capital for growth

— organic (exploration, development) — M&A

Or return to shareholders

14

==> picture [780 x 85] intentionally omitted <==

----- Start of picture text -----

Attributions
----- End of picture text -----

The information in this report relating to Mineral Resources is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy. Rolf Forster is a consultant to Mount Gibson Mining Limited, and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rolf Forster has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

The information in this report relating to Mining Reserves is based on information compiled by Rolf Forster and Weifeng Li, who are both members of the Australasian Institute of Mining and Metallurgy. Rolf Forster and Weifeng Li are consultants to Mount Gibson Mining Limited, and have sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking, to each qualify as a Competent Person as defined in the December 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rolf Forster and Weifeng Li have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears.

15