MGX RESOURCES LIMITED — Major Shareholding Notification 2006

Nov 13, 2006

Mount Gibson Iron Limited

ARN 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

13 November 2006

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir / Madam

Russian resources giant joins Mount Gibson share register after Cambrian sale of 19.9% stake

Mount Gibson Iron Limited (Mount Gibson) (ASX Code: MGX) notes the announcement today by Cambrian Mining Plc (Cambrian) that it has entered into an agreement to sell its 19.9% shareholding in Mount Gibson at 90c a share.

Mount Gibson understands that, subject to registration formalities being completed, the acquirer of the 109.7 million shares from Cambrian is Gallagher Holding Limited, the holding company of Russian resources giant, the Metalloinvest Group (Metalloinvest).

The unlisted Metalloinvest is Russia's largest iron ore producer with approximately 39% of total concentrate, pellet and hot briquette production and the country's fifth largest steel producer with two integrated steel operations.

Mr Tonkin advised: "We are very pleased to have Metalloinvest as the major shareholder in Mount Gibson. Metalloinvest clearly has extensive experience in the iron ore and steel industry. The company has already advised us of their strong support of Mount Gibson's current management and strategy, including the acquisition of Aztec Resources Limited."

He added: "The financial strength of Metalloinvest will greatly assist Mount Gibson in being a leading participant in any further rationalisation that may occur in the Australian iron ore industry."

Commenting on Mount Gibson's bid for Aztec Resources Limited, Mr Tonkin said: "Given that Metalloinvest's agreement with Cambrian effectively values Mount Gibson's offer for Aztec at 30 cents per Aztec share ¹, Aztec shareholders should be asking the Aztec board how it continues to justify its recommendation to reject the Mount Gibson offer."

Yours faithfully MOUNT GIBSON IRON LIMITED

Luke Tonkin Director

^<sup>1 based on the Metalloinvest acquisition of Mount Gibson shares at 90 cents per Mount Gibson share