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: 61-8-9485 2355 Facsimile: 61-8-9485 2305 E-mail: [email protected]

20 January 2003

VIA FACSIMILE: 1300 300 021

No. Pages $=$ 7

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

SUBJECT: APPENDIX 3B

Please find attached an Appendix 3B for quotation of 525,000 options whose escrow period has ended.

Yours sincerely, MOUNT GIBSON IRON LIMITED

Angela Dent Company Secretary

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement. application for quotation of additional securities and agreement

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 1/7/96. Origin: Appendix 5. Amended 1/7/98. 1/9/99. 1/7/2000. 30/9/2001. 11/3/2002.

Name of entity

MOUNT GIBSON IRON LIMITED

ABN

87 008 670 817

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be $\frac{1}{2}$ $N/A$ issued

Number of ⁺securities issued or to $\overline{2}$ be issued (if known) or maximum number which may be issued

Principal terms of the "securities (eg, 3 if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if ⁺convertible securities, the conversion price and dates for conversion)

Do the ⁺securities rank equally in all 4 respects from the date of allotment with an existing ⁺class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do the extent to which they participate for the next dividend. (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) $\overline{7}$ Dates of entering ⁺securities into uncertificated holdings or despatch of certificates ⁺Class Number Number and ^-class of all 8 $+$ securities quoted on ASX (including the securities in clause 2 if applicable) Number ^*Class Number and ⁺class of all 9 *securities not quoted on ASX (including the securities in clause 2 if applicable) $10$ Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

TO ASX ANNOUNCEMNT

Part 2 - Bonus issue or pro rata issue

approval $\int N/A$ $11$ $Is$ security holder required? Is the issue renounceable or non- $12₁₂$ renounceable? Ratio in which the 'securities will 13 be offered ⁺Class of ⁺securities to which the 14 offer relates *Record determine 15 date to entitlements Will holdings on different registers 16 (or subregisters) be aggregated for calculating entitlements? Policy for deciding entitlements in 17 relation to fractions Names of countries in which the 18 entity has *security holders who will not be sent new issue documents. 19 Closing date for receipt -of acceptances or renunciations 20 Names of any underwriters Amount of any underwriting fee or 21 commission Names of any brokers to the issue 22 Fee or commission payable to the 23 broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of *security holders If the issue is contingent on 25 *security holders' approval, the date of the meeting

26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to
	persons entitled
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
28	Date rights trading will begin (if
	applicable)

29	Date rights trading will end (if applicable)
30	How do *security holders sell their
	entitlements in full through a, broker?

31	How do *security holders sell part of their entitlements through a broker and accept for the balance?

32	How do "security holders dispose of their entitlements (except by sale through a broker)?

33	*Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities (tick one)
$(a)$

Securities described in Part 1 (B only)

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

(If the additional securities do not form a new class, go to 43) Tick to indicate you are providing the information or documents

If the *securities are *equity securities, the names of the 20 largest holders of the additional *securities, and the number and percentage of additional *securities held by

36 If the ⁺securities are ⁺equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1.000$ $1,001 - 5,000$ 5,001 - 10,000 $10,001 - 100,000$ 100,001 and over

Yes

A copy of any trust deed for the additional +securities

Entities that have ticked box 34(b)

38 Number of securities for which $\frac{1}{2}$ 525,000 ⁺quotation is sought

39 Class of ⁺securities for which quotation is sought

40 Do the ⁺securities rank equally in all respects from the date of allotment with an existing *class of quoted *securities? If the additional securities do not

rank equally, please state:

the date from which they do
the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Options escrowed to 16/1/03

41 Reason for request for quotation | Escrow period ended now
42 Number and ⁺class of all ⁺securities quoted on ASX (including the securities in clause 38)

Number	⁺ Class
110,001,508	Ordinary Shares
20,438,887	Options
	(Does not include
	proposed shares and
	options pursuant to
	Rights Issue as.
	announced 16/12/02)

All entities

Fees

$43$ Payment method (tick one) Cheque attached

Electronic payment made

Periodic payment as agreed with the home branch has been arranged

Quotation agreement

$\mathbf{1}$ *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
$\overline{2}$ We warrant the following to ASX.
The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
There is no reason why those 'securities should not be granted 'quotation. $\bullet$
An offer of the ⁺securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any 'securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the 'securities to be quoted, it has been provided at the time that we request that the +securities be quoted.
If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
We will indemnify ASX to the fullest extent permitted by law in respect of any 3 claim, action or expense arising from or connected with any breach of the warranties in this agreement.
We give ASX the information and documents required by this form. If any 4 information or document not available now, will give it to ASX before +quotation of the 'securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

................................ Date: 20 January 2003 (Director/Company Secretary)

Print name:

Angela M Dent

AI assistant

MGX RESOURCES LIMITED Share Issue/Capital Change 2003