MGX RESOURCES LIMITED — Share Issue/Capital Change 2006

Sep 19, 2006

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

VIA: WWW.ASX.ONLINE.COM

19 September 2006

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

Dear Sir

Notice under section 708A(5)(e) of the Corporations Act 2001 (Cth)

Mount Gibson Iron Limited (Mount Gibson) seeks to rely on section 708A(5) of the Corporations Act 2001 (Cth) (the Act) and gives notice under section 708A(5)(e) of the Act of the following details:

• on 19 September 2006 Mount Gibson issued 53,010,640 new Mount Gibson shares (Shares) to Cambrian Mining plc (Cambrian) in exchange for 159,031,192 shares in Aztec Resources Limited pursuant to a call option agreement between Mount Gibson and Cambrian:
• Mount Gibson issued the Shares without disclosure to investors under Part 6D.2 of the Act:
• as at the date of this notice, Mount Gibson has complied with:
• the provisions of Chapter 2M of the Act as they apply to Mount Gibson; and
• section 674 of the Act: and $\bullet$
• as at the date of this notice, there is no information to be disclosed that is 'excluded information' within the meaning of and as required by sections 708A(7) and (8) of the Act.

Yours sincerely. MOUNT GIBSON IRON LIMITED

Holden

Luke Tonkin Managing Director

Enquiries:

Mr Luke Tonkin Managing Director Telephone: 61 8 9426-7500 Email: admin@mtgibsoniron.com.au or

Mr Alan Rule Finance Director