Fortescue Metals : launches share buy-back program

11 October 2018

The Companies Officer

Australian Securities Exchange Ltd

Level 40, Central Park

152-158 St Georges Terrace Perth WA 6000

Dear Madam or Sir

FORTESCUE LAUNCHES SHARE BUY-BACK PROGRAM

Fortescue Metals Group Ltd (Fortescue) (ASX: FMG) today announced that it will establish an on-market share buy-back program of up to A$500 million (US$355 million at current exchange rates). This share buy-back program is expected to commence after the release of the Company's Quarterly Report

on 25 October 2018 and to remain in place for a period of up to 12 months.

Fortescue's Chief Executive Officer Elizabeth Gaines said, "The share buy-back program is a natural extension of our capital allocation focus which has now clearly shifted from debt reduction following the rapid de-gearing of the balance sheet and the successful execution of our capital management strategy.

"With our continued strong operating performance and new investments underway, the purchase of our own shares, funded out of operating cash flows, maintains our disciplined balance sheet management.

This is consistent with our clear business strategy of investing in our core iron ore business while pursuing growth and development and delivering returns to our shareholders."

The buy-back program does not require shareholder approval as it will be within the '10/12 limit' permitted by the Corporations Act 2001.

The number and timing of shares purchased will depend on Fortescue's share price and market

conditions. All ordinary shares purchased pursuant to the share buy-back program will be cancelled. Fortescue reserves the right to vary, suspend or terminate the buy-back program at any time.

Particulars of the share buy-back program are set out in the Appendix 3C attached to this announcement.

Yours sincerely

Fortescue Metals Group Ltd

Cameron Wilson

Company Secretary

Media contact: Michael Vaughan Fivemark Partners

Investor Relations contact:

Stuart Gale

E:[e-mail] M: [phone]

E:[e-mail]

Fortescue Metals Group Limited ABN 57 002 594 872

PO Box 6915

Level 2, 87 Adelaide Terrace

East Perth, Western Australia P [phone]

East Perth, Western Australia 6004

[e-mail]

Appendix 3C

Announcement of buy-back

Appendix 3C

Announcement of buy-back

Appendix 3C

Announcement of buy-back (except minimum holding buy-back)

Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/9/99. Origin: Appendix 7B. Amended 13/3/2000, 30/9/2001, 11/01/10

Name of entity

Fortescue Metals Group LimitedWe (the entity) give ASX the following information.

Information about buy-back

1

Type of buy-back

On-Market

Rule 3.8A

ABN/ARSN57 002 594 872

2

+Class of shares/units which is the Ordinary Shares subject of the buy-back (eg, ordinary/preference)

3

Voting rights (eg, one for one)

One for one

4

Fully paid/partly paid (and if Fully paid partly paid, details of how much has been paid and how much is outstanding)

5

Number of shares/units in the 3,113,798,151 +class on issue

6

Whether shareholder/unitholder No approval is required for buy-back

7

Reason for buy-back

On-going capital management

+ See chapter 19 for defined terms.

Appendix 3C

Announcement of buy-back

8

Any other information material to None apart from any information publicly disclosed by the Company through the ASX on or prior to the date of this notice.

a shareholder's/unitholder's decision whether to accept the offer (eg, details of any proposed takeover bid)

On-market buy-back

• 9 Name of broker who will act on the Macquarie Bank company's behalf

• 10 Deleted 30/9/2001.

• 11 If the company/trust intends to Up to that number of shares for which the total buy- buy back a maximum number of shares - that number

  back consideration paid or payable is AUD$500 million.

  Note: This requires a figure to be included, not a percentage.

  The Company reserves the right to suspend or terminate the buy-back at any time.

• 12 If the company/trust intends to Up to 12 months buy back shares/units within a period of time - that period of time; if the company/trust intends that the buy-back be of unlimited duration - that intention

• 13 If the company/trust intends to N/A buy back shares/units if conditions are met - those conditions

Employee share scheme buy-back

14	Number of shares proposed to be	N/A
bought back
15	Price to be offered for shares	N/A

+ See chapter 19 for defined terms.

Appendix 3C

Announcement of buy-back

Selective buy-backEqual access scheme

16	Name of person or description of
class of person whose shares are
proposed to be bought back
17	Number of shares proposed to be
bought back
18	Price to be offered for shares

N/A
N/A
N/A
19	Percentage of shares proposed to	N/A
be bought back
20	Total number of shares proposed	N/A
to be bought back if all offers are
accepted
21	Price to be offered for shares	N/A
22	N/A

+Record date for participation in offer

Cross reference: Appendix 7A, clause 9.

Compliance statement

1.

The company is in compliance with all Corporations Act requirements relevant to this buy-back.

or, for trusts only:

• 1. The trust is in compliance with all requirements of the Corporations Act as modified by Class Order 07/422, and of the trust's constitution, relevant to this buy-back.

• 2. There is no information that the listing rules require to be disclosed that has not already been disclosed, or is not contained in, or attached to, this form.

Sign here:

............................................................ Date: 11 October 2018 (Director/Company secretary)

Print name:Cameron Wilson

+ See chapter 19 for defined terms.