Mount Gibson Iron : Global Iron Ore & Steel Forecast Conference Presentation

Mount Gibson Iron

Exporting Australia's highest grade direct shipping iron ore

MGX

Global Iron Ore & Steel Forecast Conference

20 March 2019

Cautionary Statements & Disclaimer

This presentation has been prepared by Mount Gibson Iron Limited (ASX:MGX, "MGX"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in MGX or as an inducement to make an offer or invitation with respect to MGX securities in any jurisdiction. This Document is not a Prospectus nor an Offer to Subscribe for Shares.

This presentation contains general summary information about MGX. The information, opinions or conclusions expressed in this presentation should be read in conjunction with MGX's other periodic and continuous disclosure announcements lodged with the ASX, which are also available on the MGX website.

MGX and its subsidiaries make no representations or warranties (express or implied) as to the accuracy, reliability or completeness of this document. MGX 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 MGX, 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 MGX may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGX and its directors. No representation or warranty (expressed or implied) is made by MGX 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 MGX shares are considered highly speculative.

All currency is expressed in Australian Dollars unless otherwise specified.

Mount Gibson Iron

Business Overview - Long-standing mid-tier iron ore producer

Koolan Island

• • Australia's highest grade direct shipping (DSO) hematite mining operation.

• • Ore Reserves of 21.0Mt @ 65.5% Fe.*

• • Seawall seepage barrier completed mid-2018, dewatering nearing completion and initial mining proceeding well.

• • First ore sales expected in April 2019.

• • Projected FY2019 ore sales of 0.7-1.0 Mwmt.

• Mid-West Region

  Extension Hill & Iron Hill, Perenjori Siding, Geraldton Port

• • FY2019 guidance for DSO sales of 2.0-2.3 Mwmt at an average site cash cost of $38-42/wmt FOB.

• • Mining completed in December 2018, with final DSO shipments made in February 2019.

• • Total site closure costs provisioned at ~$15m, of which ~$7m is anticipated to be spent in FY2019.

• • Right earned to a future income stream based on third party rail volumes, capped at ~$35 million.

*Refer ASX release dated 20 April 2018, and slide at end of this presentation.

Mount Gibson Iron Corporate Overview

Market capitalisation Issued capital Shareholders

Cash and investments Borrowings

A$1.0 billion (at $0.91/share, 19 March 2019)

1,128.4 million shares 10,300

A$431 million (31 December 2018)

Nil

Index

ASX-300 (admitted from 18 March 2019)

1.00

0.90

0.80

0.70

0.60

0.50

0.40

0.30

0.20

0.10 -

Shareholder Distribution (% issued shares)

APAC ResourcesAustralia/NZ Institutions

Shougang Fushan

Australian Retail

North America

UK & Europe

Management

Other

Board and Management

• • Lee Seng Hui - Non-Executive Chairman

• • Simon Bird - Independent Non-Executive Director

• • Russell Barwick - Independent Non-Executive Director

• • Paul Dougas - Independent Non-Executive Director

• • Alan Jones - Independent Non-Executive Director

• • Li Shaofeng - Non-Executive Director

• • Peter Kerr - CEO

• • Scott de Kruijff - COO

• • Gill Dobson - CFO

• • David Stokes - Co. Sec. & General Counsel

Mid West

Successful business now transitioning to closure

• • Total ore sales from Extension Hill/Iron Hill in the Dec-18 half year of 2.2 Mwmt.

• • Mining finished in December 2018, railing ended in late January 2019, and final DSO cargoes completed in February 2019.

• • Investigating the possible sale of low grade stockpiles.

• • Now transitioning to closure after 15 years of continuous production and total sales of +45Mt.

• • Total closure and rehabilitation costs of $15 million, including redundancy costs, of which ~$7m is anticipated to be spent in FY2019.

• • Right earned to a future income stream based on third party rail volumes, capped at ~$35 million.