Mount Gibson Iron Limited

ABN 87 008 670 817

Level 1, 2 Kings Park Road

West Perth, 6005, Western Australia

PO Box 55, West Perth WA 6872

Telephone: 61-8-9426-7500

Facsimile: 61-8-9485 2305

E-mail: [email protected]

24 April 2019

High Grade Ore Sales Commenced from Koolan Island

Mount Gibson Iron Limited (Mount Gibson) is pleased to advise that it has recommenced sales of high grade iron ore from its Koolan Island operation, located approximately 140km north of Derby in the Kimberley region of Western Australia.

Loading of a cargo of approximately 72,000 wet metric tonnes of high grade hematite iron ore, averaging 65% Fe, aboard the bulk carrier MV S’Hail Al Mafyar (pictured) is currently nearing completion ahead of the vessel’s scheduled departure from Koolan Island later today for delivery to customers in China. Sales from Koolan Island are made on Free on Board (FOB) terms, upon shipment loading.

The resumption of high grade iron ore sales from Koolan Island is a key milestone for the Company’s flagship Koolan Island mine. Mount Gibson is now Australia’s highest grade exporter of direct-shipping hematite iron ore based on Ore Reserves in the Koolan Main Pit of 21 million tonnes grading 65.5% Fe, scheduled to be mined over the next 5.5 years (refer ASX announcement dated 20 April 2018).

This first shipment from Koolan Island follows two years of redevelopment and refurbishment work at the site, including the construction of a new seawall containing an impermeable seepage barrier, pit dewatering, footwall rehabilitation, pre-production waste mining, general site infrastructure refurbishment, and the recruitment and mobilisation of more than 300 employees and contractors.

Reflecting the Company’s focus on local participation and opportunity, indigenous employees account for more than 20% of the site workforce, including many from the Dambimangari People, the Traditional Owners of Koolan Island, with whom Mount Gibson has established a strong relationship over more than a decade. The Company also employs a substantial number of personnel from Broome and Derby.

Mount Gibson Chief Executive Officer Peter Kerr said: “It is very satisfying to bring the unique high-grade Koolan Island mine back into production after more than two years of dedicated effort by the Mount Gibson team. We also greatly appreciate the ongoing support from the Dambimangari community in achieving this milestone.

“The high grade and quality of Koolan Island’s direct-shipping hematite iron ore products means that they are well suited to China’s increasing focus on steel manufacturing productivity and environmental impacts, and will provide Mount Gibson with a solid platform from which to generate value well into the next decade.”

The MV S’Hail Al Mafyar being loaded with high grade direct-shipping hematite iron ore fines from Koolan Island, ahead of its scheduled departure for China.

Competent Person Statement

Koolan Island Main Deposit Ore Reserves

The information in this report relating to Ore Reserves at Koolan Island is based on information compiled by Brett Morey, a member of the Australasian Institute of Mining and Metallurgy. Mr Morey is a full-time employee of Mount Gibson Iron Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Morey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For full details of Koolan Island Main Pit Ore Reserves, refer Mount Gibson’s ASX release dated 20 April 2018.

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