5/ 05/ 2008 Investor Presentation May 2008 1
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a Prospectus nor an Offer to S ubscribe for S hares. Mount Gibson Iron Limited and its subsidiaries (“ MGI” ) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGI and its respective directors, employees, agents and consultants shall have no liability (including liabilit y 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, proj ections, intentions, expectations and plans of MGI, 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 MGI may be influenced by a number of fact ors, uncertainties and contingencies many of which are outside the control of MGI and its directors. No representation or warranty (expressed or implied) is made by MGI or any of its respective directors, officers, employees, advisers or agents that any forecasts, proj ections, 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 shares in MGI is considered highly speculative. 2 5/ 05/ 2008
Company overview Corporate • Issued capital 803.3 million shares, 10.8 million options Market cap 1 • A$2,192 million Cash 2 • A$42 million • Total debt 2 A$93 million • EV A$2,141 million • Index S&P/ASX 200 • Finance facilities A$200m (includes A$25m contingent debt) Financials 2005 2006 2007 2008 (6 mths) • Sales volume M WMT 1.9 1.4 2.5 2.6 • Sales 77 73 163 177 A$ m • NPAT 14 23 48 3 32 A$ m Shareholders Represents 75% of shareholding • APAC Resources20% Top 50 Shareholders Other 5% Corporate 31% Notes: 1 S hare price of $2.73 as at 18 April 2008 2 As at 31 Dec 2007 Institutional 3 5/ 05/ 2008 3 Includes $19 million NPAT on sale of magnetite proj ect 64%
Mount Gibson key event timeline $4.00 3 $3.50 $3.00 Shares Trading Price (A$) Mount Gibson Ordinary $2.50 $2.00 2 $1.50 1 $1.00 $0.50 $0.00 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Tallering Peak production commences Production stabilised & growth explored Koolan Island production commences 8 Jan 2004: Mining of hematit e ore 8 July & Oct 2006: new CFO and CEO 8 Apr 2007: Mining reserves and mineral commenced at Tallering Peak Iron Mine resources increased by 78% and 132% 8 Feb 2006: Completes feasibility study for respectively 8 S ep 2004: Maiden full year profit 5mtpa magnetite proj ect (Asia Iron) 8 Jun 2007: Off-take agreement signed with announced 8 Jun 2006: 73% interest in Asia Iron Rizhao for up to 1.5Mtpa from Koolan Island; 8 Jan 2005: Tallering Peak production Holdings and its magnetite proj ect sold first iron ore shipment from Koolan Island expect ed to exceed budget of 1.8Mt pa, 8 Jul 2006: Launches takeover offer for producing 2.0Mtpa 8 Aug 2007: Extension hill DFS completed Aztec Resources 8 March 2005: Announces profits of $6.1m for 8 Oct 2007: 69% sales increase due to 8 Dec 2006: Announces compulsory the H1 FY05 and revises profit forecast for increased iron ore prices & production acquisition of remaining Aztec shares H2 FY05 to $15.0m 8 Mar 2008: Iron ore prices increase 8 Apr 2008: S ale of Gazmetall’ s stake Source: Bloomberg; ASX company announcements 4 5/ 05/ 2008
Key investment themes 1 Quality assets 2 S olid growth profile 3 Earnings leverage to strong iron ore price outlook 4 Disciplined financial strategy & strong performance 5 Experienced - disciplined Board & executive team with proven track record … Mount Gibson has a solid investment case 5 5/ 05/ 2008
Quality assets 1 Koolan Island - production Tallering Peak - production Extension Hill - near-term production 6 5/ 05/ 2008
Quality assets 1 Main Range Pits looking west at end of March 2008 Tallering Peak • S imple process – mine, crush, road, rail and load vessels • First hematite ore shipped Feb 2004 • Producing 3 Mtpa • 65% Lump & 35% Fines ratio • Quality high grade, low 12 months 12 months 9 months Annualised contaminant product 2005-2006 2006-2007 2007-2008 Variance ‘000 ‘000 ‘000 % • Access to installed Ore Mined wmt 1,122 2,932 2,682 22% infrastructure Ore Crushed wmt 1,608 2,711 2,383 17% Shipped wmt 1,386 2,312 1,876 8% 7 5/ 05/ 2008
Quality assets 1 Extension Hill • Under development – first ore shipped June qtr 2009 • Low capital cost: $100m • S imple process – mine, crush, road, rail and load vessels • 3 Mtpa production rate • Low strip ratio – 0.7:1 • 50% Lump & 50% Fines ratio • Quality grade, low contaminant, high LOI ore Extension Hill development timeline • Convert resources to reserves 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 • Operationally robust and Environment approval straightforward Infrastructure development Mine development • Immediate cash generator First ore shipped 8 5/ 05/ 2008
5/ 05/ 2008 Koolan Island provides significant upside potential … 9 Quality assets 1
Quality assets 1 Koolan Island Crushing, port & ship-loading facilities • Ex BHP mine – closed 1992 • Mine, crush and shipload • First hematite ore shipped June 2007 • Production ramping up to 4 Mtpa by June qtr 2010 • Currently mining from satellite orebodies • Access premium Main Pit orebody – 18 months • 30% Lump & 70% Fines ratio (initial production 50% Lump & 50% Fines) • Quality high grade, low contaminant product • Installed capacity 6 Mtpa 10 5/ 05/ 2008
Quality assets 1 Koolan Main Pit - World class grade and quality – 66.5% Fe, 3.48% SiO 2 , 0.69% Al 2 O 3 , 0.019% P, 0.3 LOI 11 5/ 05/ 2008
Quality assets 1 Koolan Island Main Pit – World class high grade DSO Main Pit - March 2008 • 37 metres wide • 1.5 km along strike Crusher Hill • 205,000 ore tonnes per vertical metre Main Pit • Access to Main Pit requires: S eawall construction – Construct seawall – De-water Original channel location – Footwall rehabilitation • Commenced Jan 2008 - scheduled to take 18 months • Low technical risk 12 5/ 05/ 2008
5/ 05/ 2008 Main West ore-body has ensured timely access to Koolan Island Main Pit 13 Quality assets 1
Quality assets 1 KEY STATISTICS Tallering Peak Koolan Island Extension Hill Combined Reserves and Resources 1 Reserves (Mt) 18.3 29.9 12.8 62.0 Proven & Probable Mineral Resources (Mt) 21.0 62.8 19.5 103.3 Measured, Indicated & Inferred Reserve Specifications 61.7 % 64.8 % 60.3 % Fe % 5.32 % 5.32 % 5.48 % S iO 2 2.60 % 0.99 % 1.64 % Al 2 O 3 0.025 % 0.018 % 0.06 % P 1.85 % 0.52 % 6.20 % LOI 62.9 % 65.1 % 64.3 % Calcined Fe % Note: 1 As at 30 June 2007 14 5/ 05/ 2008
Quality assets 1 KEY STATISTICS Tallering Peak Koolan Island Extension Hill Combined Operations Data 3 4 (target) 3 (target) 10 Annual production (Mtpa) 6 8 6 Expected minimum mine life 65% : 35% 30% : 70% 50% : 50% Lump : Fines ratio 65 - 85 Truck (km) 107 - 240 Rail (km) 6:1 6:1 (est.) 0.7:1 Strip ratio (t : t) Geraldton Koolan Island Geraldton Port 15 5/ 05/ 2008
Quality assets 1 Mount Gibson’s projects have amongst the lowest capital intensity of any of its peers 200 ‘ Greenfields’ infrastructure requirement 180 Balmoral South Magnetite S outhdown 160 140 $/ t) Karara magnetite Capital intensity (US 120 100 Rapid growth proj ect 4 80 Pardoo Jack Hills S tage 2 Rapid growth proj ect 3 Cloud 60 Break Hematite 40 Koolan Island Weld Range Extension Hill 20 Tallering Peak 0 0 5 10 15 20 25 30 35 40 45 50 Capacity (Mtpa) Magnetite proj ects Hematite proj ects Source: Company reports 16 5/ 05/ 2008
Solid growth profile 2 � Production growth to reach full production by 2010 …based on reserves 11 Ext ension Hill 10 Koolan Island 9 Tallering Peak 8 7 Million WMT 6 5 4 3 2 1 0 2006 Act ual 2007 Act ual 2008 For ecast 2009 For ecast 2010 For ecast 2011 For ecast 17 5/ 05/ 2008
Solid growth profile 2 � Organic growth opportunities • T1 & North Ridge at Tallering Peak • Extension Hill conversion of resource to reserve • Koolan: – Western side of the Island unexplored with known surface hematite identified – Main Pit underground potential – outstanding synclinal targets – Koolan ramp up to 4Mtpa – installed capacity 6Mtpa 18 5/ 05/ 2008
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