Atlas Iron : Signs Royalty Relief Deed with State Governm

ASX Announcement 22 May 2015

A t l a s S i g n s R o y a l t y R e l i e f D e e d wi t h S t a t e G o v e r n m e n t

 Package delivers a 50% cash deferral of State Government iron ore royalties

 Relief backdated to 1 October 2014, providing an initial cash injection of approximately $12.5M

 Royalty relief expected to provide total cash flow benefit of approximately $23M over the relief period

Atlas Iron Limited (ASX: AGO) is pleased to advise that it has accepted the Western Australian Government's offer of iron ore royalty relief.
The royalty relief package will see Atlas receive a refund of 50 per cent of the royalties it pays in the period from 1
October 2014 through to 30 September 2015, subject to the FOB-received price being less than A$90 per dry metric tonne (dmt) in each quarter.
Atlas' royalty relief will be required to be paid back, without interest or premium, in seven equal quarterly instalments from 31 March 2016, with the last payment due on 30 September 2017.
As a result of the relief program, Atlas will be able to access a cash refund of approximately $12.5 million for royalties paid in the December 2014 and March 2015 quarters, upon final processing of its quarterly applications in late June.
Atlas Managing Director Ken Brinsden thanked the Government for providing the relief and acknowledging the important roles smaller mining companies played in the State economy.
"The State Government's royalty relief package supports an important segment of WA's iron ore export industry, providing jobs, production diversity and ultimately further support for regional communities and the State," Mr Brinsden said.
"In conjunction with the landmark cost-cutting deal announced last week, this royalty relief significantly strengthens
Atlas' cash position as we continue to build towards our year-end production target of 14-15Mtpa."
Since Atlas commenced shipping iron ore in 2008, it has paid the State Government approximately $220 million in iron ore royalties from deposits that would have been unlikely to have been mined without an active junior sector.

Atlas Iron +61 8 6228 8000

Ken Brinsden, Managing Director

Read Corporate +61 8 9388 1474
Paul Armstrong +61 421 619 084

Atlas Iron Limited

ABN 63 110 396 168

Raine Square, Level 18

300 Murray Street Perth WA 6000

PO Box 7071

Cloisters Square Perth WA 6850

E: atlas@atlasiron.com.au
W: www.atlasiron.com.au

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