MR SAM SAMPLE FLAT 123

123 SAMPLE STREET THE SAMPLE HILL SAMPLE ESTATE SAMPLEVILLE VIC 3030

Dear Shareholder

Notice to Overseas Shareholders of Entitlement Offer

We write to you as a holder of BC Iron Limited (ACN 120 646 927) (Company) fully paid ordinary shares (Shares) with a registered address outside of Australia and New Zealand (Excluded Foreign Holders).

On 13 October 2016, the Company announced it would be conducting a renounceable entitlement offer, offering eligible shareholders the opportunity to acquire fully paid ordinary shares in the Company (Shares) through a pro rata renounceable entitlement issue of one (1) Share for every Share held by eligible shareholders on the record date, which under the indicative timetable is 21 October 2016 (Record Date), at an issue price of $0.13 per share to raise up to approximately $25.5 million (before costs) (Entitlement Offer).

The Entitlement Offer is partially underwritten to $20.64 million by Patersons Securities Limited (ACN 008 896 311) (Patersons) and Foster Stockbroking Pty Ltd (ACN 088 747 148) (Foster) as to $10.32 million each.

The Entitlement Offer will be made to all registered shareholders on the Record Date and who reside in Australia or New Zealand.

The Entitlement Offer is made pursuant to a prospectus lodged with the Australian Securities and Investments Commission (ASIC) on 17 October 2016 (Prospectus). The Prospectus will be made available on the Company's website: http://www.bciron.com.au/ or on the ASX website (company announcements section, ASX code: BCI): www.asx.com.au.

The Company has determined, pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules, that it is unreasonable to extend the Entitlement Offer to those shareholders that are Excluded Foreign Holders. The Company has taken into consideration the size of the shareholdings held by the Excluded Foreign Holders and the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to Excluded Foreign Holders. Accordingly, the Company is unable to extend to you the opportunity to participate in the Entitlement Offer.

The Company has appointed (and ASIC has approved) Patersons Securities Limited (Nominee) as nominee for foreign holders of the Company's securities in those countries outside of Australia and New Zealand to arrange the sale of the entitlements which would have been offered to the Excluded Foreign Holders.

The Nominee will arrange for the sale of the entitlements of the Excluded Foreign Holders. The Nominee will account to the Company's share registry who will then dispatch the net proceeds (if any) (that is, sale proceeds after deducting fees and GST) pro rata to each individual Excluded Foreign Holder). The Nominee will have the absolute and sole discretion to determine the timing and the price at which the Entitlements may be sold and the manner of any such sale.

Thank you for your ongoing support of the Company, if you have any questions in relation to the above, please do not hesitate to contact the Company Secretary on +61 8 6311 3400.

BC Iron Limited ABN 21 120 646

924

Level 1, 15 Rheola Street West Perth WA 6005

GPO Box 2811

West Perth WA 6872

T +61 8 6311 3400 F +61 8 6311 3449

E info@bciron.com.au

W www.bciron.com.au

Hayley McNamara

Company Secretary

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BC Iron Limited published this content on 19 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 October 2016 07:59:02 UTC.

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