24 March 2017

The Companies Officer

Australian Securities Exchange Ltd Level 40, Central Park

152-158 St Georges Terrace Perth WA 6000

Dear Sir or Madam

Fortescue announces US$1.0 billion repayment of 2019 Term Loan

Fortescue Metals Group (ASX: FMG, Fortescue) has issued a US$1.0 billion repayment notice for the 2019 Senior Secured Credit Facility ("Term Loan").

In line with Fortescue's previously announced strategy, this US$1.0 billion Term Loan repayment will be made at par on Thursday 30 March 2017 and will generate annual interest savings of approximately US$38 million. Following this repayment, the outstanding balance of the 2019 Term Loan will be reduced to US$976 million.

Chief Executive Officer, Nev Power, said "This US$1.0 billion payment continues our debt reduction strategy lowering our all in cost position and reducing 2019 debt to less than US$1.0 billion.

Productivity and efficiency initiatives have delivered sustained cost reductions and combined with strong market conditions are generating significant free cash flow. We will continue to prioritise free cash flow for debt reduction, investment in our core iron ore business and returns to shareholders."

Fortescue's pro forma maturity profile after repayment of the 2019 Term Loan is set out in the chart below.

5,000 4,500 4,000 3,500

US$m

3,000 2,500 2,000 1,500 1,000 500 0 1,000

976

$1.0bn Term Loan repayment

2,160

478

CY2017 CY2018 CY2019 CY2020 CY2021 CY2022

Term Loan Senior Unsecured Notes Senior Secured Notes Debt Repayments

Yours sincerely

Fortescue Metals Group Ltd

Alison Terry

Company Secretary

Media contact:

Michael Vaughan

E: mediarelations@fmgl.com.au

M: +61 422 602 720

Investor Relations contact:

Stuart Gale

E: investorrelations@fmgl.com.au

Fortescue Metals Group Limited

PO Box 6915

ABN 57 002 594 872

East Perth, Western Australia

Level 2, 87 Adelaide Terrace

P +61 8 6218 8888

East Perth, Western Australia 6004

E fmgl@fmgl.com.au

Fortescue Metals Group Ltd. published this content on 24 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 March 2017 21:54:17 UTC.

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