Mount Gibson Iron : CEO Presentation

MGX

CEO Jim Beyer 9 November 2016

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 Subscribe for Shares.

Mount Gibson Iron Limited and its subsidiaries (ASX:MGX, "MGX") make no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGX and its respective directors, employees, agents and consultants shall have no liability (including liability 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, projections, intentions, expectations and plans of MGX, 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 MGX may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGX and its directors.

No representation or warranty (expressed or implied) is made by MGX or any of its respective directors, officers, employees, advisers or agents that any forecasts, projections, 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 MGX are considered highly speculative.

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• Total Recordable Injury Rate dropped by 28% to 6.8.
• Extension Hill achieved 1000 days LTI free.
• 5.0 million wmt sold for revenue of $240 million.
• Underlying $19.4 million gross profit1.
• Reported statutory net profit after tax of $86.3 million.
• Full year cashflow from operations of $5.7 million.
• $86 million cash property damage insurance settlement for Koolan seawall claim.

• Progression of approvals for the Iron Hill Project, on target for production in early 2017.

• $20.6 million paid in State mineral royalties.
• Cash, term deposits and liquid investments of $400 million at 30 June 2016 up from prior year total of $334 million.

1. The underlying basis is an unaudited non-IFRS measure that in the opinion of the Directors provides useful information to assess the Company's financial performance.

2. Inclusive of sales from the discontinued Tallering Peak operation.

3. All figures in Australian dollars unless stated otherwise. 3

Extension Hill and Iron Hill

• Extension Hill pit completed in November 2016. N

• Sales from stockpiles to continue into 2017.

• Iron Hill Deposit, 3km south of Extension Hill pit, offers significant potential to extend production beyond 2017.

  3km

• Iron Hill Mineral Resource of 8.8 Mt @ 58.3% Fe*.

• Minimal expected start-up capital costs of

  $2-3 million.

• Positive EPA conditional recommendation received in July. Targeting final approvals in late 2016/early 2017.

*Refer slide 13 and ASX release dated 31 August 2016.

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