Atlas Iron : Mineral Resources and Ore Reserves at 30 June 2018

29 August 2018

Mineral Resources and Ore Reserves at 30 June 2018

Summary

•  Product depletion at operating mines due to ore shipped in FY18

•  Cessation of mining operations at Abydos in October 2017

Atlas Iron Limited (ASX: AGO) advises on its Mineral Resources and Ore Reserves as at 30 June 2018.

The reported Mineral Resources and Ore Reserves at Atlas' operating Abydos and Mt Webber mines as at 30 June 2018 reflect production depletion as a result of 9.2m wmt shipped during FY2018.

Atlas ceased mining operations at Abydos in October 2017. Atlas now only reports a Mineral Resource at Abydos for the undeveloped deposits of Sandtrax and Avalon Point. Atlas reports a modest Ore Reserve at Abydos, reflecting stockpiles of crushed material remaining at the site.

Atlas no longer reports an Ore Reserve at Wodgina, reflecting its loss of ownership of stockpiles of crushed material at the site pursuant to the exit plan agreed with Mineral Resources Limited.

Whilst there have been some changes to Atlas' product strategy, the Mineral Resources and Ore Reserves for the Corunna Downs Project have not changed since 30 June 2017.

Full details of Atlas' Mineral Resources and Ore Reserves as at 30 June 2018 are set out in Appendix 1 to this announcement.

Investor Enquiries:

Atlas Iron Limited

Appendix 1

Mineral Resources and Ore Reserves as at 30 June 2018

Mineral Resources and Ore Reserves in the following tables are as of 30 June 2018. Comparative totals from 30 June 2017 are provided for reference.

2018 Mineral Resources

Mining Measured Resources at end June 2018

MethodIndicated Resources at end June 2018

Inferred Resources at end June 2018

Total resources 2018 compared with 2017

Tonnage

GradeAtlas InterestReportingCut-off

(b)Tonnage

Iron Ore (a)

Kt

Grade

2017

% FeKt

% FeKt

% Fe

Kt

% Fe % Fe

%

% FePardoo Abydos (c) Mt Webber (d) McPhee Creek

- Corunna Downs Mid-West Hickman Western Creek Jimblebar (e) Warrawanda Davidson Creek Hub West Pilbara

O/P O/P O/P O/P O/P

- - 23,200 32,500

- - 58.6 57.4

- - 13,300 205,100

- - 56.2 56.2

9,000 2,000 1,000 8,000

55.7 55.9 56.9 55.2

9,000

2,000

37,500

245,600

9,000 9,600 47,500 246,900

55.7

55.9

57.7

56.3

55.7 56.8 57.1 56.3

100

100

100

100

53 50 50 48.5

----4,000

57.6

4,000

4,000

57.6

57.6

100

50

O/P O/P O/P O/P O/P O/P O/P O/P

- - - - - - 52,000 -

- - - - - - 57.1 -51,100 - - - 41,100 - 330,300 -

57.2

13,000

57.0

64,100

64,100

57.2

57.2

100

50

- - - 58.1 - 55.9 -

7,000

57.2

7,000

7,000

57.2

57.2

100

50

70,000

55.4

70,000

70,000

55.4

55.4

100

50

79,000

56.0

79,000

79,000

56.0

56.0

100

50

27,000

55.6

68,100

69,100

57.1

57.1

100

50/53

24,000

56.8

24,000

24,000

56.8

56.8

100

53

94,000

55.8

476,300

476,300

56.0

56.0

100

50

38,000

53.6

38,000

38,000

53.6

53.6

100

50

Total Mineral Resource 640,900 376,000 1,144,500

107,700

57.5

56.3

55.7

1,124,600

56.2

56.2

Mineral resources are reported inclusive of reserves

• a - Iron Ore Resource tonnes are reported on a dry weight basis

• b - Likely mining method: O/P=Open Pit

• c - Atlas completed mining of the Cove, Mullaloo, Contacios and Scarborough deposits at Abydos in FY2018. Remaining Mineral Resources are limited to the Sandtrax and Avalon Point deposits

• d - Mt Webber Mineral Resources have decreased due to production at Ibanez, Fender and Daltons and includes 400kt of crushed fines material stockpiled on site

• e - Jimblebar Resources reported at 50%Fe cut-off except McCameys North (47Mt) which is reported at a 53% cut-off

2018 Ore Reserves

Product Type (g)Proved Ore Reserves at end June 2018

Probable Ore Reserves at end June 2018

Total Ore Reserves at Total Ore Reserves at end of June 2018

end of June 2017

Atlas Interest

Reporting Cut-Off

Kt

% Li2OKt

Mt Dove Stocks Port StocksLithium DSO (h) Lithium DSO

8 61

1.63 1.60

- -- -

% Li2O 1.63 1.60

Kt

% Li2O

%

% Li2O

- -- -90 90

Total Li2O Ore Reserves (f)

69

1.60

-

-

--

• a - Fe Ore Reserves are Iron Ore, reported on an in-situ dry weight basis to be mined by open pit method or a loose dry weight basis for site based stockpiles

• b - Mining at Abydos ceased in October 2017

• c - Standard Fines product targets a grade at or above 56.4% Fe

• d - Ore reserves at Mt Webber decreased following production depletion

• e - Saleable Product includes both Lump and Fines products

• f - The presented tonnages and grades are rounded. Total tonnages and grade are summed on the raw data then rounded.

• g - Li2O Ore Reserves are Lithium DSO Ore stockpiles, reported on a loose dry weight basis

• h - Lithium DSO product targets a grade at or above 1.50% Li2O

Mineral Resources and Ore Reserves Corporate Governance

Atlas has an established Ore Reserve Steering Committee (ORSC) that oversees the Mineral Resources and Ore Reserves processes and reporting. The committee includes management from geology, operations and mine planning. It meets regularly and is responsible for reconciliation, estimation and reporting of Mineral Resources and Ore Reserves. Ore Reserves undergo rigorous governance and signoff processes extending to all disciplines responsible to satisfy JORC compliance with this process audited by external consultants. Atlas continues to develop its internal systems and controls in order to maintain JORC (2012) compliance in all external reporting, including the preparation of all reported data by Competent Persons as members of the Australasian Institute of Mining and Metallurgy.

Competent Persons Statements

Mining Ore Reserve Estimates - Compliance with the JORC code assessment criteria

This mining Ore Reserve statement has been compiled in accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2012 Edition).

Ore Reserve Estimation - Wodgina, Abydos, Mt Webber, Corunna Downs and Ore Stocks at Utah Port and Mt Dove The information in this report that relates to Ore Reserve estimations for the Wodgina, Abydos, Mt Webber, Corunna Downs Areas and ore stocks at Utah Port and Mt Dove, is based on information compiled under the guidance of and audited by Mr Adam Liebenberg who is a member of the Australasian Institute of Mining and Metallurgy. Adam Liebenberg is a full time employee and security holder of Atlas. Adam Liebenberg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Adam Liebenberg consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Geological Data, Interpretation and Resource Estimation - Davidson Creek Hub Project (excluding Miji Miji deposit)

The information in this report that relates to mineral resource results on Atlas' Davidson Creek Hub Project is based on information compiled by Mr John Graindorge who is a Chartered Professional member of the Australasian Institute of Mining and Metallurgy. John Graindorge is a full time employee of Snowden Mining Industry Consultants Pty Ltd. John Graindorge has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. John Graindorge consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Geological Data, Interpretation and Resource Estimation - Atlas DSO Projects (including Miji Miji deposit but excluding all other deposits at Davidson Creek Hub)

The information in this report that relates to mineral resource results on Atlas' DSO Projects, other than Davidson Creek Hub, is based on information compiled by Mr Leigh Slomp who is a member of the Australasian Institute of Mining and Metallurgy. Leigh Slomp is a full time employee and shareholder of Atlas. Leigh Slomp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Leigh Slomp consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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