AUSTRALIA'S MOST EXPERIENCED MAGNETITE PRODUCER

1 GRANGE RESOURCES LIMITED

Board of Directors

Michelle Li Non-executive Chairperson Yan Jia Non-executive Deputy Chairperson Daniel Tenardi Non-executive Director Liming Huang Non-executive Director Honglin Zhao Chief Executive Officer and Executive

Director

COMPANY SECRETARY Piers Lewis

STOCK EXCHANGE

Grange Resources Limited is listed on the ASX Limited (ASX Code: GRR) and the 'OTC' Markets in Berlin, Munich, Stuttgart and Frankfurt in Germany (Code: WKN. 917447)

WEBSITE

www.grangeresources.com.au

Contents

About Grange 1

2016 Overview 2

REGISTERED OFFICE

Grange Resources Limited ABN 80 009 132 405 34a Alexander Street, BURNIE, TAS 7320

Telephone: + 61 (3) 6430 0222; Facsimile: + 61 (3) 6432

3390

2017 Priorities 3

About the Grange Business 4

Chairperson's & Chief Executive Officer's Review 5

Operating and Financial Review 8

Corporate Governance Statement 19

SHARE REGISTRY

Advance Share Registry Services Limited 110 Stirling Highway

Nedlands, WA 6009

AUDITORS

PricewaterhouseCoopers Freshwater Place

2 Southbank Boulevard, SOUTHBANK, VIC 3006

Directors' Report 21

Auditor's Independence Declaration 31

Financial Statements 32-61

Tenement Schedule 66

ASX Additional Information 67

List of Significant ASX Announcements 68

ABOUT GRANGE

OUR BUSINESS

Grange Resources Limited (Grange or the Company), ASX Code: GRR, is Australia's most experienced magnetite producer with over 49 years of mining and production from

OUR VISION

We will produce high quality steel making raw materials economically and effectively. Our operations will be efficient, flexible, and stakeholder focused.

its Savage River mine and has a projected mine life beyond

2030.

Grange's operations consist principally of owning and operating the Savage River integrated iron ore mining and pellet production business located in the north-west region of Tasmania. The Savage River magnetite iron ore mine is a long life mining asset. At Port Latta, on the north-west coast of Tasmania, Grange owns a downstream pellet plant and port facility producing over 2 million tonnes of premium quality iron ore pellets annually, with plans to increase annual production. Grange has a combination of spot and contracted sales arrangements in place to deliver its pellets to customers throughout the Asia Pacific region.

In addition, Grange is a majority joint venture partner in a major magnetite development project at Southdown, near Albany in Western Australia. The Southdown magnetite project, once developed, is expected to have the capacity to supply over four times the amount of iron ore produced at Savage River, at an annual production rate of 10 million tonnes of premium magnetite concentrate. The Company is continuing its search for an equity partner for a strategic share of the Company's interest in the project.

OUR VALUES

At Grange we ALL will...

  • Work safely

  • Lead and act with fairness, integrity, trust and respect

  • Be responsible and accountable for our actions

  • Utilise our resources efficiently and effectively

  • Engage with stakeholders and proactively manage our impact on their environment

  • Work together openly and transparently

  • Promote an environment in which our people can develop and prosper

    1 2016 OVERVIEW

    In 2016 we delivered a solid year with respect to production and safety, efficiently navigating through a very challenging market. We sustained consistent production and continue to see demand for our premium product.

    OPERATIONAL OVERVIEW

    • Achieved 630 days Lost Time Injury free at the end of 2016

    • Maintained good access to high grade ore and achieved solid production results

    • Shipped a record of 2.75 million tonnes of iron ore products through the Port

    • Progressed construction of the South Deposit Tails Storage Facility to near completion

    • Improved production and continued cost control disciplines to significantly reduce operating costs

    • Preserved balance sheet strength with disciplined operational planning and execution enabling internal funding of critical mine re-development

      FINANCIAL OVERVIEW

  • Total iron ore product sales of 2.75 million tonnes (2015:

    2.36 million tonnes)

  • Continued cost control disciplines, although lower production rate resulted in a slight increase in C1 cash operating costs to $79.13 per tonne (2015: $77.18)

  • Grange's high quality, low impurity iron ore products attracted a high premium with average product prices of

    $98.06 per tonne (2015: $87.23) (FOB Port Latta)

  • Lower realised AUD:USD exchange rates have delivered stronger AUD revenues

  • Delivered profit after tax of $92.9 million (2015: loss of

    $277.8 million), on revenues from mining operations of

    $276.3 million (2015: $205.6 million)

  • Sustained strong cash and cash equivalents position at

$166.0 million (2015: $138.4 million)

2

Grange Resources Limited published this content on 24 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 April 2017 11:11:16 UTC.

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