Grange Resources : Updated Resource & Reserve Statement - Savage River - 30 March 2017

ANNUAL RESOURCE & RESERVE STATEMENT DECEMBER 2016

30 March 2017 ASX: GRR

Australia's most experienced magnetite producer

December 2016 Resource Reserve Statement Savage River Operations

Tasmania

• Mineral Resources and Ore Reserves have been estimated for Grange's Savage River magnetite deposits in Tasmania as at 31 December 2016.
• Mineral Resources decreased to 377.5 @ 47.7%DTR with normal depletion from mining.
• Ore Reserves at Savage River are 86.6MT @ 52.5%DTR and reflect mine production during the year.
• The attached updated Savage River Mineral Resource & Ore Reserve statement has been compiled in accordance with JORC 2012

Grange Resources Pty Ltd (ASX: GRR) ("Grange" or the "Company") advises that the Mineral Resource for the Savage River Ore Deposits has decreased since the previous Mineral Resource estimate dated Dec 2015, as a result of normal mining depletion. Ore Reserves have been depleted for mine production during the last calendar year.

The resource consists of 377.5 million tonnes at 47.7% DTR (above a cut-off of 15% DTR) as detailed in table 1 and the reserve consists of 86.6 million tonnes at 52.5% DTR (above a cut- off of 15% DTR) as detailed in table 2.

NB - Elemental compositions were measured from Davis Tube Concentrate

- Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

NB - Elemental compositions were measured from Davis Tube Concentrate

- Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

The Mineral Resource and Ore Reserve have been estimated by the Company's technical staff, and has been reported in accordance with the guidelines of the JORC Code (2012 edition).

This document has been prepared to summarise the Mineral Resource and Ore Reserve of Grange Resources' magnetite deposits, located at Savage River and Long Plains in Tasmania.

This statement covers the material remaining at the end of December 2016 and contains summary details on the history of Savage River, the geology of the deposit and information involved in producing Mineral Resource and Ore Reserve estimates.

Grange Resources operates under the conditions of Mining Lease 2M/2001 which consolidates and expands the previous lease 11M/97. This lease stands for 30 years from 2001, encompassing a total of 4,975 hectares.

The mining lease encompasses the Savage River Mine and concentrator, and the pelletising plant, wharf and shipping facilities located on the north west coast at Port Latta. The operation and facilities were previously held under Mining Lease 44M/66 when Pickands Mather & Co International (PMI) were the managers of the project until 1997.

Mining lease 14M/2007 was granted in May 2008 to extend the coverage of 2M/2001 for a total of 91 hectares. Another lease, 11M/2008 was granted in August 2009 to extend coverage by a further 108 hectares. This lease renewal is pending at time of writing and remains in good standing. Figure 1 shows the location of each lease.

Exploration licence EL30/2003 was granted in February 2010 and current tenure expires 18 June 2017 but is renewable via a successful extension of term application. Grange is currently

Figure 1 Tenements as at Dec 31, 2016

on its fourth extension of term and an application for a further extension will be made prior to the renewal date. This license covers the entire Long Plains deposit. The lease comprises 38