Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Sydney Mining Club Luncheon (May 2005)
37 slides from Fortescue's conference presentation, May 5, 2005
Slide 1: Sydney Mining Club Luncheon
Sydney Mining Club Luncheon oy wv “A one-off Australian opportunity unlikely to be.repeated in the future” Fortescue Fortescue Metals Group Ltd Fortescue House, 50 Kings Park Road West Perth, "Western Australia 6005 PO Box 910 West Perth Western Australia 6827 Telephone: + 61 8 9266 O111 Facsimile:
Slide 2: Fortescue Metals Group Limited
Fortescue Metals Group Limited e@ Approx. $100 milli March 2005 receivables at 31 e All approvals within project timetable e Takeover resistant capital stru The New Force in Iron Ore
Slide 3: Fortescue Metals Group Limited
Fortescue Metals Group Limited e Dedicated iron ore co e Commencing pro e Clean, uncom] e Largest ten producing province The New Force in Iron Ore argest iron ore
Slide 4: The Pilbara, the lowest supply costs
The Pilbara, the lowest supply costs The New Force in Iron Ore
Slide 5: Pilbara Tenement Holdings
Pilbara Tenement Holdings Fortescue’s 17,200 sq km tenement reach dominates the Pilbara
Slide 6: Cloud Break & Christmas Creek only a fraction of Fortescue Pilbara holdings
Cloud Break & Christmas Creek only a fraction of Fortescue Pilbara holdings kilorreters y yy Distance equivalent: Los Angeles to San Francisco The New Force in Iron Ore
Slide 7: Fortescue Metals Group Limited
Fortescue Metals Group Limited e Sinter testing with CSIRO and international Steel Mill demonstrate high si ade productivity roductivity is lbara products e Christmas. is 1.8 billi urce target sar mine life e Infill drilling accelerated to ise conversion to reserves by Q3 2005 The New Force in Iron
Slide 8: The Chichesters JORC standard resources nearly 2 billion tonnes and growing
The Chichesters JORC standard (inferred and indicated) resources nearly 2 billion tonnes and growing Christmas Creek (80% Area drilled) 1,016 58 15 Mt Lewin/The Hammer (50% Area drilled) 200 56.5 6.5 Mt Nicholas (100% Area drilled) 390 49.5 8 Springo Bore/Tongololo (Under assessment) Mt Rove (Under
Slide 9: Resource Estimates for Christmas Creek & Cloud Break
Resource Estimates for Christmas Creek & Cloud Break Based on March 2005 data Indicated 372 58.2 5.1 2.43 0.052 742 Inferred 1,035 58.1 AT 2.61 0.052 8.24 Including Higher Grade Indicated 109 60.2 3.5 1.97 0.058 7.30 Inferred 280 60.4 3.1 1.94 0.052 7.87 Total
Slide 10: Bulk Sampling
Bulk Sampling ¢ Bucket augur drill (used for pilings in bridges and buildings) ¢ 15 major bulk sample holes drilled — 900 mm diameter * 800t of sample produced — 495t of ore material The New Force in Iron Ore
Slide 11: Chichester Cross Section
Chichester Cross Section Ss N c 2.akem Wialth : ae 20.25m thickness - rer 10011 Diill Hole Spacing a if ee ae j i see SS ue ; NIKE Li g Es = ESE en of oe: Cae Reference FORTESCUE METALS GROUP Nemmulel BIF GENERAL CHICHESTER RANGES IRON ORE DEPOSIT oo DIAGRAMATIC CROSS SECTION B rontwall teernah LOOK
Slide 12: Christmas Creek Geological Summary
Christmas Creek Geological Summary LEGEND Insignificant hard cap compared to other Marra Mamba Limited overburden allowing easy exploitation of any part of the ore body Little open folding — structurally simple Ability to easily blend to process plant feed specification Ore body structure and chemis
Slide 13: Calcined Fine Iron Ore
The New Force in Iron Ore Calcined Fine Iron Ore Tron Content 69.00 7 67.00 5 63.00 + % Ke 61.00 7 59.06 + HI- Premium Mesa J (Robe River) HI- Yandi H1- Marra Mamba 57.00 + Data Sources: Robe River Website, BHPB - Direct from Company, HI — Industry Sources, PMG - Own J ests
Slide 14: Calcined Fine Iron Ore
The New Force in Iron Ore %P Calcined Fine Iron Ore Phosphorus Content 0.080 5 0.070 - 0.060 - 0.050 - 0.040 - 0.030 = 0.020 - HI - Marra Mamba HI- Premium Mesa J (Robe River) HI- Vandi 0.010 = 0.000 - Data Sources: Robe River Website, BHPB — Direct from Company, HI — Industry Sources, PMG Own Tests
Slide 15: Calcined Fine Iron Ore Silica Content
The New Force in lron Ore Ee % SiOz 7.00 5 6.00 | 5.00 | 4.00 | 3.00 + 2.00 4 1.00 + 0.00 | Calcined Fine Iron Ore Silica Content Mesa J (Robe River) HI - Marra Mamba HI- Yandi H1- Premium Data Source: Robe River - Website, BHPB — Direct from Company, HI — Industry Sources, FMIG_ . Own Tests
Slide 16: Calcined Fine Iron Ore Alumina Content
The New Force in Iron Ore % A203 3.80 5 3.00 4 2.80 4 2.00 4 1.50 + 1.00 4 0.50 5 0.00 - Calcined Fine Iron Ore Alumina Content HI - Premium HI- Yandi HI- Marra Mamba Mesa J (Robe River} Data Source: Robe River — Website, BHPB - Direet from Company, HI - Industry Sources, FMG-— Own Tests
Slide 17: Ore Quality is Competitive
Ore Quality is Competitive “The identification of microplaty hematite at such shallow depth and across such large strike length is one of the most significant exploration discoveries in the Pilbara in the past 15 years” Dr John Clout — FMG Head of Resources Strategy (previously CSIRO) The New Force
Slide 18: Comparison of Fines
Comparison of Fines SiO, ALO, % % Data Sources: *1 The Robe West Angelas Development Plan 2000: *2 Website for Robe River Mining; *3 Loo, C E, Witchard, D, Penny, G C, 1994, IMM
Slide 19: Comparison of High Grade Lump
Comparison of High Grade Lump AE ni Son Data Sources: *1 The Robe West Angelas Development Plan 2000: *2 Website for Robe River Mining; 2 Test Methods: TI: 15kg test - % -6.3mm using ISO 3271; Al — 15kg test - % -0.5mm using ISO 3271; DI: average of 10 tests of 0.5kg each at 700°C- % -6.3 mm {IS0837
Slide 20: Project Implementation Partners
Project Implementation Partners ae The New Force in Iron Ore
Slide 21: Construction Partners
Construction Partners eet = The New Force in Iron Ore
Slide 22: Corporate Finance
Corporate Finance im Citigroup appointed to conduct citigroupl global joint venture tender Grant Samuel appointed to conduct global tender for Christmas Creek royalty The New Force in Iron Ore
Slide 23: Approvals Finance
- Approvals Finance | Definitive Feasibillly Ming | Definitive Fe Prefeas Study.
Slide 24: Port & Rail Development Schedules
Port & Rail Development Schedules The New Force in Iron Ore
Slide 25: Rail & Port Construction
Rail & Port Construction . . C} Computer aided designed rail corridor and alignment Rail Construction 18 Months Fast Track O “Worlds Best Practice” d sleepers prior to financial close ility on key features 20 months (Paralleled with R: Construction) ) Ship loadin + Single recl Hn + Single ship loade
Slide 26: The Pilbara Infrastructure (TPI) Port & Rail
The Pilbara Infrastructure (TPI) Port & Rail Lom ale Hal
Slide 27: Meeting the Demand for Major Independent Supply
Meeting the Demand for Major Independent Supply Wholly Owned Iron Ore Regions LEGEND —
Slide 28: Fortescue Metals Group Ltd
Fortescue Metals Group Ltd “A one-off Australian opportunity unlikely to be repeated in the future” Fortescue House 50 Kings Park Road West Perth Western Australia www.imgl.com.au Sydney Mining Club Luncheon May 2005
Slide 29: It is great to be back in Australia
° It is great to be back in Australia, as the past few weeks have seen us involved in wide-r: negotiations across the globe. That travel and nego slackening in activity Australia, In fact, it has been quite the ort towards delineating our resource t ‘inues apace and during the next few we ve W rther
Slide 30: Activity is also quite hectic on all aspects of our Definitive Feasibility work
Activity is also quite hectic on all aspects of our Definitive Feasibility work which is on target to be completed this year — both for infrastructure and minin Our technical people ar ni i ous production i nd capital wise. diluting the plant ore feed and ente alternative techniques are b The Head o
Slide 31: Opening Comments
Opening Comments ¢ In addition crushing technology is being reviewed with the aim of maximising ‘lump product’. ¢ This was precious time,tha 11 ly spared by those individuals. « We are leaving no sto he best to our project. « Now, to “THE N The New Force in Iron Ore
Slide 32: Closing Comments
Closing Comments ¢ So-in summary -......... « At the end of day, some key fi Chichester Range project wil to medium term. l ¢ Let me run through s « We have a sign proven up ¢ This include delineate ton ¢ Itis a massive discovery in anyon ¢« Weare continuing to drive hard, th strategy — it is firmly
Slide 33: Closing Comments
Closing Comments ¢ Weare cashed up right through to the project’s financial close — and beyond. ; ¢ There is unsatisfied glob I on ore. 2004 ona this is the takeoff ient in Japan in apan trebled its off at that that point in Purchasing Power Pari point. It was th 1959 or Korea real GDP per capita i.
Slide 34: Closing Comments
Closing Comments ¢ This demand will not go away, this year, next year or for years to come ¢ Our Pilbara resource is to help service this de ¢ We have WA and Fe initiatives 2ad customer contention ort for our project ¢ Fortescue origi with the WA Go major iron or party access The New Force in Iron O
Slide 35: Closing Comments
osing Comments * We will not flinch from this position, and we find it quite puzzling, for instance, that Rio-controlled operations in Canada actually share ir : rt facilities and carry other parties’ ore. * The commercial negoti bringing the Definiti mpletion « We've been to London, we've b * We've
Slide 36: Closing Comments
osing Comments ¢ Yes, its a tough negoti negotiators as well we are tough ¢« Let me assure you « We're not about t over control anyti ¢ Our firm stanc ; a little bumpy at fir : the road - period! The New Force in Iron Ore
Slide 37: Closing Comments
Closing Comments « Ladies and gentlemen - you, and the Australian investment community, have a choice « You can sit on the roadsi ¢« Or you can join us on project. s great Australian * Thank you very much The New Force in Iron Ore
Fortescue Metals Group — Sydney Mining Club Luncheon (May 2005) on 6ix