Slide 1: Stock Exchange Announcement: Investor Presentation
7“, GRANGE NF RESOURCES LIMITED ABN 80 009 132 405 STOCK EXCHANGE ANNOUNCEMENT INVESTOR PRESENTATION 24 May 2007 Grange Resources Limited ("Grange") provides the attached presentation which is to be delivered today to investor groups in London. Presentations will also be made to investors in New Yor
Slide 2: Southdown Magnetite and Kemaman Pellet Project
(ON, GRANGE LY, RESOURCES LIMITED Southdown Magnetite and Kemaman Pellet Project An advanced Iron Ore Project for the Direct Reduction and Blast Furnace Pellet Market 3 Project Update ~ May 2007 Grange Resources Limited (GRR) Level 11, 200 St Georges Terrace Perth, WA 6000, Australia Phone +618 9321
Slide 3: Introduction
Introduction Geoff Wedlock Managing Director prs RAI Lie
Slide 4: Contents
Contents
Slide 5: Project Highlights
Project Highlights a a 1 a ames a 7 ee 7
Slide 6: Dual Location
inca AAALAC KS —o SSS Sse Dual Location SSS SSS SSS SSS SSS } | Southdown « Magnetite concentrate production (3.5- 6.6mtpa) « 90kms from existing Albany Port LET PLANT AT KEMAMAN PRODUCING IN AND BLAST FURNAC > Kemaman « Pellet production 3.5 ~ 6.8mtpa « Deep water, capesize Port Availability of nat
Slide 7: Southdown Magnetite Deposit
‘SOUTHDOWN MAGNETITE DEPOSIT > Ch . ue - i _ a SE \ Southdown Magnetite deposit is 13km in length Grange is seeking to purchase Rio Tinto Exploration Licence > GRANGE 7 MESOURCES Liwe PEs
Slide 8: Kemaman and Perwaja Steel
- - . PERWAJA STEEL 1.5MT DRY PLANT 4 [ KEMAMAN | MEGASTEEL 1.5MT DAI PLANT pr ANG ae EAQURGES OAT
Slide 9: Southdown Resource
Southdown Resource Annual production of 3.5 - 6.6Mtpa magnetite concentrate (37%DTC) = 25+ year mine life Grange Drilling §.95km — JORC 5 300 4 Portman JORC indicated G Inferred drilling indicated raat 347.2Mt ¥ . 200 - DICS +22N1s @ Indicated 1987 Jan-06 Aug-06 + Since acquisition in 2003, Grange h
Slide 10: Contents: The Project
Contents The Project
Slide 11: Fundamental Iron Ore Project Requirements: Southdown
ie Fundamental Iron Ore Project Requirements SOUTHDOWN - All key infrastructure in place IV] » Site Harvesting, Albany Waste Water Power Griffin, Wesfarmers, Alinta (coal and natural gas potentially augmented by biomass and wind power) lV] » Western Power Networks Transmission Concentrate 1 EEE) 2 I
Slide 12: Power and Slurry Pipeline
MUJA POWER STATION Kojonup i Pipetine Route Proposed 220Kv Transmission Line Existing 132Kv Transmission Line Proposed 132/220Kv Transmission Line (alignment not yet defined) Slurry Pipeline « Optimal transport method « Finalising easements with landowners Power « Western Power Networks 220kv line f
Slide 13: Albany Port Development
Caine dito enue di ota UME IU Channel to be dredged and widened nina Concentrate Storage Shed & Filter Plant | Proposed Berth 7 ! (170,000 DWT vessels) Existing Berth 6 (woodchips export) Work advancing on port design and pre-development engineering Heads of Agreement signed with Albany Port Authori
Slide 14: Fundamental Iron Ore Project Requirements: Kemaman
Fundamental Iron Ore Project Requirements KEMAMAN - All key infrastructure in place isti rf at kK West Whart Iv] Deep Water Port » ae Wharf at Kemaman (West Wharf) Suitable for capesize vessels IV] » Conveyor corridor between Port and pellet plant lV] Power, Gas & » Power — I NB (Substation immediat
Slide 15: thin
thin BUKIT PEIAJAT... ‘Week wis es EN et 10 - South. China Sea © GRANG HESGURCES LIWET: ‘3
Slide 16: West Wharf, Kemaman
SS SSS SSS SSS SSS SSS SSUES SS SSIS SSIS SSS WEST WHARF , ~18.0m Cl HESQURCES LIEEED
Slide 17: Contents
Contents
Slide 18: Proximity to Customers
Proximity to Customers @ Perwaja Steel @ Amsteel @ Krakatau Steel @ Megasteel © Qasco © Hadeed @ Various Various Hi Japanese Steel Mills Chinese Steel Mills Malaysia Malaysia Indonesia Malaysia Qatar Saudi Arabia UAE India Taiwan Australia Sth Korea Japan China
Slide 19: Freight Advantages
LLL Sree Freight Advantages SS =5 Kemaman has distinct freight advantages over other pellet producers Proximity to Key Markets Reduced Shipping Times Smaller Shipping Quantities Reduced Working Capital Cost Ss
Slide 20: Grange Pellets — Competitive Advantage
Grange Pellets — Competitive Advantage Grange can produce both BF and DR Grade pellets which are comparable in quality and have significant freight advantages over the current pellet supply. =» DR Grade (67.4% Fe) » Extremely low Phos Levels (< 0.005%) = Low Freight Costs =» Small Quantities can be
Slide 21: Phosphorus Content
Phosphorus Content Increasing demand for low phos pellets to offset high phos DSO ores from the Pilbara. Grange’s pellets have extremely low phos content. 0.12 Future Pilbara Kemaman Nibrasco Samarco Yandi HGF (Malaysia) ( Canada) (Brazil) (Brazil) (Australia)
Slide 22: Demand for DR Pellets
Demand for DR Pellets DR Pellet Demand - Target Market 35 30 | 25 | w~ 204 OSE Asia = 15 | mGulf 2005 2008 2012 DR pellet demand is projected to increase significantly in SE Asia and the Gulf Region SE Asia = Perwaja Steel = Mega Steel = Krakatau Steel Gulf = Hadeed Qasco Shadeed Al-Tuwairqi Others
Slide 23: New Ironmaking Capacity Outside of China
New Ironmaking Capacity Outside of China: DR dominates new capacity additions coming on line by end 2008 Capacity Increases since 1994 DR Capacity brought on line since Jani994 34.8 Mtfa DR Capacity to start-up by end of 2008 21,5 Mtla BF Capacity to start- up by end of 2008 S1Mtla GRAN 7S AESRURCES
Slide 24: Contents
Contents
Slide 25: Operating and Capital Costs
Operating and Capital Costs Unlike many other new iron ore projects, Grange’s costs are well understood and are the product of a detailed feasibility study Operating & Capital Costs Operating Costs " Southdown Mining & Processing " Shipping to Malaysia " Pelletising Total Cost (FOB Kemaman) US$ (US$
Slide 26: Cost Competitiveness
Cost Competitiveness CIF Cash Cost of Grange Pellets is competitive with other profitable suppliers 80 - CIF Cash Cost Comparison 70 + 60 - Freight to Asian buyers 50 5 (US$\t) 40 + i GEE # Conc Freight (US$/t) 30 + 20 5 10 5 0 w FOB Cost (USS/t) CVRD Samarco Essar Kemaman Tubarao (Brazil) (India) |
Slide 27: Project Economics
Project Economics Grange can supply regional customers ata price competitive to South American supply under all likely scenarios - and be profitable 2010 Start Up Pricing Scenario Pricing Scenario 2007 2007 2007 (% change in HG Fines Price) +10% — 10% CVRD Price Hamersley HG Fines Price US¢/dmtu 80.
Slide 28: Contents
Contents
Slide 29: Funding Plan
Funding Plan Grange (with Azure Capital) is currently running a process to secure funding and development partners for the project. Grange is currently working with a number of potential partners. A range of alternative (to Base Case) development models being considered, including a staged (3.5Mtpy)
Slide 30: Contents
Contents
Slide 31: Timetable
Timetable Grange’s project is significantly advanced with feasibility complete, infrastructure in place and approvals in progress. Item Feasibility Study Status Expected Timing Kemaman Environmental Approval Kemaman Investment Incentives NININ Southdown Environmental Approval In progress * Southdown
Slide 32: Contents
Contents
Slide 33: Grange Overview
Grange Overview Gr. cts ge Pr Other Projects: Bukit bam (Malaysian Iron Ore Mine) — Commissioning of processing plant completed. Red Hill Mine (WA) - Grange 4% gross revenue gold royalties (managed by Barrick Gold ) Freshwater Gold Project (WA) - Grange production royalty (managed by Barrick Gold) I
Slide 34: Key Contacts
Key Contacts Geoff Wedlock &> GRANGE 7 RESOURCAS. COMETED: Managing Director, Grange Resources Tel +61 (8) 9321 1118 qwediock@grangeresources.com.au Simon Price x | Azure Capital Director, Azure Capital Tel +61 (8) 6263 0811 scp@azurecapital.com.au