MINE REVIEW DRIVES FURTHER VALUE ACCRETION OPPORTUNITIES AT THE CEIP

Lower upfront capital requirements and accelerated ore extraction profile

Highlights:
· Thiess-RWE mine plan and schedule review identifies additional upfront capital efficiencies that further enhance Central Eyre Iron Project (CEIP) value.

· Adoption of early stage selective mining strategies in combination with the application of in-pit crushing and conveying (IPCC) technology have rapidly advanced the ore production ramp-up profile and high quality iron concentrate production (66.5% Fe), commencing two years earlier.

· Upfront mine capital cost estimate (excluding pre-strip) reduced by US$130 million to US$965 million. Importantly, this outcome combined with lower early pre-strip volumes and accelerated ore production result in a modest upward revision to life-of-mine average FOB operating costs of less than US$1.50/dmt.

· Further detailed input will be sought from suitably experienced mining contractor candidates as part of a pending update to CEIP economic metrics. Thiess-RWE’s preliminary assessment indicates that the revised mine schedule and cost structures could potentially deliver a significant CEIP NPV improvement.

· Tier 1 mining contractor candidates have signalled high-value heavy mobile equipment provision opportunities in return for a long-term operating engagement as the preferred mining services contractor for the CEIP. This would further reduce the overall project funding requirement and boost CEIP economic metrics.

Iron Road Limited has advised that Thiess-RWE, a leading expert in continuous mining systems, such as in-pit crushing and conveying, has concluded a review of the CEIP mine plan. The review focussed on opportunities relating to early ore access and mine establishment costs whilst leveraging efficiencies offered by the application and flexibility of proven, continuous mining systems.

RWE currently undertakes an engagement with Vale S.A. to support their S11D project in Brazil. The engagement includes mine planning, equipment scheduling as well as operational training and assistance for the implementation of the integrated mining solutions, similar to those proposed for the CEIP.