INVESTOR PRESENTATION

May 2005

INVESTOR INVESTOR PRESENTATIONPRESENTATION

Available at www.mtgibsoniron.com.au

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MOUNT GIBSON IRON GROUPMOUNT GIBSON IRON GROUPRESOURCE LOCATIONSRESOURCE LOCATIONSMIDWEST REGION MIDWEST REGION WESTERN AUSTRALIA WESTERN AUSTRALIA

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CORPORATE DEVELOPMENT PHASE ONE CORPORATE DEVELOPMENT PHASE ONE – DIRECT SHIPPING GRADE HEMATITE– DIRECT SHIPPING GRADE HEMATITE

Current Focus

Increase mining rate at Tallering Peak mine from 2.0Mtpa to 3.0Mtpa in January 2006

Utilise all rail capacity currently available in the MidWest region

Maintain current operating profit at Tallering Peak of over $25.00 per tonne

Mine Tallering Peak at 3.0Mtpa for 5 – 6 years then relocate operation to Mt Gibson for

minimum of 5 years

Profits from Mt Gibson mine should be similar to Tallering Peak

– additional transport costs will be largely offset by low 1.0 to 1.0 waste to ore ratio

All production from Tallering Peak and Mt Gibson contracted for sale to China

for life of mines (Stemcor, Sinom, Prosperity Minerals, Shanghai Industrial)

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HEMATITE RESOURCESHEMATITE RESOURCES

HEMATITE – EXPLORATION POTENTIALHEMATITE – EXPLORATION POTENTIAL

Extension Hill South (Mt Gibson)

Sheldon Hill (Mt Gibson)

Koolanooka South Walebing

60% of Poondano Exploration’s 2730km² areas in Pilbara (shallow pisolite deposits- major exploration targets adjacent to existing infrastructure)

7% strategic shareholding in Resource Mining Corporation – Argyle deposit inKimberley region

Grade %Fe Lump

MeasuredResource

Mt

IndicatedResource

Mt

InferredResource

Mt

Total

Mt

Tallering Peak 63.5% 16.0 3.0 3.0 22.0

Extension Hill (Mt Gibson) 63.0% 10.7 2.0 - 12.7

Iron Hill (Mt Gibson) 63.0% 2.7 - - 2.7

29.4 3.0 3.0 37.4

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PISOLITE - PILBARA EXPLORATION AREASPISOLITE - PILBARA EXPLORATION AREAS

PROSPECT AREA KM2 LOCATION

South Fortescue

1,040 Adjacent to Hamersley Iron railway and centrally between Marandoo, Tom Price and Mt Brockman mines

MargaretWell

330 Adjacent to BHP-Billiton railway and 30 km from Mt Whaleback mine

Wonnmunna 200 20 km from Hamersley Iron’s railway and centrally between West Angelas mine and proposed Hope Downs mine

Resolution Well

965 70 km from proposed Hope Downs mine and railway

Bukardi Well

195 70 km from proposed Hope Downs mine and railway

TOTAL 2,730

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CORPORATE DEVELOPMENT PHASE TWO CORPORATE DEVELOPMENT PHASE TWO - MAGNETITE CONCENTRATE & IRON PELLETS- MAGNETITE CONCENTRATE & IRON PELLETS

The Company’s second phase of development will involve investment in magnetitemines in the Mid West region of Western Australia and the production of iron pellets in China.

Mount Gibson Iron Limited (“MGI”) currently has a 63% shareholding in Hong Kong based Asia Iron Holdings Limited (“Asia Iron”)

Asia Iron, in a 50:50 joint venture with a major Chinese steel mill, will develop a mine at Extension Hill (Mt Gibson) to produce 5.0Mtpa of magnetite concentrateand two 2.5Mtpa pellet plants at Longtan, on the Yangtze River near Nanjing, China

Asia Iron will sell its entitlement to 2.5Mtpa of pellets to regional steel producersunder long term contracts

The joint venture partner will consume 2.5Mtpa of pellets in its own blast furnaces

Asia Iron is well advanced in negotiations with the Nanjing Iron and Steel Group tobecome its partner and expects to finalise contract documentation in the near term

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CORPORATE DEVELOPMENT PHASE TWOCORPORATE DEVELOPMENT PHASE TWO– MAGNETITE CONCENTRATE & IRON PELLETS– MAGNETITE CONCENTRATE & IRON PELLETS

MGI will manage the development and operation of the Extension Hill mine and bepaid an indexed fee of $3.50 per tonne of concentrate produced ($17.5 million per year)

Asia Iron is currently recruiting highly experienced expatriate management to work with Chinese staff provided by Nanjing Iron & Steel, to manage the pellet plant

Bankable Feasibility Study to be completed in September 2005

Development of the Extension Hill mine and first pellet plant planned to commenceDecember 2005

Commissioning of 5Mtpa mine and first 2.5Mtpa pellet plant is expected in early 2007 with the second 2.5Mtpa plant six months later

MGI is also negotiating a second joint venture with another major Chinese steel mill to produce 5.0Mtpa of pellets in 2009

The second joint venture will require the drilling and definition of an additional 250Mt of magnetite resources within MGI’s Group’s Midwest leases

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MGI INVESTMENT IN ASIA IRON MGI INVESTMENT IN ASIA IRON

MGI expect to invest a total of A$65 million for an ultimate 75% shareholding in Asia Iron (A$15 million to date and A$50 million in December 2005)

Asia Iron requires A$80 million for its remaining equity contribution to the development of the 50% owned Extension Hill mine, and the Longtan pellet plants

Asia Iron’s equity will be provided by;

i) share subscription by MGI December 2005 (A$50 million)

ii) advance payments on purchases from long term buyers of Asia Iron’s pellets (A$25 million)

iii) existing resources (A$5 million)

MGI can fund its A$50 million subscription to Asia Iron from current cash reserves, share option conversions and retained earnings, without further share placements

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MAGNETITE RESOURCESMAGNETITE RESOURCES MeasuredResource

Mt

IndicatedResource

Mt

InferredResource

Mt

Total

Mt

Extension Hill(100% owned by Asia Iron)

153.0 50.0 45.0 248.0

The proposed pit at Extension Hill has been scheduled for a 20 year mine life by independent consultants

• annual production - 5.0Mtpa 68% Fe magnetite concentrate

• average yield, concentrate to ore - 46%

• average waste to ore ratio - 1.1 to 1.0 by weight after prestripping

(final ratio and ore reserves to be determined in the near future based on results of recent geotechnical investigations)

Exploration Targets

Extension Hill South (100% owned by MGI)

Iron Hill (100% owned by MGI)

Sheldon Hill (100% owned by MGI)

Koolanooka South (100% owned by Asia Iron)

Wolla Wolla (100% owned by Asia Iron)

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10

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EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANTS EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANTS – FINANCIAL SUMMARY– FINANCIAL SUMMARY

CAPITAL COSTS A$MIL

Acquisition Costs Of Mining Leases 13.4

Capital Costs Mine Development And Pellet Plants (Including 10% Contingency)

372.0

Feasibility Study 15.0

Project Management 10.0

Interest During Construction 12.0

Working Capital 40.0

TOTAL 462.4

PROPOSED FUNDING

Equity

- Nanjing Iron & Steel Group 93.0

- Asia Iron 93.0

Project Finance 276.4

TOTAL 462.4

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EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANT EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANT – FINANCIAL SUMMARY– FINANCIAL SUMMARY

OPERATING COSTS *

Australia A$/tonne pelletsMining 10.09

Concentrating 9.63 Rail Transport 16.38 Ship Loading 4.19 Management Fee (MGI) 3.50 Administration 0.75 Royalties 2.50

47.04

China

Shipping & Port Unloading 25.52 Pelletising 6.70 Administration 1.55

33.77

Capital Cost Recovery 5.49 Interest (average) 0.50 Taxation (average rate) 4.98

10.97

- Total Cost

- Income (US$95.00/tonne CIF Nanjing)

- Operating Profit after tax per tonne

91.78

121.79

30.01

……. Note: MGI is investigating constructing slurry pipeline concentrate transport system which would greatly reduce delivery costs to port

(*Based on exchange rate of A$1.00 : US$0.78)

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ADVANTAGES OF PELLET PRODUCTION IN NANJINGADVANTAGES OF PELLET PRODUCTION IN NANJING

lower shipping costsAsia Iron’s concept of constructing a pellet plant 450km up the Yangtze River andwithin the precinct of the port of Longtan means that it will be able to ship concentrate directly from Geraldton to its plant at Longtan and avoid expensive transhipment and barging costs incurred by competitors importing pellets or pellet feed to the Nanjing steel making region particularly from Brazil which ships in capesize vessels

lower capital costsAsia Iron’s two pellet plants will cost a total of approximately A$100 million in Chinaversus A$350 million in Australia

lower pelletising costspelletising is expected to cost A$6.70 per tonne in China versus A$12.00 to A$15.00 in Australia

low taxation in early yearsAsia Iron as a foreign investor will pay no tax in first two years of operation inChina, then 7.5% for next three years, allowing 4 year project payback

location at centre of expanding steel making region

low cost industrial land leased from Longtan Port Authority

skilled workforce and experienced management available in region

Nanjing attractive city for foreign residents

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IRON PELLETS – IRON PELLETS – (Beijing Shougang Design Institute plant similar to that proposed for Longtan)(Beijing Shougang Design Institute plant similar to that proposed for Longtan)

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ASIA IRON HOLDINGS LIMITED

(Hong Kong)

SHELDON HILL PTY LTD

MOUNT GIBSON IRON LIMITED

63% increasing to

75%

100%

• Slurry Pipeline Mt Gibson - Geraldton• Water Pipeline Geraldton - Mt Gibson• Port Facilities Geraldton

WESTRALIAN INFRASTRUCTUREHOLDINGS PTY LTD

100%

Magnetite • Sheldon Hill • Extension Hill South • Iron Hill

EXTENSION HILL PTY LTD

ASIA IRON (NANJING) LTD

(PRC)

50% 50%

Magnetite Extension Hill (Mt Gibson)

Pellet Plant Longtan (Nanjing)

50%

MOUNT GIBSON IRON GROUP CORPORATE STRUCTURE

MOUNT GIBSON MINING LIMITED

100%

Hematite • Tallering Peak • Extension Hill (Mt Gibson) • Iron Hill (Mt Gibson) • Sheldon Hill (Mt Gibson) • Koolanooka South • Walebing

Investments • Poondano Exploration (60%)

(Pilbara Pisolite) • Resource Mining

Corporation (7%)(Argyle Hematite)

Manager

NANJING IRON & STEEL GROUP

(PRC)

50%

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2004/05 2005/06 2006/07 2007/08

Production

Tallering Peak – hematite mill tonnes 1.9 2.5 3.0 3.0

Longtan – pellets (100% JV) mill tonnes - - 1.4 5.0

EBITDA

Tallering Peak – hematite (after o’heads) A$ mill 25.9 74.2 87.8 87.8

MGI - magnetite management fee A$ mill - - 7.0 17.5

Longtan – pellets (MGI 75% x 50% JV) A$ mill - (10.2) (8.3) 73.6

A$ mill 25.9 64.0 86.5 178.9

NPBT



Longtan - pellets (MGI 75% x 50% JV) A$ mill - (1.8) (4.4) 52.5

A$ mill 22.1 67.1 82.4 151.9

NPAT



Longtan – pellets (MGI 75% x 50% JV) A$ mill - (1.8) (4.4) 52.5

A$ mill 22.1 48.9 56.3 122.1

FINANCIAL PROJECTIONS – MOUNT GIBSON IRON LIMITEDFINANCIAL PROJECTIONS – MOUNT GIBSON IRON LIMITED

Note: - hematite profits based on current iron ore prices

- pellet selling price U$95 / tonne CIF Nanjing

- FX rate A$:U$ 0.78

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ANTICIPATED GROWTH IN SHARESANTICIPATED GROWTH IN SHARES

Shares on Issue (30 April 2005) 366,819,793

Conversion of Notes (December 2005 – 30 cents) 1,500,000

Listed Options (October 2005 - 22 cents) 30,723,300

SHARES ON ISSUE JUNE 2006 399,043,093

Unlisted Employee Options (December 2006 -25 cents) 11,225,000

Unlisted Managing Director Options (December 2007 - 50 cents) 5,000,000

Unlisted Managing Director Options (December 2008 - 55 cents) 5,000,000

SHARES ON ISSUE DEC 2008 420,268,093

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No. Shareholder Shares Held (%) No. Shares

1 National Nominees Limited 7.54% 27,654,734

2 Sinom (Hong Kong) Ltd 5.13% 18,800,000

3 Sun Hung Kai Investment Services Ltd <SHKIS No5 A/C> 4.50% 16,500,000

4 Sun Hung Kai Investment Services Ltd <SHKIS No2 A/C> 4.22% 15,493,568

5 Chemco Pty Ltd 3.54% 13,000,000

6 Link Traders (Aust) Pty Limited 2.36% 8,643,880

7 Marco Holdings 2.18% 8,000,000

8 Dominant Holdings AG 1.64% 6,000,000

9 HSBC Custody Nominees (Australia) 1.07% 3,927,027

10 JP Morgan Nominees Australia Limited 0.97% 3,561,342

11 Invia Custodian Pty Limited <MCM TCF A/C> 0.86% 3,155,454

12 Mr Desmond George Samuel Anderson 0.82% 3,000,000

13 Westpac Custodian Nominees Limited 0.82% 2,998.520

14 ANZ Nominees Limited 0.70% 2,567,337

15 Health Super Pty Ltd 0.59% 2,152,955

16 Compass Gold Limited 0.55% 2,000,000

17 CRMSC Australia Pty Ltd 0.55% 2,000,000

18 Osson Pty Ltd 0.50% 1,830,937

19 Dahele Pty Ltd 0.45% 1,650,000

20 888 Trading Limited 0.41% 1,500,000

TOTAL (Top 20 Shareholders) 39.4% 144,435,754

TOP 20 SHAREHOLDERSTOP 20 SHAREHOLDERS (as at 25 April 2005)(as at 25 April 2005)

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DIRECTORSDIRECTORSBill Willis (Chairman)Mr Willis is a geologist with extensive technical and management experience in the Australian mining sector, particularly in iron ore. He was Executive Director and Chief Executive of Robe River Mining Co Pty Ltd from 1993 to 1999 inclusive, and was responsible for the joint venture between North Limited, Nippon Steel, Mitsui, and Sumitomo Metals for the management, operation and expansion of the Robe River iron ore project in the Pilbara region of Western Australia. Prior to this, Mr Willis worked for BHP and was responsible for exploration, mine geology and management of iron ore production at BHP’s iron ore mines at Mt Newman, Koolyanobbing and Yampi Sound.

Brian Johnson (Managing Director)Mr Johnson is a civil engineer with extensive experience in the construction and mining industries in Australia,South East Asia and North America. As a major shareholder and Chief Executive, Mr Johnson was instrumental in establishing Portman Limited’s presence in the iron ore industry between 1991 and 1994, developing mines at Koolyanobbing and Cockatoo Island. He also personally partnered Mr Lang Hancock in the development and operation of McCamey’s Monster iron ore mine in the Pilbara, prior to its sale to BHP.

Craig Readhead (Non-Executive Director)Mr Readhead is a lawyer who has spent the last 24 years practicing in the resources law area and is now a partner of the law firm Pullinger Readhead Lucas. Mr Readhead has had a significant legal role in thedevelopment of a number of mining projects within Australia, Africa and South East Asia. Mr Readhead is a director of a number of listed and unlisted mining and exploration companies and is a past President of the Australian Mining and Petroleum Law Association, and a past Vice President of the Association of Mining and Exploration Companies.

Ian Macliver (Non-Executive Director)Mr Macliver is a Chartered Accountant with many years experience as a senior executive and director of bothresource and industrial companies (including Portman Limited), with particular responsibility for capital raisingand other corporate initiatives.

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SENIOR EXECUTIVESSENIOR EXECUTIVES John Arbuckle (Chief Financial Officer)Mr Arbuckle is a CPA with over 15 years experience in the mining industry, having previously occupiedsenior finance roles with Rio Tinto Limited, North Limited, Anaconda Nickel Limited and Perilya Limited.

Kevin Malaxos (General Manager Operations)Mr Malaxos is a Mining Engineer with extensive experience in both open pit and underground mining operations. Mr Malaxos was the Resident Manager of the Broken Hill mine of Perilya Limited and wasresponsible for the start-up of that operation. Prior to this he managed the Australian operations of contract miner, Byrnecut Mining Pty Ltd, and held senior management roles with WMC Resources Ltd and KCGM Pty Ltd.

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DISCLAIMERDISCLAIMER

This Document is not a Prospectus nor an Offer to Subscribe for Shares.

Mount Gibson Iron Limited and its subsidiaries (“MGI”) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGI and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that cannot be excluded.

This document contains reference to certain forecasts, projections, intentions, expectations and plans of MGI, which may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ.

The performance and operations of MGI may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGI and its directors.

Documents

INVESTOR PRESENTATION