Presented at:

www.minesandmoney.com/hongkong

Investor Presentation

March 2013

Hong Kong

Important Notice

The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("Fortescue"). It is not

recommended that any person makes any investment decision in relation to Fortescue based on this presentation.

This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only

predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or

achievements to differ materially from those expressed, implied or projected in any forward-looking statements.

No representation or warranty, express or implied, is made by Fortescue that the material contained in this presentation will be

achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Fortescue, its officers, employees

and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation

and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a

consequence of any information in this presentation or any error or omission therefrom. Fortescue accepts no responsibility to

update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made

available to a person nor any obligation to furnish the person with any further information.

Additional Information

This presentation should be read in conjunction with the Annual Financial Report as at 30 June 2012, the half year financial

statements together with any announcements made by Fortescue in accordance with its continuous disclosure obligations arising

under the Corporations Act 2001.

All amounts within this presentation are stated in United States Dollars consistent with the Functional Currency of the Fortescue

Metals Group Limited. Tables contained within this presentation may contain immaterial rounding differences.

Disclaimer

3

Company overview

4

FortescueWorld’s 4th biggest seaborne exporter

Strong culturedelivers record results

Top 20 ASX listed company

155mtpa

target

15.6btresource

100

35.7mtrecord shipped

in 1H13

8.5mtshipped in Dec 2012

mtpa

December run

rate

5

Culture

Fortescue’s unique culture is the key

Relationships

Direct relationships with sub contractors and local suppliers

China

Leveraging China’s growth and manufacturing capability

Speed

Speed of delivery – time is money

Planning

Planning for scale today and efficiency into the future

A differentiated modelDelivering results

6

77

HighlightsHalf Year FY2013

• Record production results with 35.7mt shipped

• Key expansion milestones delivered, 50mtpa new capacity

Kings development resumed for 155

• Continuing safety improvement TRIFR decreasing 17%

• US$5.0bn refinancing completed

• Significant progress in asset sale process

7

The path to 155mtpa

9

Financials

10

1111

Financial SummaryHalf Year FY2013

• Revenue of US$3.3bn and EBITDA of US$1.1bn

• Net profit after tax of US$478m

• Tax US$263m and royalties US$194m paid

• Refinancing US$5.0bn

11

1212

EBITDA analysisIncreased volumes offset market volatility impact

EB

ITD

A v

ari

an

ce (

US

$m

)

32% increase in production offset by 42% decrease in price

1,534

1,134

476

10 26

1,018

7 43

156

-

500

1,000

1,500

2,000

2,500

1HFY12 Volume Price Costs Royalty Loan note re-estimation

Fx Other 1HFY13

12

1313

Operating margins supportFortescue’s average realised selling price and C1 costs

Production growth supports strong operating cash flows through the

commodity cycle

13

1414

Capital ExpenditureHalf Year FY2013

US$bnFY2011 Actual

FY2012 Actual

FY2013 Forecast

FY2014 Indicative

155mtpa expansion 0.5 4.1 3.8 0.6

Operational capital 0.3 0.9 0.9 0.7

Other capital projects 0.6 0.3 0.2 0.3

Exploration 0.3 0.4 0.1 0.1

Fleet - 0.4 1.3 0.2

Total 1.7 6.1 6.3 1.9

$4.5 billion spent in 1H2013

Kings restart from January with completion by 1H2014

14

Simplified debt capital structureIncreased flexibility with new debt maturity schedule

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

Senior Secured Credit Facility (1) Senior Unsecured notes Preference Shares

CY2012 CY2013 CY2014 CY2015 CY2016 CY2017 CY2018 CY2019 CY2020 CY2021 CY2022

(1) Senior Secured Credit Facility will be subject to some amortization over its life.

NO DEBT REPAYMENT

until November 2015

15

1616

Capital managementHalf Year FY2013

• Flexible debt maturity profile

• Continued drive to reduce operating

costs

• Disciplined capital allocation to

key projects

• De-gear balance sheet

• Adopt a profit payout ratio dividend

policy

16

Market

17

Long term confidence in ChinaLower growth rates but still strong in absolute volumes

• Strong underlying economy >7%

GDP growth

• New leaders committed to growth

• Urbanisation & infrastructure

driving steel demand

• Targeted infrastructure stimulus

packages

• Short term steel market volatility

18

China steel intensity below global averagesDeveloped economies have spent 40+ years consuming more than 500kg of

steel per person – China is yet to reach this level

Source: ANZ Research

0

200

400

600

800

1,000

1,200

1,400

0 10,000 20,000 30,000

Real GDP per capita (PPP basis)

US

Japan

Korea

China

Germany

kg/capitakg/capita

Taiwan

Steel Intensity & GDP 1850-2012 (smoothed)

19

Iron Ore Price (62% Fe CFR – Platts IODEX China)

History shows price volatilityStrong rebounds follow price drops

20

$80

$90

$100

$110

$120

$130

$140

$150

$160

$170

$180

$190

$200

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

Jul-

11

Au

g-1

1

Sep

-11

Oct

-11

No

v-1

1

Dec

-11

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

21

Clear Strategy

Moving down the global cost curveTargeting bottom quartile

Source: Metalytics prepared March 2012

Cumulative mt (wet, as delivered)

US$

/dry

to

nn

e C

FR e

qu

ival

en

t

200

150

100

50

0

0 100 200 300 400 500 600 700 800 900 1,000

Domestic Chinese Ore

Australia

Brazil

India

South Africa

Other

Firetail & Kings to

reset the cost base

22

23

Fortescue

Flexible design for future growthFifth berth approved

* 120mtpa minimum guaranteed allocated priority capacity 23

Fortescue:

85,000km2

Rio: 14,230km2

BHP: 8,195km2

Fortescue’s dominant Pilbara land position

24

1.5btAnnualised growth of

per annum

Resource portfolio sets expansion platform To leverage existing assets for low cost growth

25

2,266 2,227 2,143 2,550 2,550 3,379

695 695 695 695 695

695 1,715 2,224 2,860

3,070 3,070

3,247

624 624

624 1,032 2,013

2,463

1,230 1,230

2,465

3,236

5,205

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008 2009 2010 2011 2012 2013

Chichester Hub Chichester Other Solomon Hub Western Hub Nyidinghu Magnetite

Min

era

l R

eso

urc

es

(M

t)

Fiscal Year

Deleverage following expansion

Expansion to 155mtpa

Strong financial results

Delivering on targets

Unique culture drives performance

Flexible incremental growth

26

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GlossaryDefinition of non-IFRS terms

EBITDA = profit before income tax adjusted for depreciation and amortisation, net

finance expenses and refinancing costs

Return on equity = profit for the year after income tax divided by total equity

Cash flow per share (CFPS) = net cash inflows from operating activities divided by

undiluted weighted average ordinary shares

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