The Golden Age of Gas

Forward looking statements

Disclaimer

Important NoticeThe purpose of this presentation is to provide general information about

Fortescue Metals Group Limited ("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 InformationThis presentation should be read in conjunction with the Annual Report at 30

June 2016 together with any announcements made by Fortescue in accordance

with its continuous disclosure obligations arising under the Corporations Act 2001.

Any references to reserve and resources estimations should be read in

conjunction with Fortescue’s Ore Reserves and Mineral Resources statement for

its Hematite and Magnetite projects at 30 June 2016 as released to the Australian

Securities Exchange on 19 August 2016, and ASX releases dated 20 May 2014

and 8 January 2015 as they relate to Hematite Mineral Resources Development

Properties. Fortescue confirms in the subsequent public report that it is not aware

of any new information or data that materially affects the information included in

the relevant market announcement and, in the case of estimates of mineral

resources or ore reserves, that all material assumptions and technical parameters

underpinning the estimates in the relevant market announcement continue to

apply and have not materially changed.

All amounts within this presentation are stated in United States Dollars consistent

with the functional currency of Fortescue Metals Group Limited, unless otherwise

stated. Tables contained within this presentation may contain immaterial rounding

differences.

Building a world class company

Core supplier to China’s growth

Safety focus

Shipped over

800mt

First ore

in 2008

Unique culture

165-170mtProduction rate

Low cost

producerEngagement

Empowerment

Leadership

3

• PLACEHOLDER – NEW CORPORATE VIDEO

4

5

Delivering on targets

Focus on safety, productivity and efficiency

✓ Safety

✓ 165-170mt shipped

✓ Productivity + efficiency

✓ Lowest cost producer

✓ Debt repayments

✓ Consistent dividend policy

6

China's Iron Ore Supply CFR Costs (including royalties & ocean freight)

Moving down the global cost curve

Source: Metalytics 25

2012

2016

WA’s natural gas potential

The gas opportunity

Recognise renewables and storage role in future energy solutions

• Gas critical transition fuel

• Switch from imported diesel

• Exploit the Pilbara’s renewables

• Renewables to complement then

displace gas

9

Sensitivity to energy

Mining is an energy-intensive business

Fortescue's C1 costs

Solomon

Chichesters

Port

Rail

Mining Fleet

Energy

Focus on energy efficiency and sustainable costs

Targeting opportunities to replace diesel with gas

• Solomon and Port operations

powered by natural gas

• Fortescue River Gas Pipeline270km natural gas pipeline

• Pilbara Power Project

11

Assumes no new fields developed for domestic gas in next five years

AEMO scenario highlights domgas market risk

Source: GSOO 2016, AEMO, Table 23, page 50

0

200

400

600

800

1,000

1,200

1,400

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Remaining gas reserves linked to WA domgas plants (TJ/d)

Significant number of RLs mature ahead of possible domgas cliff

The Retention Lease bulge

Source: NOPTA NEATS data and Fortescue analysis

19871991

19921993

1994

1994 1995 1996

20002001

2003

2003

2004

2006

2006

2006 2007

2011

2011

2012

2013

2014

2015

2016

0 5 10 15 20 25 30 35 40

2021

2020

2019

2018

2017

2016

Retention Lease Expiry Dates (Initial Grant Date)

Gas important in transition to renewables

More domestic gas fields need to be developed

• Policy settings enable transition

• Maintain competitive advantage

• Integrating the NWIS will boost gas

demand + enable renewables

• “Use it, or lose it” tension needed

14

Supporting our community

Creating opportunities through training, employment and business development

Building strong communities

16

Customer focus

Reliable

Competitive

Sustainable

low cost

producer

World classassets & people

Unique culturedrives performance

Strategic delivery

Culture, continuous improvement, speed and flexibility

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