Paradice Loaded up in October buckle up :P, page-19

ASX ANNOUNCEMENTASX Code: MGX13December2018Koolan Island Update -Restart on TrackSite ramp-up activities are progressing well.Dewatering is now accelerating, with ~60% of the in-pit water alreadyremoved.The constructed seawall is performing to engineering design and expectations.Initial waste mining activities have commenced.First sales of high grade iron ore plannedfor the end of March 2019.High grade iron ore (65% v 62% Fe) premium remains strongat 18%.Mount Gibson Iron Limited (Mount Gibson) is pleased to provide the following update on progress at its high-grade Koolan Island Restart Project in the Kimberley region of Western Australia.Progress in all critical areas of the restart plan remainson track with ore sales scheduled to commence at the end of March 2019. Pleasingly, this has been achieved whilst maintaining a strongsafety performance, with no Lost Time Injuries recorded,and a Total Recordable Injury Frequency Rate (TRIFR) of 5.0incidents per onemillion man hours worked.The water level in Main Pit has now been reduced by 32metres since pumping commenced in August, with 12.5million cubic metresof waterhaving been removedto date, representing approximately 60%of the total water volume to be extracted.Importantly, the water level in the Main Pit is now 5metres belowthe in-situ foundation rock on the pit side of theseawall, meaning the seawall hasbeen under full tidal loadssince late November. This has also now allowed the dewatering rate to be doubledto a targeted vertical reduction of half a metre per day. Critically, all instrumentation and monitoring data continues to demonstrate that the seawall and the concrete seepage barrier installed within the seawall are performing to design expectations. Refurbishment of the island-side footwall of the Main Pit is also tracking to plan, with barge-mounted shotcreting and the installation of safety mesh progressing well. The footwall works are designed to improve the geotechnical competence of the footwall and provide future protection for personnel and equipment working in the base of the pit.Insurance cover for the site, including the constructed seawalland the footwall installations, has been obtained in line withthe Company’s budget estimates.Drilling and blastingin the upper levels of Main Pit commencedin early November. By the end of the month, just under one million tonnes of waste material had been moved. Mining is currently focused in the upper levels of the eastern end of the Main Pit, withthe first benches of high grade iron ore expected to be accessedin February 2019, in time to commence sales in late March.


2The mining fleet is operational and currently comprises nine haul trucks and three excavators, with the latest addition being a new Hitachi 2600 excavator delivered to the island at the start of December. A further four hired haul trucks are scheduled to be delivered to the island in February next year.These haul trucks will cater for the higher mining movement in the first 2-3 years of the mine life, with Mount Gibson’sowned fleetcarrying the base productionloadthroughout the minelife.Refurbishment and maintenance of the crushing plant is well underway, with staged recommissioning activities to commenceshortly. Refurbishment works have focused on the cone crusher, conveyor maintenance, structural steel repairs, overhaulof sample stations,and maintenanceofplant electrics.Maintenanceworks willalso shortly commence on the shiploading facilities.Renovation of the site accommodation camp is almost complete, while recruitment of the 330 site-based employee and contractor positionsis approximately80% complete. Once iron ore shipmentscommence, Koolan Island will be the highest grade direct ship hematite mine in Australia, with total Ore Reserves of 21Mt grading 65.5% Fe, enabling it to fully benefit from the premium for high grade ores soughtby steel makersin China and elsewhere. The high grade premium for 65%Fe ores versus 62%Fe ores, adjustedfor the grade differential,remains strong at 18%.Mount Gibson Iron Chief Executive Officer Peter Kerr said: “It is extremely satisfying to report that key activitieson the Koolan Island Restart Project continueto progress in line with our targeted schedule to commence sales atthe end of March 2019.“Given the continued strong outlook for high grade products, we look forward to accessing high grade ore early next year and re-establishing Koolan Island,and Mount Gibson Iron,as the producer of Australia’s highest grade direct shipping hematite iron ore.ASX ANNOUNCEMENTASX Code: MGX13December2018Koolan Island Update -Restart on TrackSite ramp-up activities are progressing well.Dewatering is now accelerating, with ~60% of the in-pit water alreadyremoved.The constructed seawall is performing to engineering design and expectations.Initial waste mining activities have commenced.First sales of high grade iron ore plannedfor the end of March 2019.High grade iron ore (65% v 62% Fe) premium remains strongat 18%.Mount Gibson Iron Limited (Mount Gibson) is pleased to provide the following update on progress at its high-grade Koolan Island Restart Project in the Kimberley region of Western Australia.Progress in all critical areas of the restart plan remainson track with ore sales scheduled to commence at the end of March 2019. Pleasingly, this has been achieved whilst maintaining a strongsafety performance, with no Lost Time Injuries recorded,and a Total Recordable Injury Frequency Rate (TRIFR) of 5.0incidents per onemillion man hours worked.The water level in Main Pit has now been reduced by 32metres since pumping commenced in August, with 12.5million cubic metresof waterhaving been removedto date, representing approximately 60%of the total water volume to be extracted.Importantly, the water level in the Main Pit is now 5metres belowthe in-situ foundation rock on the pit side of theseawall, meaning the seawall hasbeen under full tidal loadssince late November. This has also now allowed the dewatering rate to be doubledto a targeted vertical reduction of half a metre per day. Critically, all instrumentation and monitoring data continues to demonstrate that the seawall and the concrete seepage barrier installed within the seawall are performing to design expectations. Refurbishment of the island-side footwall of the Main Pit is also tracking to plan, with barge-mounted shotcreting and the installation of safety mesh progressing well. The footwall works are designed to improve the geotechnical competence of the footwall and provide future protection for personnel and equipment working in the base of the pit.Insurance cover for the site, including the constructed seawalland the footwall installations, has been obtained in line withthe Company’s budget estimates.Drilling and blastingin the upper levels of Main Pit commencedin early November. By the end of the month, just under one million tonnes of waste material had been moved. Mining is currently focused in the upper levels of the eastern end of the Main Pit, withthe first benches of high grade iron ore expected to be accessedin February 2019, in time to commence sales in late March.


2The mining fleet is operational and currently comprises nine haul trucks and three excavators, with the latest addition being a new Hitachi 2600 excavator delivered to the island at the start of December. A further four hired haul trucks are scheduled to be delivered to the island in February next year.These haul trucks will cater for the higher mining movement in the first 2-3 years of the mine life, with Mount Gibson’sowned fleetcarrying the base productionloadthroughout the minelife.Refurbishment and maintenance of the crushing plant is well underway, with staged recommissioning activities to commenceshortly. Refurbishment works have focused on the cone crusher, conveyor maintenance, structural steel repairs, overhaulof sample stations,and maintenanceofplant electrics.Maintenanceworks willalso shortly commence on the shiploading facilities.Renovation of the site accommodation camp is almost complete, while recruitment of the 330 site-based employee and contractor positionsis approximately80% complete. Once iron ore shipmentscommence, Koolan Island will be the highest grade direct ship hematite mine in Australia, with total Ore Reserves of 21Mt grading 65.5% Fe, enabling it to fully benefit from the premium for high grade ores soughtby steel makersin China and elsewhere. The high grade premium for 65%Fe ores versus 62%Fe ores, adjustedfor the grade differential,remains strong at 18%.Mount Gibson Iron Chief Executive Officer Peter Kerr said: “It is extremely satisfying to report that key activitieson the Koolan Island Restart Project continueto progress in line with our targeted schedule to commence sales atthe end of March 2019.“Given the continued strong outlook for high grade products, we look forward to accessing high grade ore early next year and re-establishing Koolan Island,and Mount Gibson Iron,as the producer of Australia’s highest grade direct shipping hematite iron ore.