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1 ASX RELEASE 4 October 2012 MINING AND PORT EXPANSION UPDATE Mining and materials group, Arrium Limited (ASX:ARI) today released a Mining presentation to be delivered to analysts and investors attending its Mining site tour in South Australia commencing later today. The tour forms part of the company s scheduled investor relations program for the year. As well as providing an update on the investment to deliver a step change in our Mining business through the Southern Iron development and the Whyalla Port capacity expansion, the presentation highlights progress on key initiatives discussed at our full year results in August. In particular: 1. Export iron ore sales are expected to be at a run rate of ~11Mtpa by mid 2013, and then to increase to ~12Mtpa by July/August Our expectation for capacity of the Whyalla Port following expansion has increased from ~12Mtpa to ~13Mtpa 3. Our expectation for total export iron ore sales for FY13 has increased from ~8Mtpa to ~8-9Mtpa. Arrium Managing Director and CEO, Mr Geoff Plummer said: We are very close to shipping our first ores from Southern Iron. I am pleased that in addition to being able to confirm these projects are on time and budget, we have been able to announce increased volume and capacity expectations, above those originally communicated. This further underpins our decision to invest in expanding our Mining business. The Whyalla Port expansion allows us to take advantage of new blending and marketing opportunities, reinforcing the benefits of having our own port with full control of the supply chain, Mr Plummer said. CONTACTS: Investor & Media Steve Ashe General Manager Investor Relations & External Affairs Tel: Mob: ashes@arrium.com Arrium Limited ABN Arrium Head Office: Level 40, 259 George St, Sydney NSW 2000, GPO Box 536, Sydney NSW 2001, Australia Phone: Fax:

2 Arrium Mining Site Tour Greg Waters, Chief Executive Mining 4 & 5 October 2012

3 This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Arrium and certain plans and objectives of the management of Arrium. Forward-looking statements can generally be identified by the use of words such as project, foresee, plan, expect, aim, intend, anticipate, believe, estimate, may, should, will or similar expressions. All such forward looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Arrium, which may cause the actual results or performance of Arrium to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, previously undiscovered geological features, the cyclical nature of the steel industry, the level of activity in the construction, manufacturing, mining, agricultural and automotive industries in Australia and North and South America and, to a lesser extent, the same industries in Asia and New Zealand, mining activity in the Americas, occurrence of adverse weather events, capacity, demand for and performance of the global shipping market, commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Arrium's relationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Arrium's business, including environmental laws, a carbon tax, mining tax and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Paul Leevers, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Leevers is a full-time employee of OneSteel Manufacturing Pty Ltd. Mr Leevers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Leevers consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. 2

4 Contents Arrium business structure Overview A year of transformation Middleback Ranges Southern Iron Whyalla Port expansion project Exploration & development Customers Summary Appendix 3

5 Arrium business structure Middleback Ranges Moly-Cop International Manufacturing Southern Iron Moly-Cop Australasia Distribution Port Operations AltaSteel Recycling 4

6 Arrium Mining Middleback Ranges (MBR) Initially 4Mtpa export iron ore sales - now >6Mtpa Southern Iron (SI) Acquired in October 2011 and now coming into production enables total iron ore sales of ~12Mtpa Port Operations Expansion to ~ 13Mtpa - Outer Harbour export capability of >6Mtpa and Inner Harbour development of 7Mtpa capability 5

7 Overview - A year of transformation 6

8 Delivering a step change, with further opportunities Delivering a step change in Mining business through: Increasing export iron ore sales from ~6Mtpa to ~12Mtpa Building on established track record in mining at Middleback Ranges (MBR) More than doubling port capacity from 6Mtpa to 13Mtpa Southern Iron (SI) Now being commissioned On track to deliver first shipments December 2012 quarter Expected total sales of 8-9Mt for FY13, including MBR Confident of placing all additional ore from expansion Whyalla Port expansion Well advanced First ores scheduled December 2012 quarter Remaining infrastructure to be completed by mid 2013 Generates blending and marketing opportunities ~12Mtpa port capacity not constrained capable of ~13Mtpa due to upgraded ship loader 7

9 Delivering a step change, with further opportunities Middleback Ranges (MBR) Improvements implemented to address bottleneck paying dividends Recent run rate indicates upside to 6Mtpa sales target from existing mines Beneficiated ore expected to provide ~2Mtpa >61%Fe Iron Baron ore beneficiation plant (OBP) commissioned in Q3 FY12 and running at rate Iron Duke OBP improvements complete Summary Expect to be at ~11Mtpa run rate by mid 2013, but lift to ~12Mtpa July/August 2013 with commissioning of new ship loader No change to development cost of $86m for SI and $200m for Port Investigating options to utilise full capacity of Port for at least 10 years through exploration, development and blending 8

10 Middleback Ranges 9

11 Progress on de-bottlenecking MBR Volume benefits through supply chain debottlenecking and OBP commissioning: Rail and transhipping capability improvements Additional rail wagons Introduction of additional transhipping tug and focus on material loading practices OBPs producing to expectations ~2Mtpa Planned pit openings now complete 10

12 Southern Iron 11

13 Peculiar Knob construction program Key milestones in building the mine and facilities 12

14 Peculiar Knob construction program Key milestones in building the mine and facilities 13

15 Peculiar Knob: East of the Stuart Highway 14

16 Peculiar Knob: West of the Stuart Highway 15

17 Southern Iron - export program Testing of infrastructure at Port to commence this quarter - first shipment expected November December 2012 Transhipping to capes (CSL Whyalla) Volumes begin to ramp-up from Q4 FY13 - key milestones 2nd shed complete February 2013 Additional standard gauge (SG) & narrow gauge (NG) rail locos and wagons in service April 2013 Reviewing options to blend lower grade ore prior to 2nd shed/extra wagons 16

18 Southern Iron - export program Blending benefits Blending of Peculiar Knob ore with MBR ores provides opportunity to improve margin Lower grade ores from MBR (~53% Fe) with PK (~63% Fe) LGO from stockpiles and future mining at MBR Target blending grade ~59.3% Fe (can alter for volume or price inflictions) Blending ratio ~2:1 Increased volume Improved pricing on lower Fe% material Lower loaded cost Indicative post ramp up loaded costs of SI blended ore ~$52-$57/wmt (excluding royalties and depreciation) 17

19 Export ore supply chain logistics capability 18

20 Whyalla Port expansion project 19

21 Whyalla Port Current facilities two harbours Outer Harbour with iron ore jetty and dredged channels Inner Harbour with blast furnace wharf Existing ore storage shed Middleback NG rail line to Outer Harbour 20

22 Whyalla Port Current facilities An Outer Harbour capable of >6Mtpa Iron ore loading jetty of 2,000 tph capacity, and a 10.7m berth depth Iron ore storage shed connected to Middleback NG rail line Dredged channels linking to open water and the Inner Harbour Capesize transhipment point at 7.5 nm distance A handi-max capable Inner Harbour servicing the Steelworks 700m wharf, of 10.7m draft, with berths for bulk and steel long products Vessel turning basin Fleeting facilities 21

23 Whyalla Port Outer Harbour ore loading jetty 22

24 Whyalla Port Cape transhipment Fleet of 2 transport barges and 1 transfer barge 23

25 Whyalla Port expansion Step change in iron ore exports from ~6Mtpa to ~13Mtpa required expansion of the current Inner Harbour facilities The new Whyalla Port facilities will result in an Iron Ore Capable Inner Harbour of ~7Mtpa. This includes: Connection to the SG Port Augusta mainline, and train holding and provisioning lines Connection to the NG Middleback line 2 ore storage sheds, each 70m wide x 157m long complete with a direct shipping bypass conveyor An initial temporary bulk products berth utilising a radial ship loader A new bulk products berth as an extension of the existing wharf complete with 4,200 tph travelling ship loader Additional capesize vessel transhipment point at 8.5 nm from Outer Harbour 24

26 Whyalla Port expansion Site locations SG & NG rail turning loop site Temporary berth Ore storage sheds site 4,200tph bulk berth The Port development - on reclaimed land east of the blast furnace, on the northern side of the harbour. 25

27 Whyalla Port expansion Layout 26

28 For personal use only Whyalla Port expansion Rail network extensions layout 27

29 Whyalla Port expansion Site locations Hummock Hill view 28

30 Whyalla Port expansion Status as at end September 2012 Contracts All engineering, procurement and construction contracts executed Regulatory approvals All received other than those required for rail provision and holding facilities, which are progressing in line with plan Forecast project cost Within market guidance of $200m 98% spent or committed in contracts Site status Construction works well progressed on all sites Project schedule First ores through expanded Port on schedule for December quarter 29

31 Whyalla Port expansion Rail 83% complete Locomotive test runs on new sections of standard gauge 30

32 Whyalla Port update Storage Shed 1 Structurally complete and undergoing electrical fit out and sheeting works Radial ship loader for temporary berth Structurally assembled and undergoing electrical fit out 31

33 Transhipping An additional vessel, the CSL Whyalla, will join the existing fleet: Self powered, with combined transport and transfer capability Currently in China port undergoing fit-out Expected arrival in Whyalla 25 October 2012 The CSL Whyalla will undergo Australian registration in Port Adelaide, while en route to Whyalla 32

34 Whyalla Port expansion Bulk products berth Typical Cargotec 4,200tph ship loader due for delivery mid 2013 To be located on the new bulk products berth 33

35 Whyalla Port expansion Possible future expansion Port capable of further capacity expansion (subject to regulatory approvals) Layout recognises two sites for future development North: area of 25 hectares, access to standard & narrow gauge rail links seafront of ~1,400m for future berths South: area of 20 hectares, access to standard & narrow gauge rail links 200m wharf front 34

36 Exploration & development 35

37 Exploration & development Aims Lift iron ore sales to match capacity of the port through: Maintaining sales from existing MBR operations at ~6Mtpa Converting Southern Iron to 10 years of supply (from both Southern Iron and blending with MBR low grade ores) Investigate further ferrous opportunities Investigate non ferrous opportunities at both MBR and Southern Iron 36

38 Arrium Mining Southern Iron 16.4Mt 63.1%Fe (Peculiar Knob) 32.5Mt 63.2% Fe Middleback Ranges Peculiar Knob Middleback Range 44.4Mt 59.5%Fe 153.2Mt total 58%Fe 70.5Mt magnetite 42.8% mass recovery 228.2Mt magnetite 38.8% Mass Recovery Resources declared by WPG YEJ11, not declared in current Arrium Statement 569Mt magnetite 35%Fe 37

39 Track record of extending life beyond Magnet Arrium Reserves Original expectation under Project Magnet of (4Mtpa x 10yrs) Depletion has been replaced Reserves Mt increased to 61Mt Mt Fe% 2012 (including Peculiar Knob) Hematite tonnes shipped / consumed over 6 year period expected to reach 39Mt Added 57.8Mt of reserve since 2007 to FY2012 (including Peculiar Knob) Reduction in Reserves Fe% due to: Addition of tonnages at lower Fe% Depletion of original reserve tonnes of higher Fe% Increase supported by use of Resource (low grade ores either direct shipped/blended or beneficiated) Beneficiation will support current grades going forward 38

40 History of adding reserves Hematite tonnes shipped/consumed over 6 year period have reached 39Mt Added 57.8Mt of reserve since 2007 to YEJ2012, however overall reserve has increased 28.7Mt this is inclusive of the Peculiar Knob Reserve Increase supported by use of Resource (low grade ores either direct shipped or beneficiated) No change in cut off criteria use 55% Fe cut off Overall Reserve grade has reduced 2.0% global Fe at YEJ2012 Compensate grade drop with more beneficiation 39

41 Exploration & development Work required to prove resource up to JORC standard, but reasonable aspirations for lifting iron ore sales to match capacity of the port 10yrs x 13Mtpa iron ore volume to be sourced from exploration & development: Reserve 60.9Mt (44.4Mt MBR, 16.4Mt SI) Total Resource 185.7Mt (153.2Mt MBR, 32.5Mt SI) In essence we have = 124.8Mt of opportunity Of that opportunity, current targets: Insitu (Resource within pit shells) Excluded Resource LGO beneficiated (stocks + mining) 15Mt 20Mt (Resource >50%Fe + inferred) 30Mt 40Mt (key targets Hawks Nest & Cavalier) 10Mt 20Mt (20Mt feed in stock) Combining Reserve and target opportunity 116Mt 141Mt Note: excludes any greenfield exploration 40

42 Middleback Ranges hematite extension drilling Drilling planned at Duchess North, Knight, Cavalier, Monarch and Princess (10,000+m) Other targets defined by helimag survey under review Proposed FY13 11,500m RC, 1,200m DD 41

43 Peculiar Knob region Wirrida 50km from Highway Haulroad (96km) capex PK to Wirrida ~$27m Hawks Nest adjacent Highway Dept of Defence exploration access agreement in place for Hawks Nest 42

44 Peculiar Knob Refine Resource and depth 7,000m in-pit RC drilling and 1,000m geotech diamond drilling (DD) underway Mineralisation open at depth - inferred material beneath current pit limits of 180m to be tested via extra RC/DD drilling to close out potential at depth to >250m, ~6,000m Proposed FY13 5,000m RC, 500m DD 43

45 Hawks Nest potential Hawks Nest contains numerous known hematite and magnetite deposits/targets: DSO deposits Buzzard Tui Magnetite deposits Kestrel Harrier Goshawk Eagle Falcon Kite 44

46 Customers 45

47 Customers Arrium focused on a relationship based marketing with repeat customers MBR customer base includes both contract and spot sales (all CFR) Mix ~2/3 contract, ~1/3 spot Most contract terms closely reflect within month pricing Important we maintain maximum volume through port Many spot customers have multiple cape sales (some in excess of 10) Transition of agency arrangement from BHPB to Arrium has gone smoothly New sales team with over 60 years experience Export sales of beyond 10Mtpa deliver new potential customer profile Diversification Blended products are an opportunity Strong management and control of supply chain Will continue offering contract & spot Confident of placing all additional volumes from expansion 46

48 Summary Iron ore export business about to double in size Post the expansion, Arrium expects to be the 4th largest producer of iron ore in Australia On track to deliver iron ore and Whyalla Port expansions on time and budget First shipment from Southern Iron expected Dec 2012 quarter ~11Mtpa run rate expected by mid 2013 ~12Mtpa sales run rate expected by July/Aug 2013 Port capacity expected to double to ~13Mtpa by mid 2013 Upside to 6Mtpa target from MBR mines as improvements address bottlenecks Expected sales for FY13 increased from ~8Mt to 8-9Mt Expanded Port presents blending and marketing opportunities Aim to utilise full capacity of Port for at least 10 years, options being investigated include exploration, development and blending 47

49 Appendix 48

50 Rail Rail contracts signed with GWA for standard gauge (PK ores) and narrow gauge (MBR ores) Rail wagons supplied under rental agreement inspected, reconnected and ready for service (348 in fleet) Standard gauge railing commences with 2 trains of 160 wagons each hauling ~70 tonnes operating over 6 paths per week (~3.3Mtpa) Additional wagons on order expected to be in service April 2013 GWA will provide additional loco will operate 3 trains of 122 wagons operating over 9 paths per week (~3.8Mtpa) Rail paths secured Narrow gauge (MBR) additional wagons and new locos to be provided by GWA under haulage contract progressive implementation in 2H13 will lift railing capability to ~9Mtpa Review of narrow gauge infrastructure requirements to support increased railing underway (potentially additional holding line and passing loop) 49

51 First ores through crusher 16 September

52 Middleback Ranges (MBR) location plan N IRON KNOB Katunga Hills QUARTZ QUARRY Coffin Bay Iron Knob Iron Baron Iron Duke Port Augusta WHYALLA Ardrossan ADELAIDE Cooyerdoo South Australia Kangaroo Island North Middleback Range Camel Hills IRON BARON WHYALLA IRON KNIGHT IRON DUCHESS IRON DUKE South Middleback Range Spencer Gulf 51