Gindalbie: Karara and Beyond

March 2010

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DisclaimerCompetent Person Compliance StatementThe information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Mason who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Mason is a full-time employee of the Gindalbie Metals and 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 Mason consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

JORC - Exploration TargetsIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

General DisclaimerThis presentation may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Gindalbie Metals that could cause actual results to differ materially from such statements. Gindalbie Metals makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.

There are a number of risks, both specific to Gindalbie Metals and of a general nature which may affect the future operating and financial performance of Gindalbie Metals and the value of an investment in Gindalbie Metals including and not limited to economic conditions, stock market fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development, construction and commissioning risk.

All dollar amounts shown in this presentation are in Australian dollars unless otherwise stated.

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Building an Australian Mining House

• Karara Iron Ore Project construction underway

• Hematite production 1H2011, Magnetite production 2H2011

• World-class resource underpins substantial production growth

• Funding, infrastructure and offtake solutions in place

• Strong partnership with Ansteel

• Significant Mid West tenement position

• Framework to pursue new growth opportunities

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Includes: JP Morgan (UK), State Street Global, Highclere (UK), Congruix, AMP, Kelusa

Gindalbie – Corporate Snap Shot

• Shares on issue 707.2m

• Market Capitalisation: ~A$700m (US$630m)

• Cash Reserves (at 31 Dec 2009):

Consolidated Cash - A$164m (US$148m)

Independent Cash - A$43m (US$39m)

• No Corporate Debt

Key ContactsGarret Dixon, Managing Director & CEO – garret.dixon@gindalbie.com.au

David Southam, Chief Financial Officer – david.southam@gindalbie.com.au

Michael Weir, Investor Relations Manager – michael.weir@gindalbie.com.au

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Western Australia’s Emerging Mid West

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Experienced Team – Proven Track Record

Garret DixonManaging Director &

CEO

Geoff WedlockChairman

George JonesNon-Executive

Director

Yu WanyuanNon-Executive

Director

Chen PingNon-Executive

Director

David StokesGeneral Counsel & Co Secretary

Michael WeirCorp Affairs &

Investor Relations Manager

David SouthamChief Financial Officer

Steve Murdoch Chief Operating Officer

Karara Mining Ltd

Peter McBain GM - Project Development

Non- Executive Directors•Tunku Ya’acob•Michael O’Neill•Wang Heng

Gindalbie Metals Limited Board

Gindalbie Metals and Karara Senior Management

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Breaking New Ground in the Mid West• A$2 billion (US$1.8b) development, construction commenced November 2009, Lochada

camp completed, Karara concentrator site cleared and earthworks underway, Karara Village construction started

• +A$450 million (US$405m) committed to contracts and long-lead items

• Current workforce ~150, total construction workforce +1500

• 8Mtpa Stage One production, with potential for +30Mtpa for 30 years

• A$1 billion (US$810m) in annual export revenues, rising to A$3 billion (US$2.7b) with expansion, with strong margins

9Building an Australian Mining House

Gindalbie – Strong Growth PotentialGindalbie’s own Projects

• Karara brings rail, power and water infrastructure, enhancing opportunity to develop other projects

• 1900sq km Mid West tenement holding

• First mover advantage for Gindalbie, future consolidation opportunities

• Value-add opportunities at Oakajee – Pellet/Steel Plant

Capitalising on the Ansteel Partnership

• Jointly target new resource development opportunities

• Focus includes iron ore, coal, manganese, chromite, nickel

• Gindalbie contributes local knowledge, contacts, development expertise

• Ansteel contributes access to capital, offtake requirement, global network

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Resource – The Foundation of the Project

300m deep

800m wide

3km long

• World-class Magnetite Orebody: JORC resource – 2,518Mt @ 35.9%Fe Inclusive of 522Mt @ 36.3%Fe JORC ReserveEquivalent to 1,000Mt @ 68%Fe concentrate

• Future Growth: Start up production 8Mtpa. Orebody can support production of +30Mtpa for 30 years

• Low Operating Costs: Low mining strip ratio (waste:ore, 0.34:1), close to existing infrastructure

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AnSteel – A Partnership Built on Strength

• China’s second biggest steel maker, located Liaoning province, Northern China

• 40Mtpa production, moving to 50Mtpa with steel industry rationalisation• AnSteel Group companies (after completion of consolidation)

– AnSteel 16Mtpa– Benxi Steel 8Mtpa– Panging Steel 8Mtpa– DongBei Special Steel 5Mtpa– Sanming Steel 3Mtpa

• China’s biggest iron ore miner

Ansteel Operations, Anshan City, China

50% 50%

Gindalbie Metals

Ansteel

China JV

Pellet Plant

Karara Mining

Ltd

50% 50%

Project Ownership

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The AnSteel DifferenceBenefits of having Ansteel as Karara’s strategic partner include:

•Ansteel's requirement for a long-term, strategic supply of high quality iron ore ~ includes offtake agreement

•Project funding support ~ includes both debt and equity

•90+ years magnetite mining expertise

•Seamless vertical integration in steelmaking process ~ 4Mtpa pellet plant, integrated with Bayuquan steel mill

AnSteel Fully Committed to Karara - $573m (US$516m) Invested

Bayuquan Steel Mill, Yingkou Port

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Offtake Arrangements

• AnSteel to take ALL Karara iron products, concentrate, pellets and DSO

• No discounts – concentrate pricing structure based on benchmark Hamersley Iron fines price, plus adjustment for Karara’s high quality concentrate. AnSteel pays CVRD benchmark pellet price plus shipping price based on Baltic shipping index Brazil to China

• AnSteel shares in Karara profits delivering long term cost effective ore supply

Karara Concentrate

8Mtpa

China JV Pellet Plant Ansteel

4Mtpa

4Mtpa4Mtpa

Production ChainKarara – A Premium Product

Karara Concentrate

Hamersley Pilbara Blend

Fe % (Iron) 68.2% 62.2%

SiO2 % (Silica) 4.75% 3.6%

Al2O3 % (Alumina) 0.10% 2.1%

P % (Phosphorus) 0.01% 0.1%

High iron content, super low impurities

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Project Funding

A$534m (US$481m) EquityAnSteel contribution A$372m (US$335m) – paid

Gindalbie contribution A$162m (US$146m) – paid

US$1.2b Project DebtProvider: China Development Bank and Bank of China

• Attractive interest rate

• Supported by AnSteel

A$1.8b (US$1.62b) Capital Cost – BFS Sept 2007, based on 10Mtpa ONLY (Magnetite and Hematite)

– No provision for expanded infrastructure capacity #

Operating Cash Cost EstimateA$/Tonne

Mining 11

Crushing 1

Concentrating 13

Other 5

Transport (Rail/Port) 12

Royalties 4

Concentrate FOB Geraldton 46 (US$35)*

* Operating cost in line with BFS. Based on long term AUD:USD ex-rate US75c.

# Infrastructure ExpansionPower Transmission 36Mtpa

Rail Spur 36Mtpa

Water Pipeline 16Mtpa

Geraldton Port 14Mtpa

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Strong Concentrate Margins

Production 8Mtpa 16Mtpa 30Mtpa

2009 Benchmark Price

Annual Revenue* US$584m US$1,168m US$2,190m

Cash Margin US$304m/US$38/t US$608m US$1,140m

2009 + 10% Price Increase

Annual Revenue* US$642m US$1,285m US$2,409m

Cash Margin US$362m/US$45/t US$725m US$1,359m

2009 + 20% Price Increase

Annual Revenue* US$701m US$1,402m US$2,628m

Cash Margin US$421m/US$53/t US$842m US$1,578m

* Reference Price: 2009 Hamersley Iron FOB benchmark fines (US97¢/Dtmu). Adjusted for Karara’s high iron, low impurities concentrate Based on long term AUD:USD ex-rate US75c

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China Pellet Plant

• 4Mtpa Pellet Plant, Gindalbie/Ansteel JV

• Located within Bayuquan steel mill site

• Construction cost A$200m (US$180m)

• Robust return – US$18/t (A$24/t) cash margin *

• Targeted completion date mid-2012

* Pellet costs include: concentrate FOB Geraldton (US$73/t), shipping costs (US$15/t), pelletising costs (US$8/t)* Pellet price based on 2009 Tubarao benchmark FOB (US114¢/Dmtu) plus freight Brazil to China (US$40/t)* Based on long term AUD:USD ex-rate US75¢

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Infrastructure – Rail & Water

WaterRequirements 140km pipeline, Mingenew - Karara

Capacity 16Mtpa concentrate production

Status Construction March Qtr 2010Commissioning March Qtr 2011

Rail

Requirements

85km dual-gauge spur line: Karara to Morawa

Rail upgrades: Morawa to Geraldton (Westnet)

Capacity Spur line 36MtpaMorawa to Geraldton 14Mtpa

Status Construction June Qtr 2010,Commissioning June Qtr 2011

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Infrastructure – Power

Transmission

Requirements180km 330Kv High voltage

transmission line Eneabba to Karara

Capacity Supports 36Mtpa concentrate production

Status Construction Sept Qtr 2010Commissioning March Qtr 2011

Power SupplyKarara connected to existing state grid

15 year State Government supply contract

Price fixed, 2007 plus CPI

120Mw/year to support 12Mtpa concentrate production

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Infrastructure – Geraldton Port

Port

Requirements

330,000t storage shedLoad out facilities

Dual wagon tipper and rail worksBerth 7 ship loader

Capacity Geraldton capacity +20MtpaGindalbie entitlement ~14Mtpa

Status Port site works start June Qtr 2010Commissioning June Qtr 2011

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Oakajee Port – Infrastructure for the Future

• Cape size port 30km north of Geraldton, operational from 2014

• State and Federal Governments financially committed to Oakajee (~A$700m)

• Gindalbie supports Oakajee development and can commit foundation tonnages

• Ansteel and WA Government to investigate steel mill opportunities at Oakajee

“Oakajee is the single most important project for WA’s economic development over the next 50 years.” - WA Premier Colin Barnett.

Artist impression of Oakajee.

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Karara – Growth Potential

• World-class resource with potential for +30Mtpa production

• Karara production scaleable with reduced CAPEX

• Initial construction includes infrastructure capable of 16-36Mtpa

• Value-add opportunities – pellet plant, Oakajee industrial estate

Mtpa

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Karara Iron Ore – Risk Summary

Issue Status/Solution

Iron Ore Resource Nil riskKarara contains 2,518Mt JORC Resource including 522Mt JORC Reserve.

Offtake Arrangements

Minimal riskAnSteel to take all production to feed specially-designed mill. China’s second-biggest steel

producer, not trader. Concentrate priced on benchmark, plus adjustment for premium quality.

Project FundingLow risk

Project equity ($534m) in place. Project debt funding from China Development Bank and Bank of China.

Project ApprovalsMinimal risk

State approval received September 2009. Commonwealth approval October 2009. Strong Government support.

Flow Sheet Technical

Minimal riskExperience from AnSteel (+90yrs magnetite mining), KML, Bateman, Worley Parsons, ProMet.

Project Infrastructure

Low-Medium riskPower secured. Building on existing Port and Rail infrastructure. Not dependent on Oakajee Port

for start-up.

Project Development Budget & Schedule

Low-Medium riskExperienced project people in KML. Hands on management approach. Widespread contractor

backgrounds. Worley Parsons and AMEC Minproc support

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Strong Growth Potential

Karara – Springboard for Growth• World-class resource

• Development underway

• Hematite production 1H2011

• Magnetite production 2H2011

• Strong margins at 8Mtpa. Project potential for +30Mtpa production

• Funding, offtake and infrastructure solutions in place

Gindalbie Framework for Growth

• 1900sqkm Mid West holding

• Ansteel and Gindalbie to jointly target new resource development opportunities Production Next Year

For more information contact Michael Weir:

Corporate Affairs and Investor Relations Manager

Level 9, London House, 216 St George's Terrace, Perth WA 6000

�E: michael.weir@gindalbie.com.au

W: www.gindalbie.com.auT: + 618 9480 8700F: + 618 9480 8799

M: + 61 402 347 032