appndix 3b, page-6

2nd iron ore shipment from FMG heading for TangShan Steel


It is reported that the second iron ore shipment, totaling some 170,000 tonnes is on the way to China's Tangshan Steel and is expected to reach the Chinese client on June 8th 2008

Based on the supply agreement made last May between Tangshan Steel and FMG, the annul iron ore tonnage contracted will be increased gradually year on year to up to 20 million tonnes. As scheduled, FMG will start shipments to the Chinese mill as of 2008.

Mr Andrew Forrest chairman of FMG said that they will continue to meet the demand of Chinese steelmakers with reasonable prices and stable supply.

As per report a carrier loaded with 170,000 tonnes iron ore from FMG set off from Port Healand of Australia May 18th 2008 and were unloaded May 29th 2008 at Baosteel Majishan Harbor. According to the agreement signed between Baosteel and FMG in February 2007, the iron ore producer will provide up to 20 million tonnes resources to Baosteel annually for ten years given the ever growing capacity of FMG.