Ann: Announcement of buy-back - Appendix 3C, page-6

Dear Madam or Sir
FORTESCUE LAUNCHES SHARE BUY-BACK PROGRAM
Fortescue Metals Group Ltd (Fortescue) (ASX: FMG) today announced that it will establish an on-market share buy-back program of up to A$500 million (US$355 million at current exchange rates). This share buy-back program is expected to commence after the release of the Company’s Quarterly Report on 25 October 2018 and to remain in place for a period of up to 12 months.
Fortescue’s Chief Executive Officer Elizabeth Gaines said, “The share buy-back program is a natural extension of our capital allocation focus which has now clearly shifted from debt reduction following the rapid de-gearing of the balance sheet and the successful execution of our capital management strategy.
“With our continued strong operating performance and new investments underway, the purchase of our own shares, funded out of operating cash flows, maintains our disciplined balance sheet management. This is consistent with our clear business strategy of investing in our core iron ore business while pursuing growth and development and delivering returns to our shareholders.”
The buy-back program does not require shareholder approval as it will be within the ‘10/12 limit’ permitted by the Corporations Act 2001.
The number and timing of shares purchased will depend on Fortescue’s share price and market conditions. All ordinary shares purchased pursuant to the share buy-back program will be cancelled. Fortescue reserves the right to vary, suspend or terminate the buy-back program at any time.
Particulars of the share buy-back program are set out in the Appendix 3C attached to this announcement.