The current I/O price is AUD$210 so the O.75% royalty is...

The current I/O price is AUD$210 so the O.75% royalty is AUD$1.755/T (applies to above and below)

The following refers to the RHI project above.

The JV is between

China Baowu Steel Group Corp.

AMCI Capital Fund 1 is a joint venture between First Reserve Corporation, the world’s largest energy-focused private equity fund, and American Metals & Coal International(AMCI),

Posco: South Korean steel company

MIN Res is Project MNG (we can expect that they will be using MIN Res equipment and maintenance contracts and that’s there business model)

RHI shafe Price $3.32(no consolidation)
Cheers

09 February 2022

PROGRESS REPORT FORTHE RHIOJV PROJECT

Mineral Resources Limited (MinRes) have today released a Progress Report stating that

they have signed a Heads of Agreement for the development of the Red Hill Iron Ore

Joint Venture (RHIOJV) project.

This report provides our Company with the confidence that there should be no significant

delay to the receipt of the second cash component of our Sales Agreement with MinRes

and that our anticipated royalty streams will commence in a timely manner.

BACKGROUND

In September 2021, Red Hill Iron Limited sold its 40% interest in the RHIOJV to MinRes.

An initial payment of $200 million was received with a further $200 million to be paid when

the first commercial shipment of iron ore extracted from the RHIOJV tenements departs

port.

In addition, a 0.75% FOB royalty revenue stream is to be received from:

(1) all future production from the RHIOJV tenements;

(2) for the first 10 years, from the APIJV owned Upper Red Hill Creek tenement;

(3) all production from the MRL owned Bungaroo South resources that are

developed in association with RHIOJV production.

2

THE MINRES REPORT

The MinRes Report envisages a life of mine production arrangement with the other

RHIOJV participants, Baowu, AMCI and Posco. The proposed Central Processing Facility

is planned to be constructed adjacent to the RHIOJV Project Kens Bore Resource. The

design capacity is 30 million tonnes per yearwith the product planned to be road hauled

some 140 kilometres to Ashburton Port, near Onslow township.

The report projects a $36 million Capex figure for the first half of calendar 2022.

The Report explains that the mining will be handled as a joint venture with MinRes acting

as Manager. The road haulage and port facilities will be the responsibility of MinRes. It

states that a final investment decision is anticipated in June 2022, and that a target has

been set to achieve first production by March 2024.