During the past two months, spot prices for iron ore have...

During the past two months, spot prices for iron ore have declined by as much as 40%, which has been
partially offset by the fall in the Australian dollar and reduced shipping costs. However, Territory’s
foreign exchange hedging position as at 30 June 2008 (as set out in the 2008 Annual Report) means
that the Company is likely to experience a reduction in future profitability and free cash flow until the
hedges expire in August 2009.
RAB