Murchison Metals

ASX Small to Mid Caps – New York3 March 2011

An emerging world class iron ore and infrastructure company

ACN 078 257 799

Trevor Matthews – Managing Director

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Platform in place for delivering a world class iron ore project and infrastructure system

Early-mover advantage in the highly prospective Mid West

Strong JV Partner

Crosslands (MMX 50%) – A high quality resource project, largest to date in the Mid West

OPR (MMX 50%) – Transformational infrastructure development with stakeholder support

Significant progress made with clear, achievable plans for project delivery

Backed by experienced board and management

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A strategically positioned, emerging iron ore and infrastructure company focused on Australia’s Mid West

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Murchison’s key focus at a glance

Crosslands and Oakajee Port & Rail being developed in alliance with Mitsubishi Development

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Status • Jack Hills Stage 1 producing ~1.8mtpa with expansion +20mtpa under study

Key Deliverables

• Complete BFS• Secure binding offtake agreements• Close financing

Timing • Expansion construction to commence in late 2011/early 2012• First ore on ship 2014

Status • Draft BFS completed for 45mtpa integrated port and rail

Key Deliverables

• Complete Final BFS• Secure supply chain contracts• Close financing

Timing • Construction to commence in late 2011 / early 2012• First ore on ship 2014

Crosslands

Oakajee Port and Rail

Oakajee Port & Rail(LOGISTICS)

Oakajee Port & Rail(LOGISTICS)

Crosslands Resources Ltd

(JACK HILLS MINE)

Crosslands Resources Ltd

(JACK HILLS MINE)

Mitsubishi DevelopmentMitsubishi

Development

25% 25%

50% 50%

50%

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Early mover advantage in the highly prospective Mid West

• Murchison has been focused on the Mid West region of Western Australia since 2004

• Murchison believes there are 3 overriding factors driving the development of the region:1) Superior product quality— The Mid West chemistry is comparable with, and in

many respects superior to, that of the Brazilian iron ore products

— Ultra-low alumina and phosphorous, growing market for the product mix

2) Desire for diversification away from the ‘big 3’— The key North Asian iron ore consumers have all

made significant investments in the Mid West3) Government support and facilitation— The State Government has a strong desire to see

the region developed• Region benefits from Western Australia’s proximity to

Asia

Source: MMX, public announcements

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A number of milestones deliverable in 2011

On track for financial close late 2011 / early 2012 and first production late 2014 / early 2015

Crosslands

Feasibility Study

Supply Chain Agreements

Government Agreements and CUI Funding

Material Approvals

Financing

Residual Payment Process

Financing

Project Go-ahead

Feasibility Study

Iron Ore Offtake Agreements

Material Approvals

Financing

Oakajee Murchison

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• Strategic Alliance with Mitsubishi Development since 2007— Initial subscription payment of $150 million by Mitsubishi Development to Crosslands— Further substantial payment to come after completion of Crosslands and OPR studies

Residual payment based on the assessed value of Jack Hills Stage 2 Project less pro rata share of infrastructure costsDue after completion of BFSs for Crosslands and OPRUses consensus economic pricing

• Mitsubishi to manage the arranging of debt facilities— Project debt financing

Mitsubishi to manage the arranging of limited recourse debt for mine expansion and infrastructure development with provision for further funding support

— Deferred carry fundingA$200m facility for Murchison equity contributions to the mine and infrastructure development businesses

— Contingent capital fundingA$200m facility for Murchison contingent equity commitments at time of debt financing

Mitsubishi – A strong JV partner

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Mitsubishi has a track record of investment and project delivery

• Long term view on its investments in the resources space— e.g. BMA partnership built over 10 years to form leading global coking coal producer

• Trades and markets ~20mtpa of iron ore and has a history of investments in the commodity— e.g. 26% stake in Iron Ore Company of Canada

• Commitment to iron ore re-affirmed with the recent investment in CMP, a subsidiary of CAP Group— US$924m for 25% stake, with funds used to resume projects put on ice because of the global

financial crisis • Resources investments continue to be important to Mitsubishi’s iron ore strategy

“In unveiling Mitsubishi Corp.'s latest business plan recently, new President Ken Kobayashi set the trading titan on an aggressive investment course… Included in the plan is an investment of up to 2.5 trillion yen ($28.73 billion) over the next three years, with which the trading firm will accelerate efforts to acquire interests in resources and energy projects”

Nikkei - 26 July 2010

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Significant progress made towardsdelivering the projects

Crosslands• Stage 1 Production – ~1.8mtpa

• Expansion project Mineral Resource defined

• Environmental Impact Assessment well advanced

• Non-binding Letters of Intent secured for +55mtpa offtake with Asian steel mills

Oakajee• Draft BFS submitted to Govt

• Govt funding of A$678m

• Customer MOUs executed

• Environmental Impact Assessment well advanced

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Crosslands targeting +20mtpa of high quality ore

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Source: CRU, Crosslands and Murchison estimates

Proposed Development

Ownership • Direct 50/50 Murchison/Mitsubishi Development• Incorporated joint venture

Jack Hills Resource1

• Largest in Mid West at 3.2bn tonnes @ 32.3% Fe, expected to underwrite significant mine life

Production • Already producing ~1.8mpta• +20mtpa targeted as part of Expansion Project

Compelling product quality

• More than 55mtpa of LOI’s in iron products already secured – sinter and concentrate markets

• Proposed alumina and phosphorous contaminant levels are amongst the lowest in the market place

Infrastructure • Being developed by sister company, Oakajee Port and Rail

Financing • Engagement underway• Approx. $120m expansion project spend to date

(100%)

1 Refer to Murchison ASX Announcement 23 September 2010 for full details of the Jack Hills Mineral Resource. Jack Hills tonnes are dry metric tonnes. The main Jack Hills Mineral Resource estimate is comprised of 902Mt of Measured at 32.3%Fe and 23.9%DTR, indicated of 1256Mt at 32.2%Fe and 28.1%DTR and inferred of 1060Mt at 32.3%Fe and 27.0%DTR. The Brindal Inferred Mineral Resource estimate is 11.1Mt at 46.5%Fe and 2.8%DTR.

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• Established and experienced mining operation• Proven exporter - 5Mt shipped since February

2007• Current production of 1.8mtpa of mix of Lump

and Fines iron ore products• Management team with +200 years of

experience, including with large international concentrate / mining projects

• Growing workforce – 500 staff and contractors• Premier league customers – five of the world’s

top 10 steel producers in 2009• Exposure to current high iron ore prices

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Existing Stage 1 Operations Jack Hills Project – current open cut

Crosslands is a current iron ore producer

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• Revised Schedule completed early November 2010: Bankable Feasibility Study due in Q2 2011

• Targeting 4 products: DSO Lump, DSO fines, magnetite concentrate, hematite concentrate

• Balancing bulk mining approach for low grade ore with selective mining for the higher grade DSO resource— Very large resource, +25 years life1

— Product consistency important for marketing and offtake— Ongoing exploration success

• Solid foundations, now managing key infrastructure: power and water

• Ongoing peer review processes to ensure robustness of the study for financiers11

Jack Hills Expansion Project Study Focus and Schedule

1This projection is conceptual in nature. Further work is required before an Ore Reserve Estimate can be reported.

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OPR – A transformational infrastructure development

Ownership • Effective 50% Murchison, 50% Mitsubishi Development

• Unincorporated joint venture

Market Environment

• Growing Chinese demand for iron ore; supply diversification

• Mid West – the next major iron ore province• Potential for +70 mtpa iron ore exports

Project • New iron ore terminal and port, 45 mtpa capacity

• ~570 km rail and rolling stock

Customers • Foundation Customers – Crosslands, Sinosteel, Karara

• MOU’s executed• Formal Supply Chain Agreements targeted for

Q2 2011Government • State Development Agreement in place

• Funding contribution - A$678 million

Finance • Engagement underway• Approx $200m project spend to date (100%)

Oakajee Overview Rail

Port

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• OPR is planned as the only 3rd party user, integrated port and rail infrastructure system in Australia.

• November 2010 IPO of QR National – a significant resources focused infrastructure business in Queensland – has highlighted increasing appetite for Infrastructure exposure amongst investors:

— Successful A$6.2bn IPO onto ASX highlighting increased investor awareness and demand for infrastructure exposure

— IPO priced on 21.5x FY2011 P/E, and 16.9x FY2012 P/E

• OPR represents one of the few opportunities to gain leverage integrated port and rail to infrastructure in Australia.

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OPR – a unique infrastructure opportunity

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Key deliverables for 2011/2012

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Q12011Key Project Milestones Q2

2011Q3

2011Q1

2012

OPR & CRL Final BFS

OPR and CRL Key Approvals

Formal Project Go-Ahead for both OPR and CRL

Construction Commences

Q4 2011

Q3 2011

Q1 2012

Q1 2012

Q2 2011

Target Completion

by end

OPR: Implementation Agreements Q2 2011

Bank Credit Approval / Deferred Payment Q4 2011

Supply Chain Agreements Q2 2011

Q42010

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Appendices

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Deferred Payment Process and Project Go-Ahead

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1. Conditions for Value Determination 2. Calculation of Deferred Payment 3. Payment and Project Go-Ahead

• OPR / CRL BFS• Material approvals• Offtake• Construction Contracts• Credit approved bank offer

• NPV of Jack Hills mine• Less pro rata allocation of capital

and operating costs of OPR• Consensus economic

assumptions• Less $75million

• Payment made direct to Crosslands

• Equity for project funding• Formal debt funding

documentation

Project “Bankability”Confirmed

30 days to agree with Mitsubishi Development –

binding expert determination if no

agreement

Precedes formal project go-ahead and construction

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Strong Board of Directors

Murchison’s Board and management team has considerable experience in iron ore, infrastructure, project development and large scale financings

Paul KopejtkaExecutive ChairmanMr Kopejtka is a founding director of Murchison Metals with over 20 years experience in the mining industry as an engineer and consultant in both the Australian and overseas mining industry.

Trevor MatthewsManaging DirectorMr Matthews is a CPA and a Fellow of the Financial Services Institute. Mr Matthews has worked in the resources industry for 25 years and held executive positions with North Limited, WMC Resources Limited and other listed entities in both operational and corporate roles. He has significant experience in corporate governance, project development and finance.

Rod BaxterNon Executive DirectorMr Baxter has nearly 20 years experience in the resources sector, most recently as Managing Director of Consolidated Minerals. Prior toConsolidated Minerals, Mr Baxter enjoyed a near 10 year career at Anglo American and Anglo Platinum in various senior executive and business development roles.

James McClementsNon Executive DirectorMr McClements has extensive experience in the resources industry and is the co-founder of Resource Capital Funds (RCF), a group of funds that invests in development and growth stage mining companies.

Sun Moon WooNon Executive DirectorMr Woo holds a Masters degree in Mining Engineering. He has extensive experience in the natural resources industry and has managed POSCO investments in iron ore and coal projects globally including Australia and Brazil . Mr Woo is currently Managing Director of POSCO Australia Pty Ltd which is a 100% subsidiary of POSCO.

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Experienced Management Team

John WestdorpCFOSignificant project financing experience andbackground with Newmont, North Limitedand Robe River Iron Associates.

Chris FoleyCompany Secretary / Legal CounselOver 20 years of experience in privatepractice and various corporate roles in theresources sector.

Luca RocchiChief Mining EngineerSignificant mining experience. FormerManager Resource Strategy for BHP Billiton,Illawarra Coal

Sean GregoryChief GeologistFormer Principal Geologist for BHP Billiton Iron Ore.

Ian GillingsInfrastructure AdvisorExtensive debt and infrastructure advisory experience.

Brett ClarkProject DirectorExtensive executive level experience in the mining industry, including IOC, Rio Tinto and Western Mining Corporation.

Jamie WrightManager Corporate DevelopmentCorporate advisory and business development experience.

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Murchison’s Board and management team has considerable experience in iron ore, infrastructure, project development and large scale financings

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Capital Structure

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Capital Structure• Shares 436.0m• Options 8.3m• Market Cap. (A$1.40/share) A$622.1m• Listed on ASX with code MMX

Major Shareholders• POSCO 13.9%• Deutsche 7.3%• Sinosteel 5.8%• Paul Kopejtka 5.1%• JP Morgan Asset Management 4.2%• Approximately 10,000 shareholders

Strong Financial Position• Cash & Investments (Dec10) of A$31.3m• US$100m Bridging Facility with Resource Capital Fund• Mitsubishi required to make further payment to complete

acquisition of interest in the Mid West businesses• Mitsubishi Development Umbrella Financing Agreement for project

financing.

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Thank you

Disclaimer

This presentation contains forward looking statements concerning projects owned by Murchison Metals or its related entities. Statements concerning Mineral Resources and Ore Reserves may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Any statements, opinions, projections, forecasts or other material contained in this presentation do not constitute a commitment, representation or warranty by Murchison or its directors, agents and employees who will in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this presentation. This presentation includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Recipients of this presentation must make their own independent investigations, consideration and evaluation of the information. The recipient agrees that if it proceeds further with its investigation, consideration or evaluation of the agreement, it shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon this presentation. It is recommended that you consult your professional advisor/s.

Competent Persons’ Statement

The information in this presentation that relates to Exploration Results and geological and mineralogical interpretations of the Mineral Resource estimate of the Jack Hills Project is based on information compiled by Mr Roland Bartsch who is a full time employee of Crosslands Resources Ltd.. The information in this presentation that relates to grade estimation of the Mineral Resource of the Jack Hills Projects is based on information compiled by Mr Bruce Sommerville in his capacity as an employee of SRK Consulting. Messrs Bartsch and Sommerville have sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves’. Messrs Bartsch and Sommerville are Members of the Australasian Institute of Mining and Metallurgy and consent or have consented to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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