Arrium Mining UBS Iron Ore Seminar Greg Waters Chief Executive Mining 27 November 2012 This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of and certain plans and objectives of the management of Arrium. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. All such forward looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Arrium, which may cause the actual results or performance of Arrium to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, the cyclical nature of the steel industry, the level of activity in the construction, manufacturing, mining, agricultural and automotive industries in and North and South America and, to a lesser extent, the same industries in Asia and New Zealand, mining activity in the Americas, commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Arrium's relationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Arrium's business, including environmental laws, a carbon tax, proposed mining tax and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements.

This presentation contains certain non-statutory financial measures including underlying EBIT, underlying EBITDA, underlying NPAT, underlying earnings per share and underlying effective tax rate. These measures are used to assist the reader understand the financial performance of the company’s operations. Non-statutory financial information has not been audited or reviewed as part of KPMG’s audit report on the full year financial statements. However, KPMG have undertaken a set of procedures to agree the financial information in this presentation to underlying information supplied by the company. Details of the reconciliation between non-statutory and statutory financial measures can be found on page 127 of the 2012 Annual Report.

The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Paul Leevers, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Leevers is a full-time employee of Arrium Manufacturing Pty Ltd. Mr Leevers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Leevers consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

2 Contents

 Arrium business structure  Overview – A year of transformation  Middleback Ranges  Southern Iron  Port expansion project  Exploration & development  Customers  Summary  Appendix

3 Arrium business structure

Middleback Ranges Moly-Cop International Manufacturing

Southern Iron Moly-Cop Australasia Distribution

Port Operations AltaSteel Recycling

4 Arrium Mining

Middleback Ranges (MBR)  Initially 4Mtpa export iron ore sales - now >6Mtpa

Southern Iron (SI)  Acquired in October 2011 and now coming into production – enables total iron ore sales of ~12Mtpa (including MBR) Port Operations  Expansion to ~13Mtpa - Outer Harbour export capability of ~6Mtpa and Inner Harbour development of ~7Mtpa capability

5 Overview - a year of transformation

TITLE TEXT

6 Delivering a step change, with further opportunities

Delivering a step change in Mining business through:  Increasing export iron ore sales from ~6Mtpa to ~12Mtpa • Building on established track record in mining at Middleback Ranges (MBR)  More than doubling port capacity from 6Mtpa to 13Mtpa

SouthernTITLE TEXT Iron (SI)  Now being commissioned • First sales announced in October via rail to Darwin • On track to deliver first shipments through expanded Port in December 2012 quarter • Expected total sales of 8-9Mt for FY13, including MBR • Confident of placing all additional ore from expansion Whyalla Port expansion  Well advanced • First ores scheduled December 2012 quarter • Infrastructure to be completed by mid 2013  Generates blending and marketing opportunities  ~12Mtpa sales – Port capacity capable of ~13Mtpa due to upgraded ship loader

7 Delivering a step change, with further opportunities

Middleback Ranges (MBR)  Improvements implemented to address bottlenecks paying dividends  Recent run rate indicates upside to 6Mtpa sales target from existing mines  Beneficiated ore expected to provide ~2Mtpa >61%Fe • Iron Baron ore beneficiation plant (OBP) commissioned in Q3 FY12 and running at rate •TITLEIron Duke TEXT OBP further improvements planned

Summary  Expect to be at ~11Mtpa run rate by mid 2013, but lift to ~12Mtpa July/August 2013 with commissioning of new ship loader  No change to development cost of $86m for SI and $200m for Port  Investigating options to utilise full capacity of Port for at least 10 years through exploration, development and blending

8 Delivering a step change, with further opportunities

Peculiar Knob

 October 2011

TITLE TEXT

 October 2012

9 Middleback Ranges

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10 Middleback Ranges (MBR) location plan

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Iron Knob Port Augusta Iron Baron Iron Duke WHYALLA QUARTZ QUARRY Ardrossan Katunga Coffin Bay Hills ADELAIDE Cooyerdoo Kangaroo Island TITLE TEXT Camel Hills IRON BARON North Middleback Range WHYALLA

IRON KNIGHT IRON DUCHESS South Middleback Range IRON DUKE Spencer Gulf

11 Arrium Mining – Q1 Report

Middleback Ranges  Sales volumes 1.61Mt (dmt)  Average realised price US$83/t FOB • Sharp fall in prices to post GFC lows - Aggressive destocking TITLE TEXT - Demand weaker than most expected - Uncertainty related to leadership change • Prices trended up through October/November  Average Fe grade 59.8%  Average loaded cost on ship A$41/t (wmt, excluding royalties and depreciation)

12 Southern Iron

TITLE TEXT

13 Southern Iron progress

 Mining at Peculiar Knob progressing well • 580kt in Q1  Supply chain infrastructure progressing to plan • Haul road completed • Commissioning of crusher commenced TITLE TEXT • First ores sold via rail to Darwin in October • Sales of commissioning volumes continuing into December

14 Southern Iron - export program

 Testing of infrastructure at Port to commence this quarter • Transhipping to capes (CSL Whyalla)  Volumes ramp-up from Q4 FY13 - key program milestones • 2nd shed complete February/March 2013 • Additional standard gauge & narrow gauge rail locos and wagons added •TITLEHigher TEXT capacity ship loader expected July/August 2013

15 Southern Iron - export program

Blending benefits  Blending of Peculiar Knob ore with MBR ores • Lower grade ores from MBR (~53% Fe) with PK (~63% Fe) • LGO from stockpiles and future mining at MBR • Target blending grade ~59-60% Fe TITLE TEXT • Blending ratio ~2:1 • Increased volume and cost of lower grade material more than offsets lost premium for >62% Peculiar Knob ores • Lower loaded cost due to low cost of lower grade ores – Indicative post ramp up loaded costs of SI blended ore ~$52-$57/wmt (excluding royalties and depreciation)

16 Whyalla Port expansion project

TITLE TEXT

17 Whyalla Port

Current facilities – two harbours

Outer Harbour with iron ore jetty and dredged channels

TITLE TEXT Inner Harbour with blast furnace wharf Existing ore storage shed

Middleback NG rail line to Outer Harbour

18 Whyalla Port

Current facilities  An Outer Harbour capable of ~6Mtpa • Iron ore loading jetty of 2,000+tph capacity, and a 10.7m berth depth • Iron ore storage shed connected to Middleback NG rail line

•TITLEDredged TEXT channels linking to open water and the Inner Harbour • Capesize transhipment point at ~7.5nm distance

 A handi-max capable Inner Harbour servicing the Steelworks • 700m wharf, of 10.7m draft, with berths for bulk and steel long products • Vessel turning basin • Fleeting facilities

19 Whyalla Port expansion

 Step change in iron ore exports from ~6Mtpa to ~13Mtpa required expansion of the current Inner Harbour facilities  The new Whyalla Port facilities will result in an ‘Iron Ore Capable’ Inner Harbour of ~7Mtpa. This includes: • Connection to the standard gauge Port Augusta mainline, and train holding and TITLEprovisioning TEXT lines • Connection to the narrow gauge Middleback line • Two ore storage sheds (nominal capacity of 200kt each) – complete with a ‘direct shipping’ by-pass conveyor • An initial temporary bulk products berth utilising a radial ship loader • A new bulk products berth as an extension of the existing wharf – complete with 4,200tph travelling ship loader • Additional capesize vessel transhipment point at 8.5nm from Outer Harbour

20 Whyalla Port expansion

Site locations

TITLE TEXT SG & NG rail turning loop site

Temporary berth Ore storage sheds site

4,200tph bulk berth

The Port development - on reclaimed land east of the blast furnace, on the northern side of the harbour

21 Whyalla Port expansion Possible future expansion  Port capable of further capacity expansion (subject to regulatory approvals)  Layout recognises two sites for future development • North: area of 25 hectares, access to standard & narrow gauge rail links – seafront of ~1,400m for future berths •TITLESouth: TEXT area of 20 hectares, access to standard & narrow gauge rail links – 200m wharf front

22 Exploration & development

TITLE TEXT

23 Exploration & development

Aims  Lift iron ore sales to match capacity of the port through: • Maintaining sales from existing MBR operations at ~6Mtpa • Converting Southern Iron to 10 years of supply (from both Southern Iron and blending with MBR low grade ores) TITLE TEXT  Investigate further ferrous opportunities  Investigate non ferrous opportunities at both MBR and Southern Iron

24 Arrium Mining

 Southern Iron • 16.4Mt Reserve @ 63.1%Fe (Peculiar Knob) • 32.5Mt Resource @ 63.2% Fe

TITLE TEXT  Middleback Range • 44.4Mt Reserve @ 59.5%Fe Peculiar Knob • 153.2Mt total Resource @ 58%Fe • 70.5Mt magnetite Reserve @ 42.8% mass recovery • 228.2Mt magnetite Resource @ 38.8% Mass Recovery Middleback Ranges  Resources declared by WPG YEJ11, not declared in current Arrium Statement • 569Mt magnetite resource @ 35%Fe

25 Exploration & development

Work required to prove resource up to JORC standard, but reasonable aspirations for lifting iron ore sales to match capacity of the port

10yrs x 12-13Mtpa iron ore volume to be sourced from exploration & development :

ReserveTITLE TEXT 60.9Mt (44.4Mt MBR, 16.4Mt SI) Total Resource 185.7Mt (153.2Mt MBR, 32.5Mt SI)

In essence we have 185.7-60.9 = 124.8Mt of opportunity

Of that opportunity, current targets: Insitu (Resource within pit shells) 15Mt – 20Mt (Resource >50%Fe + inferred) Excluded Resource 30Mt – 40Mt (key targets Hawks Nest & Cavalier) LGO beneficiated (stocks + mining) 10Mt – 20Mt (20Mt feed in stock)

Combining Reserve and target opportunity 116Mt – 141Mt

Note: excludes any greenfield exploration

26 Customers

TITLE TEXT

27 Customers

 Arrium focused on a relationship based marketing with repeat customers  MBR customer base includes both contract and spot sales (all CFR) • Mix ~2/3 contract, ~1/3 spot • Most contract terms closely reflect within month pricing • Important we maintain maximum volume through port TITLE TEXT  Many spot customers have multiple cape sales (some in excess of 10)  Transition of agency arrangement from BHPB to Arrium has gone smoothly • New sales team with over 60 years combined experience • Includes offices located in China  Export sales of beyond 10Mtpa • Diversification • Blended products are an opportunity • Strong management and control of supply chain  Will continue offering contract & spot  Confident of placing all additional volumes from expansion

28 Summary

 Iron ore export business about to double in size • Post the expansion, Arrium expects to be the 4th largest producer of iron ore in Australia  On track to deliver iron ore and Whyalla Port expansions on time and budget  First shipment through Port expansion expected Dec 2012 quarter  ~11Mtpa run rate expected by mid 2013 TITLE TEXT  ~12Mtpa sales run rate expected by July/Aug 2013  Port capacity expected to double to ~13Mtpa by mid 2013  Upside to 6Mtpa target from MBR mines as improvements address bottlenecks  Expected sales for FY13 increased from ~8Mt to 8-9Mt  Expanded Port presents blending and marketing opportunities  Objective to utilise full capacity of Port for at least 10 years, options being investigated include exploration, development and blending

29 Appendix

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30 Export ore supply chain – logistics capability

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31 Track record of extending life beyond Magnet

Arrium Reserves  Original expectation under Project Magnet of (4Mtpa x 10yrs)  Depletion has been replaced • Reserves 2007 28Mt increased to 61Mt 2012 (including Peculiar Knob) Mt TITLE TEXT • Hematite tonnes shipped / consumed over 6 year period expected to reach 39Mt • Added 57.8Mt of reserve since 2007 to FY2012 (including Peculiar Knob)  Reduction in Reserves Fe% due to: • Addition of tonnages at lower Fe% • Depletion of original reserve tonnes of higher Fe%  Increase supported by use of Resource (low grade ores either Fe% direct shipped/blended or beneficiated)  Beneficiation will support current grades going forward

32 Peculiar Knob: East of the Stuart Highway

TITLE TEXT

33 Peculiar Knob: West of the Stuart Highway

TITLE TEXT

34 Whyalla Port update

Storage Shed 1  Structurally complete and undergoing electrical testing

TITLE TEXT

Radial ship loader for temporary berth  Structurally assembled and undergoing electrical fit out

35 Transhipping

An additional vessel, the CSL Whyalla, will join the existing fleet:  Self powered, with combined transport and transfer capability  Arrived in Whyalla November 2012 TITLE TEXT  CSL Whyalla will be placed in Outer Harbour once safety checks are completed

36 Whyalla Port expansion

Bulk products berth  Typical Cargotec 4,200tph ship loader due for delivery mid 2013  To be located on the new bulk productsTITLE TEXT berth

37 Peculiar Knob region

 Wirrida 50km from Highway  Haulroad (96km) capex PK to Wirrida ~$27m TITLE TEXT  Hawks Nest adjacent Highway  Dept of Defence exploration access agreement in place for Hawks Nest

38