PRESENTED BY MIDREX TECHNOLOGIES, INC. Midrex ® MXCOL ® DR Plant Integrated with SES Gasification Technology – An Optimized Solution

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. Introduction 2

© 2016 Midrex Technologies, Inc./Kobe Steel, Ltd. All rights reserved. © 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved World DRI Production 3

© 2016 Midrex Technologies, Inc./Kobe Steel, Ltd. All rights reserved. © 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. World DRI Production by Process 4

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MIDREX® Process Flexibility 5 World record annual production: Hadeed Module E –2,000,458 Ton in 2013 World’s only shaft furnace DR Plants using: Syngas from coal gasification (JSPL Angul) COG (JSW Dolvi ) COREX ® offgas (ArcelorMittal South Africa & JSW Toranagallu)

© 2016 Midrex Technologies, Inc./Kobe Steel, Ltd. All rights reserved. © 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. JSPL Angul 6 OVERVIEW:  Capacity: 1,800,000 tons/year  Location: Angul, India  Products: HDRI/CDRI  Reducing Gas: SynGas from Lurgi Coal Gasifier  Start-Up: 2014 DRIVING FORCES:  Designed for local iron oxide pellet  Designed for local high ash coal  HDRI used in an EAF  No coke requirement World’s First DRI Plant Based on Syngas from Coal Gasification

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MXCOL ® 7

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MXCOL ® with SES Gasification Technology (SGT) Introduction Provide an Efficient Integrated Solution for quality DRI Utilize the Locally Available, high-ash coal and local iron ore based pellet No requirement of Coke, Coking Coal, PCI coal, or Sinter Plants, thereby eliminating sinter and coke oven plants No Dependency on imported raw materials thereby avoiding price fluctuation/uncertainty Flexibility in turndown operation and capacity Green Technology, MXCOL ® Plants are environment friendly Multiple product options are available: Cold DRI, Hot DRI, and HBI Competitive OPEX & CAPEX solutions Midrex is offering a One Plant Solution MXCOL ® with SGT. 8

© 2016 Midrex Technologies, Inc./Kobe Steel, Ltd. All rights reserved. © 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MXCOL ® Inputs and Products 9

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MXCOL ® with SGT 10

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. MXCOL ® with SGT SES Gasification Technology (SGT) can be paired with a MIDREX ® Shaft Furnace to produce any form of DRI (cold DRI, hot DRI, or HBI). The gasification syngas option: Includes gas-cleaning and conditioning systems, which prepare the syngas for reheating to the ideal temperature for use as reducing gas. Mixes the offgas from the reduction furnace with fresh syngas after scrubbing and CO 2 removal, then reheats and recycles it to the furnace. Produces a very high quality syngas by gasification technology regardless of the quality of the coal. Allows for use of various bituminous and sub-bituminous coals, lignite, pet coke and petroleum refinery bottoms. Provide a beneficial alternative to natural gas when natural gas availability is uncertain or when energy costs rise. 11

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SGT Technology Advantage Key advantages include: Proven capability to gasify a wide variety of fuels, including high ash and low rank coals, biomass and fine particles Lower capital investment Lower operating costs Higher carbon conversion (up to 99%) and thermal efficiencies Higher plant availability Turndown to 30% of syngas design capacity No tars and oils generated from coal gasification 12

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. Coal Classifications Higher grade coals may be used as a feedstock, which adds to the Plant’s flexibility, but the MXCOL ® Plant with SES targets and is designed for coals that are grade E and F.  In the Useful Heat Value formula: A = Ash (wt%), M = Moisture (wt%)  E and F Coal are the target coals for MXCOL ® feedstock coal. 13

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Advantages 14

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Advantages Preferable Syngas for the MIDREX ® Process 15

MXCOL ® with SES 16

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. Plant Size and Information Area Requirement Approximately 20 hectares for MXCOL® - SES package to produce 1MTPY DRI, including the space required for coal, iron oxide and the product DRI storage area Schedule 30 months from contract effectuation until production of on-grade DRI Plant Availability and Capacity Plant availability: 8000 hours/year (Same as the conventional Midrex NG Plant with the stand-by coal gasifier) Plant capacity: 1.0 ~2.0 MTPY (Turndown ratio = 50%) 17

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. DRI Products There are three DRI products that can be manufactured:  Cold DRI (referred to as CDRI)  Hot DRI (referred to as HDRI)  Hot briquetted iron (referred to as HBI) 18

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. Reference Plants 19

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Reference Plants LocationShandong Province, China PartnerXuecheng Energy Syngas Capacity22,000 Nm 3 /hr of H 2 +CO End Product100,000 tpy Methanol Operating FuelCoal middlings (40% wt ash bituminous washery waste First Syngas Production2008 SES Zao Zhuang Plant 20

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Reference Plants SES Yima Plant LocationHenan Province, China PartnerYima Coal Industry Group Co. Syngas Capacity90,000 Nm 3 /hr of H 2 +CO End Product300,000 tpy Methanol Operating FuelSub-bituminous coal (35%-43% wt ash) First Syngas ProductionDecember 2012 StatusOperating – has met design capacity 21

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Reference Plants Chalco ShangdongPlant LocationShandong Province, China LicenseeAluminum Corp. of China (Chalco) Syngas Capacity~80,000 Nm 3 /hr of H 2 +CO+CH 4 End ProductIndustrial Fuel Gas Operating FuelBituminous coal (6%-8% wt ash) No. Gasifier Trains2 First Syngas ProductionJuly 2015 StatusOperating 22

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Reference Plants Chalco Shanxi Plant Chalco Shanxi 1 System LocationShanxi Province, China LicenseeAluminum Corp. of China (Chalco) Syngas Capacity28,000 Nm 3 /hr of H 2 +CO+CH 4 End ProductIndustrial Fuel Gas Operating FuelBituminous coal (18% wt ash) No. Gasifier Trains1 First Syngas ProductionDecember 2015 StatusCommissioning Phase 23

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. SES Reference Plants Chalco HenanPlant LocationHenan Province, China LicenseeAluminum Corp. of China (Chalco) Syngas Capacity120,000 Nm 3 /hr of H 2 +CO+CH 4 End ProductIndustrial Fuel Gas Operating FuelBituminous coal (5%-8% wt ash) No. Gasifier Trains4 StatusUnder Construction 24

© 2016 Midrex Technologies, Inc./Kobe Steel, Lt. All rights reserved. Questions? Thank You 25