HANCOCK PROSPECTING Hope Downs Iron Ore Project The Current Status 7 th Annual Global Iron Ore & Steel Forecast Conference Perth, 2004 Russell Tipper – Project Director, HDMS

Presentation Outline  Project background  Project milestones in 2003  Iron ore supply and demand  Project equity participation  The way forward  Conclusions

Project background  Development based on 450 Mt of Ore Reserves at Hope 1  Ore production ramp- up to at least 25 Mt/a within 5 years  New facilities  Mine and ore processing plant at Hope 1  360 km railway to connect the mine to Port Hedland  Stockpiling, wharf and ship loading facilities at Port Hedland Location

Project milestones in 2003 (i)  Increased Resources and Reserves Feasibility Study Value Engineering Study Ore Reserve tonnage 400 Mt 450 Mt Ore mining 100% from 10 m benches 60% from 10 m benches 40% from 5 m benches Waste : Ore ratio 1.4 : : 1.0 Hope 1 South pit mining starts Year 4 Year 7 Mine life 18 years 20 years

Project milestones in 2003 (ii)  Rail route shortened by 13 km with a reduced ruling grade

Project milestones in 2003 (iii)  Rail sharing opportunity emerged –The Supreme Court has clarified the standing of the Hope Downs Project under the 1987 Rail Transport Agreement between the Mt Newman JV and the State –Use of the Mt Newman JV railway will depend on the outcome of commercial discussions with the Mt Newman JV participants adding value to the Project  Project base case remains the construction of a new stand-alone railway from Hope 1 to Port Hedland

Project milestones in 2003 (iv)  Reduced dredged volume required for berth Fig 8:12 Schematic elevation of wharf and dredged pocket looking North

Project milestones in 2003 (v)  Progress with all regulatory issues: –Environment –Land Titles –State Agreement –Native Title

Project milestones in 2003 (vi)  Secured further Letters of Intent from major steelmakers in Asia, including NSC, JFE, SMI, Nisshin and Posco, for greater than 100% of the first five years’ production ramp-up  90% of tonnage at full production has now been secured Region Letters of Intent signed (% of Sales Target) China95% Japan70% Korea/Taiwan70% Europe80% TOTAL90%  All indications are that current iron ore shortages will continue and that real term prices will continue to increase in the medium term

Iron ore supply and demand

Project equity participation  High level of interest in participation in the Project from potential investors  Chinese and Japanese steelmakers interested in securing long term supply through equity participation  Kumba and Hancock currently finalising shortlist of potential Hope Downs equity candidates  Information memorandum will be distributed when Kumba and Hancock have agreed the Project’s contractual framework, having regard for the requirements of the State Agreement

The way forward  Kumba and Hancock remain committed to the development of the Hope Downs Project  The next steps are: –Assessment of the rail sharing opportunity –Shareholders to finalise equity participation –Shareholders to arrange debt funding for Project development –Shareholders to secure final Project approval from the State Government and FIRB

Conclusions  The Hope Downs Iron Ore Project: – – is based on a large high-grade Marra Mamba ore reserve – – has secured support from steel industry participants in Europe and Asia – – is technically, environmentally and economically viable – – will deliver significant benefits to the WA economy and has the full support of the State Government – – is necessary to help satisfy the growth in iron ore demand

HANCOCK PROSPECTING Hope Downs Iron Ore Project The Current Status 7 th Annual Global Iron Ore & Steel Forecast Conference Perth, 2004 Russell Tipper – Project Director, HDMS