8th Annual Mining the Pilbara Conference

Tim Langmead, Director External Relations

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Disclaimer

Important Notice

The purpose of this presentation is to provide general information about Fortescue Metals Group Limited ("Fortescue"). It is not recommended that

any person makes any investment decision in relation to Fortescue based on this presentation.

This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are

subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those

expressed, implied or projected in any forward-looking statements.

No representation or warranty, express or implied, is made by Fortescue that the material contained in this presentation will be achieved or prove to

be correct. Except for statutory liability which cannot be excluded, each of Fortescue, its officers, employees and advisers expressly disclaims any

responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in

negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or

omission therefrom. Fortescue accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this

presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

Additional Information

This presentation should be read in conjunction with the 2013 Annual Report for the year ended 30 June 2013, the half year financial report at 31

December 2013 together with any announcements made by Fortescue in accordance with its continuous disclosure obligations arising under the

Corporations Act 2001.

Any references to reserve and resource estimations should be read in conjunction with Fortescue’s 2013 Annual Report which is available on the

Fortescue website. Fortescue confirms that it is not aware of any new information or data that materially affects the mineral resources and ore

reserves statement included in the 2013 Annual Report.

All amounts within this presentation are stated in United States Dollars consistent with the Functional Currency of Fortescue Metals Group Limited.

Tables contained within this presentation may contain immaterial rounding differences.

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Building a world class company Working with communities and pastoralists

• Founded 2003

• First ore 2008

• 155mtpa production rate

• 10,000 jobs

• $2 billion in company tax and

State royalties (FY15 forecast)

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4

5

Sustainably delivering 155mtpa

Costs

March

2014 155mtpa

Infrastructure complete

Ramped up across mines

and processing facilities

100mt shipped in CY2013

$US3.1bn debt reduction

World’s fourth largest seaborne exporter

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efficiency

focus

CY2013 30%

0

5

10

15

20

25

30

35

40

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

46.43

52.56

46.04

49.44 50.48

43.61

36.01

33.17 32.99

34.88

30.00

35.00

40.00

45.00

50.00

55.00

Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14

0

5

10

15

20

25

30

35

40

Q30

8

Q40

8

Q10

9

Q20

9

Q30

9

Q40

9

Q11

0

Q21

0

Q31

0

Q41

0

Q11

1

Q21

1

Q31

1

Q41

1

Q11

2

Q21

2

Q31

2

Q41

2

Q11

3

Q21

3

Q31

3

Q41

3

Q11

4

Q21

4

Q31

4

0

5

10

15

20

25

30

35

40

Q30

8

Q40

8

Q10

9

Q20

9

Q30

9

Q40

9

Q11

0

Q21

0

Q31

0

Q41

0

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1

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1

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1

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1

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2

Q21

2

Q31

2

Q41

2

Q11

3

Q21

3

Q31

3

Q41

3

Q11

4

Q21

4

Q31

4

Vision to be the safest, lowest cost iron ore producer

Increased production at lower cost

Ore mined (wmt) Ore processed (wmt)

Mil

lio

n to

nn

es

Mil

lio

n to

nn

es

M

illi

on

to

nn

es

C1 (US$/wmt) Ore shipped (wmt)

Mil

lio

n to

nn

es

7

Targeting bottom quartile

Moving down the global cost curve

Source: Metalytics

Cumulative Mt (wet, as delivered)

US

$/d

ry t

on

ne

200

150

100

50

0

0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200

Domestic Chinese Ore

Australia

Brazil

India

South Africa

Other

Fo

rtescu

e

China Iron Ore Supply CFR Costs – May 2014 (including royalties & freight)

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• > 500 employees living in the Pilbara

• $860 million spent

with Pilbara-based

companies in FY13

• $740 million flowing into the Pilbara

community in FY13

Our commitment to the Pilbara

Investing in our Communities

Unlocking the potential of WA’s North West

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• VTECs established in

South Hedland and Roebourne

• 1200 Aboriginal

employees

• $1.55 billion in contracts

awarded to Aboriginal

businesses

A hand up not a hand out

Committed to Aboriginal people

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Thermal coal capital spend per tonne of new capacity

Canary in the Coal Mine

73

106

61

176

0

40

80

120

160

200

2007 2012

Rest of World Australia

Source: Minerals Council of Australia, Opportunity at Risk, 2012

US$/t

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Australia’s Shrinking Coal Market Share

Indonesia, 27.4

Russia, 1.6

South Africa, 4.9

Columbia, 20.8

United States, 1.6

Indonesia, 17.0

Australia, 15.7

Columbia, 2.8

South Africa, -0.6

United States, 13.7

2013-15 supply growth by country 2015-18 supply growth by country

Source: Citi Research

Australia, 29.3

Production swamped by Indonesia and U.S. producers

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How can we maintain a competitive advantage in a competitive world?

We have to earn our place in the world:

– as workers

– as companies

– as a nation

The future of the Pilbara

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Maintaining the Pilbara as the best address for iron ore project development globally

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