EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 1

INVESTMENT POINTS

♦ IMX demonstrates a well-balanced production, exploration and project development portfolio, with cashflow from its iron ore operations providing funding for exploration and project development initiatives.

♦ IMX owns 51% of Cairn Hill (SA): Magnetite/copper DSO producing 1.8mtpa. Current mine life and cashflow to mid-2015.

♦ IMX is implementing a regional strategic plan to provide additional iron ore feed to the Cairn Hill infrastructure for a further five years. The plan is focused on exploration for DSO hematite and other high grade magnetite deposits.

♦ Mt Woods Magnetite (100%) Project (Scoping Study released), potential 2.5mtpa low opex (A$77/t CIF) and low capex (A$295m) project, to phase in when Cairn Hill depleted using existing infrastructure. Current resource 569mt @ 27.1% Fe.

♦ Mt Woods Cu-Au IOCG exploration potential could be a sleeper if a JV partner (negotiations underway) comes in to explore this demonstrated province.

♦ The Nachingwea Project (Tanzania, 100%) hosts the Ntaka Hill Nickel Sulphide Project, a quality flagship asset and potential ‘company maker’. Current resource 56.2mt @ 0.63% Ni, 0.14% Cu for 356kt contained Ni.

♦ MMG farming into Nachingwea, spending up to US$60m over the next five years to earn up to 60%. MMG is attracted by the potential size and quality of the Ntaka Hill Project – they are targeting 400kt contained Ni at >1.5%Ni grade.

♦ Nickel price has strengthened significantly in 1Q14. We consider there is a high probability of a continuing nickel price recovery over the next 2-3 years.

CORPORATE VALUATION

4.8

2.3

3.0

0.6

1.1

1.5

Components of our 13.3 cps IMX Valuation

Ntaka Hill Ni/Cu JV

(Tanzania)Cairn Hill Phase 1 and 2

Mt Woods Magnetite

ProjectMt Woods Cu-Au

ProvinceGrassroots Expln.

(Tanzania)Cash

RCR assessed valuations in A$

cents/share, adjusted for

corporate overheads. Tax

7 APRIL 2014

AUSTRALIA (SA), TANZANIA, CANADA

IRON ORE, NICKEL, COPPER, GOLD,

GRAPHITE, PGM’S

Fe PRODUCTION, ADVANCED EXPLORATION

EXCHANGES: ASX:IXR; TSX:IXR: FRA:GDM

CAPITAL PROFILE

DIRECTORS

Derek Fisher (Non Exec Chairman) Gary Sutherland (Managing Director) John Nitschke (Non Exec Director) Sun Wei (Non Exec Director) Kellie Benda (Non Exec Director)

Mr Gary Sutherland Managing Director IMX Resources Limited Tel: +(61) 8 9388 7877 West Perth, WA, Australia www.imxresources.com.au

Analyst: Dr Tony Parry tonyparry@rcresearch.com.au

52 week range (A$/share) 0.033 to

Debt (A$m) - Mar 14F

Enterprise value (A$m)

Avg monthly volume (m)

Cash (A$m) - Mar 14F*

Price/Cash (x)

Price/Book (x)

Listed company options: * Includes 49% of Cairn Hill JV cash est. A$10.0m Mar '14 (51% IXR).

Share price (A$) 0.037

0.105

Number of shares (m) 396.5

OZ Minerals Ltd (8.5%)

Options and warrants (m) 26.5

Converting notes (m) 0.0

Fully diluted (m) 423.0

12.9

7.1

2.1

0.5

Yes

Market capitalisation (undiluted) (A$m) 14.7

0.0

7.6

Major shareholders: Sichuan Taifeng Group (13.1%),

0.00

0.02

0.04

0.06

0.08

0.10

0.12

Apr-

13

May-

13

Jun-1

3

Jul-1

3

Sep-1

3

Oct

-13

No

v-13

De

c-13

Jan-1

4

Mar-

14

Sh

are

Pri

ce

(A

$/S

ha

re)

IXR - IMX Resources Limited

Source: CommSec

IMX RESOURCES LIMITED

Price: A$0.037 SPECULATIVE BUY

INVESTMENT COMMENT

IMX (iron ore producer and iron/nickel/copper explorer) is currently trading at a 72% discount to our assessed NAV of A$0.133/share. We value the company’s producing and development/exploration iron ore assets in South Australia and cash, alone, at A$0.068/share. IMX also owns the potentially world class Ntaka Hill nickel sulphide province in Tanzania (mid-tier base metals group MMG farming in by spending US$10m for an initial 15% stake) which appears to have no value reflected in the share price. The gap between the share price and our valuation could narrow rapidly with: (1) any exploration success by MMG in their aggressive program about to start at Ntaka Hill; (2) a successful hunt for DSO hematite which could be readily processed at IMX’s Cairn Hill iron ore operations; or (3) finding a development partner for the Mt Woods Magnetite Project. If any of these scenarios eventuate, we believe a 6-9 month share price target of A$0.10-A$0.12/share is realistic.

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 2

KEY PROJECTS

* Subject to terms of MMG JV agreement - MMG can earn initial 15% stake, eventually up to 60%.

Process

Fe/Cu-Au

MMG Intrusive

Intrusive

Fe mag sep

Float conc

51%

TypeOption Partner

Fe,Cu,Au Taifeng IOCG

Ownership/

St Stephen

Ni,Au,Cu,CNachingwea* 100%*

Cairn Hill

50% Ni-Cu

100%

DSO

RouteMetal

Target

Tanzania

Location

Tanzania

na Early Expl

na

Early Expl Tanzania

Production

na

BIF/IOCG

Project

Canada

Intrusive

JV

Aust (SA)

Aust (SA)

Mt Woods

Ni,Cu

na

Project

Sc Study

Early Expl

Status

na

ABE Res. Intrusive

100% Ni,Cu

100%*Ntaka Hill Ni Sulphide* PEA completedMMG

Mibango

COMPANY COMMENT Overview: IMX is generating current cashflow from its 51% JV interest in the 1.8mtpa Cairn Hill DSO Magnetite operation (SA), which will now extend to Phase 2, and potentially beyond with a five year strategy now in place. The larger (Stage 1 ~2.5mtpa) Mt Woods Magnetite project exhibits attractive economics driven by low capex and a low capital intensity – IMX is now seeking a ‘big brother’ development partner. IMX’s base metal focus is on the highly prospective Nachingwea mineral province in Tanzania (MMG Limited farming in) which hosts the world class Ntaka Hill Nickel Sulphide Project (PEA completed). Corporate Restructure: IMX has recently strengthened the Board with the appointment of a new Managing Director Gary Sutherland (with extensive iron ore experience - ex Flinders Mines) and Chairman Derek Fisher. The head office will be relocated from Perth to Adelaide to focus on the SA iron ore assets and further reduce overheads. Cairn Hill Iron Ore Operation Phase 1 (51%): 55km SE of Coober Pedy (SA). Open pit mining producing 1.8mtpa of a coarse-grained (150µ) magnetite-copper DSO product commenced in May 2010. Infrastructure is in place for trucking and rail to Port Adelaide. This project has generated strong cashflow for IMX in the past two years, giving the company a crucial funding source to drive its exploration and development programs. The remaining mine life will see Phase 1 production end in late 2014. Sales contracts are in place for 100% of 2014 production. IMX is forecasting cash costs of US$101/t CIF China for the remainder of 2014. We forecast modest cashflow in 2014 after the recent drop in iron ore prices (see graph page 4). Cairn Hill Phase 2: The Cairn Hill JV life will be extended to mid 2015 by opening up a third DSO pit adjacent to the current pit, and subsequently one further pit (Pit 4) which will not be high grade DSO material, but will require upgrading to a 57% product through crushing and dry magnetic separation. The capex for Phase 2 will be only ~A$2m for the DMS unit – the crushing plant will be installed by the mining contractor. Projected cash opex for Phase 2 is similar to Phase 1 (~A$100/t CIF), however revenue per tonne will be lower due to no copper credits. Broader Iron Ore Strategy: By committing to Phase 2, cashflow from Cairn Hill will be extended to mid-2015. Importantly IMX will maintain its existing rail and port access. This should allow IMX to bring into production other iron ore growth opportunities with the aim to achieve at least another five years of production utilising existing infrastructure – see graphic on the following page. The key focus is on exploration for DSO hematite which could be transported using existing infrastructure, generating potentially high cashflow margins. A pilot exploration program is underway and showing real promise. IMX recently announced it had identified a significant occurrence of high grade hematite (8.4m @ 59.1% Fe) at Fyans which is located about 11km SW of Arrium Mining’s (ASX:ARI) Peculiar Knob DSO operation (see map page 3). Mt Woods Magnetite Project (100% IMX): JORC resource of 569mt @ 27.1% Fe currently defined over a 3km strike at Snaefell, which is only 15km from Cairn Hill. Exploration targets of 1.5-1.8bt have been outlined. In order to ‘piggy back’ off existing Cairn Hill rail and port infrastructure, IMX is now looking at a modest sized 2.5mtpa initial operation (with potential future expansion), as detailed in a Scoping

Study released in June 2013 (see box, page 7). The Scoping Study (based on long term price of US$97.50/t and A$/US$ = 0.85) indicated potentially attractive project economics (NPV A$288m). The modest capex, low capital intensity (see graph page 7), solid margins and IMX’s experience as an existing efficient magnetite producer will greatly de-risk the project financing challenge and could make it an attractive project for a prospective JV partner – Azure Capital has been appointed to help find one. The MMG Nachingwea JV: The global mid-tier base metals group MMG Limited (“MMG”) has agreed to farm into IMX’s 100%-owned Nachingwea Project and take control of the exploration to earn up to a 60% interest by sole funding expenditure of US$60m (US$10m by Sept ‘14) over a five year period (see page 6 for detail). Hong Kong listed MMG is a mid-tier global resources company formed after the acquisition of most of OZ Minerals’ assets in 2009, capitalised at ~US$1.2bn. The Significance of MMG’s entry: We think that the major expenditure commitment by MMG is a clear statement from the company about the quality of the Nachingwea asset, which has been selected to lead its renewed push into nickel. MMG’s stated target is to outline a resource of at least 400,000t contained Ni (27mt at >1.5% Ni), targeting potential higher grade mineralised zones. Ntaka Hill Status: Near-surface Ni-Cu sulphide resource of 356.4kt contained Ni, including a Measured and Indicated resource of 20.3mt @ 0.58% Ni (117.9kt Ni). A revised Preliminary Economic Assessment (PEA) for a combined open pit and underground operation was released in Nov ‘12. Importantly, metallurgical testwork has indicated the potential to produce clean, high grade (16-18%) Ni concentrates with average Ni recoveries ~80% using conventional flotation technology. Such concentrates are increasingly scarce and likely to be in strong demand from nickel smelters and refineries – a big plus for the project. MMG Program: MMG’s focus is now on the potential for deeper higher grade mineralisation which will improve project economics and push towards the >1.5%Ni target grade. High grade zones have already been identified in IMX’s previous drilling (e.g. 7.60m @ 9.11% Ni from 66.45m; 13.65m @ 3.46% Ni from 357.9m). MMG is expected to start an aggressive drilling campaign in May 2014 to earn its initial interest. Most drilling will be focused on Ntaka Hill, but we expect the potential of the broader ~3km by ~12km Ntaka-Lionja trend (8.5km long ultramafic intrusive corridor) to also be addressed with drilling, as well as the broader regional potential of the entire 6,800km2 Nachingwea property which has demonstrated prospectivity for nickel, copper, gold, base metals, graphite and PGM’s. An extensive soil-sampling program (7,801 sample collected over various prospects) was recently conducted by MMG. Mt Woods Copper-Gold - former JV with OZ Minerals (ASX:OZL): OZL has withdrawn after spending A$14m looking for IOCG copper-gold prospects. However, OZL has only explored about 5% of the tenement area, in a highly prospective IOCG mineral province which hosts three operating copper mines (including Prominent Hill). IMX is currently seeking a JV partner to drive the exploration effort. Given the prospectivity of this region, we would not be surprised to see a JV consummated in the next six months, which could provide a further boost to IMX.

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 3

The proposed extension of Cairn Hill Phase 2

operations to mid 2015 will allow IMX to “buy time” to push ahead with regional exploration programs in the Mt Woods tenements to uncover potential DSO hematite and high grade

magnetite resources in the region, as well as potential

consolidation opportunities. The aim is

to utilise existing Cairn Hill mining, processing and

transport infrastructure to continue iron ore

production and cashflow generation for at least

another five years. This timeframe could also see the development of the Mt Woods Magnetite Project.

The hunt for DSO hematite

to utilise Cairn Hill infrastructure (using

gravity surveys to delineate targets) has been focused on the Tomahawk prospects about 20km SE of the

Cairn Hill mine. Recent initial drilling at Tomahawk

has produced promising results with hematite

mineralisation identified.

However, more recently a review of previous Oz

Minerals drilling identified a significant occurrence of high-grade hematite (8.3m @ 59.1%Fe) from 406.5m

at Fyans (see map). Although deep, it confirms

that high grade coarse hematite does occur on the tenements, giving a boost to the on-going exploration program.

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 4

The table below shows our risk-discounted base case valuation of IMX, and a second valuation assuming MMG has initial exploration success in delineating further high grade nickel sulphide zones at Ntaka Hill in its intensive drilling programs in the next six months. The base case valuation is A$52.6m (A$0.133/share). The valuation with Ntaka Hill exploration upside increases to A$64.0m (A$0.161/share).

We have not included IMX’s tax losses in these valuations.

The lower iron ore prices forecast (RCR forecast is US$115/t basis 62% Fe long term and A$/US$ = 0.85 long term) means more subdued cashflow from Cairn Hill. We are forecasting total gross operating cash flow for the JV of A$26.4m until the completion of Phase 2 in mid-2015. After allowing for tax payments, rehabilitation costs and working capital that amounts

to about A$12m post tax free cash flow, or A$6.1m to IMX (51% share).

IMX RESOURCES LIMITED VALUATION

RCR Ntaka HillBase Case Expln. success

Equity Valuation Basis A$m A$m

Key Projects

+ Ntaka Hill Ni/Cu (Tanzania) 1 100%/85%/40% RCR est: JV 85% farm-in valuation discounted by 60%. 22.8 34.2

+ Cairn Hill Phases 1 and 2 2 51% Project NPV A$12m (after tax) @ 10% DR 6.1 6.1

+ Cairn Hill 5 Year Strategy 3 51% Production potential leveraging on existing infrastructure. 5.0 5.0

+ Mt Woods Magnetite Project 4 100% Scoping Study, 569mt resource, low capex, partner sought. 14.4 14.4

+ Mt Woods Cu-Au IOCG Potential 100% OZL spent A$14m, Gawler-Craton proven mineral province. 3.0 3.0

+ Nachingwea Regional Expl'n 100%/40% RCR est. 3.0 3.0

+ Mibango Ni/Cu/Pt (Tanzania) 100% RCR est. 1.0 1.0

+ Other Exploration Assets RCR est. 1.0 1.0

Sub Total 56.3 67.7

Other Assets

+ Cash (est Mar '14) 5 7.1 7.1

+ Tax Losses 6 0.0 0.0

+ Hedging 0.0 0.0

- Debt (est Mar '14) 0.0 0.0

- Corporate 10.8 10.8

Sub Total -3.7 -3.7

IXR NET ASSET VALUE 52.6 64.0

Capital Structure

Shares on Issue (m) 396 396

Fully Diluted Shares (m) 423 423

IXR NET ASSET VALUE PER SHARE :A$/share 0.133 0.161

IXR NET ASSET VALUE DILUTED :A$/share fully diluted (all options well out of the money, strike > A$0.15) 0.133 0.161

Valuation Notes

1. Ntaka Hill base case value based on implied MMG farm-in value for 85% of the Project of ~ $57m, discounted by 60% to allow for exploration risk.

The second valuation assuming initial exploration success is based on the MMG JV risk discount reducing to 40%.

2. Cairn Hill Phase 1 and 2 NPV: 10% discount rate (nominal); mine life to 2Q15, US$115/t long term Fe price (62%, fines, FOB), A$/US$ = 0.85 long term.

3. Cairn Hill 5 year production strategy focusing on production from regional h.g. magnetite and DSO hematite potential, utilising existing infrastructure.

4. Mt Woods Magnetite Project, 2.5mtpa low capex option, A$288m NPV (Fe US$97.50) disc. by 95%, discount will reduce if a project partner is found.

5. Forecast cash (Mar '14) is after allocating 49% of Cairn Hill Phase cash held by the JV to IMX's JV partner.6. Although IMX has accumulated losses of A$94m at Dec '13 (potential benefit A$28.2m), zero valuation assigned - no immediate opportunity to utilise them.

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 5

THE KEY COMMODITIES FOR IMX

RESERVES AND RESOURCES (Excluding Cairn Hill – no resource/reserve updates recently published).

FINANCIAL FORECASTS

90

100

110

120

130

140

150

05-Apr 05-May 05-Jun 05-Jul 05-Aug 05-Sep 05-Oct 05-Nov 05-Dec 05-Jan 05-Feb 05-Mar

US$

/to

nn

e

Weekly Averages 2013-2014

Iron Ore Price (Platts 62% Fe CFR China)

Weekly Averages: 12 Months

Source: MiningNews.net

Code for reporting mineral resources: Nickel-Copper (Canadian NI 43-101); Iron Ore (Australian JORC)

Base Metals - Nickel/Copper

Ntaka Hill

* Nachingw ea JV w ith MMG Limited - IMX project equity could reduce to 85% in by Sept '14 months and ultimately 40%.

117.9 26.3Total M & I 100% 20.3 0.58 0.13 0.02

Project

Equity * Ore mt Ni% Cu% Co% Cont. Ni kt

0.02

Ntaka Hill Measured 100% 1.1 1.74 0.29

238.5

0.06 19.5

Ntaka Hill Indicated 100% 19.2 0.51 0.12

Classification

98.4

Ntaka Hill Inferred 100% 35.9 0.66 0.14 0.02

Cont. Cu kt

3.3

23.0

50.3

Iron Ore Fines Price (US$/t basis 62% Fe)

Exchange Rate AUD/USD

Group Revenue (A$m)

P/CF (x)

Shares on Issue (EOP) (m)

* FY14 Net prof it is after A$20.76m impairment loss on mine property and development incurred in 2H13.

149.4 122.1 126.3 115.3

0.0

263 396 396 396

na 2.2 1.4 112.2

Yield (%) 0.0 0.0 0.0

PER (x) -1.1 -1.2 -2.2 -3.0

Dividends (A¢/share) 0.0 0.0 0.0 0.0

CFPS (A¢/share) -3 3.4 5.3 0.1

EPS (fully dil.) (A¢/share) -6.5 -6.2 -3.3 -2.5

Net Profit (norm) (A$m) * -17.8 -25.5 -14.1 -10.7

EBIT (A$m) -16.0 -21.8 -20.5 -17.7

Operating Costs (A$m) 176.2 171.3 171.7 172.8

831

194.2 194.4 205.8 183.5

1.07 1.01 0.89 0.87

Equity Iron Ore Production (kt) 793 895 858

2015F

Iron Ore Fines Price FOB US cents/dmtu 240.9 197.0 203.6 186.0

YEAR END: June 2012a 2013a 2014F

The iron ore price was punished in 1Q14 with concerns over slowing Chinese

economic growth and planned medium term production. In 4Q13 iron ore prices averaged US$135/t, in 1Q14 the average was US$121/tonne, (down 10.4%). After breaching US$110/t in mid-March the current spot price has rebounded to

US$116/t (down 17.0% from 4Q13 average). We have revised our long term forecast from US$120/t to US$115/t, but

would not be surprised to see a short term rebound to >US$120/t.

The recent nickel price has been a mirror image of the iron ore price with strong gains

seen in 1Q14 primarily driven by supply concerns derived from Indonesian export

bans of unprocessed laterite ores. Current spot price is ~US$7.40/lb after averaging ~US$6.30/lb in 2H13. Market consensus

forecasts suggest that the nickel price will continue to trend upwards over the next 2-3 years - our long term nickel price forecast is

US$8.75/lb (real).

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 6

The key details of the US$60m MMG joint venture farm-in to the Nachingwea Project are summarised in the Table below. The first US$10m to earn 15% needs to be spent by

September 2014.

Source: IMX .

To date IMX has defined a total resource at Ntaka Hill totaling 56.2mt at 0.63% Ni, 0.14% Cu, containing 356kt of nickel. MMG’s initial exploration focus will be on the potential for deeper

higher grade mineralisation at Ntaka Hill to lift the overall resource grade. MMG has defined a broad resource target of 400,000 tonnes of contained Ni at a minimum grade of 1.5% Ni. The drilling since 2006 conducted by IMX has identified numerous higher grade shoots which are

plunging and remain open to the south, as shown on the graphic below.

Source: IMX

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 7

The Mt Woods Scoping Study (released June 2013) indicated that the after-tax NPV (based on the operating parameters in the table below and using a 9% real discount rate) is A$288m (IRR

21%) assuming a long term iron ore price of US$97.50/t (62% basis) and A$/US$ = 0.85.

The capital intensity of new magnetite projects (due to the need to build a concentrator and infrastructure costs) presents a major challenge to development. However, based on the

Scoping Study, the capital intensity for the proposed Mt Woods project (2.5mtpa base case) is relatively low (~A$120/annual tonne - similar to DSO hematite projects) due to the plan to use

existing Cairn Hill infrastructure.

MT WOODS MAGNETITE PROJECT SCOPING STUDY *

BASE CASE: 2.5 mtpa export through Port Adelaide (Panamax vessels) with >25 year mine life.

MINEABLE RESOURCE ESTIMATES

Fe Contained

Mt % Fe (mt)

Current Inferred Resource (Snaefell deposit) 568.9 27.1 154.2

Assumed LOM Resource for Scoping Srudy 218.3 26.4 57.6

Snaefell deposit is 15km from current Cairn Hill operation.

Existing Cairn Hill infrastructure can be utilised.

MINING METHOD Open pit

Open pit strip ratio: 0.99:1 Total 435.0 mt ore plus waste to be mined.

PROCESS METHOD Crushing, milling , dry and wet magnetic separation to produce a coarse-grained high grade magnetite concentrate.

Grind size 80% < 80 microns.

PRODUCTION RATE :mtpa ore (wet) 2.5 LOM assumed constant. Equivalent to 2.3mtpa dry.

:ktpa concentrate product 657.0 LOM average.

PRODUCT SPECIFICATIONS :% Fe in concentrate 68.5 High grade premium product.

:% SiO2 in concentrate < 3.5 Impurities: <1% Al2O3; <0.015%P; <0.004%S.

CAPITAL COSTS :A$m 294.6 Pre-production capex (including A$56.9m pre-strip)

:A$m 87.6 LOM sustaining capex (A$1.53/t)

INFRASTRUCTURE :Rail Existing Cairn Hill

:Port Existing Port Adelaide

:Power Spur from Prominent Hill

LOM AVERAGE OPERATING COSTS (C1) :A$/t 77.44 Includes: A$22.84/t mine, US$17.08/t processing; A$24.65 rail.

SHIPPING COST :A$/t 16.30 Panamax vessels to Northern China.

TAX :% 30.0

ROYALTY (SOUTH AUSTRALIA) :% 5.0 After 2.0% concesional rate in first five years

MINE LIFE :Years 25+

COMMISSION DATE : na Subject to full feasibility study and engaging a project partner.

Assumed Life of Mine Resources

* These figures are preliminary in nature (derived from Scoping Study released on 4 June 2013) and are intended to provide only a general indication of project potential scale and economic

robustness. The study is based on Inferred Resources only. No JORC Reserves have yet been established.

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Mt W

oo

ds

Jack H

ills

Rid

ley

Sou

thd

ow

n

Sino

Iron

Pro

ject

Ka

rara

Iron

Ore

JV

Balm

ora

l Sou

th

Ca

pit

al I

nte

nsi

ty (

A$

/An

nu

al T

on

ne

)

Capital Intensity of Selected Australian Magnetite Projects

Source: Company reports.

EQUITY RESEARCH

RCR APRIL 2014 Disclaimer & disclosure attached. Copyright© 2014 by RCR Pty Ltd. All rights reserved. 8

DISCLOSURE AND DISCLAIMER Important Information Resource Capital Research Pty Limited (referred to as “we”, “our”, or “RCR” herein) ACN 111 622 489 holds an Australian Financial Services Licence (AFS Licence number 325340). General advice is provided by RCR’s Authorised Representatives Dr Tony Parry (Authorised Representative number 328842) and Murray Brooker (Authorised Representative number 407208). The FSG is available at www.rcresearch.com.au. All references to currency are in Australian dollars unless otherwise noted.

This report and its contents are intended to be used or viewed only by persons resident and located in the United States and Australia and therein only where RCR’s services and products may lawfully be offered. The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject RCR or its affiliates to any registration requirement within such jurisdiction or country.

This report and its contents are not intended to constitute a solicitation for the purchase of securities or an offer of securities. The information provided in this report has been prepared without taking account of your particular objectives, financial situation or needs. You should, before acting on the information provided in this report, consider the appropriateness of the purchase or sale of the securities of the companies that are the subject of this report having regard to these matters and, if appropriate, seek professional financial, investment and taxation advice. RCR does not guarantee the performance of any investment discussed or recommended in this report. Any information in this report relating to the distribution history or performance history of the securities of the companies that are the subject of this report, should not be taken as an indication of the future value or performance of the relevant securities.

In preparing this report, RCR analysts have relied upon certain information provided by management of the companies that are the subject of this report or otherwise made publicly available by such companies. The information presented and opinions expressed herein are given as of the date hereof and are subject to change. We hereby disclaim any obligation to advise you of any change after the date hereof in any matter set forth in this report. THE INFORMATION PRESENTED, WHILE OBTAINED FROM SOURCES WE BELIEVE RELIABLE, IS CHECKED BUT NOT GUARANTEED AGAINST ERRORS OR OMISSIONS AND WE MAKE NO WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, AND DISCLAIM AND NEGATE ALL OTHER WARRANTIES OR LIABILITY CONCERNING THE ACCURACY, COMPLETENESS OR RELIABILITY OF, OR ANY FAILURE TO UPDATE, ANY CONTENT OR INFORMATION HEREIN.

This report and the information filed on which it is based may include estimates and projections which constitute forward looking statements that express an expectation or belief as to future events, results or returns. No guarantee of future events, results or returns is given or implied by RCR. Estimates and projections contained herein, whether or not our own, are based on assumptions that we believe to be reasonable at the time of publication, however, such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from the estimates and projections provided to RCR or contained within this report.

This report may, from time to time, contain information or material obtained from outside sources with the permission of the original author or links to web sites or references to products, services or publications other than those of RCR. The use or inclusion of such information, material, links or references does not imply our endorsement or approval thereof, nor do we warrant, in any manner, the accuracy of completeness of any information presented therein.

RCR, its affiliates and their respective officers, directors and employees may hold positions in the securities of the companies featured in this report and may purchase and/or sell them from time to time and RCR and its affiliates may also from time to time perform investment banking or other services for, or solicit investment banking or other business from, entities mentioned in this report. IMX Resources Limited commissioned RCR to compile this report. In consideration, RCR received from the company a cash consultancy fee of less than $15,000. RCR may receive referral fees from issuing companies or their advisors in respect of investors that RCR refers to companies looking to raise capital. Those fees vary, but are generally between 0 - 1% of the value of capital raised from referrals made by RCR. At the date of this report, neither RCR, nor any of its associates, hold any interests or entitlements in shares mentioned in this report with the exception that either or both of John Wilson (either directly or through Resource Capital Investments Pty Limited (RCI)), or RCI, as trustee of the Resource Capital Investments Fund owns shares in BHP and Rio Tinto.

Analyst Certification: All observations, conclusions and opinions expressed in this report reflect the personal views of RCR analysts and no part of the analyst’s or RCR’s compensation was, is, or will be, directly or indirectly related to specific recommendations or views expressed in the report. Officers, directors, consultants, employees and independent contractors of RCR are prohibited from trading in the securities of U.S. companies that are, or are expected to be, the subject of research reports or other investment advice transmitted to RCR clients for a blackout window of 14 days extending before and after the date such report is transmitted to clients or released to the market.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources: RCR publishes mineral resources based on standards recognized and required under securities legislation where listed mining and exploration companies make their exchange filings and uses the terms “measured", "indicated" and "inferred" mineral resources. U.S. investors are advised that while such terms are recognized and required under foreign securities legislation, the SEC allows disclosure only of mineral deposits that can be economically and legally extracted. United States investors are cautioned not to assume that all or any part of measured, indicated or inferred resources can be converted into reserves or economically or legally mined. We recommend that US investors consult Securities and Exchange Commission Industry Guide 7 – “Description of Property by Issuers Engaged or to Be Engaged in Significant Mining Operations” for further information about the use of defined terms and the presentation of information included in this report.

Source: IMX

CONTACT

Resource Capital Research ACN 111 622 489

Level 33, Australia Square 264 George Street Sydney NSW 2000

T +612 9439 1919 F +612 9439 1919 E info@rcresearch.com.au

www.rcresearch.com.au