Peter Meurs, Director of Development

17th Annual Global Iron Ore and

Steel Forecast Conference

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Disclaimer

Important Notice

The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("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 Annual Financial Report as at 30 June 2012, the half year financial

statements 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 the

Fortescue Metals Group Limited. Tables contained within this presentation may contain immaterial rounding differences.

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The Story Begins…2003

An Original Vision The Pilbara is iron ore rich...

China will need more iron ore to develop

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• First ore 2008

• 100mt

expansion 2011-2013

• Over 320mt shipped to end

of Feb 2014

• Ramping up to

155mtpa in

2014

Building a world class company

Our first decade – setting audacious goals

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Delivering results

A differentiated model

China Leveraging China’s growth and manufacturing capability

Speed Speed of delivery - time is money

Planning Planning for scale today and efficiency into the future

Relationships Direct relationships with sub contractors and

local suppliers

Culture Fortescue’s unique culture is the key

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Mini Miners Calendar Colouring Competition

Safety is at the heart of Fortescue’s family values

Our Highest Priority is Safety

• Increased engagement with all

employees and contractors

• Stepped up visible leadership

• Driving a step change in safety

• Reinforcement of our

Life Saving Choices

• External review of safety

leadership and performance

• Empowerment for everyone to

work safely and look after their mates

“my brother’s keeper”

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Solomon in January 2011 – a bit to do…

Building world class assets

… to get to this in 2013

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Towards 155mtpa

We got there…

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Continued growth in all operational areas

At the end of our first decade of building

Ore mined (wmt) Ore processed (wmt)

Ore shipped (wmt)

Millio

n t

on

nes

Millio

n t

on

nes

M

illio

n t

on

nes

C1 (US$/wmt)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

0

5

10

15

20

25

30

35

40

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

0

5

10

15

20

25

30

35

40

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Third party ore

52.56

46.04

49.44 50.48

43.61

36.01

33.17 32.99

30.00

35.00

40.00

45.00

50.00

55.00

Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14

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C1 trending lower as steady state operations commence

Breakeven cash price in low US$70/t, 62% CFR basis

Q3 – Q4 increase in C1 through ramp up of Kings and wet season

Sustained operating cost reduction

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0

10

20

30

40

50

60

Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14(est)

Q4 FY14(est)

FY12 FY13 FY14 (est)

Strip Ratio C1 Cash Cost (US$/wmt shipped)

C1 cash cost (US$/wmt shipped) Strip ratio (RHS)

Estimate for Q3 and Q4

12

CAPEX declines rapidly as production climbs

New decade – new era

0

20

40

60

80

100

120

140

160

180

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

FY10 FY11 FY12 FY13 FY14 (est) FY15 (est)

Tonnes shipped millions

Total spend US$ billions

Operating spend Capital spend Tonnes shipped (RHS)

2014 and 2015 estimates

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• Record revenue US$5.9bn 77%

• EBITDA of US$3.2bn 184%

• NPAT US$1.7bn 260%

• Debt paid/called US$3.1bn – interest savings of US$300m

• Dividend A$0.10 fully franked

Highlights 1H14 Record financial results

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China GDP growth 7.5% in 2014

• Steel demand growth ~8% 2013

• Imported iron ore +10%

to 820mt

• +200m people to urbanise by 2020

Strong underlying economy

“China is still a developing country…

development remains the key to solving

all our country’s problems… We must

keep development as the central task and

maintain a proper economic growth rate.”

Premier Li Keqiang

National People’s Congress

Beijing, 5 March 2014

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New coastal steel capacity moving away from domestic iron ore

Demand for seaborne supply

Iron Ore Reserves

New/proposed steel capacity

Seaborne iron ore

Seaborne iron ore imports (Ex. Australia, Brazil etc.) Source: ANZ Research

Leverage existing assets for low cost growth

Resource portfolio sets expansion platform M

ine

ral R

es

ou

rce

s (

Mt)

16

2,266 2,227 2,143 2,550 2,550

3,379 3,222

695 695 695

695 695

695 695 1,715

2,224 2,860

3,070 3,070

3,247 3,504

624 624

624 624 1,032

2,013

2,463 2,463

-

1,230 1,230

2,465 3,236

5,205 5,205

-

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 2014

Chichester Hub Chichester Other Solomon Hub Western Hub Nyidinghu Magnetite

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Exploration and development

• Fortescue has the largest

tenement portfolio in the Pilbara

• Near mine exploration

continuing

• Long term resources

discovered

• Many future development options

Over 85,000km2 of tenements in the Pilbara

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Product Strategy

• Focused on maximising resource recovery

• Optimising revenue by an integrated product

Revised product strategy at 155mtpa - average grade 58%

Fortescue Blend

70mtpa

Kings CID

40mtpa

Rocket 10mtpa

Super Special Fines

30mtpa

Bonnie

Fines

6mtpa

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Fourth berth commissioned with fifth berth underway

AP1

AP2

AP5

AP3

AP4

Port – flexible design for future growth

• Maximising

throughput capacity Herb Elliott Port

• Wharf structure designed to support

shiploader and extension

of existing conveyors

• Reclamation works onshore adjacent to

existing stockyard

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AP5 Schedule of works

Q1 2014

• Dredging underway

Q2 2014

• Marine Structures construction

Q3 2014

• Materials Handling installation

Q4 2014

• Berth E&I installation

Q1 2015

• Marine Structures complete

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Fortescue River Gas Pipeline

Dampier

Karratha

Solomon Hub

Fortescue River Gas Pipeline - Stage 1

Chichester Hub

Pannawonica North Star

Costs reduction with options for expansion

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• Diversified diesel-natural

gas-LNG energy model

• Long term cost reductions

• Reliable energy supply

in the Pilbara

• Reduced carbon emissions

• Policy and market reform needed to deliver appropriate

solutions for Domestic Gas supply

Needs policy and market reform

A new energy model

1. Incremental production from

optimising existing assets

2. Continue debt reduction ~40%

gearing

3. Moving to investment grade metrics

4. Dividend payout ratio to 30-40% once

gearing achieved

5. Continued exploration of our extensive

Pilbara tenements

6. Early work to secure strategic

options in high value opportunities

Increasing shareholder returns

Beyond 155mtpa

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• Strong JV

partners

• North Star

Phase 1

underway

• Proving new

concepts

• Options to

proceed with

full scale plant

Magnetite

Iron Bridge - 100km south of Port Hedland

13%

~ 500

~ 450

US$1.5bn+

Direct Aboriginal

employees

Aboriginal people in

Fortescue workforce

Aboriginal people

employed by contractors

Contracts to Aboriginal

companies and JV’s

Jobs and opportunities replacing welfare

Making a difference

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• Strong financial results

• Expansion to 155mtpa

• Debt reduction underway

• Increasing dividends

• Flexible incremental growth

• Unique culture drives performance

10 years strong

Delivering on targets

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