Welcome to BC Iron Limited

BC Iron Limited (ASX: BCI) is an emerging iron ore producer based in Western Australia’s world-class Pilbara region.

The Company’s core asset is a 50% Joint Venture with Fortescue Metals Group (FMG) in the Nullagine Iron Ore Project, located 140km north of Newman in Western Australia proximal to FMG’s Chichester operation.

Nullagine Iron Ore Joint Venture (BCI 50%)

Moving Towards Production

• BC Iron is the Manager and operator of the Joint Venture operations
• JV’s infrastructure agreement with FMG provides mine-to-market rail haulage, port operations and shipping
• Native Title Mining & Infrastructure Agreements are secured
• Stage 1 Mining Approvals received; Stage 2 & 3 by Q4 2010
• Construction and mining commence Q3 2010
• First Ore on Ship (FOOS) in December 2010
• Target of 1Mt shipped by 30 June 2011
• Production 3.0Mtpa on commissioning ~ March 2011
• Production +5.0Mtpa – on expansion of FMG’s port ~ 2012

The Product

• Probable Ore Reserve of 36Mt at 57% Fe (65% CaFe) with low impurities
• Total Mineral Resource of 101.6Mt @ 54% Fe providing future targets for reserves and beneficiation product
• Direct Shipping Ore - requires only mining – crushing – shipping
• First-rate steel mill feedstock due to excellent metallurgical sinter properties

Project Economics

• Project now fully funded with US$50m project finance and off-take agreement with trading company Henghou Industries (Hong Kong) Limited
• Life-of-mine operating costs of ~A$43 per tonne FOB (excluding State royalties, marketing and admin)
• Project development costs ~A$50m with ~$20m working capital