Company Information for Gindalbie Metals Ltd

ASX-GBG

www.gindalbie.com.au

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Company Statement

Gindalbie's vision is to become a leading independent Australian iron ore company with a portfolio of magnetite and hematite production assets, located within the Mid West region of Western Australia. This growth strategy is centred around the delivery of diversified iron products including quality hematite, high grade magnetite concentrate and blast furnace quality pellets.

Our development is focused on delivering initial hematite production from the Mungada Hematite Project from 2009, to be followed by production from our cornerstone Karara Magnetite Project in 2010. In addition, we are developing a range of iron ore resources in the Mid West region which will position Gindalbie at the forefront of a new generation of iron ore companies worldwide.

Current Operations

The Karara Project
Gindalbie executed a wide-ranging Joint Venture Development Agreement with leading Chinese steel and iron ore producer Ansteel in September 2007 to proceed with development of the Karara Magnetite Project through a 50:50 incorporated Joint Venture.

Located 225km east of Geraldton, the Karara Magnetite Project will involve a A$1.6 billion integrated development of the world-class Karara magnetite deposit to produce both high-grade magnetite concentrate and blast furnace quality pellets for export to north-eastern China.

The Karara magnetite deposit has unique qualities in terms of its scale, quality, consistency and extremely low waste: ore stripping ratio, which will result in very low mining costs.

Gindalbie announced the results of a positive Bankable Feasibility Study (“BFS”) on the Karara Magnetite Project in September 2007, confirming the economic and technical viability of the project. The BFS contemplates:

• A conventional open pit operation with an initial 20Mtpa mining rate;
• Production of 8Mtpa of magnetite concentrate on site at Karara;
• Transportation of magnetite concentrate to the Port of Geraldton using rail as the preferred product transport mode, to accommodate future expansion (transport via slurry pipeline also remains an option);
• Magnetite concentrates to be shipped to China via a process involving transportation on barges to a location off Geraldton for loading to a trans-shipper;
• Magnetite concentrates to be shipped on Capesize vessels to China;
• The concentrates to then be further processed into blast furnace quality pellets in a new Joint Venture Pellet Plant, to be located adjacent to Ansteel’s integrated Bayuquan Steel Mill (under construction) at Yingkou, north-eastern China
• The remaining 4Mtpa of magnetite concentrate transported to Yingkou will be sold directly to Ansteel for use in its sintering operations

First production of magnetite concentrates and blast furnace grade pellets is scheduled to commence in early 2010.

The key financial outcomes of the BFS were:
• Estimated total Project Capital Costs of A$1.6 billion with a A$147 million contingency;
• NPV9% after tax of A$2.25 billion, IRR after tax of 24.6% & Project Equity IRR after tax of 37.5%;
• Free Cash Flow after tax from the initial 497Mt Ore Reserve of A$9.33 billion from the first 25 years of operation; and
• Average post tax annual Free Cash Flow of A$360 million.

Mungada Hematite Project
Located 15km from the Karara magnetite deposit, the Mungada Hematite Project contains several hematite prospects geologically similar to the historic Western Mining Corporation (WMC) hematite production centres, located some 3km to the west.

During the early 1970s, Western Mining Corporation produced 450,000 tonnes of ore grading 61% Fe from operations at Mungada and Mungada West, where current reserves are calculated at 3 million tonnes at 60% Fe.

The Mungada Hematite Project will involve the production of 3Mtpa of Direct Shipping Ore (DSO), which will be produced on site at Karara and initially transported to the Port of Geraldton via road and rail and then rail only once the adjacent Karara Magnetite Project is commissioned.

The Project is being developed under a 50:50 incorporated Joint Venture with following a Joint Venture Development Agreement signed in September 2007.Gindalbie and Ansteel have agreed to proceed with development of the Mungada Hematite Project on the same terms as the broader Joint Venture covering the Karara Magnetite Project, with the commencement of production in early 2009 generating early cash flow for the Joint Venture and providing an opportunity to take advantage of strong market conditions in the iron ore sector.

Gindalbie is confident that the hematite business will continue to grow substantially in future with ongoing exploration, both on Joint Venture ground and on its 100%-owned tenements. Gindalbie’s medium term objective is to grow the hematite business to a long-term sustainable level of over 6Mtpa, complementing the larger-scale magnetite business.

Lodestone Prospect
The Lodestone Project is a key exploration prospect located within Gindalbie’s 1,900 square kilometre exploration tenure (100% owned) in the Mid West region of Western Australia. The Lodestone Prospect is located 50km south east of the Karara Project.

Geological mapping completed during 2007 has confirmed the presence of a large Banded Iron Formation (BIF) some 6km long with a similar magnetic intensity to the Karara magnetite deposit.

Mapping has confirmed that the aeromagnetic anomaly is associated with multiple BIF units interbedded with shale across a width of 500 metres. Rock chip sampling has also encountered significant areas of hematite-goethite enrichment at surface.

Initial results of the drilling show a body of magnetite rich BIF with thin shale units interspread through the ore body. Intersections of BIF are generally thinner than at Karara albeit that some intersections were greater than 150 metres. Davies Tube Recovery (DTR) results vary considerably between the eastern and western sides of the deposit. The more prospective eastern side is characterised by intersections between 140 and 270 metres, weight recoveries >32%, silica grades between 3 and 8% with low phosphorus and sulphur grades.

Further results from the more prospective eastern side of the deposit are awaited. Planning of further drilling campaigns will be completed following receipt of these results over the December Quarter 2007. The drilling has confirmed the continuity of the ore body over 150 metres to 250 metres in width, 4 kilometres of strike to a depth of 250 metres vertical.

Geographical Spread

All projects are situated in Western Australia

Board of Directors and Key Management

Mr George Jones (Non Exec. Chairman)

Mr Garret Dixon (Managing Director)

Mr Didier M Murcia (Non Exec. Director)

Mr Tunku Ya'acob Bin Tunku Abdullah (Non Exec. Director)

Mr Michael O'Neill (Non Exec. Director)

Mr Wang Heng (Non Exec. Director)

Mr Evan C Hillard (Alternate Director)

Mr KC Lim (Alternate Director)

Mr Darren Gordon (CFO)

Mr David Stokes (General Counsel)

Company Address

Level 9 London House,
216 St Georges Terrace
Perth, Western Australia, Australia 6000


Telephone:	+61 (8) 9480 8700
Facsimile:	+61 (8) 9480 8799
Email:	gbg[at]gindalbie.com.au
Website:	http://www.gindalbie.com.au

Annual General Meeting

November, Perth

Year End

30 June

Broker/Analyst Reports

22/02/07 - Southern Cross Equities - Jan 2007
26/01/07 - Hartleys Broker Note: Initial Hematite Resource Defined

Major Shareholders

Melewar Steel Ventures Ltd

Westpac Custodian Nominees Ltd

ANZ Nominees Limited

Most Recent Statement

02/06/08 - Expansion Plans and Ansteel Visit
05/05/08 - Gindalbie Metals Targets 80-100Mt of Hematite Through Expanded Regional Exploration
23/04/08 - Appointment of New Chief Financial Officer
21/04/08 - Melewar Shareholding Update
18/04/08 - Quarterly Activities Report
08/04/08 - Gindalbie targets major expansion of Karara Iron Ore Project

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