PILBARA IRON ORE PROJECT (“PIOP”)

Location

The PIOP is located in the Pilbara region of Western Australia, approximately 60km north-west of Tom Price.

Mineral Resources

PIOP Global Resource Estimate Summary


Small discrepancies may occur due to rounding. Cut Off: Ore types DID1, DID2, DID3 reported using Fe>40% and Al2O3<8%; ore types DID4, CID, BID reported using Fe>50% and Al2O3<6%

Blacksmith (M47/1451) and Anvil Deposits (E47/1560)

Yellow lines show the 10 km UTM grid; blue points = drill hole collars

Competent Person’s Statement – Mineral Resources

The information in this report that relates to the PIOP Mineral Resource estimate is based on information compiled by John Graindorge who is a Chartered Professional (Geology) and a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. John Graindorge is a full-time employee of Snowden Mining Industry Consultants Pty Ltd and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

PIOP Mine Co

Joint-Venture Overview

Joint-Venture Overview

PIOP Structure

PIOP Structure

Completion to a Final Investment Decision

  • From Completion to a Final Investment Decision (“FID”), Flinders will retain control of PIOP Mine Co
  • BBIG must fund the Feasibility Studies and there are various “off ramps” if progress is not made
    • Flinders will retain 100% economic interest and 90% voting interest in PIOP Mine Co
    • Flinders will appoint 3 of the 4 PIOP Mine Co Board members including the Chair
    • BBIG must spend $15m per annum until FID is achieved or BBIG withdraws (and pay any shortfalls to Flinders)
    • After 30 months, if Flinders reasonably believes BBIG will not be capable of submitting a FID proposal by the end of the pre FID period, alternative infrastructure proposals can be sought by Flinders
  • If BBIG is unable to bring a FID Proposal in 4 years which may be extended by 1 year in certain circumstances then Flinders m ay withdraw
  • If Flinders or BBIG withdraw:
    • The arrangements will be unwound and Flinders will retain 100% of PIOP Mine Co
    • BBIG must pay the shortfall of the $15m minimum spend for the year of withdrawal if any, and not less than $3m
    • If within 2 years BBIG determines to sell the BBI Project, Flinders will have a right of first offer to acquire the BBI Project

MINORITY PROTECTION

  • Flinders retains control of PIOP
  • Governance protocol with TIO to manage conflicts of interest