Full Year Results FY2015

13 August 2015

Disclaimer

 This presentation has been prepared by Atlas Iron Limited ("Atlas"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in Atlas or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Atlas will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.

 This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under the law of any other jurisdiction. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified advisors having regarding to their objectives, financial situation and needs. Neither Atlas nor any of their related bodies corporate are licensed to provide financial product advice.

 This presentation and information, opinions or conclusions expressed in the course of this presentation contain forecasts and forward looking information. Often, but not always, forward looking statements can be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "forecast", "should‟", "potential", "anticipate", "continue" , "guidance", "on track", or other similar words and may include statements regarding plans, strategies, objectives and aspirations of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties which may cause actual results and developments to differ materially from those expressed or implied. Forward looking statements in this presentation only speak at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, Atlas does not undertake any obligation to publically update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

 There are a number of risks specific to Atlas, and of a general nature which may affect the future operating and financial performance of Atlas and the value of an investment in Atlas including and not limited to economic conditions, stock market fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development, construction and commissioning risk. The production, shipping and/or export targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements.

 You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which you may require in order to make an informed assessment of the prospects of Atlas. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, Atlas and its officers, employees, agents and advisors expressly disclaim any responsibility or liability whatsoever (including in negligence) for any direct, indirect or consequential loss or damages suffered by any person, as a result of or in connection with this presentation, the information contained in this presentation or any omission from it, or any action taken by you on the basis of the information, opinions or conclusions expressed in, or in the course of, this presentation.

 All references to future production and production & shipping targets and port access made in relation to Atlas are subject to the completion of all necessary feasibility studies, permit applications, construction, financing arrangements, port access and execution of infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as the relevant competent persons' statements.

 This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Atlas‟ other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Atlas website.

 Any references to reserve and resource estimations should be read in conjunction with the competent person statements included in appendices to this presentation, the ASX announcements referenced in this presentation as well as Atlas‟ other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Atlas website.

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FY15 Results

Highlights

• Company responded to a deteriorating iron ore market through a new contracting relationship which on completion of ramp up will deliver a Break Even Price of US$50DMT CFR* China (IODEX 62%); recent falls in AUD:USD further improves this position

• July 15 capital raising of $87M (gross, including $53M of new cash) significantly strengthens balance sheet and improves working capital position

• On track to achieve targeted 14-15Mtpa by December 2015

*For further definition, refer to glossary at back of the report.

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FY15 Results

Annual Results

• Record exports of 12.2Mt (10.9Mt FY14)

• Revenue down by 35% to A$718.5M, following significant fall in the USD iron ore price over the period

• Average FY15 realised price per tonne received of A$59.96/ WMT CFR

(A$100.51/ WMT CFR FY14)

• Underlying* EBITDA loss of A$51.5M

• All-in cash costs* down to A$64.23/WMT (A$76.80/WMT FY14) resulting in

A$150M of annualised cost reductions

• Previously advised non-cash asset impairment and write downs of A$1,077.1M together with restructure and suspension costs of A$52.8M contribute to statutory loss of A$1,377.8M

• Cash on hand of A$73M (pre capital raising), after investing A$81M predominately on completing the Mt Webber stage 2 project in the December half

• Capital investment to support production of 14-15Mtpa now complete

*For further definition, refer to glossary at back of the report.

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FY15 Results

Executive Summary - Financials

Note: All figures in Australian dollars and all tonnage wet unless otherwise indicated. Comparator period, FY14.

*For further definition, refer to glossary at back of the report.

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FY15 Results

Financial Summary

*For further definition, refer to glossary at back of the report.

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FY15 Results

Underlying EBITDA/Variance Analysis

350

250

150

30

258

C/)

o

=E so

-50

-150

153

(51)

-250

Jun-14 Gross margin

-volume

(492)

Revenue

- price

Cost reductions Jun-15

•Unfavourable variance •Favourable variance

FY15 Results

Cash Flow Analysis

1,000 726

900

800

700

600

500

.E

400

300

264

(720)

200 (56) 197 (14) (3)

24

100 (81) 73 (31) (16) (20)

o

Jun-14 Revenue Cash costs Royalties Restructuring & Other Cash after Net i nvestlng lnterest payments lmpact of Dividend Other Jun-15

suspenslon costs operatlons activitles on borrowlngs exchange rates net financlng

•Cash inflows •Cash outflows

FY15 Results

Underlying EBITDA to Net Cash Flow from Operations

*For further definition, refer to glossary at back of the report.

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Full Year - 30 Jun 15 Results

Underlying Cash Gross Margin to Statutory Loss after tax

*For further definition, refer to glossary at back of the report. 10

Corporate Snapshot

Capital Structure

Shareholdings

*as at 31 July 2015

*as at 10 August 2015

**as at 30 June 2015

Note: Options consists of both listed and unlisted securities.

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Glossary

Break Even Price - The key assumptions underlying the estimated Break Even Prices are summarised below:

• AUD/USD $0.7850.

• "Break Even Price Estimate" based on nominal production run-rate and Full Cash Costs at 15Mtpa (i.e. 320kt/mth, 480kt/mth and 450kt/mth from

Abydos, Wodgina and Mt Webber respectively)

• Sea freight of US$6.25/WMT.

• No Contractor Collaboration Deed cost assumed for Mt Webber, however estimated 10-12% mining cost savings (via the BGC Agreement).

• Private and State Royalties of 10.5% at Wodgina and 8.0% at Mt Webber and Abydos.

• Interest of 8.75% p.a. applied to secured debt of US$269M (i.e. A$343M at AUD/USD $0.785).

• Payment of margin to collaborating contractors (see ASX Announcement dated 15 May 2015) included for Wodgina and Abydos (Contractor

Collaboration Margin).

• Moisture of 5.7%, 3.8% and 4.5% at Wodgina, Abydos and Mt Webber respectively (average expected moisture over next 24 months).

• Average assumed lump premium of A$10/DMT with Lump contributing 66% and 50% of Abydos and Mt Webber product respectively. No Lump product

assumed to be produced at Wodgina.

• Initial Lump production at Mt Webber from November 2015, growing during December 2015 to stated 50% of product tonnes.

• Average "Other‟ contractual penalties of US$0.50/DMT assumed to provide for impurities not specified in contracts.

• Quality / Value in Use discount of 12.5%, relating to discounts for ore impurities.

• Average assumed grade of Atlas ore of 57.0% Fe, compared with benchmark grade of 62.0% Fe.

• WA State Government Royalty Relief not included in Break Even Price analysis.

Underlying - when referring to EBIT, EBITDA, cash gross margin and (loss)/profit, it is a non-IFRS measure that in the opinion of Atlas‟ directors provides useful

information to assess the underlying financial performance of the Company. These are non-IFRS measures and are unaudited.

C1 Cash Costs - This term covers costs of mining, processing, land transport, port and other direct costs incurred to the point of a wet metric tonne passing the ships rail at loading. C1 Cash Costs are inclusive of both contractors‟ and Atlas‟ costs, including any uplift in rates paid to collaborating contractors (see ASX Announcement dated 15 May 2015). It is a non-IFRS measure and is unaudited.

All-in cash costs - These costs includes C1 Cash Costs, royalties, freight, corporate and administration, expensed exploration and evaluation but excludes

interest expense, capital expenditure, one-off restructuring costs, suspension and ramp up costs of operating mine sites, Contractor Collaboration Margin and other

non-cash expenses. It is a non-IFRS measure and is unaudited.

WMT - Wet Metric Tonnes

DMT - Dry Metric Tonnes

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