Aditya Birla Minerals Limited ABN 37 103 515 037

Level 3

256 Adelaide Terrace Septimus Roe Square Perth

Western Australia 6000 Australia

PO Box 3074

East Perth

Western Australia 6892 Australia

T: +61 8 9366 8800

F: +61 8 9366 8805

www.adityabirlaminerals.com.au

Aditya Birla Minerals Limited

ASX RELEASE

For the Quarter ended 31st December 2015

For Further Information

Aditya Birla Minerals Limited Media Enquiries

Neel Patnaik - Managing Director Michael Vaughan

Shanti Dugar - Chief Financial Officer Fivemark Partners Peter Torre - Company Secretary

Telephone +61 8 9366 8800 Telephone +61 422 602 720

Facsimile +61 8 9366 8805

Email: [email protected]

ADITYA BIRLA MINERALS LIMITED

Third Quarter Ended 31st December 2015

Highlights

• The sale of 100% of the shares in Birla Mt Gordon Pty Ltd to Lighthouse Minerals Holdings Pty Ltd was successfully completed on 27 October 2015 after satisfaction of all conditions precedent.

• Continued improvement in operating performance at Nifty Copper Operation during the December quarter:

  • Copper production during the quarter was 11,003 tonnes, an increase of 75% from the September quarter.

  • C1 cash operating costs during the quarter of A$2.09/lb, a reduction of 32% from the September quarter.

  • Ore processed during the quarter was 441,983 tonnes, an increase of 21% from the September quarter.

  • Higher ore grade averaging at 2.65% during the quarter as compared to 1.82% in the September quarter.

  • The ore mining rate continued to be impacted by a higher percentage of ore being remotely bogged due to draw point control measures in place.

• Guidance in relation to production increased to an expected 29,000 - 30,000 tonnes of copper production from previous guidance of 25,000 - 28,000 tonnes.

• Guidance in relation to total site costs reduced to an expected A$135 - A$140 million for the year ending 31 March 2016 from previous guidance of A$135 - A$145 million.

• Cash and cash equivalents of $72.18 million as at 31 December 2015 with a further $7.82 million (classified as trade and other receivables in the balance sheet) in a security deposit against finance facilities.

• Stage one of Strategic Review completed and stage two initiated with a targeted completion date at the end of the March 2016 quarter.

• The Board of Directors of ABML continue to advise ABML shareholders to TAKE NO ACTION in relation to the unsolicited takeover offer by Metals X Limited.

Overview

Compared to the previous quarter, copper production increased by 75% mainly due to improved average copper grade to 2.65% during Q3 compared to 1.82% achieved in the previous quarter and a 21% increase in tonnes processed.

The Company had a balance of cash and cash equivalents of $72.18 million as at 31 December 2015. In addition, there were security deposits of $7.82 million as at 31 December 2015 (accounted for as 'trade and other receivables') against finance facilities ($7.82 million). The total of the cash balance and security deposits as at 31 December 2015 was $80 million, a decrease of $4.26 million compared to the corresponding total of $84.26 million at the end of the previous quarter. The decrease is mainly attributed to working capital movements between the two reporting cut-off dates.

As at 13 January 2016, the Company had sold forward 8,000 tonnes of copper at average rate of US$4,900 per tonne against the despatched quantity. As at the same date, the Company had a forward sale position of US$ 1.5 million at an average exchange rate of 0.7155 AUD/USD.

As previously advised, as a result of the strategic review process undertaken in relation to Mt Gordon, the Company sold all shares in Birla Mt Gordon Pty Ltd to Lighthouse Minerals Holdings Pty Ltd on 27 October 2015.

As announced on 7 October 2015, the Company has engaged Moelis Australia Advisory Pty Limited to act as its exclusive financial advisor to assist with a

strategic review of the Company ("Strategic Review"). The specific focus of the Strategic Review is on maximising value for all ABML shareholders. All strategic options will be considered, including the sale of the Company. The Strategic Review is expected to conclude in the March Quarter 2016. However, this timing will depend on a number of factors (including, but not limited to, prevailing market conditions and unforeseen circumstances).

On 15 October 2015, ASX-listed Metals X Limited ("Metals X") announced an unsolicited off-market takeover offer for all of the fully paid ordinary shares in ABML, for consideration of 1 fully paid ordinary Metals X share for every 5 ABML shares held (the "Offer"). The Offer consideration was subsequently revised by Metals X on 7 December 2015 to 1 fully paid ordinary Metals X share for every

4.75 ABML shares (the "Revised Offer"). On 23 December 2015, Metals X announced an extension of the offer period, such that the Revised Offer is now open until 21 January 2016.

The Board of Directors of ABML recommends ABML shareholders reject the Revised Offer from Metals X, take no action in relation to the Revised Offer, and ignore all information from Metals X. Further information in relation to the Revised Offer is set out in the Company's First Supplementary Target's Statement (released on ASX on 22 December 2015).

The Directors of ABML believe the Revised Offer from Metals X materially undervalues ABML and is not in the best interests of ABML shareholders. ABML's 51% shareholder, Hindalco Industries Limited ("Hindalco"), has informed ABML that after evaluating the proposal, it will not be accepting the Revised Offer. Hindalco has reiterated its support for the Strategic Review.

As advised on 30 December 2015, the first stage of the Strategic Review has been completed. ABML is preparing to move into the next stage of the Strategic Review. ABML shareholders are reminded that the outcome of the Strategic Review remains subject to a number of factors and may not result in a definitive transaction.

The Company will continue to operate as usual during the Strategic Review, and will keep shareholders advised of any material developments as the Strategic Review progresses.