ATLAS IRON L S LIMITED D

QUART TERLY RE EPORT Decembe 2012 er 25 Janua 2013 ary

ATLAS SHIP REC S PS CORD 1 1.75Mt FOR THE QU T UARTE ER
Costs wit thin $46-$ $50/t guida ance; On t track to hi 10mtpa by June 2 it 2013 QUARTER HIGHLIG GHTS
     Atlas shipped a record of 1.75Mt (W s f WMT), a 10% increas from the Septemb 2012 se e ber Quar rter Aver rage headlin price of ~US$106 pe tonne CF (DMT) re ne ~ FR eceived for standard product er The December 2012 Quarter include four Atla Value Fines cargos totalling 373,000t es as s 3 (WMT), with an average he eadline price of ~US81 per tonne CFR (DMT) e ) ake and rgo Three new off ta contracts signed, a first car shipped outside of China h B, g ) ance of $46 - $50/t. 6 Cash operating costs (FOB excluding royalties) are in line with guida Full y year guidan for FY2013 remain at $46 - $50/t. Avera freight cost for the quarter nce ns $ age e was ~US12 / (D DMT) ord nts 000t (wet) in October 2012, an exp rate of 8 n port 8.4Mtpa Reco shipmen of 700,0 Prod duction commenced at Mt Dove, g rowing Atla productio rate to 8M as’ on Mtpa strip mining commence at Atlas’ Abydos DS mine g ed SO Pre-s On ta arget to pro oduce at 10M Mtpa by Jun 2013 and targeting 12Mtpa by December 2013 ne Expa ansion work at Atlas’ Utah Point p facilitie in Port He ks U es edland are w underw way port well US$3 325M finan ncing pack kage (comp prising US S$275M Te erm Loan B and AU UD$50M revol lving facility complete in Dece y) ed ember 2012 ensuring Atlas is f g fully funded for its d Horiz 1 projec including port facilit zon cts g ties 3 ce ent dividen for FY2 nd 2012 paid in Decem mber 2012 with 24% of share % eholders partic cipating in t Atlas Dividend Rein the nvestment Plan P $423 cash on hand as at 31 Decem 3M n a mber 2012 which includes monies received from the w s f Term Loan B f m facility com mpleted in D December 2012, paym ment of $4 49M in stam duty mp asso ociated with the FY201 Giralia a 11 acquisition, $20M in FY2012 diviidend and $66M in F expa ansion work ks. State and Feder environm e ral mental appr rovals received for its proposed D p Davidson Creek Hub mine and conn es necting rail spurs s

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DECEMBER 2012 QUART R TERLY REPO ORT

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OPERAT TIONS
MINE PRO ODUCTIO AND SH ON HIPPING
Table 1: P Production Dece ember 2012 2 Quarter   Q (t) Ore Tonn Mined2 nes Ore Tonn Process nes sed Haulage to Port 2,003,236 1,741,214 1,816,844 September 2012 arter   Qua (t) ( 1,54 43,899 1,64 42,711 1,66 67,287

QUART TERLY RE EPORT Decembe 2012 er

Variance e Quarter   r (t) 459,337 7 98,503 3 149,557 7

Variance Qua arter  (% %) 30% 3 6% 6 9% 9

Note 1: See Appendix 1 for de etail of mine pro oduction at Pard and Wodgin doo na Note 2: Ore T Tonnes Mined re epresents ore to onnes delivered to Run-of-Mine (ROM) at the Plant  e P

Table 2: In nventory an Shippin nd ng December 2012 r Quarte   er Inventory y Final Pro oduct Stocks - Port s Shipping g Ore Tonn Shipped (Wet) nes d Ore Tonn Shipped (Dry) nes d 1,745,6 678 1,609,4 460 1,592,654 1,476,240 153,0 024 133,2 220 10% 9% (t) 185,5 547 September S 2012 Quarter (t) 114,381 Varian nce Quar rter   (t) ) 71,1 166 Variance uarter   Qu (%) 62%

Production for the De n ecember 20 012 Quarte resulted in shipments of 1.75M (WMT) including er Mt four Atlas V Value Fines cargos tot s talling 373,0 000t. This reflects a 10 increase on the September 0% e 2012 Quar and is in line with recent guida rter n r ance for shipped tonne for first h FY2013 Cash es half 3. operating c costs (FOB, and exclud ding royaltie for the December 2012 Quarte were ach es) D 2 er hieved in line with cu urrent guida ance of $46 - 50/t (FOB excluding royalties). B, g Please see Appendix 1 for furthe details of production outputs by mine. e er

DECEMBER 2012 QUART R TERLY REPO ORT

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ATLAS IRON L S LIMITED D
MARKETING

QUART TERLY RE EPORT Decembe 2012 er

Iron ore sa ales for the December 2012 Quar rter were 1. .75Mt WMT up 10% fr T, rom the September 2012 Quar (1.59Mt WMT). rter t Iron Ore pr rices recove ered during the Decem mber 2012 Quarter as a result of im Q mprovemen in the nts Chinese economy an general sentiment in China following the announced change in political nd s n d leadership. The impa of the weak US d act w dollar contin nues to hav a dampe ve ening effec on the ct December 2012 Quar revenue despite s r rter es stronger sales volumes s. rage headlin sale pric for its sta ne ce andard prod duct for the December 2012 Qua e r arter was Atlas’ aver US$106 p tonne C per CFR (DMT) up from t the US$98 per tonne CFR (DMT achieved in the T) September 2012 Qua r arter. In addition to the stan ndard grade cargos, At e Atlas also so four Atla Value Fin cargos totalling old as nes 373,000t w an Fe c with content of ~54% Fe dur ring the December 201 Quarter at an avera price 12 age of US$81 per tonne CFR (DMT The ove T). erall averag price for the Decem ge r mber 2012 Quarter inclusive o those Atla Value Fines cargos was US$101 per ton CFR (D of as s nne DMT), while Freight e costs for th quarter a he averaged ~ US$12 / DM MT. Prices hav continued to strengthen signific ve d cantly post quarter end with a Valu Fines ca q ue argo sold at US$120 DMT durin January and strong pricing achieved on standard grad product. 0 ng a de Atlas finalised three te contrac for a co mbined 2.2 erm cts 2Mtpa during the Dece ember 2012 Quarter with two C rther streng Chinese ste mills and a major internationa trading house to fur eel al h gthen its reliable cu ustomer bas During the Decem se. mber 2012 Quarter, th Compan also delivered a he ny cargo to a customer o outside Chin and will c na continue pu ursuing new marketing opportunitie w es. ter 7Mt uct een y Post quart end contracts for a further 2.7 of produ have be agreed for delivery later in combination of existing and new c n g contracting parties. 2013 to a c

PROJEC CTS – HO ORIZON 1
Atlas’ has now expan nded its No orth Pilbara production rate to 8M n Mtpa, increa asing to 10Mtpa by June 2013 and target 3 ting 12Mtpa by Decem a mber 2013. Atlas remains on track to export between A k 7.2 and 7.7 in the 2 7Mt 2013 financi year. ial Atlas incur rred $66M o expansio works du on on uring the De ecember 2012 Quarter. . Mt Dove ber ed s’ bara iron or mine, Mt Dove, M In Decemb 2012, production commence at Atlas third Pilb re located 65km south of Port Hedla in WA. and blast at the Mt Dove Mine occu e urred on 28 October 2012, with first ore mined in 8 m The first b November 2012. Hig grade pr r gh roduction h commenced and truck haulag to Port Hedland has ge commence on 14 Ja ed anuary 2013 The Mt D 3. Dove produ is being hauled via the Great Northern uct N Highway to the Utah Point Port facility, and will contri o d ibute to the enhancem e ment of Atla North as’ Pilbara ble ending oppo ortunities. Abydos During the December 2012 Qua e r arter pre-str ip activity commenced at the Aby c d ydos mine, with the commence ement of mining and th site acce earthworks. Haula and shiipping is sc he ess age cheduled to commen from Ju 2013 at a rate of 2nce une -3Mtpa.
DECEMBER 2012 QUART R TERLY REPO ORT

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ATLAS IRON L S LIMITED D
Utah Point Yard 2 Ex xpansion

QUART TERLY RE EPORT Decembe 2012 er

r rter, works continued on the deve o elopment of Atlas’ port facilities f During the December 2012 Quar dland. The Utah Point Yard 2 exp e t pansion will increase the Compan ny’s export capacity in Port Hed over the re emainder of the financi year, ena f ial abling these facilities to accommo e odate the additional ed tonnage as production increases The work are being carried out in a phase manner with the s n s. ks g bulk earthw works for the initial stag conclude on sched ge ed dule during December 2012. Mt Webbe er The Mt We ebber study continued during the period, focu y using on a staged deve s elopment, in nitially to 3Mtpa of D DSO and th hen expand ding to 6Mt tpa. The project will initially use convention truck p nal haulage, ta argeting firs production in Decem st n mber 2013.

CTS – HO ORIZON 2 PROJEC
McPhee C Creek Revised re esource est timation and mine pla anning work was carrie out in th Decemb 2012 k ed he ber Quarter w with a resou urce and re eserve upd date expect ted to be finalised an released by 31 nd d January 2013. This update will feed into the feasib l bility study currently u underway, targeting t conclusion during the next 12 mo n onths. SE Pilbara a Atlas conti inues to pro ogress its SE Pilbara d S development strategy. Atlas rece eived enviro onmental approvals f the Davidson Creek Hub and a for associate ra spurs during the per ail riod. Rail The East P Pilbara Inde ependent Ra Study be ail eing carried out jointly by Atlas, Au urizon (form merly QR National) a Brockm Mining continued d and man c during the December 2012 Quarte concludin in the D er, ng March 2013 Quarter. The parties have com s mmenced pre eliminary pl lanning reg arding the potential scope of th next sta of study seeking to deliver an independent multius rail solution and he age y o n ser port infrast tructure ope eration. Port - Nor West Inf rth frastructur re Atlas holds a 63% in s nterest in North West Infrastructu (NWI) which has r N ure w rights to 50 0Mtpa of export cap pacity at Po Hedland and is pro ort ogressing its plans to develop a s stockyard facility in f Boodarie a berths in South We Creek a t Port Hedla and est and.

DECEMBER 2012 QUART R TERLY REPO ORT

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ATLAS IRON L S LIMITED D
EXPLOR RATION AND RESOURCE DEVEL E LOPMENT

QUART TERLY RE EPORT Decembe 2012 er

During the December 2012 Quar Atlas co r rter ompleted 218 drill hole for a tota of 17,765 metres. es al 5 Initially at t Hickma Western Creek and Earaheedy projects; and subseq the an, d y a quently at Wodgina, W Wodgina S South and A Abydos in line with the Company’s increased focus on H e d Horizon 1 and near a mine oppo ortunities. Horizon 1 foc cussed drillling accounted for 45% of the tota drilling du % al uring the quarter. D During the D December 2012 Quarte Atlas incu er urred $4.2M on explora ation and ev valuation (expensed), $3.6M o resource developm on ment (capit talised), an $4.2M o studies ($4.0M nd on capitalised d). In the Mar 2013 Q rch Quarter the focus on th North Pi he ilbara will continue on ce drilling activities c a recommen on 1 Ma nce arch 2013, with RC dri lling planne in close proximity to current op w ed p o perations at Wodgina and Pardo as well as greenfie a oo, elds exploration at Coru unna Downs s.

CORPORATE
During the December 2012 Qua e arter, and f following a review of its product tion plan an other nd productivity initiatives Atlas prov y s, vided a rev vised shipping guidanc of 7.2Mt to 7.7Mt in FY13. ce t i ce Atlas also lowered its operating cost guidanc for FY20 to A$46 c 013 6-$50 a tonn ne. A wide ran nging cost r review initia ated by Atla conclude that cert as ed tain long-te erm exploration and evaluation activity cou be defe uld erred with re esource/res serve develo opment a h higher priority in the short to me edium term to deliver the Compan t ny’s medium term mining plans. T review resulted m The in a reduct tion of appr roximately 27 full time positions across Atlas business with the ma 2 a s’ ajority of these posit tions attribu utable to exploration an evaluatio activities. nd on Horizon 1 funding pu in place ut On 10 De ecember 20 012, Atlas completed a USD$325M financ cing packag ensurin Atlas ge, ng remains fir rmly on trac to meet its Pilbara iron ore pr ck roduction ta arget of 12M Mtpa by De ecember 2013. age, compr rising of a US institutiional Term Loan B of ffering to U USD$275M and an The packa undrawn A AUD$50M t three-year “covenant light” revol lving facility will be u y, used to fun Atlas’ nd Horizon 1 strategy inc cluding its Abydos min developm A ne ment, Yard 2 expansio at Utah Point, Mt on P Webber mine develop pment and associated infrastructure. a Trigg Hill e er uarter, Atlas acquired from Gond s dwana Res sources Lim mited its During the Decembe 2012 Qu interest in exploration licence E45/3437 (refe ferred to as Trigg Hill) located in th Pilbara, Western he Australia fo $1.3M in cash. The Trigg Hill Tenement is in close proximity to Atlas’ Mt Webber or n e o prospect a will host key infrast and t tructure for the develop pment of tha project. at Centaurus Metals Li s imited Atlas holds a 19.85% strategic in s nterest in C Centaurus Metals Limited, an eme M erging Brazilian iron ore explore and deve er eloper (see Centaurus’ website: www.centaur w rus.com.au for further details). Shaw Rive Mangane Limited er ese Atlas hold a 53.4% strategic interest in Shaw River, a manganese exploration and ds % e developme company (see Shaw River’s w ent w website: www w.shawriver.com.au fo further de or etails).

DECEMBER 2012 QUART R TERLY REPO ORT

Pa 5 of 9 age

ATLAS IRON L S LIMITED D
Magnetite Project - R e Ridley

QUART TERLY RE EPORT Decembe 2012 er

Successful commence ement of pr roduction fro the Kara Magnet Project ( om ara tite (Gindalbie Metals – GBG: 50% has increased intere in the Ri dley Projec which has the size a location to be a %) est ct, and n significant source of lo term, high quality iiron ore sup ong pply. d ment Plan Dividend & Dividend Reinvestm Following approval of amendme f ents to its C Constitution at the 2012 Annual G General Me eeting on 31 October 2012 (201 AGM), Atlas declare an unfran 12 A ed nked divide of 3 cen per shar for the end nts re 2012 financial year (F 2012). FY ers ected to par rticipate in t Dividend Reinvestm the d ment Plan w which was activated a Shareholde who ele for the FY Y2012 Dividend, receiv Atlas sh ved hares at an issue pric of $1.36 per share, a 2.5% n ce discount to the daily V o VWAP (volu ume weighte average price) for th previous five busine days ed he s ess immediately after the record date of 22 Nove e ember 2012 2. A total of 4 4,912,416 s shares were placed pu e ursuant to th Atlas Div he vidend Rein nvestment Plan and P $20M was paid in cas dividend. sh

FIGURE 1: N North Pilbara Projects a

DECEMBER 2012 QUART R TERLY REPO ORT

Pa 6 of 9 age

ATLAS IRON L S LIMITED D
CORPORATE PR ROFILE
Directors nagan, Non-Execu utive Chairm man David Flan Ken Brinsd den, Managing Director Executive Director, Co Mark Hanc cock, ommercial Non-Execu David Hannon, utive Directo or Dave Smith, Non-Execu utive Directo or Tai Sook Y Yee, Non-Execu utive Directo or Jeff Dowlin ng, Non-Execu utive Directo or Kerry Sand derson AO, Non-Execu utive Directo or Geoff Simp pson, Non-Execu utive Directo or Company Secretary sh Tony Wals e Executive Management Chief Oper Jeremy Sin nclair, rating Office er Rob Wilson, Chief Deve elopment O Officer Anton Roh hner, Chief Financial Office er d nd ffice Registered Office an Head Of Level 18, 3 Murray Street, Per WA 6000 300 rth 0 Website: a atlasiron.com m.au Share Det tails as at 3 December 2012 31 909,718,40 ordinary shares 09 Options as at 31 Dece ember 2012 2 Unlisted O 14,015,000 Unlisted O 0 Options al olders as at 31 Decem t mber 2012 Substantia Shareho Schroder Investment Manageme Australia ent a: 77. .60M shares IMC Group p: 66. .75M shares Blackrock Investment Manageme ent: 48. .98M shares Reporting Calendar g Resource a Reserv Update: and ve Half Year A Accounts: March 2013 Quarterly Report: y

QUART TERLY RE EPORT Decembe 2012 er

by 31 January 2013 y 26 February 2013 24 April 2013

DECEMBER 2012 QUART R TERLY REPO ORT

Pa 7 of 9 age

ATLAS IRON L S LIMITED D
Appendix 1 – Mine Productio at Pard x e on doo and Wodgina W

QUART TERLY RE EPORT Decembe 2012 er

Table A: Mine Production – Pa ardoo De ecember 20 012 Quarter (t) Ore Tonn Mined1  nes Ore Tonn Process nes sed  Haulage t Port  to   Table B: Mine Production – Wodgina W De ecember 20 012 Quarter (t) Ore Tonn Mined1  nes Ore Tonn Process nes sed  Haulage t Port  to 1,472,871 1,394,043 1,443,296 Sep ptember 2012 Quarter (t) 1,219,364 1,316,873 1,322,065 Vari ance arter   Qua ( (t) 253 3,507 77, ,170 121 ,231 Variance Quarter   Q (%) 21% 6% 9% 341,837 347,171 373,548 Sep ptember 2012 Quarter (t) 324,535 325,838 345,222 Vari ance arter   Qua ( (t) 17, ,302 21, ,333 28, ,326 Variance Quarter   Q (%) 5% 7% 8%

Note 1: Ore To onnes Mined represents ore tonnes delivered t Run-of-Mine (ROM) at the Plant. to P

DECEMBER 2012 QUART R TERLY REPO ORT

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ATLAS IRON L S LIMITED D
Appendix 2 x

QUART TERLY RE EPORT Decembe 2012 er

COMPA ANY OUT TLINE
Atlas first commenced exports from the Pa ardoo DSO project in the Pilbara in Decemb 2008 t ber and followi commencement of its second operation at Wodgina in June 20 ing f d a 010, Atlas achieved a export rate of 6Mtp in line with targe ted growth initiatives. In Dece es pa h ember 2012, Atlas commence production at its third DSO m ed mine, Mt Dove and will be exp D w porting at a rate of approxima ately 8Mtpa during the March 201 3 Quarter. Atlas will bring a furt ther two new mines w into produc ction in the North Pilba (Abydos and Mt Webber) in th next 12 months to increase ara s W he installed pr roduction ca apacity to 10Mtpa by J June 2013 and targetin 12Mtpa b December 2013. a ng by With the a addition of McPhee Creek and i ts South East Pilbara assets, A C E a Atlas is targ geting to progressively expand its exports to a rate of up to 46Mt f tpa.

FIGUR 2 - Atlas: P RE Pilbara Development Proje ects

 

DECEMBER 2012 QUART R TERLY REPO ORT

Pa 9 of 9 age