Financial Markets

New Billion Tonne plus Brockman discovery close to Cloudbreak Fortescue Metals Group ("ASX: FMG" "Fortescue") is pleased to announce that it has made a new discovery of over 1 billion tonnes (Bt) of high grade Brockman iron formation. This maiden estimate is expected to grow as further drill results come in. Named the Nyidinghu* project, it is 35 kilometres south of Fortescue's Cloudbreak operation on the edge of the Hamersley Ranges and is open to the north where intersections of over 100 metres were encountered. Early strip ratio calculations suggest it can be mined on a one to one basis. Already very valuable on a standalone basis, the proximity of Nyidinghu to Fortescue's existing Chichester Hub mining operations and unique high performance modern infrastructure boosts their collective value significantly. The discovery provides Fortescue with a number of strategic opportunities. These opportunities include the ability to significantly increase Fortescue's total production and to mix Nyidinghu's higher phosphorus ore with the lower phosphorus ore. Such low phosphorus "blend" ore is very valuable in the Pilbara and is typical of Fortescue's multi-billion tonne Chichester discovery that hosts the major Cloudbreak and Christmas Creek mines. The new Nyidinghu discovery will create a new high value blend and thus extend the life of these mines. The addition of Nyidinghu takes Fortescue's total resource portfolio to almost 7Bt of hematite - goethite mineralisation plus another 2.5Bt of magnetite mineralisation. Fortescue is commencing a Feasibility Study with a view to developing this deposit as rapidly as possible. Fortescue's proven front end development team is already working on options for maximizing the value of this major new discovery in conjunction with the company's existing mines and infrastructure. The feasibility study will also involve infill drilling to support estimates of Indicated