ASX RELEASE 17 February 2016

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ASX RELEASE 17 February 2016 ARRIUM LIMITED 1H FY16 RESULTS i,ii,iii AT A GLANCE Underlying NLAT $24 million lower iron ore prices Statutory NLAT $236 million includes asset impairments, restructuring and other costs Underlying EBITDA $115 million lower iron ore prices and adverse NRV in Mining Statutory EBITDA $40 million includes restructuring costs Mining Consumables strong performance despite weaker external environment Underlying EBITDA $109 million, up 15% pcp Stable grinding media margins Steel strong lift in earnings pcp Underlying EBITDA $44 million, up 238% from $13 million pcp Further cost reductions, efficiency improvements and lower scrap prices Mining restructuring benefits offset by further decline in iron ore prices Underlying EBITDA negative $20 million includes $22 million adverse NRV adjustment Restructuring announced June 15 tracked to plan Restructuring organisation to rapidly reposition company with competitive and resilient businesses Targeting at least $200 million annualised cost reductions and productivity gains Net debt $2,076 million restructuring costs, lower iron ore prices, FX and adverse working capital Asset impairments $142 million primarily in Mining Continue to comply with banking covenants Strategic review continues to progress and the company is assessing a number of proposals No interim dividend declared Mining Consumables strong performance despite weaker external environment Underlying EBITDA $109 million, up 15% from $95 million pcp Lower commodity prices: average copper, gold, iron ore prices down 26%, 10% and 38% respectively Some mines mothballed / production slowed Increased focus by miners on reducing costs Total grinding media sales volumes up 1% on prior half Further strengthened competitive position through roll out of next generation (NG) SAG ball strong customer support with growth expected in 2H16 Grinding media margins stable ROFE ~13% for Moly-Cop grinding media businesses in North and South America iv Capacity expansion at La Joya, Peru tracking to plan for commissioning mid 2016 Demand for rail wheels improved from low base Earnings expected to increase in 2H FY16 increasing volumes (grinding media and rail wheels) Steel earnings up significantly in difficult external environment EBIT positive for second consecutive half Underlying EBITDA $44 million, up 238% from $13 million pcp Cost reductions, lower raw material costs and FX more than offset impact from: Decline in Asian prices to 12 year lows Earnings improvement in all businesses other than Whyalla Steelworks Whyalla Steelworks operating loss $43 million viii and capital expenditure of $24 million October 2015 announced $100 million cost reduction target to improve competitiveness Additional $60 million required to achieve cash breakeven at current low Asian steel prices Continued improvement in domestic demand increased construction activity Domestic sales volumes up 5% on prior half reinforcing volumes up strongly Recycling EBITDA breakeven significantly lower scrap prices Steel earnings expected to be weighted to 2H increasing volumes, cost reductions and anti-dumping 1

Mining restructuring benefits offset by further decline in iron ore prices Export hematite sales 4.21Mt, target for FY16 ~9Mt Restructuring initiatives announced June 2015 completed Sharp fall in iron ore price November/December average US$43/dmt with low of US$38/dmt mid Dec. Average Platts index price for 1H US$51/dmt down 38% from US$82/dmt pcp (62% Fe CFR China) Average loaded cash cost v A$35.1/wmt, down 23% on prior half in line with FY16 target Total cash cost (CFR China) A$57.6/dmt, down 11% on prior half Capital spend down 70% pcp FY16 target ~A$7/t (~US$5/t) Underlying EBITDA negative $20 million includes $22 million adverse NRV at half end Restructuring and cost reductions Restructuring organisation to rapidly reposition company with competitive and resilient businesses Focus on transformation of Steel and Mining businesses Simplified and lower cost corporate structure ~300 reduction in Arrium workforce in 1H16 Targeting at least $200 million annualised cost reductions and productivity improvements next 2 years Up $40 million from October 2015 announcement Achieved $20 million in 1H16, $70 million target 2H16 (annualised rate end FY16 $180 million) Whyalla Steelworks Significant operating loss of $43 million viii and cash loss including capital spend of $24 million in 1H16 Impact of low Asian steel prices and fixed iron ore feed cost Identified opportunities totalling ~$100 million cost reduction target announced October 15 Employee reduction across Steel and magnetite operations ~280 previously announced Additional $60 million required to achieve cash breakeven at current Asian steel prices Work continuing to identify additional savings to sustain operations (labour, productivity, efficiencies and waste reduction) Working closely with South Australian Government to identify options to sustain facility through current low price environment Continuing to engage other State and Federal Governments on Whyalla and wider steel industry challenges Beginning to plan for care and maintenance options for all or part of Steelworks and Magnetite supply chain, if unable to address cash loss position Planning work for consideration of care and maintenance option to be completed by mid 2016 Mining Restructuring in 2015 targeted reduction in cash breakeven price to ~US$50/t for FY16 (FY15 US$84/t) Further reduction in cash breakeven price required lower iron ore prices (US$43/t average from October 15) Targeting a further ~A$10/t reduction in cost base Work to date has identified opportunities to further lower average cash breakeven price to ~US$45/t in FY17 with assistance from contractors Continuing to work with contractors to agree reset of cost base Strategic Review Continuing to progress the Strategic Review to achieve an appropriate structure and level of debt Arrium has received a number of proposals, including for the sale of Mining Consumables, interest in other businesses, recapitalisation of the company and additional funding for the company Arrium will now consult with its lenders The Board is focused on achieving the best outcome for Arrium and its stakeholders 2

RESULTS COMMENTARY Group Mining and materials group, Arrium Limited (ASX:ARI) today reported an underlying net loss after tax (NLAT) of $24 million for the half year ended 31 December 2015, compared to an underlying NLAT of $22 million for the prior corresponding half. Stronger earnings in the Mining Consumables and Steel businesses were offset by the impact of lower iron ore prices in the Mining business. On a statutory basis, NLAT for the year was $236 million after including asset impairments of $142 million and restructuring and other charges of $70 million. Lower iron ore prices and a related adverse $22 million inventory valuation adjustment in the Mining business led to a decrease in underlying EBITDA from $189 million for the prior corresponding half to $115 million. Arrium s Managing Director and CEO, Mr Andrew Roberts said: It is currently a very difficult external environment for mining and steel companies globally, and Arrium is no exception as reflected in our disappointing first half Group results. Although we delivered solid earnings improvements in both our Mining Consumables and Steel businesses in very challenging conditions, the performance of our Whyalla businesses weighed heavily on Group earnings. Pleasingly, our Mining Consumables business again performed well, delivering increased earnings in a weaker and more challenging global resources environment. In Steel, all businesses other than Whyalla delivered improved earnings underpinned by increased construction activity and lower costs. At Whyalla, the competitiveness of our Steel business was significantly impacted by the continued decline in Asian steel prices to 12 year lows. In Mining, the further sharp fall in iron ore prices through November and December more than offset the earnings benefits from the restructuring we announced last June. In October last year we announced that work was progressing to transform both our Mining and Steel businesses and improve their earnings and cash generation in response to the weaker external environment. Despite the work progressing well, further deterioration in iron ore and Asian steel prices since October has led to the need for additional restructuring and cost savings. We have a positive outlook for Mining Consumables and Steel demand and we expect earnings in these businesses to be stronger in the second half. We are also working rapidly to reposition Arrium as a more competitive and resilient business, Mr Roberts said. Operations In Mining Consumables, underlying EBITDA was up 15% on the prior corresponding half to $109 million despite lower commodity prices and an increased focus by miners on lowering costs. Demand for grinding media remained strong, albeit some mines were mothballed or slowed in response to lower prices, with copper, gold and iron ore down 26%, 10% and 38% respectively. Grinding media volumes increased 1% on the prior half supported by contract renewals and the roll out of our market leading next generation (NG) SAG ball, which is receiving strong customer support. In rail wheels, sales volumes were up 11% on the prior corresponding half due mainly to an increase in maintenance activity and export sales, and reflects the first increase in rail volumes since FY13. The capacity expansion at La Joya, Peru is progressing well for commissioning mid-2016. The expansion is expected to provide the business with sufficient capacity for at least the medium term, and position the business for optimising cash generation. Earnings for Mining Consumables in FY16 are expected to improve in the second half due to increasing sales volumes, mainly related to the ramp up of a number of completed mine projects, further take up of the NG SAG ball and improving rail wheel demand. 3

In Steel, underlying EBITDA was up 238% to $44 million from $13 million for the prior corresponding half. The increase was due to cost reductions, improved margins over scrap and a lower AUD/USD, which more than offset the significant adverse impact of a further decline in Asian prices. The business was again underlying EBIT positive, the second consecutive underlying EBIT positive half since the GFC. Domestic demand continued to improve, mainly through increased construction activity in NSW and Victoria. Domestic sales volumes increased 5%, with volumes improving across all products associated with the construction sector, particularly the reinforcing range of products and the hot rolled structural products from Whyalla. Earnings in the Recycling business were lower than the prior corresponding half due to the impact of lower ferrous and non-ferrous prices more than offsetting cost reductions and productivity improvements. Steel earnings for FY16 are expected to be weighted to the second half. This is due to an expected increase in sales volumes from Whyalla and as a number of large infrastructure projects commence and ramp up. The business is also expected to benefit from further significant cost reductions and from recent anti-dumping decisions. In Mining, iron ore prices continued to decline. The average index price decreased 38% on the prior corresponding half to US$51/dmt. Restructuring initiatives announced last June were implemented, significantly lowering the export business average cash breakeven price. Iron ore prices fell sharply through November and December leading to the need to further reset the cost base. Restructuring and cost reductions Restructuring across the company is continuing with the aim of rapidly repositioning Arrium as a competitive and resilient business. This includes providing a more integrated and lower cost organisation with a simplified corporate structure, addressing loss making businesses including the Mining and Steel businesses at Whyalla, and ensuring the Steel-in-Concrete business is positioned to benefit from the growth in domestic construction activity. This has led to the company targeting $200 million of annualised cost reductions and productivity improvements over the next two years, including $100 million related to the Whyalla Steel business. All of the $200 million target has now been identified, with the initiatives being progressively implemented. The further deterioration in iron ore and Asian steel prices since October 2015 means the Whyalla Steelworks will need an additional $60 million to achieve cash breakeven if the current conditions prevail. While in Mining, a further ~A$10/t reduction in the cost base is being targeted. Work to identify opportunities to achieve this target is focused on labour, contractors, capital and equipment and freight. To-date, opportunities have been identified that would lower the targeted average cash breakeven iron ore price for FY17 to ~US$45/dmt. Balance sheet Following the company s normal practice of testing the carrying value of its assets at the end of each reporting period, asset impairments totaling $142 million were recorded at the end of the half. This includes $106 million in the Mining business due to lower forecast iron ore prices, and $37 million in the Recycling business due to lower forecast scrap steel margins. Net debt at the end of the first half was $2,076 vi million compared to $1,750 vii million at 30 June 2015. The increase reflects an operating cash outflow for the half of $156 million, capital expenditure $139 million, adverse foreign exchange translation of $36 million, and proceeds from asset sales of $5 million. The Mining business and Whyalla Steelworks account for ~$230 million of the cash outflow through operating cash losses, capital expenditure and Southern Iron closure costs. 4

Strategic Review update Arrium continues to progress its Strategic Review with the objective of achieving an appropriate structure and level of debt in a low iron ore price environment. The company has received proposals from interested parties covering: A sale of the Mining Consumables business Interest in other businesses within the Group Recapitalisation of the company through new debt and equity funding New debt facilities The company has received a number of proposals for the Mining Consumables business. However, the value of the proposals was impacted by the deterioration in the external environment and the availability of financing for the resources sector, and did not adequately reflect the underlying value of the business which has continued to perform well in a very challenging environment. The recapitalisation proposals received could, if implemented, result in a sustainable capital structure enabling Arrium to pursue identified turnaround initiatives as well as future growth opportunities. The Board continues to assess the proposals received to determine the best option for Arrium, and the company will now consult with its lenders. Mr Roberts said: Through the Strategic Review we have identified and assessed a range of options. We are carefully working through the proposals, having regard to the challenging external environment and the need to address the level and structure of debt within the Group. The Board remains focused on achieving the best outcome for the company and its stakeholders through this process. The company will continue to update the market as the Strategic Review progresses, as appropriate. 5

RESULTS SUMMARY Statutory Dec-15 Dec-14 % Change $m $m Total Operations Sales revenue 2,765 3,219 (14%) EBITDA 40 (22) 282% EBIT (210) (1,368) 85% Net profit/(loss) after tax (236) (1,493) 84% Operating cash flow (156) 93 (268%) Net debt 2,076 1,430 45% Gearing (net debt / net debt + equity) 47.1% 32.6% 14.5pp Earnings per share (weighted average) - cents (8.0) (68.8) 88% Underlying Dec-15 Dec-14 % Change $m $m Total Operations Sales revenue 2,765 3,219 (14%) EBITDA 115 189 (39%) EBIT 7 (32) 122% Net profit/(loss) after tax (24) (22) (9%) Operating cash flow (54) 183 (130%) Leverage Ratio (net debt / EBITDA, 12 month rolling basis) 7.5 2.6 188% Earnings per share (weighted average) - cents (0.8) (1.0) 20% 6

SEGMENT ANALYSIS ARRIUM MINING CONSUMABLES Underlying EBITDA $109 million, up 15% from $95 million pcp Lower commodity prices: average copper, gold, iron ore prices down 26%, 10% and 38% respectively Some mines mothballed / production slowed Increased focus by miners on reducing costs Grinding media margins stable Total grinding media sales volumes up 1% on prior half Further strengthened competitive position through roll out of next generation (NG) SAG ball strong customer support with growth expected in 2H16 ROFE ~13% for Moly-Cop grinding media businesses in North and South America iv Capacity expansion at La Joya, Peru tracking to plan for commissioning mid 2016 Demand for rail wheels improved from low base Mining Consumables continued to perform well despite a weaker external environment that included significantly lower prices for copper, gold and iron ore. Demand for grinding media continues in line with minerals processing requirements. However, lower commodity prices led to some higher cost mines either mothballing or slowing production, or reducing inventory levels to conserve cash. Total grinding media sales volumes increased 1% on the prior half underpinned by the business strong competitive position. Sales volumes were consistent across all regions, with the largest increase occurring in Peru with the commissioning of several new mining projects. In Chile, sales volumes were impacted by destocking, competition and operational issues at a number of mines. Total sales volumes for the segment were 560 thousand tonnes compared with 610 thousand tonnes for the prior corresponding half. The decrease includes weaker AltaSteel sales volumes of grinding rod related to low steel and iron ore prices, and lower rebar sales to the construction sector in western Canada. Lower commodity prices, which included copper, gold and iron ore being down 26%, 10% and 38% respectively, led to an increased focus by customers on reducing costs. The average selling price of grinding media was lower mainly due to the pass through of lower grinding media raw material costs, as well as the impact of general market conditions. Despite the challenging external environment, grinding media margins remained stable, reflecting the quality of the business and its pricing strategy. The business continued to win at least its strong share of grinding media demand from new mine projects and contract renewals, and continued to build on its sustainable competitive advantage, including through the roll out of the next generation (NG) SAG ball, which is receiving strong customer support. The NG technology has now been installed at our Lima, Peru, Kansas City, USA and Mejillones, Chile facilities. The new Kamloops, Canada facility, completed mid-2015, is operating well and producing high quality XTH SAG balls for the Canadian and Alaskan markets. Installation of the NG SAG ball technology at Kamloops is tracking well for commissioning in June 2016. In the current environment of lower commodity prices, mining companies are focused on superior value in use. This includes factors such as ball quality incorporating wear rates and consistency of performance, supply assurance, technical support and price. Our Moly-Cop grinding media business is very well placed to continue its success through its superior product performance, extensive supply chain, technical assistance, capacity advantage, scale benefits and focus on costs. The return on funds employed for grinding media in North and South America was ~13% iv. In the Australian rail wheels business, sales volumes improved for the first time since FY13. The improvement was due to increased maintenance activity, the recommencement of export sales and increased sales to the capital investment sector. 7

Underlying EBITDA for Mining Consumables increased 15% on the prior corresponding half, from $95 million to $109 million due to cost efficiencies, FX benefits and stable sales volumes. ARRIUM STEEL EBIT positive for second consecutive half Steel Underlying EBITDA $44 million, up 238% from $13 million pcp Cost reductions, lower raw material costs and FX more than offset impact from: Decline in Asian prices to 12 year lows Earnings improvement in all businesses other than Whyalla Steelworks Whyalla Steelworks operating loss $43 million viii and capital expenditure of $24 million October 2015 announced $100 million cost reduction target to improve competitiveness Additional $60 million required to achieve cash breakeven with current low Asian steel prices Continued improvement in domestic demand increased construction activity Domestic sales volumes up 5% on prior half reinforcing volumes up strongly Recycling EBITDA breakeven significantly lower scrap prices In Steel, underlying EBITDA was up 238% to $44 million from $13 million for the prior corresponding half due to cost reductions, lower raw material costs and a lower AUD/USD more than offsetting the adverse impact of a further decline in Asian prices. The business was again underlying EBIT positive, the second consecutive underlying EBIT positive half since the GFC. Domestic steel demand continued to improve, mainly from increased construction activity with sales volumes improving across all products associated with the construction sector, particularly the reinforcing range of products and the hot rolled structural products from Whyalla. Total domestic steel volumes increased 5% on the prior half. The increase in construction activity was mainly in NSW and Victoria, with residential, large commercial projects and government funded infrastructure being key contributors to the improvement. A number of the planned large government funded infrastructure projects have commenced and are now ramping up which is expected to deliver an increase in sales volumes in the second half. There is a strong pipeline of infrastructure projects scheduled for construction over the medium term and the business remains well positioned to benefit from increased steel demand. Sales revenue for the half was $1,453 million, down 7% on $1,567 million for the prior corresponding half as the increase in domestic sales volumes was more than offset by lower average selling prices. The company s focus on transforming the Steel business in response to the significantly lower Asian steel prices and margins contributed to an improvement in earnings for all Steel businesses, other than the Whyalla Steelworks. This included repositioning of Metalcentre to focus on project construction and the reseller segments, and the lowering of its cost base including the closure of 13 sites, which together delivered increased volumes and improved earnings in the half. The Australian Tube Mills business also delivered improved earnings through the right-sizing of its manufacturing capabilities, including the closure of the Somerton facility in Victoria and improving asset utilisation and performance. In Recycling, earnings were lower than in the prior corresponding half with the business reporting a breakeven EBITDA outcome. The lower earnings were due to the impact of weaker ferrous and nonferrous prices more than offsetting cost reductions and productivity improvements. 8

ARRIUM MINING Export hematite sales 4.21Mt, target for FY16 ~9Mt Restructuring initiatives announced June 2015 completed Sharp fall in iron ore price November/December average US$43/dmt with low of US$38/dmt mid December Average Platts index price for 1H US$51/dmt down 38% from US$82/dmt pcp (62% Fe CFR China) Average loaded cash cost v A$35.1/wmt, down 23% on prior half in line with FY16 target Total cash cost (CFR China) A$57.6/dmt, down 11% on prior half Capital spend down 70% pcp FY16 target ~A$7/t (~US$5/t) Underlying EBITDA negative $20 million includes $22 million adverse NRV at half end The earnings performance of the Mining business was significantly impacted by the sharp fall in iron ore prices through November and early December which more than offset the benefits of the restructuring initiatives announced in June last year. The average iron ore index price declined further to US$51/dmt for the half, down 38% on the average for the prior corresponding half of US$82/dmt. The iron ore index price ranged between $50 60/dmt through the majority of the half before the sharp decline in November and December. The average for these two months was down to US$43/dmt, and reached a low of US$38/dmt in mid-december. Revenue decreased 51% to $253 million, from $512 million in the prior corresponding half due to the lower prices and reduced export sales. Export ore sales for the half were 4.21Mt, down from 6.58Mt in the prior corresponding half, and in line with the FY16 target previously announced. Arrium s average price for the half was A$58/dmt CFR (US$42/dmt). This represents ~83% of the average Platts index 62% Fe index price for the half, and ~85% including the impact of M + 1 pricing. The average loaded cash cost for the half was A$35.1/wmt (~US$25/wmt), down 23% on the prior half and in line with the previously reported FY16 target. Underlying EBITDA for the half was negative $20 million, down from $77 million primarily due to lower iron ore prices and an end of half adverse inventory revaluation adjustment of $22 million due to the sharp decline in actual and forecast iron ore market prices towards the end of the year. The business recorded a significant cash outflow for the half due the impact of capital expenditure, Southern Iron closure costs and a wind-down of creditors. DIVIDEND The Board determined not to declare an interim dividend for FY16. 9

OUTLOOK In Mining Consumables, we expect continued solid demand for grinding media, particularly given the recent completion of a number of new and expanded mining operations in the Americas, as well as from the ongoing deterioration of head grades for copper and gold. The business strong competitive position, including the high level of customer support for the new NG SAG ball, positions it well for continuing to win at least its strong market share of contract renewals and new projects, particularly given the increased focus by customers on value in use. Earnings for Mining Consumables are expected to increase in the second half due to stronger sales volumes, mainly related to the ramp up of a number of recently completed mine projects, further take up of the NG SAG ball, reduced impact of destocking and improving rail wheel sales. In Mining, demand for seaborne iron ore remains strong but prices are expected to continue to be under pressure and volatile due to the demand/supply balance and negative market sentiment. The business is focused on resetting its cost base in response to the recent further decrease in iron ore prices. Sales for the year are expected to be approximately 9Mt at an average grade of ~58.5 Fe, with around 85% of sales under term contracts with customers. In Steel, the outlook for the second half is positive underpinned by increasing construction activity and a strong rural sector. Residential construction, particularly high rise apartments in capital cities remains at high levels and a number of recently commenced government funded infrastructure projects are ramping up. This is expected to underpin stronger sales volumes in the second half, although we have seen a slower than expected start post the Christmas/new year period, largely related to the impact of wet weather on construction. Earnings in the second half are expected to be stronger due to increased sales volumes and from having a lower cost base due to the extensive cost reduction initiatives. We also expect to benefit from recent favourable anti-dumping decisions. Second half underlying earnings for the Arrium Group are expected to benefit from increased earnings in Mining Consumables and Steel, as well as the significant cost reductions across the Group. ix However, external factors such as iron ore pricing, South East Asian steel prices and margins and movements in FX are expected to be key influencers of earnings. ENDS Further information about Arrium Limited can be accessed via the website www.arrium.com. CONTACTS: Investor, Analyst and Media Steve Ashe General Manager Investor Relations & External Affairs Tel: +612 9239 6616 Mob: +61408 164 011 Email: steve.ashe@arrium.com 10

i Except as otherwise expressed, references in this document to net profit/loss after tax refer to net profit/loss attributable to equity holders of the parent. ii Unless otherwise stated, certain financial measures referred to in this document, including underlying results and ratios based on underlying results are non-statutory financial measures, which have not been audited or reviewed as part of KPMG s audit report on the half year financial report. However, KPMG have undertaken a set of procedures to agree the financial information in this document to underlying information supplied by the Company. The Directors believe that using these non-statutory financial measures appropriately represents the financial performance of the Group s total operations including continuing and discontinued operations. All balance sheet items are based on statutory financial information. Details of the reconciliation of non-statutory to statutory results can be found attached to this document. The ASX Release forms part of a package of information about the Group s Half Year Financial Results for the half year ended 31 December 2015 and should be read in conjunction with the other 2016 Half Year Financial Results materials including the 2016 Half Year Results Presentation and the Half Year Financial Report for the 6 months to 31 December 2015. iii Segment results referred to throughout this release are those reported in the 2016 Half Year Financial Report. They are equivalent to segment underlying results for continuing businesses in that segment. iv Excludes capacity expansions prior to their commissioning. Includes recently commissioned Kamloops, Canada facility in funds employed. v Includes mining, crushing, beneficiation, rail, road haulage and transshipping costs. Excludes capitalised costs (infrastructure, prestripping and mining licences) and depreciation and amortisation charges in respect of those costs, royalties, sales and marketing and corporate costs. vi USD debt translated to AUD at 0.73 (AUD/USD) at 31 December 2015. vii USD debt translated to AUD at 0.77 (AUD/USD) at 30 June 2015. viii Includes intercompany transactions. ix Assuming average iron ore price of US$44/dmt (Platts 62% Fe CFR China) and USD:AUD average exchange rate of $0.70 for 2H16. 11

ATTACHMENT Half-year ended 31 December 2015 Statutory Results Underlying Results Total Restructuring Reconciliation between Underlying and Continuing Discontinued Tax Operations Impairment Statutory Results operations operations 1 adjustments 2 costs & Other Statutory items 3 Total Operations Underlying Sales revenue 2,764.7-2,764.7 - - - 2,764.7 Other revenue/income 16.4-16.4 - - - 16.4 Total revenue/income 2,781.1-2,781.1 - - - 2,781.1 Gross profit/(loss) 329.1-329.1 - - - 329.1 EBITDA 39.8-39.8 - - 75.0 114.8 Depreciation, amortisation and impairment (249.8) - (249.8) 141.7-0.4 (107.7) EBIT (210.0) - (210.0) 141.7-75.4 7.1 Finance costs (39.6) - (39.6) - - 1.3 (38.3) Profit/(loss) before tax (249.6) - (249.6) 141.7-76.7 (31.2) Tax (expense)/benefit 14.2-14.2 0.5 2.3 (9.5) 7.5 Profit/(loss) after tax (235.4) - (235.4) 142.2 2.3 67.2 (23.7) Non-controlling interests (0.4) - (0.4) - - - (0.4) Net profit/(loss) after tax (235.8) - (235.8) 142.2 2.3 67.2 (24.1) 1 Comprising impairment of intangible assets, mine development expenditures and property, plant and equipment in Mining and Recycling. 2 Prior period tax adjustments. 3 Related to redundancies and other direct expenditure associated with business restructures and organisational changes. Other items in net profit/(loss) after tax of $16.2m relates to transaction costs and other non-recurring costs. 12

ATTACHMENT Half-year ended 31 December 2014 Statutory Results Underlying Results Total Restructuring Reconciliation between Underlying and Continuing Discontinued Tax Statutory Results operations operations 1 Operations Impairment 2 adjustments 3 costs & Other Statutory items 4 Total Operations Underlying Sales revenue 3,179.3 39.4 3,218.7 - - - 3,218.7 Other revenue/income 59.8 1.4 61.2 - - - 61.2 Total revenue/income 3,239.1 40.8 3,279.9 - - - 3,279.9 Gross profit/(loss) 61.6 21.9 83.5 - - - 83.5 EBITDA (0.2) (22.2) (22.4) 205.9-5.5 189.0 Depreciation, amortisation, and impairment (1,344.3) (1.2) (1,345.5) 1,124.1 - - (221.4) EBIT (1,344.5) (23.4) (1,367.9) 1,330.0-5.5 (32.4) Finance costs (49.4) - (49.4) - - 2.6 (46.8) Profit/(loss) before tax (1,393.9) (23.4) (1,417.3) 1,330.0-8.1 (79.2) Tax (expense)/benefit (67.7) (7.7) (75.4) 1.6 133.5 (2.5) 57.2 Profit/(loss) after tax (1,461.6) (31.1) (1,492.7) 1,331.6 133.5 5.6 (22.0) Non-controlling interests (0.4) - (0.4) - - - (0.4) Net profit/(loss) after tax (1,462.0) (31.1) (1,493.1) 1,331.6 133.5 5.6 (22.4) 1 Relating to the results of Ropes, Merchandising and US Recycling businesses. Excludes intercompany transactions. Statutory EBITDA and statutory net loss after tax including intercompany transactions are $31.0m loss and $37.3m loss respectively. 2 Comprising inventory write down in Mining and impairment of intangible assets, mine development expenditures and property, plant and equipment in Mining, Mining Consumables, Steel and Recycling and discontinued operations. 3 Prior period tax adjustments and write off of deferred tax assets including the impact of the repeal of the Mineral Resource Rent Tax. 4 Related to redundancies from organisational changes and other direct expenditure associated with business restructures. Other items in net profit/(loss) after tax of $2.7m relates to break fees associated with early termination of cross currency and interest rate swaps and other non-recurring costs. 13

ATTACHMENT SEGMENT Half year ended 31 December Mining Consumables Mining Steel Recycling $ millions 2015 2014 % Chg 2015 2014 % Chg 2015 2014 % Chg 2015 2014 % Chg Total Revenue/Income 754.8 766.3 (1.5%) 253.1 511.8 (50.5%) 1,453.2 1,566.5 (7.2%) 475.7 600.5 (20.8%) EBITDA 108.8 94.5 15.1% (20.4) 76.6 (126.6%) 44.1 13.3 231.6% - 9.3 (100.0%) EBIT 82.7 72.1 14.7% (55.4) (64.6) 14.2% 3.7 (37.7) 109.8% (5.1) 4.3 (218.6%) Sales Margin % (EBIT%) 11.0% 9.4% 1.6pts (21.9%) (12.6%) (9.3 pts) 0.3% (2.4%) 2.7pts (1.1%) 0.7% (1.8 pts) Assets 2,602.8 2,620.2 (0.7%) 798.3 1,170.0 (31.8%) 1,867.3 1,847.8 1.1% 257.4 359.7 (28.4%) Funds Employed 2,239.3 2,183.5 2.6% 439.9 614.7 (28.4%) 1,348.6 1,309.6 3.0% 194.4 288.6 (32.6%) Return on Funds Employed (%) 7.5% 6.9% 0.6pts (24.7%) (11.4%) (13.3 pts) 0.6% (5.3%) 5.9pts (4.8%) 2.9% (7.7 pts) Employees (number) 1,837 1,848 (0.6%) 396 583 (32.1%) 4,993 5,260 (5.1%) 619 658 (5.9%) 14

ATTACHMENT FINANCIAL RATIOS HALF YEAR ENDED 31 DECEMBER 2015 2014 Change $m $m % Sales Revenue 2,765 3,219 (14%) Other Revenue/Income 16 61 (74%) Total Income 2,781 3,280 (15%) Gross Profit 329 84 292% EBITDA 115 189 (39%) Depreciation, amortisation & impairment (108) (221) (51%) EBIT 7 (32) 122% Finance costs (38) (47) (19%) Profit / (Loss) before tax (31) (79) 61% Tax benefit / (expense) 8 57 (86%) Profit / (Loss) after tax (24) (22) (9%) Non-controlling interests (0) (0) 0% Net profit / (loss) after tax (24) (22) (9%) Total assets 6,197 6,406 (3%) Total liabilities 3,869 3,444 12% Total equity 2,328 2,962 (21%) Net debt 2,076 1,430 45% Funds employed 4,404 4,392 0% Number of shares on issue (millions) 2,937 2,937 0% Operating cash flow (54) 183 (130%) Free cash flow (192) (81) 137% Capital and investment expenditure 139 264 (47%) Return on equity % (PAT / average total equity) (1.9%) (1.3%) (0.6 pp) Return on funds employed % (EBIT / average funds employed) 0.3% (1.3%) 1.6 pp Sales margin % 0.3% (1.0%) 1.3 pp Gross profit margin % 11.9% 2.6% 9.3 pp Earnings per share (cents) (0.8) (1.0) 20% Leverage Ratio (net debt / EBITDA, 12m rolling basis) 7.5 2.6 188% Gearing (net debt / net debt + equity) 47.1% 32.6% 14.5 pp Interest cover (times EBITDA, 12m rolling basis) 3.4 5.4 (2 times) Net tangible assets per share ($) 0.20 0.40 (50%) Employees 8,348 9,201 (9%) Sales per employee ($000s) 331 350 (5%) Iron ore tonnes sold (mt) 4.21 6.58 (36%) Raw steel production (mt) 1.24 1.23 1% Steel tonnes despatched (mt) 1.72 1.78 (3%) 1Unless otherw ise stated, certain financial measures referred to in this document, including underlying results and ratios based on underlying results are non-statutory financial measures, which have not been audited or reviewed as part of KPMG s review report on the half year financial statements. How ever, KPMG have undertaken a set of procedures to agree the financial information in this document to underlying information supplied by the Company. The directors believe that using these non-statutory financial measures appropriately represents the financial performance of the Group s total operations including continuing and discontinued operations. Details of the reconciliation of non-statutory to statutory results can be found in the Appendix to this document. All balance sheet items are based on statutory financial information. 2 Details of the reconciliation of non-statutory to statutory results and between underlying results from total operations and underlying results from continuing operations can be found in the reconciliation attached to this document. 15