1 The HIsmelt® Process: Agenda - ABM

HIsmelt Technology Overview© HIsmelt Corporation 2008The Road to Commercialisation1982-1984KS/KSGCoal Gasification/SmeltReductionKlöckner (Germany)2005First HIsmeltCommercial Facility1984-1990Small Scale Pilot Plant (SSPP)Maxhütte Germany20 Years, US$1Bin Development1991-1996Horizontal Vessel, KwinanaKobe Midrex JV1997-1999Vertical Vessel, Kwinana100% Rio Tinto© HIsmelt Corporation 20083

Strong international interest in HIsmelt• China’s top three politicians have visited the Kwinana plant– Hu Jintao, President of the PRC (Sept-07)– Wen Jiabao, Premier of the PRC (April-06)– Wu Bang Guo, Chairman of China’s NPC* (May-05)• ~35 site visits by major Chinese steelmakers– Two licences signed with Laiwu Steel and Huaigang• Site visits from major steelmakers including Indian, European,Japanese, Korean, North-American, ROW© HIsmelt Corporation 2008A simple solution for ironmakingConventional Blast FurnaceTechnologyHIsmeltSinter Plant – SO x ,NO x , Dioxins, FuransCoke Ovens – Tars,Phenols, PAHsBlast Furnace – Molten IronReduced capital costs, operating expenses, & environmental impactGreater raw material flexibility – and freedom from coking coal!© HIsmelt Corporation 20084

Lower Capital Cost for Greenfield Expansions7.06.05.0Coke ovensPower plantIron ore pretreatmentCore plantRelative Cost4.03.02.01.0-China India USA China India USAHISMELTBLAST FURNACESource: Rio Tinto Analysis 2007© HIsmelt Corporation 2008Lower Operating Costs: Lower input costs• Non-coking coals– No coking coal, coke or purchased cokeReductants Raw Material Prices - ReductantsPurch. CokeCoke• Iron ore fines– High phosphorus content possible– No sinter, lump & pellets– Slimes, steel-plant wastes & recycledmaterialCoking CoalPCI CoalHigh Vol0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6Relative priceIron UnitsRaw Material Prices - Iron UnitsPellets• Single source feeds okaySinterLump• No need for blending yardsFines0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4Relative price• Graphs are indexed values only on a per tonne basis• Source: CRU averages (updated Jan 2008)© HIsmelt Corporation 20087

Despite rising coal prices, in particular reflecting a sustained cokingcoal supply shortfall, PCI is still available at around a $50/t discount400350300250HCC ContractThermal JPU ReferencePCI Contract∆P = $55/t20015010050∆P = $48/t0Jan-2000Jan-2001Jan-2002Jan-2003Jan-2004Jan-2005Jan-2006Jan-2007Jan-2008Source: RTE internal analysis 2007© HIsmelt Corporation 2008Lower Operating Costs: Compared to blast furnacesOperating Cost (Relative)1.11.00.90.80.70.60.50.40.30.20.1~10-20% loweroperating costsHigher differentialsmay be expected ascoking coal pricescontinue to riseabove $300/t…0.0BFHIsmeltFerrous Coal OtherSource: Rio Tinto Analysis 2008; Assumes: Coking coal FOB$310/t; PCI $250/t (delivered); Iron ore reference price increase of 65% on 2007 benchmark© HIsmelt Corporation 20088

Lower Environmental Impact• Recycle Wastes– Utilise iron ore slimes– Steel plant wastes– Other iron unit sources (e.g. steel-making slag)• No Toxic Emissions– No dioxins, furans, phenols or tars• Reduced Overall Emissions– Reduced CO 2, SO 2and NO x– CO 2Emissions• Now in line with BF• Future plants (Circofer) reduced emissions• Circofer CO 2 can be sequestered• Low Footprint– Less land disturbance– Power balancedSource: Rio Tinto analysisEmissions per thm2.52.01.51.00.50.0Best-in-class BFHIsmeltCO2 SOx NOx Dioxines &Furanes*(t/thm) (kg/thm) (kg/thm) (ppm/thm)© HIsmelt Corporation 2008Higher Quality Iron: Compared to blast furnacesTypical AnalysisCarbonSiliconManganesePhosphorusSulphurTemperatureBlast Furnace4.5%0.5 ± 0.3%0.4 ± 0.2%0.09 ± 0.02% *0.04 ± 0.02%1430 - 1500°C4.4 ± 0.15%

Inherent Phosphorus Removal Conditions in the SRV• SRV process conditionscreate the driving force topartition phosphorous to theslag• Oxidizing potential of the topspaceand slag combinationcreates the driving force~5% FeO in slagP driven to slag byoxygen potential© HIsmelt Corporation 2008Higher Quality Iron: Low phosphorus in metal0.250.200.20Ore Phosphorus ContentMetal Phosphorus Content%0.150.100.12 0.120.050.02Phosphorus partitionsto the slag:0.00Blast FurnaceHIsmelt- CaO/SiO2 1.25 – 1.30%- FeO x 4– 6 %- MgO 7 – 9 %- Al 2 O 3 14 – 16 %- P 4 O 10 1.0 – 1.4 %Source: HIsmelt slag analysis 2007© HIsmelt Corporation 200810

HIsmelt Kwinana Plant Update© HIsmelt Corporation 2008First HIsmelt Commercial Facility• Located in Kwinana, Western Australia• Capacity of 800,000tpa• High quality merchant pig iron• Experienced Joint Venture Partners:– Rio Tinto 60%– Nucor 25%– Mitsubishi 10%– Shougang 5%© HIsmelt Corporation 200811

250 mPath to Operation• Construction– Started January 2003– Completed April 2005• Hot commissioning / Initial operations– May-September 2005• Operation– 3 year ramp-up period beginning in November 2005– Ramp-up schedule:• 50% nameplate by 2006• 80% by 2007• 100% by 2008© HIsmelt Corporation 2008The Kwinana HIsmelt Plant: 0.8Mtpa Capacity300 m© HIsmelt Corporation 200812

Core technology is working well at a commercial scale• SRV close to design rates, reached ~80tph (77% of nameplate)• Coal consumption has fallen to 810kg per tonne– on track for

HIsmelt Process indicators are excellentCoal rate (t/thm)Heat Transfer Efficiency (%)2.82.4Campaign C2-1 (April-06 to May-06)Campaign C2-5 (Nov-06 to Dec-06)Campaign C3-4 (Aug-07 to Sept-07)9080Increased rates transfermore energy to the bathCoal rate t/thm2.01.61.20.8Heat Transfer to the Bath (%)706050400.4Target ~0.70t/thm300.00 20 40 60 80 100Hot metal production (thm/h)2020 25 30 35 40 45 50 55Total Oxygen Input (kNm 3 /hr)Source: HIsmelt operation 2007© HIsmelt Corporation 2008Commissioning issues being systematically eliminated• Reliability issues have limited Kwinana HIsmelt Plant production– E.g. 30+ interruptions to ore injection for December ’07• Significant causes of delays been:– Preheater - Refractory sub-optimally installed Rectified- Unreliable ore feed system Rectified– WHRU - Process control / reliability Rectified• Integrated steam systems (Blower, Oxygen plant)• Will be replaced with electric drives next plant– Flue Gas Desulphurisation- Under-designed Rectified– Hot Metal Handling- Desulphurisation & Pig Casting integrated with the SRV• Delays can quickly create a bottle-neck• Hot metal for steelmaking in future plants© HIsmelt Corporation 200814

Refractory wear falls when the plant running steadilyChrome in metal (%)0.300.250.200.150.100.05Key for long refractory life Maintain steady-state operationSlag Zone improvements0.000 10 20 30 40 50 60 70 80Time (hours)Slag Zone CoolersHearth refractory wear negligible© HIsmelt Corporation 2008Operating HighlightsBest daily hot metal productionBest week (7 days) hot metal productionBest month (31 days) hot metal productionLowest coal consumption dayLongest operating periodHighest utilisation weekLongest injection period1,715 t9,588 t37,345 t810 kg/t-HM68 days98%129 hrsAug 2007Aug 2007May 2008Aug 2007Apr-Jun 2006May 2008Dec 2007Source: HIsmelt operation 2007© HIsmelt Corporation 200815

Future TechnologyDevelopments© HIsmelt Corporation 2008HIsmelt’s Technology Roadmap:- Step change improvement in capacity and emissionsDevelopments to 2015: Mk I Developments 2015-2020: Mk II Developments 2020+: Mk IIIGeo-sequestered CO 2Oxygen (N 2 -free)6m SRV0.6Mtpa Capacity6m SRV + Circofer2Mtpa Capacity6m SRV + Circofer + CCS2Mtpa CapacityGeo-sequestered CO 2Oxygen (N 2 -free)6m SRV + Preheater0.8Mtpa Capacity8m SRV + Preheater2Mtpa Capacity8m SRV + Circofer4Mtpa Capacity8m SRV + Circofer + CCS4Mtpa CapacityCurrentKwinanaPlantSource: HIsmelt Tech Development 20078m SRV1.6Mtpa CapacityNear net zeroemissions profile© HIsmelt Corporation 200817

The Next Step: 2Mtpa – 8 metre diameter SRV• Major Changes from 6m SRV– Hearth diameter increased from 6m to 8m– Production increased from 0.8 to 2.0 Mtpa– Redesigned hot air blast injection – improved process efficiency, simplermanufacture– Two 6m offgas hoods – single larger hood not feasible to manufacture, transport orerect• Minimal Changes to:– Lances– Forehearth– Cooling Panels– RefractoryOffgasChamberOffgas DuctsRoofForehearth© HIsmelt Corporation 20088m SRVSRV Access6m SRV8 metre v. 6 metre SRV: Low technical riskOffgas ChamberOffgas DuctsRoofFore Hearth8m SRVSRV Access6m SRV© HIsmelt Corporation 200818

8 metre SRV DesignHAB Bustle PipeFour HAB Lances8 Hot Ore Lances4 Coal Lances© HIsmelt Corporation 20088m SRV Central Iron-making Unit (CIU)Overview© HIsmelt Corporation 200819

In Summary• The HIsmelt process is performing. Production achievements of:– 37,345t in 31 days– 9,877t in 1 week• Coal rates on track with design• Strong global interest in the technology– The 3 top politicians in China have visited Kwinana– Over 80 steel company visits• Increasing injection & production rates to nameplate capacity in 2008• Detailed engineering for 2Mtpa HIsmelt plant complete• Circofer pilot plant test-work nearing completion© HIsmelt Corporation 2008Thank you© HIsmelt Corporation 200821