Online Stockmarket Trading Update

Australian iron ore  producer Gindalbie Metals Limited (GBG) and leading freight haulage business QR  National  Limited (QRN) are  pleased to  announce the signing of  a  Rail  Haulage  Agreement (“RHA”) which represents a key component of the long term logistics solution for the Karara Iron Ore Project in Western Australia.

The Karara Joint Venture Company, Karara Mining Limited (“KML”), has signed a long-term RHA with QR National Freight’s subsidiary  Australia Western Railroad Pty Ltd (“AWR”) to transport  up to  10Mtpa of magnetite concentrate  and/or  hematite direct shipping ore (“DSO”)  over a period of 10 years. KML’s tonnage obligations commence on a staged basis from January 2012 through to May 2012.

With escalation, the RHA will generate approximately $900 million in revenue for QR National.  Under the agreement, QR National Freight will invest in excess of A$200 million in new locomotives, wagons and upgraded administration and maintenance facilities at the Narngulu East Facility near Geraldton. Once ramp-up is completed, the rail haulage services provided by QR National Freight will involve four trains per day with 100 wagons per train.

Conditions precedent to the RHA are the signing of rail access agreements with rail owner Westnet and a direct agreement with KML’s security trustee, all of which are in advanced stages of negotiation, and KML obtaining the consent of its financiers to the final form of the RHA.  KML and QR National Freight have also signed a separate Relationship Agreement to work together on any future expansions.

Gindalbie’s Managing Director, Mr Tim Netscher, said the signing of a long-term commercial agreement with the above rail operator represented a major milestone for the Karara Project, locking in the ore haulage component of the logistics chain. He said he expects the below rail contract to be concluded shortly.

www.gindalbie.com.au

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