Atlas Iron Ltd . (ATLGF)

[AISI304]

Pilbara Enters Mine Gate Sale Agreement with Atlas_Iron to Supply Direct Shipping Ore from Pilgangoora

http://www.pilbaraminerals.com.au/site/PDF/2070_0/PilbaraSignsDSOMineGateSaleAgreement

Arrangement set to deliver near-term revenue and cash-flow during the ramp-up phase of the main
Pilgangoora Stage 1 Project, with DSO sales to Atlas scheduled to commence from March 2018

• Mine Gate Sale Agreement finalised with Pilbara iron ore miner Atlas Iron (ASX: AGO [US: ATLGF) encompasses
proposed sale of a minimum 1.0Mt of run-of-mine lithium-tantalum ore from the Pilgangoora Project.
• Atlas will utilise its existing processing infrastructure and logistics chain in the Pilbara to crush the ROM
material and supply it as Direct Shipping Ore (DSO) to the final customer.
• MoU executed with Sinosteel Australia Pty Ltd contemplates offtake for up to 1.5Mt under an agreement
to be entered into between Atlas and Sinosteel.
• Mine gate sale pricing is underpinned by an attractive US$ fixed base price per wet metric tonne to
Pilbara, subject to adjustments in respect of material specifications and final shipping costs.
• A USD$3M prepayment facility (“Mine Gate Commitment”) is a pre-condition to the commencement of
DSO sales to Atlas.
• The innovative arrangement, which is targeted to commence in March 2018, will allow Pilbara to
generate upfront revenue and operating cash-flow while it commences the commissioning and ramp-up
of the Pilgangoora Stage 1 Project in Q2 next year, with concentrate exports to follow shortly thereafter.