GWR : First Shipment on Track as Iron Ore Stockpile Builds

18 January 2021

ASX Announcement

First Shipment on Track as Iron Ore Stockpile Builds -

C4 Iron Deposit

HIGHLIGHTS

• GWR and Alliance Partner Pilbara Resource Group (PRG) remain on track to make its first historic shipment of Iron Ore from the C4 Iron deposit in late January 2021.
• High-Gradelump and fines product are currently being stockpiled at the Port of Geradlton Site 88 location (Figure 1), in preparation for the shipment later this month with a highly experienced bulk commodities shipbroker being engaged to facilitate the shipment.
• A Vessel has been secured and booked, the Cargo Ship "PANAFRICAN" is expected to be loaded and is expected to depart before the end of the month.
• Haulage Contractor QEM Group Australia Pty Ltd (QEM) continues to ramp up the number of trucks on site required to complete Stage 1 within 12 months.
• C4 Stage 1 mining activites continue to progress on site with crushing and screening activites on-going (Figure 2).
• The current review being undertaken by GWR on its entire Wiluna West Iron Ore project is progressing very well with regards to:

1. Stage 1 - C4 production tonnage expansion

1. Stage 2 - C4 portion of the remaining ~20 million tonnes1 to be optimised and discussions with interested parties having commenced.

• 1. Other GWR Iron Ore deposits - Focussing on optimised high grade low strip ratio deposits.
• PRG is engaged for Stage 1 of the C4 mining operations which covers the first 1 million tonnes of C4's Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe1.

1 2004 JORC Code compliant Resource is 131.1 Mt at 60.0% Fe, comprising of 10.1 Mt at 62.5% Fe Measured, 72.0 Mt at 59.9% Fe Indicated and 48.8 Mt @ 59.4% Fe Inferred. (refer ASX announcement dated 12th November 2019 and 8th July 2011 and 11th April 2013).

GWR Group Limited (ASX:GWR) ("GWR Group" or "the Company") is pleased to provide this production update to shareholders with operations continuing to progress at GWR's 100% owned flagship C4 Iron Ore deposit in Wiluna.

GWR Chairman Mr Gary Lyons commented:

"I am excited to advise shareholders the iron ore stockpiles are currently building at Site 88 Storage Facility at the Port of Geraldton with operations on site continuing to progress.

The Company remains on track for the first historic shipment of Iron Ore to our offtake partner in late Jan 2021 in what will be the final key production milestone of Stage 1 with Cargo Ship PANAFRICAN expected to arrive at the Port of Geraldton this month."

Figure 1: Crushed ore stockpiled at Site 88 Storage Facility (Port of Geraldton)

Alliance Partner Pilbara resource Group (PRG) is engaged for Stage 1 of the C4 mining operations which covers the first 1 million tonnes of C4's Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe with assessment and modelling currently underway to increase production tonnage on Stage 1.

Under the Joint Venture with PRG, GWR is required to provide minimal capex and opex, will retain 70% share in the project profit as well as retaining the rights for ore sales, strategy and timing.

The current review being undertaken by GWR on its entire Wiluna West Iron Ore project is progressing very well with regards to increasing the production tonnage at Stage 1 (C4 Iron deposit) and optimising the remaining ~20 million tonnes1 to be optimised for Stage 2 whilst discussions with interested parties have commenced.

Figure 2: C4 Minsite, ROM stockpile and crushed ore stockpile as of 15th December 2021

Other than at C4 GWR currently has mining approvals in place for the C3 and Bowerbird deposits which permit the mining of a combined 7 million tonnes per annum.

The emphasis being placed on this review is to focus on high grade portions of deposits, which have low strip ratios and can be bought to production in the most effective manner in order to maximise the benefits to shareholders from the current buoyant Iron Ore prices.

Table 1: Key project Milestones to be achieved for the development of the C4 Iron Deposit

MILESTONE	PROGRESS
**The Company will keep shareholders informed of operational milestones as they progress**

Historic First Shipment of Iron Ore to Offtake Partner	Jan 2021
First Ore at Geraldton Port of Iron Ore Mined and Transported	Completed
Haulage contracts	Completed
Completion of service agreement with nearby mine for access to site services such as	Completed
village, workshops and water.
Finalisation of contract rates for major services; mining, crushing and screening	Completed
Northern Haul Road construction and site setup (workshops, lay down area's, internal	Completed
access roads and services such as water, power and communication)
Works Approval (required for crushing and screening operations)	Completed
Road user agreement for the gravel sections and low standard tar sealed sections of	Progressing
the C4 turn to Meekatharra portion of the Gold Fields highway
Completion of agreements with Port of Geraldton for services and third party for shed	Completed
access
Commencement of Production Mining Operations	Commenced
Commencement of first Iron Ore Haulage	Commenced
Offtake Agreements of High-grade DSO Iron Ore	Completed

This ASX announcement was authorised for release by Gary Lyons, Chairman of GWR Group Limited

For further information please contact:

Adrian Costello	David Utting	Mark Pitts
General Manager	David Utting Corporate	Company Secretary
Ph: [phone]	Ph: [phone]
E:[e-mail]	E:[e-mail]	E:[e-mail]
Competent Person's Statement

The information in this report which relates to Exploration Targets, Exploration Results and Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences ("AIG") a Corporate Member of the AusIMM and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 40 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves" (JORC Code). Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The Mineral Resource Estimate was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.