INDEPENDENCE GROUP NL ANNUAL REPORT 2017

LOCATION Kambalda, 60km south of Kalgoorlie, Western Australia PRODUCT Nickel (Ni) MINING Owner operated underground mine SALES Offtake agreement for ore produced delivered to the adjacent BHP Nickel concentrator for toll treatment and production of nickel concentrate. FY17 PRODUCTION 8,433t contained nickel FY17 CASH COSTS A$3.28/lb Ni RESOURCES 1 (in-situ metal) 54,000t Ni RESERVES 1 (in-situ metal) 6,000t Ni ESTIMATED MINE LIFE <1 year GROWTH POTENTIAL Exploration whilst planning for a suspension in mining period 1 See Resources and Reserves section on pages 23 to 30 of this report BACKGROUND IGO acquired the Long Operation in September 2002. The mine was re-commissioned in October 2002 and has been operating safely and successfully since then. Over the 15 years that Long has been under IGO management, the operation has produced more than 3.3Mt of nickel ore, containing approximately 203,000t of nickel metal. Since 2002, exploration has seen the discovery of the McLeay (2005) and Moran (2008) ore bodies and historically enabled the operation to maintain a reserve base to support a two to three-year mine life. The current life of mine plan supports mining until May 2018. FY17 PRODUCTION In FY17, production came from the Moran, McLeay, Victor South and Long ore bodies. Total mining was 205,372t of ore (FY16: 215,337t) at an average grade of 4.11% Ni for 8,433t of contained nickel. Long successfully achieved better than guidance performance on production and costs in all four quarters of FY17. This was a result of the dedicated effort by the team who worked diligently to consistently meet production requirements. BUSINESS IMPROVEMENT As the current Long business plan involves mining all known Ore Reserves to the point of depletion, some of the lower-margin areas were mined concurrently with higher profitability areas. This included contracting a single Airleg miner in the December 2016 quarter to mine some remnant areas. The positive result of this initiative led to an increase to three Airleg miners being employed by the end of FY17 to progress to completion areas in McLeay and Long. SUSPENSION OF MINING Mining at Long is expected to be suspended in the June 2018 quarter. Planning for the suspension of mining is underway, with expectation the operation will be put into care and maintenance while further exploration in the area continues. Employees will be redeployed to other IGO operations wherever possible, however retention and redundancy payments of A$9-10M have been provisioned for FY18. NEAR MINE EXPLORATION A number of promising near mine exploration targets have been developed as a result of re-interpretation of the geological and structural setting at Long. Targets include potential extension of the Long deposit to the north, with the favourable channel position previously interpreted to be stoped out by a late stage granite. Geophysics and current interpretation indicates that this interpretation may not be correct. The second target includes the potential stratigraphic repetition to the east. Both targets will be tested in FY18 with the potential to provide a step-change extension to the life of mine at Long. LONG OPERATION NICKEL IGO 100% IGO ANNUAL REPORT 2017— 21