INDEPENDENCE GROUP NL ANNUAL REPORT 2017

VENTURE FORWARD On behalf of the Board of Directors, we are pleased to present the 2017 IGO Annual Report. The 2017 Financial Year (FY17) was one of significant advancement for IGO as we venture forward in pursuit of creating long-term value for all stakeholders. We do so with purpose and a genuine passion. The most notable achievement over the past year has been the successful ramp up of mining and processing operations at our world-class Nova nickel-copper- cobalt mine, which is expected to reach nameplate capacity in the September 2017 quarter. CHAIRMAN & CEO’S MESSAGE PETER BILBE CHAIRMAN PETER BRADFORD MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER Long and Tropicana also finished FY17 in a strong position, with metal production and cash costs better than guidance for both operations. At Jaguar, good progress was made in identifying opportunities to optimise and maximise the existing operation while progressing multiple value enhancement projects that will provide optionality for the business. IGO finished FY17 in a good financial position with a strong balance sheet, low debt and increased revenue and net cash flow. Cash at the end of FY17 was A$36 million. As contingency, we have access to an undrawn A$200 million revolving credit facility, with no current or expected need for any new funding in FY18. Funding for Nova was supplemented by a successful A$274 million equity issue in July 2016. Supplementing revenue from our four operations, the Company also anticipates receiving approximately $A32 million of cash payments over the fifteen months following the completion of the sale of the Stockman Project to CopperChem, expected later this year. IGO remains committed to the creation of long-term shareholder value through the discovery, development and operation of a quality portfolio of assets with scale, longevity and geographical focus. The ramp up of exploration work around the Nova Project and across the Fraser Range continues as we see real potential for another major discovery. We have also had encouraging early results from the Lake Mackay exploration project in the Northern Territory. Furthermore, we are seeing positive outcomes with the Long Island Study and making good progress in identifying how to unlock additional value from the Tropicana Mineral Resource through improved mining efficiencies and lower unit mining costs. In parallel to the Long Island Study, and the continued implementation of operational excellence initiatives, several other exciting work programs and studies are continuing to further unlock value. We feel we have made good progress over FY17 and are now in the unique position of being a significant ASX-listed diversified mining company with long-life, high-margin assets. Thank you to all of our employees, suppliers and contractors, as well as to our host communities and the Traditional Owners of the lands on which we operate for your ongoing support. We believe that a strong viable company is not only one that effectively manages its assets but also ensures that it invests in its people and that the value generated by our business is shared equally among all stakeholders. We also thank our shareholders for their ongoing support of the IGO Board and management team. We look forward to the 2018 Financial Year as we venture forward in our efforts to building on today’s achievements with a view to IGO becoming Australia’s leading diversified mining company. IGO ANNUAL REPORT 2017— 03