INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

West Australian mining investment has declined considerably since FY13 as resource projects have gradually been completed and few new projects have commenced. However, growth in the average Gross State Product (GSP) after the peak in investment activity remained firm in Western Australia due to the large increase in mining production and commodity exports brought about by this investment. Growth in GSP in Western Australia was 2% in 2015/16, its slowest pace in 15 years, while state final demand (which does not capture exports) declined by around 8% over 2016. As of March 2017, the latest figures from the Government of Western Australia, suggest the total value of the Western Australian minerals industry exports was $95.3 billion (refer to www.dmp.wa.gov.au/ Documents/2016_Economic_ indicators_resources_data ). The value of IGO’s revenues and other income in FY17, including Tropicana, was approximately $422 million. Based on the most recently available data, the gold sector defied trends and increased in value for the third consecutive year. The value of the sector rose more than 10% in FY16 to reach a record $10 billion. This was largely attributable to the Australian dollar price of gold continuing to rise from an average of $1,602/oz in FY16 to an average of $1,666 in FY17. Sales volumes rose marginally during the period from 6.2Moz to 6.3Moz. In comparison, Tropicana sales revenue for the period was 1% lower than the previous period due to 5% lower gold sold as a result of lower grade milled, following the cessation of grade streaming in mid-FY16. This was mostly offset by a 12% increase in ore milled for the year, following the process plant optimisation project, and an increase in the Australian dollar gold price in FY17. IGO’s share of gold sales for FY17 were 128,601oz in FY17 and a total revenue 1 of $211.9 million, compared to FY16 of 135,864oz and total revenue of $215.0 million. For FY16, Western Australia’s nickel sector was valued at $2.2 billion. Globally, the nickel market has been in oversupply for several years and this has placed downward pressure on nickel prices. Some local supply has dropped out of the market, with Western Australian production decreasing more than 4% for the year, from 183,000t to 176,000t. Revenue for the Long Operation increased by 10% in FY17 compared to the prior year, due to higher than average realised Australian dollar nickel price offset by marginally lower nickel sold. Nickel sales from IGO’s Long Operation totalled 5,098 payable nickel tonnes in FY17 and total revenue was $70.5 million, compared to 5,125 payable nickel tonnes in FY16 and a total revenue of $63.9 million. In addition, during FY17 the construction of the Nova Operation was completed, with ore commissioning commenced in October 2016. First deliveries of nickel concentrate were delivered to BHP Nickel West in December 2016 and the first offshore shipments from the Port of Esperance were shipped in June 2017. Commercial production at Nova was declared with effect from 1 July 2017. OUR CONTRIBUTION IN CONTEXT FIRST NICKEL CONCENTRATE PRODUCED FROM NOVA IN DECEMBER 2016 1 Total revenue includes sales of by- products. 50 — IGO SUSTAINABILITY REPORT 2017