INDEPENDENCE GROUP NL Sydney Mining Club Presentation April 2005 The Past, The Present, & The Future Sydney Mining Club Presentation April 2005 The Past, The Present, & The Future

THE PAST &Approximately 300,000 years ago mankind commenced exploration for rocks with specific characteristics to make tools. &Mining was the 1 st embryonic science? &Evolution of this science has continued throughout history and still continues. &Approximately 300,000 years ago mankind commenced exploration for rocks with specific characteristics to make tools. &Mining was the 1 st embryonic science? &Evolution of this science has continued throughout history and still continues.

MINING HISTORY &Gold mining commenced approx. 8,000 years ago. &Copper was smelted at least 6,200 years ago. &Early exploration involved finding alluvial deposits or outcropping ore bodies in stream head waters. &Gold mining commenced approx. 8,000 years ago. &Copper was smelted at least 6,200 years ago. &Early exploration involved finding alluvial deposits or outcropping ore bodies in stream head waters.

MINING HISTORY &In Roman times mineral deposits were mined to depths of up to 200m using slaves, fire and dewatering techniques. &Gold at this time was valued at ~US$2,000/oz. &The decline of the Roman Empire coincided with the diminishing mining reserves and the ability to pay the Legionnaires. &In Roman times mineral deposits were mined to depths of up to 200m using slaves, fire and dewatering techniques. &Gold at this time was valued at ~US$2,000/oz. &The decline of the Roman Empire coincided with the diminishing mining reserves and the ability to pay the Legionnaires. Roman dewatering wheel Rio Tinto Mine, Spain Roman dewatering wheel Rio Tinto Mine, Spain

EXPLORATION HISTORY &The exploration techniques developed by the ancients were the mainstay of exploration up to the industrial era. &Significant advances in exploration & exploration technology has occurred over the last 5 decades. &Technological advances still continue. &The exploration techniques developed by the ancients were the mainstay of exploration up to the industrial era. &Significant advances in exploration & exploration technology has occurred over the last 5 decades. &Technological advances still continue.

WORLD GOLD SECTOR – PAST CONSOLIDATION.. WHAT NEXT?

WORLD BASE METAL SECTOR – FUTURE CONSOLIDATION?

ASX 300 GOLD & BASE METAL MINING COMPANIES – SHARE PRICE

EXECUTIVE SUMMARY &Low cost nickel producer - Dec Qtr A$2.65/lb payable Ni. &Expanded production profile to 9,000t Ni pa. &Strong cash reserves and cash generation potential – Dec 2004 $23.8M cash + receivables net creditors. &Paying fully franked dividends - 5c Dec 04, 3c Apr 05. &Exploring for gold, nickel and copper in Australia. &Strategy to increase shareholder returns by becoming a highly profitable diversified mining house. &P/E 5.1 &Low cost nickel producer - Dec Qtr A$2.65/lb payable Ni. &Expanded production profile to 9,000t Ni pa. &Strong cash reserves and cash generation potential – Dec 2004 $23.8M cash + receivables net creditors. &Paying fully franked dividends - 5c Dec 04, 3c Apr 05. &Exploring for gold, nickel and copper in Australia. &Strategy to increase shareholder returns by becoming a highly profitable diversified mining house. &P/E 5.1

INDEPENDENCE CORPORATE GOALS &Focus on share price and dividend increases. (as opposed to market capitalisation). &Growth through exploration and acquisition. &Under promise, over deliver. &Maintain a conservative balance sheet. &Focus on share price and dividend increases. (as opposed to market capitalisation). &Growth through exploration and acquisition. &Under promise, over deliver. &Maintain a conservative balance sheet. To increase shareholder wealth by becoming a highly profitable, mid-cap, multi commodity Australian mining company To increase shareholder wealth by becoming a highly profitable, mid-cap, multi commodity Australian mining company

SHARE STRUCTURE Ordinary shares Contributing shares Unlisted options TOTAL Ordinary shares Contributing shares Unlisted options TOTAL 107.0M 3.1M 7.4M 117.5M 107.0M 3.1M 7.4M 117.5M ASX Code - Shares ASX Code - Shares IGO Undiluted market capitalisation = $142M ASX 300 Company Undiluted market capitalisation = $142M ASX 300 Company IGO average turnover (last 6 months) = 485,000 shares/day A$1.32 ( )

TOP TEN SHAREHOLDERS Equity Trustees ANZ Nominees Forbar Custodians Virtual Genius National Nominees Queensland Investments Westpac Custodian Nominees Yarandi Investments JP Morgan Nominees RBC Global Services Equity Trustees ANZ Nominees Forbar Custodians Virtual Genius National Nominees Queensland Investments Westpac Custodian Nominees Yarandi Investments JP Morgan Nominees RBC Global Services 6.5M 4.1M 3.5M 3.4M 3.1M 2.9M 2.6M 2.3M 2.1M 1.8M 32.3M 6.5M 4.1M 3.5M 3.4M 3.1M 2.9M 2.6M 2.3M 2.1M 1.8M 32.3M 6.1% 3.9% 3.3% 3.2% 2.9% 2.8% 2.4% 2.1% 2.0% 1.7% 30.4% 6.1% 3.9% 3.3% 3.2% 2.9% 2.8% 2.4% 2.1% 2.0% 1.7% 30.4% Ordinary Shares as at British institutions on IGO register

IGO PROFITABILITY Mine Revenue Mine cash flow (pre tax)* Group profit (after tax) Earnings per share (undiluted) Earnings per share (diluted) Dividends (fully franked) Mine Revenue Mine cash flow (pre tax)* Group profit (after tax) Earnings per share (undiluted) Earnings per share (diluted) Dividends (fully franked) A$44.9M A$22.2M A$12.5M A15 c A12 c A3c A$44.9M A$22.2M A$12.5M A15 c A12 c A3c A$66.7M A$29.4M A$17.3M A24c A18c A5c A$66.7M A$29.4M A$17.3M A24c A18c A5c Excludes capital, depreciation, amortisation and exploration 2003/4 2004/5 1 st half 2004/5 1 st half * *

IGO CASH Cash: Receivables: Creditors: Total: Debt: Cash: Receivables: Creditors: Total: Debt: A$12.4M A$19.7M (A$8.3M) A$23.8M A$8.9M A$12.4M A$19.7M (A$8.3M) A$23.8M A$8.9M 31 Dec 04

LONG NICKEL MINE (100% IGO) &New nickel discovery to raise production from 9,000t Ni pa to 15,000t Ni pa in bottom 3 rd of nickel production cash costs TARGET:

LONG NICKEL MINE GEOLOGICAL SETTING WMC Production : 5.43M t 3.7% Ni 203,184 Ni t WMC Production : 5.43M t 3.7% Ni 203,184 Ni t IGO Production 2002-Dec04: 370,167 t 3.9 % Ni 14,557 Ni t IGO Production 2002-Dec04: 370,167 t 3.9 % Ni 14,557 Ni t 2004/2005 Reserves: 1.185M t 4.1 % Ni 48,300 Ni t 2004/2005 Reserves: 1.185M t 4.1 % Ni 48,300 Ni t

LONG PRODUCTION HISTORY &Long purchase price A$15M. &2002 – Dec 04 pre-tax free cash = $60.2M &Long purchase price A$15M. &2002 – Dec 04 pre-tax free cash = $60.2M

LONG MINE PERSONNEL &Owner operator with 108 salaried employees. &Very experienced team. &Turnover extremely low. &Gain share bonus. &Skilled personnel waiting list. &Only 2 LTI’s since commencement. &Owner operator with 108 salaried employees. &Very experienced team. &Turnover extremely low. &Gain share bonus. &Skilled personnel waiting list. &Only 2 LTI’s since commencement.

2003/4 & 2004/5 PRODUCTION &Dec 04 Qtr = 27% Ni t. &Project to date = 32% Ni t. &Dec 04 Qtr = 27% Ni t. &Project to date = 32% Ni t. Nickel mined outside or in excess of reserves: 2003/ st half Tonnes % Ni Ni t IGO Ni t Share IGO Ni t Share 168, ,843 4, , ,705 2,798

DEC O4 Qtr PRODUCTION STATS Long Gibb South Tonnes % Ni Ni t 4, , Victor South 23, ,285 Payable sales revenue (incl. hedging): Cash mining / development costs: Milling & other cash costs: TOTAL Deprec. / amort. / rehab: Payable sales revenue (incl. hedging): Cash mining / development costs: Milling & other cash costs: TOTAL Deprec. / amort. / rehab: A$/lb Payable Ni A$/lb Payable Ni TOTAL 61, ,487

2004/2005 PRODUCTION BUDGET Budget: 222, % Ni (8,900t Ni) 2004/5 Cash costs to date A$3.10/lb (payable nickel metal) 2004/5 Cash costs to date A$3.10/lb (payable nickel metal)

LONG - 5 YR MINING SCHEDULE

LONG EXPLORATION TARGETS

IGO AUSTRALIAN REGIONAL EXPLORATION &Exploring under cover and in lightly or unexplored terrains. &Using empirical, conceptual targeting & new innovative exploration technology. &Turning ground over quickly and efficiently. &Exploring under cover and in lightly or unexplored terrains. &Using empirical, conceptual targeting & new innovative exploration technology. &Turning ground over quickly and efficiently. STRATEGY: Targeting new, high profit mines by - SIGNIFICANT PROJECTS: 7 Nickel 9 Gold 1 Copper 1 Mineral Sands SIGNIFICANT PROJECTS: 7 Nickel 9 Gold 1 Copper 1 Mineral Sands REGIONAL BUDGET: 2004/ A $4M

INNOVATIONS – GEOPHYSICAL SEEING DEEPER IN SALINE CONDITIONS MAG TEM SENSOR LOW TEMP SQUID TEM SENSOR LOW TEMP SQUID TEM SENSOR Anglo American JV

Nickel sulphide face INNOVATIONS - GEOCHEMISTRY USING CHROMITES TO FIND NiS &Chromites are a common mineral in many rock types. &Diamond explorers collect and analyse chromites to identify those sourced from diamond bearing intrusives. &Independence can use this data to recognise chromites that occur in massive nickel sulphide. &Chromites are a common mineral in many rock types. &Diamond explorers collect and analyse chromites to identify those sourced from diamond bearing intrusives. &Independence can use this data to recognise chromites that occur in massive nickel sulphide. Chromite grains

NICKEL GEOCHEM & TEM ANOMALY TARGET: Low cost nickel mining camp Anomalous values and TEM conductor over magnetics Anomalous values and TEM conductor over magnetics Nickel geochemical image

NICKEL GEOCHEM & TEM ANOMALY TARGET: Low cost nickel mining camp Aeromagnetic image & TEM anomaly Aeromagnetic image & TEM anomaly Nickel geochemical image

NICKEL SULPHIDE GOSSAN Nickel sulphide gossan Primary nickel sulphide

TROPICANA GOLD JV TARGET: new gold camps

TROPICANA CROSS-SECTION 14320mN

FRANCIS FURNESS OPTION TARGET: +1,000oz +15g/t Au (UG)

MERTONDALE OPTION TARGET: +4g/t Au (OC)

DALWALLINU PROJECT (100% IGO) TARGET: New gold camp Gold Geochemistry Image Gold Geochemistry Image Bismuth Geochemistry Image Bismuth Geochemistry Image Arsenic Geochemistry Image Arsenic Geochemistry Image

MT ISDELL Cu-Zn-Au (100% IGO) TARGET: New Cu-Zn mining camp

MT ISDELL Cu-Zn-Au (100% IGO) Gold Geochemistry Image Copper Geochemistry Image Lead Geochemistry Image Zinc Geochemistry Image

MINERAL SANDS PROJECT (100% IGO) TARGET: High-grade zircon mineral sands

MINERAL SANDS PROJECT (100% IGO)

IGO INVESTMENT CRITERIA &Production cash costs in the lowest 3 rd of world- wide costs. &Long-term mine-life. &Appropriate capital cost and cash generation timing. &Significant exploration upside. &Production cash costs in the lowest 3 rd of world- wide costs. &Long-term mine-life. &Appropriate capital cost and cash generation timing. &Significant exploration upside. Acquisition / Merger Investment Tenets:

MATRIX METALS LIMITED &Independence Group is now the largest shareholder (18.9%). &Potential low-cost SX/EW Australian copper metal producer (99.99% Cu). &Copper oxide resources: 1.1% Cu (230,000t Cu). &Resource - predominantly low acid consumer. &Independence Group is now the largest shareholder (18.9%). &Potential low-cost SX/EW Australian copper metal producer (99.99% Cu). &Copper oxide resources: 1.1% Cu (230,000t Cu). &Resource - predominantly low acid consumer. Copper oxides

MATRIX METALS LIMITED - A SNAPSHOT Listed on the Australian Stock Exchange ASX code – MRX. &Ordinary shares575.4M Unlisted Options 12.0M &MRX cash as at A$16.8M &Tax losses A$24.0M &Market Cap as at A$50.6M (undiluted) (quoted at 8.8c) &Matrix Enterprise valueA$28.4M (undiluted) Listed on the Australian Stock Exchange ASX code – MRX. &Ordinary shares575.4M Unlisted Options 12.0M &MRX cash as at A$16.8M &Tax losses A$24.0M &Market Cap as at A$50.6M (undiluted) (quoted at 8.8c) &Matrix Enterprise valueA$28.4M (undiluted)

MT CUTHBERT SX/EW PLANT &Proven dump leach SX/EW in-house expertise.

MATRIX METALS PROJECT LOCATIONS & RESOURCES &Stage 1 White Range Project 15,000 t Cu over +6 yrs. &Stage 1 White Range Project 15,000 t Cu over +6 yrs. &Stage 2 Mt Watson Project 15,000 t Cu over +6 yrs. &Stage 2 Mt Watson Project 15,000 t Cu over +6 yrs.

COPPER OXIDE EXPLORATION UPSIDE &Numerous untested CuO prospects within economic trucking distance to White Range and Mt Watson. &Numerous other CuO prospects. &Exploration focused on testing old workings. &Regional exploration in its infancy. &Numerous untested CuO prospects within economic trucking distance to White Range and Mt Watson. &Numerous other CuO prospects. &Exploration focused on testing old workings. &Regional exploration in its infancy.

PRIMARY COPPER SULPHIDE POTENTIAL &Potential for economic primary copper sulphide ore bodies beneath surface oxide deposits eg. Mt Watson: MWRCD 130: 2.18% Cu (including 3.03% Cu) Mt McCabe: MRXRD 001: 2.93% Cu (including 7.4% Cu) &Potential for economic primary copper sulphide ore bodies beneath surface oxide deposits eg. Mt Watson: MWRCD 130: 2.18% Cu (including 3.03% Cu) Mt McCabe: MRXRD 001: 2.93% Cu (including 7.4% Cu) Copper sulphides

IGO CURRENT STATUS EXPLORATION A$4M budget LONG MINE A$40M pa MATRIX ? A$20M pa ? Targeting Ni Au Cu Zn Mn M.S. Exploring for new high-grade Ni deposits A$2M expl. A$4M decline Under due diligence

LONG-TERM GROWTH STRATEGY EXPLORATION MINE 1 EXPLORATION MINE 2 LONG MINE 9,000t Ni pa LONG MINE NEW DISCOVERY 15,000t Ni pa MATRIX ? ACQUISITON 1 ACQUISITON 2 ACQUISITON 3 Targeting +A$100M profit per annum

ASX 300 GOLD & BASE METAL MINING COMPANIES – MKT CAP

ASX 300 GOLD & BASE METAL MINING COMPANIES – PE

ASX 300 GOLD & BASE METAL MINING COMPANIES – EARNINGS/SHARE

ASX 300 GOLD & BASE METAL MINING COMPANIES – SHARE PRICE/EPS

SUMMARY &+5 year mine life with low cash costs. &Strong cash position. &Significant cash flow available for growth and fully franked dividends. &Exposure to exploration upside at Long and on regional nickel and gold plays. &A$6M exploration budget plus Long South decline. &Acquisitions must be value accretive. &+5 year mine life with low cash costs. &Strong cash position. &Significant cash flow available for growth and fully franked dividends. &Exposure to exploration upside at Long and on regional nickel and gold plays. &A$6M exploration budget plus Long South decline. &Acquisitions must be value accretive.