DISCLOSURE APPENDIX CONTAINS ANALYST CERTIFICATIONS AND THE STATUS OF NON-US ANALYSTS. U.S. Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

01 July 2010Asia Pacific/Australia

Equity ResearchSteel

Australian Iron & Steel Review COMPANY UPDATE Research Analysts

Nathan Littlewood 613 9280 1766

nathan.littlewood@credit-suisse.com

Michael Slifirski 613 9280 1845

michael.slifirski@credit-suisse.com

#8 - BHP/RIO rail access a token win On Wednesday this week, BHP and RIO bowed to a decision made by the Australian Competition Tribunal and called for smaller miners to step forward and negotiate access to the Goldsworthy and Robe River railway lines (highlighted in red below).

While it might be a sentiment winner amongst the smaller miners today, we view this decision as a token win for the sector. These lines are of low commercial value to most. The Robe line runs out to the far West of the Pilbara and the Goldsworthy line runs to the East. The most substantial geological endowments in the Pilbara are located in the centre – no where near either the Robe or Goldsworthy lines.

The only reason that access has been awarded to these lines is because they are being under utilised by RIO / BHP. This is the same reason that the juniors have not gained access to the Newman and Tom Price lines (because they are being ‘fully utilised’).

Figure 1: Robe River and Goldsworthy lines shown in RED

Source: Company data, Credit Suisse estimates

The real catalyst for this sector could have been / would have been last Monday's announcement about royalties from BHP and RIO. As we discussed in Friday’s FMG note, it had been anticipated that State Government negotiations re: the Iron Ore JV would have been the 'forum' in which the WA State Government would push for an amendment to the BHP/RIO State Agreements so as to make the railway lines more accessible for the juniors.

01 July 2010

Goldsworthy / Robe access a token win WA Premier Colin Barnett got his royalty increase, but at least so far he has not managed to have the State Agreements modified. This is seeming a lower and lower probability outcome by the day.

The BHP/RIO State Agreements state that the majors must negotiate with others regarding haulage of their ore so long as to do so does not unduly impact BHP/RIO's own operations. This is the key that has kept BHP and RIO off the hook, and why the real prize (access to the Mt Newman and Tom Price lines) remains out of reach of FMG and others.

Goldsworthy has been on care and maintenance for some time now, simply so that BHP does not have to hand ownership of the railway line over to the state government. The reason it is underutilised is because there isn't a significant geological endowment along it.

Looking forwards The only winner we can see within our coverage is possibly Atlas Iron, with its 2.4mtpa Pardoo project being located almost on the Goldsworthy line. Unfortunately building rail loading infrastructure for a small tonnage, short life project such as this is probably not a strong business case (it is only 75km by truck anyway), however where there is upside is for the Ridley magnetite project - a deposit which effectively sits below Pardoo.

Access to the Goldsworthy and Robe lines mean next to nothing for FMG - and in reality the fact that FMG has once again been denied access to BHP's Mt Newman line if anything is a net negative.

0BAustralian Iron & Steel Review 2

01 July 2010

GICS Steel comps Figure 2: Iron Ore & Steel comps (based on CS forecasts)

ScrapKey valuation metrics Units BSL OST SGM AGO FMG MGXShare price A$/sh 2.10 2.98 17.11 2.11 4.12 1.55Target price A$/sh 3.73 4.00 22.00 3.15 6.00 2.25Return to TP % 78% 34% 29% 49% 46% 45%Rating O O O O O OLead Analyst Slifirski Slifirski Slifirski Littlewood Littlewood LittlewoodNPV A$/sh 3.85 3.39 27.89 3.13 3.15 2.12Price / NPV x 0.55x 0.88x 0.61x 0.67x 1.31x 0.73xEarnings multiplesEPS FY10 cps 5.3 16.4 58.4 -5.6 20.5 11.0EPS FY11 cps 19.0 38.8 118.5 32.0 85.8 42.7EPS FY12 cps 28.7 40.2 223.4 65.5 81.0 46.0PE FY10 x 39.7 18.2 29.3 -37.8 20.1 14.1PE FY11 x 11.0 7.7 14.4 6.6 4.8 3.6PE FY12 x 7.3 7.4 7.7 3.2 5.1 3.4Price/cash earnings FY10 x 0.5 9.4 13.1 -58.2 15.0 9.9Price/cash earnings FY11 x 0.3 5.5 8.9 6.1 4.5 3.3Price/cash earnings FY12 x 0.3 5.4 5.7 3.0 4.6 3.0EV/EBITDA (fixed) FY10 x 9.1 9.1 10.2 -34.7 9.7 6.5EV/EBITDA (fixed) FY11 x 5.6 5.3 6.5 3.3 3.3 2.1EV/EBITDA (fixed) FY12 x 4.4 5.2 4.0 1.6 3.4 2.0Cashflow multiplesFCF per share FY10 A$/sh -0.24 -0.08 -0.27 -0.08 0.24 0.16FCF per share FY11 A$/sh 0.09 0.45 1.21 0.50 0.26 0.33FCF per share FY12 A$/sh 0.35 0.42 3.90 0.80 0.24 0.39FCF yield FY10 % -11.5% -2.7% -1.6% -3.6% 5.8% 10.6%FCF yield FY11 % 4.3% 15.0% 7.1% 23.6% 6.4% 21.6%FCF yield FY12 % 16.4% 14.1% 22.8% 37.9% 5.8% 25.1%Dividend yield FY10 % 2.4% 3.7% 1.7% 0.0% 0.0% 0.0%Dividend yield FY11 % 5.0% 7.6% 3.5% 0.0% 0.0% 0.0%Dividend yield FY12 % 7.5% 7.9% 6.5% 0.0% 0.0% 0.0%Balance sheetGearing (ND/ND+E) (FY10) % 16% 25% -4% -149% 42% -31%Price / book value (FY10) x 0.6x 1.0x 1.0x 2.6x 7.2x 1.8xMarket cap A$m 3,829 3,968 3,488 999 12,801 1,673Net debt (FY10) (negative = net cash) A$m 1,172 1,356 -137 -232 1,306 -220Equity A$m 5,979 4,027 3,354 387 1,769 923EV A$m 5,001 5,324 3,351 768 14,107 1,453FY11 Sales by productSteel - flat products kt 7,403Steel - long products kt 2,650Scrap - Ferrous kt 1,480 15,400Scrap - Non Ferrous kt 120 595Iron Ore - Fines kt 1,000 3,600 3,150 41,950 2,883Iron Ore - Lump kt 2,400 0 0 3,617Total kt 8,403 10,250 15,995 3,150 41,950 6,500FY11 Revenue by productSteel - flat products % 99% 0% 0% 0% 0% 0%Steel - long products % 0% 4% 0% 0% 0% 0%Scrap - Ferrous % 0% 10% 75% 0% 0% 0%Scrap - Non Ferrous % 0% 6% 15% 0% 0% 0%Iron Ore - Fines % 0% 8% 0% 100% 97% 40%Iron Ore - Lump % 0% 6% 0% 0% 0% 60%Other % 0% 66% 10% 0% 3% 0%

Iron OreRaw MaterialsSteel Producers

Source: Company data, Credit Suisse estimates

0BAustralian Iron & Steel Review 3

Global Iron Ore comps

0BA

ustralian Iron & Steel R

eview

Figure 3: Global Iron Ore comps (Consensus forecasts)

TP Rating SP SOI Mkt Cap Hematite MagnetiteUS$ US$ m US$m Fe (Mt) Fe (Mt) Ore (mt) % Contained Ore (mt) % Contained Fe Equiv Fe only Fe Equiv Fe only 12m 24m 12m 24m

01 July 20104

Admiralty Resources NL Australia ADY.AX 0.00 2,311 10 423 17.5% 74 0.2 0.0Anglo American London AAL.L 54.22 OUTPERFORM 35.98 1,319 47,449 264 1,187 56.9% 675 4,996 33.9% 1,695 1.7 221.7 0.5 7.9 4.5 3.8 7.3 6.0Aquila Resources Ltd Australia AQA.AX 5.93 UNDERPERFORM 6.73 322 2,168 387 57.8% 224 8.6 1.0 9.4 31.0 23.5 56.5 48.8Atlas Iron Ltd Australia AGO.AX 2.67 OUTPERFORM 1.75 474 830 21 452 173 56.6% 98 2,466 38.0% 937 1.5 1.5 0.7 0.2 3.4 1.8 5.4 3.3Australasian Resources Australia ARH.AX 0.19 442 85 268 1,605 31.2% 501 0.3 0.3 0.2 0.0BC Iron Australia BCI.AX 1.38 84 116 10 25 57.0% 14 10.5 10.5 7.4 7.4 2.5 1.1 3.9 1.6Bellzone Mining Lonson BZM.L 0.64 527 338 2,400 29.8% 715BHP Billiton Australia BHP.AX 38.11 OUTPERFORM 31.74 3,358 165,503 1,493 341 9,968 59.7% 5,954 2,024 39.1% 791 23.4 23.4 6.4 4.9 4.5 4.2 8.1 7.4Brockman Resources Australia BRM.AX 2.52 141 356 102 55.6% 57 1,528 42.6% 651 0.4 0.1Cape Lambert Australia CFE.AX 0.28 593 164 10 55.5% 5 0.7 22.4Cazaly Resources Limited Australia CAZ.AX 0.42 107 45 40 53.8% 22 1.6 1.9Centrex Metals Limited Australia CXM.AX 0.35 310 108 5 14 57.6% 8 22.4 22.4 12.7 12.7Citic Pacific Mining Hong Kong 1,748 35.0% 612Cliffs Natural Resources USA CLF 48.49 135 6,567 599 9.2 11.0 3.2 3.0 5.3 5.0Crusader Resources Australia CAS.AX 0.46 60 28 36 43.5% 16 1.7 1.7Cullen Australia CUL.AX 0.03 558 16 24 55.3% 13 0.9 0.9DMC Mining Australia DMM.AX 0.45 91 41 26 55.5% 15 2.8 2.8FerrAus Australia FRS.AX 0.68 203 137 277 56.8% 157 0.8 0.8 -20.7 4.4 -28.2 4.8Ferrexpo London FXPO.L 3.88 614 2,380 497 354 54.4% 193 6,229 29.9% 1,861 5.3 5.3 1.3 0.3 4.8 4.2 5.2 5.0Fortescue Metals Group Australia FMG.AX 5.08 OUTPERFORM 3.48 3,107 10,809 932 5,617 56.7% 3,185 1,230 33.1% 407 13.7 13.7 3.5 2.6 4.6 4.0 6.7 6.3Gindalbie Metals Ltd Australia GBG.AX 0.88 708 620 100 13 61.6% 8 1,259 35.9% 452 5.0 5.0 1.1 0.3 739.2 0.5 -73.0 48.7Giralia Australia GIR.AX 1.57 178 280 205 54.7% 112 2.0 2.0 -88.8 2.5 -142.7 5.5Golden West Resources Limited Australia GWR.AX 0.61 143 88 148 59.1% 87 0.8 0.8Grange Resources Australia GRR.AX 0.42 1,152 480 157 774 42.3% 328 3.6 3.6 1.7 0.5 2.2 2.2 3.4 3.4Iron Ore Holdings Limited Australia IOH.AX 1.20 135 162 400 57.5% 230 0.7 0.7Iron Road Limited Australia IRD.AX 0.48 74 36 111 19.4% 21 1.6 0.3Ironclad Mining Australia IFE.AX 0.78 53 41 220 28.3% 62 0.6 0.1Mindax Limited Australia MDX.AX 0.35 146 51 1 54.8% 1 387 31.4% 122 0.4 0.1Mineral Resources Ltd Australia MIN.AX 6.81 161 1,099 42 58.7% 25 3656.4 43.7 44.9 6.8 4.7 11.9 8.3MMX Brazil MMXM3 11.50 OUTPERFORM 5.94 473 2,808 89 52.3% 46 754 39.7% 299 10.7 3.4 12.0 7.4 20.7 12.9Moly Mines Australia MOL.AX 0.45 157 70 7 58.6% 4 0.0 0.3 43.2 -2.3 -1.2Mount Gibson Iron Ltd Australia MGX.AX 1.91 OUTPERFORM 1.31 1,079 1,414 35 105 61.8% 65 38.7 38.7 21.1 21.1 2.4 2.0 4.4 3.5Murchison Metals Ltd Australia MMX.AX 1.71 435 744 140 52.7% 74 1,452 30.8% 447 1.2 0.3 83.9 84.4 25.5 39.8NMDC India NMDC.NS 5.66 3,965 22,445 784 1,286 65.8% 847 25.5 25.5 23.6 23.6Northern Iron Australia NFE.AX 1.14 292 332 41 449 31.0% 139 10.7 10.7 3.1 0.7 3.5 2.5 4.1 2.8OneSteel Australia OST.AX 3.39 OUTPERFORM 2.52 1,332 3,353 31 35 112 58.2% 65 234 40.0% 94 25.2 25.2 10.5 4.2 4.7 4.3 7.2 6.2Pluton Resources Australia PLV.AX 0.34 156 52 54 49.0% 26 1.9 1.9Red Hill Iron Limited Australia RHI.AX 2.64 44 116 371 57.6% 214 0.5 0.5Red River Australia RVR.AX 0.05 69 4 RIO Tinto Australia RIO.AX 84.68 OUTPERFORM 56.39 607 104,299 1,564 16,576 59.0% 9,783 33.4 33.4 5.3 5.3 4.7 4.4 7.6 7.0Sesa Goa India SESA.BO 7.47 860 6,425 113 296 59.1% 175 43.8 43.8 28.4 28.4Sphere Investments Limited Australia SPH.AX 1.04 171 179 77 3,487 32.9% 1,147 2.1 2.1 0.1 0.0 -13.4 7.8 -31.6 6.7Strike Resources Limited Australia SRK.AX 0.43 130 55 119 57.3% 68 2.7 0.1 0.1Sundance Resources Australia SDL.AX 0.11 2,710 300 374 61.6% 230 2,093 38.0% 795 0.3 0.1Territory Iron Limited Australia TFE.AX 0.16 264.6 43 3 10 58.4% 6 41.4 41.4 17.8 17.8Vale Brazil VALE 42.00 OUTPERFORM 21.55 2108.6 126,187 7,965 425 2.9 17.0 5.6 4.3 7.5 5.7Western Plains Resources Australia WPG.AX 0.52 105.9 55 17 140 44.2% 62 569 35.0% 199 2.9 2.9 0.2 0.1 12.5 1.6 51.9 4.0

CountryCompanyEV / Resv (t)

Identification TradingReserves

(contained Fe)Hematite EV / Resc (t) EV/EBITDA PE

TickerMagnetite

Resources - M, I & I

Source: Bloomberg (for Consensus forecasts) Company data, Credit Suisse estimates

01 July 2010

Figure 4: Consensus PER 12/24 mth forward Figure 5: Consensus EV/EBITDA 12/24 mth forward

0BA

ustralian Iron & Steel R

eview

5

Price Earning Ratios25.5

20.7

11.9

8.1 7.6 7.5 7.3

5.4 5.3 5.2

4.4 4.1 3.9 3.4

48.8

4.0

39.8

12.9

8.3

7.4 7.0

5.7 6.0 6.2 6.3

3.3

5.0 5.0

3.5

2.8

1.6

3.4

51.9

6.77.2

56.5

0

2

4

6

8

10

12

14

16

18Aq

uila R

esou

rces L

td

Wes

tern P

lains

Res

ource

s

Murch

ison M

etals

Ltd

MMX

Mine

ral R

esou

rces L

td

BHP

Billit

on

RIO

Tinto

Vale

Anglo

Ame

rican

OneS

teel

Forte

scue

Met

als G

roup

Atlas

Iron

Ltd

Cliffs

Natu

ral R

esou

rces

Ferre

xpo

Moun

t Gibs

on Ir

on Lt

d

North

ern I

ron

BC Ir

on

Gran

ge R

esou

rces

PER

(x)

12 mth fwd PER 24 mth fwd PER

Entreprise Value / EBITDA83.9

31.0

12.5

12.0

6.8

5.6

4.8 4.7 4.6 4.5 4.5

3.5 3.4 3.2

2.5 2.4 2.2

84.4

23.5

1.6

7.4

4.7

4.3 4.2 4.3 4.4

4.0 3.8

4.2

2.5

1.8

3.0

1.1

2.0 2.2

0

1

2

3

4

5

6

7

8

9

10

Murc

hison

Meta

ls Ltd

Aquil

a Res

ourc

es Lt

d

Wes

tern P

lains

Reso

urce

s

MMX

Mine

ral R

esou

rces L

td

Vale

Ferre

xpo

OneS

teel

RIO

Tinto

Forte

scue

Meta

lsGr

oup

Anglo

Ame

rican

BHP

Billit

on

North

ern I

ron

Atlas

Iron

Ltd

Cliffs

Natu

ral

Reso

urce

s

BC Ir

on

Moun

t Gibs

on Ir

on Lt

d

Gran

ge R

esou

rces

EV/E

BITD

A (x

)

12 mth fwd EV/EBITDA 24 mth fwd EV/EBITDA

Source: Bloomberg, Company data, Credit Suisse estimates Source: Bloomberg, Company data, Credit Suisse estimates

Figure 6: Hematite Resource grades Figure 7: Magnetite Resource grades

Hematite Resource Grades

48%

50%

52%

54%

56%

58%

60%

62%

Moun

t Gibs

on Ir

on Lt

dGi

ndalb

ie Me

tals L

tdSu

ndan

ce R

esou

rces

BHP

Billit

onSe

sa G

oaGo

lden W

est R

esou

rces L

imite

dRI

O Tin

toMi

nera

l Res

ource

s Ltd

Moly

Mine

sTe

rritor

y Iro

n Lim

ited

OneS

teel

Aquil

a Res

ource

s Ltd

Centr

ex M

etals

Limite

dRe

d Hill

Iron L

imite

dIro

n Ore

Hold

ings L

imite

dSi

noSt

eel M

idwes

t Cor

pora

tion L

tdSt

rike R

esou

rces L

imite

dBC

Iron

Anglo

Ame

rican

FerrA

usFo

rtesc

ue M

etals

Grou

pKu

mba

Atlas

Iron

Ltd

Broc

kman

Res

ource

sCa

pe La

mber

tDM

C Mi

ning

Culle

nHa

ncoc

k Pro

spec

ting

Mind

ax Li

mited

Gira

liaFe

rrexp

oCa

zaly

Reso

urce

s Lim

ited

Murch

ison M

etals

LtdMM

X

% F

e con

tent

Magnetite & Itabirite Resource Grades

0%5%

10%15%20%25%30%35%40%45%50%

LKAB

Broc

kman

Res

ource

s

Gran

ge R

esou

rces

OneS

teel

MMX

BHP

Billit

on

Atlas

Iron

Ltd

Sund

ance

Res

ource

s

Gind

albie

Metal

s Ltd

Wes

tern P

lains

Res

ource

s

Citic

Pac

ific M

ining

Sino

Stee

l Midw

est C

orpo

ratio

n Ltd

Anglo

Ame

rican

Ferro

us

Forte

scue

Meta

ls Gr

oup

Sphe

re In

vestm

ents

Limite

d

Mind

ax Li

mited

Austr

alasia

n Res

ource

s

North

ern I

ron

Murch

ison M

etals

Ltd

Ferre

xpo

Bellz

one M

ining

Ironc

lad M

ining

Iron R

oad L

imite

d

Admi

ralty

Res

ource

s NL

% F

e con

tent

Source: Bloomberg, Company data, Credit Suisse estimates Source: Bloomberg, Company data, Credit Suisse estimates

Global Steel comps

0BA

ustralian Iron & Steel R

eview

Figure 8: Global Steel comps (all figures are CS forecasts, unless noted otherwise)

Company Name FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12Bluescope Steel BSL.AX Michael Slifirski Australia OUTPERFORM 1.78 3.16 78% 3,242 11.0 7.3 10.0 7.1 -9% -4% 4.9 3.9 - - 5.0% 7.5% 0.0% 0.0% 0.63 0.58 16%OneSteel OST.AX Michael Slifirski Australia OUTPERFORM 2.52 3.39 34% 3,360 7.7 7.4 7.2 6.2 -7% -16% 5.0 4.9 - - 7.6% 7.9% 0.0% 0.0% 0.85 0.82 25%CSN CSNA3 Ivan Fadel Brazil OUTPERFORM 14.63 23.00 57% 21,324 5.0 6.6 6.5 5.9 29% -11% 3.4 7.0 - - 5.7% 22.9% 25.5% 45.4% 1.68 2.81 27%Gerdau GGBR4 Ivan Fadel Brazil OUTPERFORM 13.12 20.00 52% 18,634 11.2 - 7.4 6.3 -34% - 7.4 8.5 - - 3.6% 7.6% 18.9% 15.5% 1.48 1.77 Usiminas USIM5 Ivan Fadel Brazil NEUTRAL 27.43 32.00 17% 13,540 10.3 14.7 7.6 6.4 -26% -57% 5.2 6.1 - - 2.9% 2.0% 11.3% 9.0% 1.29 1.49 Angang 0347.HK Trina Chen China OUTPERFORM 1.22 1.70 39% 8,801 11.7 7.7 9.6 7.9 -18% 3% 5.9 4.7 2.1% 11.3% 4.3% 6.5% 7.1% 9.2% 1.00 0.92 37%Baoshan Iron & Steel 600019.SS Trina Chen China OUTPERFORM 0.87 1.46 68% 15,173 6.6 10.1 8.4 7.3 28% -27% 3.7 4.7 21.8% 20.6% 5.3% 3.5% 12.0% 7.4% 0.83 0.80 22%Maanshan 0323.HK Trina Chen China UNDERPERFORM 0.44 0.36 -18% 3,393 9.1 7.6 8.6 6.9 -5% -10% 3.6 3.6 22.4% 27.9% 3.9% 4.6% 8.2% 9.2% 0.84 0.78 27%Panzhihua New Steel and Vanadium 000629.SZ Trina Chen China UNDERPERFORM 1.19 0.69 -42% 3,939 20.4 - 19.2 - -6% - 6.0 - 11.3% - 1.5% 0.0% 11.8% 0.0% 2.58 - 29%Wuhan 600005.SS Trina Chen China NEUTRAL 0.64 1.03 62% 4,981 6.1 - 8.3 7.4 34% - 3.9 - 11.4% - 8.1% 0.0% 12.6% 0.0% 0.99 - 40%Acerinox ACX.MC Alessandro Abate Europe UNDERPERFORM 15.85 15.84 0% 3,953 12.5 9.9 10.2 8.7 -18% -11% 9.0 7.5 - - 3.5% 3.5% 12.7% 14.8% 1.74 1.56 38%ArcelorMittal MT.N Michael Shillaker Europe OUTPERFORM 27.60 44.00 59% 41,663 6.2 4.5 6.6 5.3 5% 17% 4.4 3.6 0.0% 0.0% 4.0% 4.0% 8.1% 10.6% 0.60 0.54 24%Salzgitter SZGG.DE Alessandro Abate Europe NEUTRAL 60.24 75.53 25% 3,271 8.0 5.8 9.3 6.8 16% 17% 3.6 2.9 0.0% 0.0% 2.0% 2.4% 9.0% 11.4% 0.64 0.58 -67%SSAB Svenskt Stal SSABa.ST Alessandro Abate Europe NEUTRAL 13.80 15.75 14% 4,471 8.8 6.3 9.9 8.1 13% 29% 6.3 5.0 - - 3.0% 4.0% 11.6% 15.3% 1.01 0.90 29%Thyssen Krupp TKAG.F Michael Shillaker Europe OUTPERFORM 25.21 42.64 69% 11,693 7.3 4.7 9.8 6.0 35% 29% 5.0 4.1 0.0% 0.0% 3.9% 7.2% 7.8% 9.9% 1.07 0.93 21%Vallourec VLLP.PA Michael Shillaker Europe NEUTRAL 174.45 158.37 -9% 9,992 10.0 - 10.9 8.5 8% - 6.7 - 0.0% - 3.3% 0.0% 15.3% 0.0% 1.72 - -12%Voest Alpine Stahl VOES.VI Alessandro Abate Europe OUTPERFORM 27.88 36.55 31% 4,669 9.6 6.0 9.4 7.0 -2% 16% 6.0 4.9 - - 3.7% 5.0% 9.1% 12.4% 0.87 0.80 42%JSW Steel JSTL.BO Neelkanth Mishra India UNDERPERFORM 22.56 15.06 -33% 4,219 11.3 9.0 10.5 6.9 -7% -23% 6.8 5.5 -27.2% 2.9% 1.0% 1.0% 10.7% 12.5% 1.83 1.55 69%SAIL SAIL.BO Neelkanth Mishra India UNDERPERFORM 4.14 3.66 -12% 17,104 10.1 10.1 10.1 8.9 1% -12% 5.3 5.2 -4.2% -5.7% 1.4% 1.4% 17.2% 14.1% 1.98 1.70 -50%Tata Steel TISC.BO Neelkanth Mishra India UNDERPERFORM 10.35 8.60 -17% 9,185 7.3 7.0 7.7 6.1 6% -12% 6.1 5.8 6.9% 19.4% 3.6% 3.6% 12.8% 13.1% 1.51 1.31 72%Jindal Saw Ltd JIND.BO Anubhav Aggarwal India UNDERPERFORM 4.32 3.55 -18% 1,194 13.0 12.4 11.4 9.8 -12% -21% 7.4 7.2 6.1% 6.9% 0.1% 0.1% 13.0% 12.1% 1.43 1.23 32%Welspun Gujarat Stahl Rohren WGSR.BO Anubhav Aggarwal India OUTPERFORM 5.08 7.74 53% 1,038 8.1 7.4 8.4 7.5 3% 1% 4.4 3.9 -14.7% 17.3% 0.8% 0.8% 15.9% 16.5% 1.54 1.29 54%Hitachi Metals 5486 Shinya Yamada Japan OUTPERFORM 10.14 16.94 67% 3,575 15.1 11.9 19.5 14.0 29% 18% 5.9 5.1 7.1% 7.9% 1.3% 1.6% 6.7% 8.3% 1.51 1.37 42%JFE Holdings 5411 Shinya Yamada Japan UNDERPERFORM 32.05 29.36 -8% 16,945 12.3 11.0 8.6 7.2 -30% -35% 5.4 5.3 6.4% 8.1% 2.1% 2.1% 6.2% 6.8% 0.99 0.93 44%Kobe Steel 5406 Shinya Yamada Japan UNDERPERFORM 1.94 1.47 -24% 5,832 14.8 13.2 12.3 10.4 -17% -21% 5.2 5.1 7.7% 6.8% 1.7% 2.9% 4.2% 4.7% 0.95 0.91 60%Nippon Steel 5401 Shinya Yamada Japan NEUTRAL 3.42 3.16 -8% 21,525 12.9 11.0 10.8 8.7 -16% -21% 5.8 5.6 2.1% 5.2% 1.7% 3.3% 4.4% 5.0% 0.97 0.92 41%Sumitomo 5405 Shinya Yamada Japan NEUTRAL 2.35 2.60 11% 10,889 19.2 8.9 15.6 9.6 -19% 8% 9.2 6.7 5.1% 13.0% 2.4% 4.8% 2.9% 6.0% 1.13 1.05 57%Tokyo Steel 5423 Shinya Yamada Japan OUTPERFORM 11.90 18.07 52% 1,773 14.1 8.1 - - - - 3.1 2.1 -16.7% 23.0% 0.9% 1.9% 7.1% 11.8% 0.61 0.57 Dong Kuk 001230.KS Hocheol Kim Korea NEUTRAL 18.02 20.53 14% 1,114 7.7 7.6 - - - - 5.4 5.1 -8.5% 5.1% 2.7% 2.7% 4.6% 4.8% 0.43 0.42 25%Hyundai Steel 004020.KS Hocheol Kim Korea UNDERPERFORM 74.23 63.23 -15% 6,333 12.5 12.3 7.9 6.2 -37% -50% 10.8 9.9 -10.0% -6.9% 0.4% 0.4% 4.2% 4.4% 0.99 0.92 45%POSCO 005490.KS Hocheol Kim Korea OUTPERFORM 391.26 554.26 42% 34,113 7.7 7.0 7.1 6.0 -8% -15% 5.3 5.0 5.0% 8.9% 2.1% 2.1% 10.5% 10.7% 1.05 0.93 -2%Magnitogorsk Steel MAGNq.L Semyon Mironov Russia OUTPERFORM 9.35 17.00 82% 8,037 7.8 10.2 107.5 76.6 1279% 650% 3.7 4.2 - - 1.9% 1.5% 8.6% 6.5% - - 16%TMK TRMKq.L Semyon Mironov Russia NEUTRAL 15.00 22.00 47% 3,274 7.9 - 14.7 30.6 87% - 5.6 - - - 2.5% 0.0% 13.3% 0.0% - - 66%Evraz HK1q.L RESTRICTED Russia NOT RATED 24.35 R - 10,657 - - 7.6 6.9 - - - - - - - - R R - - 30%Mechel MTL.N Semyon Mironov Russia OUTPERFORM 18.66 38.00 104% 7,768 4.7 - 6.7 6.3 42% - 4.2 - - - 11.9% 0.0% 21.5% 0.0% - - 56%NLMK NLMKq.L Semyon Mironov Russia NEUTRAL 25.85 33.00 28% 15,492 7.8 8.2 7.4 6.3 -5% -23% 4.8 4.9 - - 3.2% 3.0% 14.3% 12.4% 1.34 1.20 13%Severstal CHMFq.L Semyon Mironov Russia OUTPERFORM 10.00 21.00 110% 10,077 5.7 7.7 5.5 6.4 -3% -17% 3.5 4.4 - - 3.5% 2.6% 11.1% 7.4% - - 36%ERDEMIR EREGL.IS Semyon Mironov Russia UNDERPERFORM 2.54 2.26 -11% 4,060 8.8 9.1 - - - - 6.4 6.5 - - 1.7% 1.6% 7.6% 7.0% 0.88 0.81 36%Feng Hsin Iron & Steel 2015.TW Sidney Yeh Taiwan NEUTRAL 1.35 2.03 50% 787 6.9 - 9.5 13.0 38% - 5.7 - 5.3% - 8.8% 0.0% 21.8% 0.0% 1.50 - 31%China Steel 2002.TW Sidney Yeh Taiwan NEUTRAL 0.93 1.08 16% 12,193 10.6 9.3 10.2 8.9 -4% -5% 9.4 8.6 27.7% 28.0% 5.2% 5.9% 8.9% 10.0% 1.39 1.29 21%Tung Ho Steel Enterprise 2006.TW Sidney Yeh Taiwan OUTPERFORM 0.81 1.53 90% 766 5.5 - 9.9 10.0 78% - 4.4 - 52.6% - 12.7% 0.0% 15.8% 0.0% 1.01 - 24%AK Steel AKS David Gagliano USA NEUTRAL 12.07 22.00 82% 1,328 8.9 8.2 6.9 4.5 -22% -45% 3.1 3.0 - - 1.7% 1.7% 4.6% 5.2% 1.26 1.11 14%Nucor NUE David Gagliano USA OUTPERFORM 38.48 50.00 30% 12,150 9.8 10.1 10.8 7.8 11% -23% 4.6 4.6 - - 3.6% 3.6% 10.1% 9.3% 1.47 1.34 13%Tenaris TS.N RESTRICTED USA NOT RATED 35.31 R - 20,842 - - 11.2 8.8 - - - - - - - - R R - - 21%Ternium TX Ivan Fadel USA OUTPERFORM 34.11 40.00 17% 6,838 15.6 - 8.3 7.1 -47% - 7.9 - 10.1% - 1.6% 0.0% 9.0% 0.0% 1.17 -U.S. Steel Group X David Gagliano USA NEUTRAL 39.11 56.00 43% 6,634 8.7 9.5 6.6 6.7 -23% -30% 4.6 4.8 - - 0.5% 0.5% 5.5% 4.8% 1.14 1.02 33%BRIC Average (non-weighted) 30% 9.1 9.1 14.4 12.2 77% 34% 5.1 5.5 4% 13% 4% 3% 13% 10% 1.41 1.36 34%Asia-Pac Average (non-weighted) 20% 10.9 9.3 10.5 8.4 1% -13% 5.8 5.4 5% 11% 4% 3% 9% 7% 1.19 1.01 33%Europe Average (non-weighted) 42% 8.1 7.2 16.6 14.1 121% 78% 5.3 4.8 0% 0% 4% 3% 12% 8% 1.10 0.91 23%North America Average (non-weighted) 43% 10.7 9.3 8.8 7.0 -20% -32% 5.0 4.1 10% 2% 1% 7% 5% 1.26 1.16 20%Global Averages (non-weighted) 30% 9.8 8.8 12.6 10.6 44% 17% 5.7 5.2 3% 8% 3% 2% 10% 8% 1.18 1.05 29%

PER (CS fcst) EV / EBITDA GearingP / BookROICPER (consen.) CS mkt variance FCF yield Div yieldTP (US$) Upside %

Mkt Cap (US$mn)Ticker Region Rating SP (US$)Analyst

Source: Company data, Credit Suisse estimates

01 July 2016 0

01 July 2010

Figure 9: EV / EBITDA

0BA

ustralian Iron & Steel R

eview

7

EV / EBITDA(Credit Suisse forecasts)

x

2 x

4 x

6 x

8 x

10 x

12 x

14 x

16 x

18 x

20 xSu

mito

mo

Acer

inox

Hyun

dai S

teel

Tata

Ste

el

Vallo

urec

TMK

Hita

chi M

etals

SSAB

Sve

nskt

Stal

Nipp

on S

teel

Toky

o St

eel

China

Ste

el

Panz

hihua

New

Ste

el an

d Va

nadiu

m

Gerd

au

OneS

teel

JSW

Ste

el

Blues

cope

Ste

el

Tern

ium

Nuco

r

Kobe

Ste

el

JFE

Holdi

ngs

Voes

t Alpi

ne S

tahl

Feng

Hsin

Iron

& S

teel

Thys

sen

Krup

p

Usim

inas

Salzg

itter

ERDE

MIR

SAIL

U.S.

Ste

el Gr

oup

Anga

ng

Jinda

l Saw

Ltd

POSC

O

Arce

lorM

ittal

Tung

Ho

Stee

l Ent

erpr

ise

Dong

Kuk

Mec

hel

Maa

nsha

n

NLMK

Wels

pun

Gujar

at S

tahl

Rohr

en

Wuh

an

CSN

Baos

han

Iron &

Ste

el

Magn

itogo

rsk S

teel

Seve

rstal

AK S

teel

EV / E

BITD

A (x

)

2010 EV/EBITDA 2011 EV/EBITDA

Source: Company data, Credit Suisse estimates

01 July 2010

Company & Industry News and Headlines Figure 10: Company & Industry News and Headlines

Date Source Commodity Location Company Headline30 Jun Steel Business

Briefing Iron ore Japan Mitsui & Co &

Credit SuisseJapanese trading house Mitsui & Co. has signed an iron ore swaps agreement with Credit Suisse. According to Credit Suisse, the swap will be settled against the reference price for 62% Fe iron ore provided by The Steel Index (TSI)

30 Jun TEX Coal Canada SouthGobi Energy

Resources Ltd.

SouthGobi Energy Resources Ltd. of Canada announced to have started construction of coal handing facility (CHF) at the existing opencut coal mine Ovoot Tolgoi in South Gobi of Mongol. The facility is to start operation at the beginning of 2011.

30 Jun TEX Steel Japan Japan’s ordinary steel stocks held by steelmakers and wholesalers totaled 6,224,000 tons at the end of May 2010, up 221,000 tons or 3.7% from a month ago, indicating an increase for two consecutive months, when the nation’s inventory- shipment ratio of ordinary steel products stood at 97.0%, falling short of 100% for the first time in two months, according to the Japan Iron & Steel Federation.

30 Jun TEX Scrap - ferrous

Japan Japan’s ferrous scrap exports totaled 446,000 tons in May 2010, down 59.6% from a year ago, indicating a yearon- year fall for three consecutive months, when they decreased by 35.8% from a month ago, according to announced trade statistics from the Ministry of Finance

29 Jun The Australian Australia Australia's new PM is working to meet a Friday deadline to announce initial changes to the proposed Resources Super Profits Tax. The mining industry has made it clear it still wants evidence of changes to the resource super-profits tax by the end of the week or the moratorium on the "advertising war" will be lifted.

29 Jun TEX Iron ore Europe LKAB Swedish state-owned resources and mining company LKAB announced May 27 that Europe's biggest iron ore project, Gruvberget in Svappavaara, is now open. LKAB's president Lars-Eric Aaro and Kiruna's municipal commissioner Kenneth Stalnacke together fired the first round to inaugurate LKAB's first new iron ore mine in 50 years.

29 Jun TEX Iron ore Oman Vale Brazilian resources company Vale announced May 29 that it has entered into agreement with Oman Oil Company S.A.O.C. (OOC), a company wholly-owned by the Government of the Sultanate of Oman, to sell the 30% stake in Vale Oman Pelletizing Company LLC (VOPC), for US$ 125 million.

29 Jun Metals Insider Steel Europe European Union antitrust regulators will this week fine steel companies, including world leader ArcelorMittal , for operating a cartel

29 Jun Metals Insider Steel Russian steelmakers expect U.S. steel demand to support prices for the rest of the year despite recent weakness in China and a soft Eurozone economy, the top two Russian producers said

29 Jun Metals Insider Steel Japan Japan's crude steel output is expected to grow 10.7 percent in the July-September quarter from a year earlier as relatively solid demand at home will help offset a likely slowdown in exports, the trade ministry said. Japan's crude steel output is expected to total 26.82 million tonnes during the quarter after a survey of manufacturers, exporters and steelmakers, the Ministry of conomy, Trade and Industry said.

29 Jun MB Steel China Chinese steel mills are expected to abandon iron ore supply contracts within the next three months as index-linked contract prices are set to be substantially higher than spot market prices.

29 Jun MB Steel Asia & Europe Asian stainless steel producers may gain market share in Europe as domestic producers are less able to react quickly to falling alloy surcharges and sluggish demand

29 Jun MB Steel Russia Severstal Severstal is planning to make further investments in Africa and will focus on iron ore, coking coal and gold mining, general director Alexei Mordashov said at Metal Bulletin’s 8th Russian Steel Summit.

28 Jun TEX Coking Coal Mongolia The Mongol parliament has recently approved the construction of a 1,100km railway from the Tavan Tolgoi coal deposit in South Gobi to the border with Russia. The railway is for export of metallurgical coal produced at Tavan Tolgoi deposit to the Asian Region through Russia. The Government plans to invite international mining companies to tender for development rights and to take a 49% interest in the deposit by the end of this year, with first coal expected in 2013-2014.

28 Jun TEX Scrap - ferrous

China China’s ferrous scrap imports totaled 360,000 tons in May 2010, down 78.3% from a year ago, when they decreased by 35.5% from a month ago, standing at a low level for the first time in one year and seven months since October 2008, according to Chinese customs statistics made available in Tokyo.

28 Jun Company announcements

Iron ore Australia Iron Ore Holdings Rio Tinto said in November it was evaluating Iron Ore’s Iron Valley deposit in Western Australia’s Pilbara region and may buy all or part of the project. Iron Ore Holdings has fallen to a six-month low in Sydney trading after saying it’s so far failed to reach a sales agreement with Rio Tinto Group.

28 Jun Bloomberg Steel China Baosteel Baosteel is scaling back its 2012 expansion targets by 38%. Its new target is to reach 50Mtpy of capacity by 2012, and 66Mtpy by 2015

28 Jun Platts Steel China China’s Ministry of Commerce announced antidumping duties of between 6.1% and 26% on imports of certain steel fasteners from the European Union. The tariffs are effective from June 29 for five years.

28 Jun Platts Steel USA Steel production in the US fell 2.5% or 45,000 st in the week ended June 26, the American Iron and Steel Institute in Washington reported

25 Jun Company announcement

Coking coal Mozambique Riversdale On 24th June, Riversdale Mining Ltd. of Australia announced to have reached an agreement on joint promotion of Zambeze metallurgical coal project in Mozambique with Wuhan Iron and Steel Group Corp. (WISCO) of China. As a result, WISCO buys out 40 percent interest in Zambeze Project from Riversdale and acquires 8 percent shares of Riversdale.

25 Jun TEX Iron ore Japan According to the foreign trade statistics (preliminary) for May 2010 announced by the Japanese Ministry of Finance June 24, iron ore imports into the country during the period were 11.024 million tons (Mt), an increase of 57.8% year over year.

24 Jun MB Australia Australia’s new prime minister Julia Gillard offers a more consensual approach to mining tax reform, but miners should not count on wholesale changes to plans pushed by her predecessor, analysts said.

Source: AFR, TEX Report, Metals Bulletin, Metals Insider, Mining Weekly, Company data

0BAustralian Iron & Steel Review 8

01 July 2010

0BAustralian Iron & Steel Review 9

Commodity Prices - Historical Figure 11: Global Commodity Prices (Historical)

Spot01 Jul$/t $/t % $/t % $/t %

Iron Ore Category Location UnitsAustralian 62% Fe spot Fines FOB Pilbara (Australia) US$/t 169 168 1% 177 -5% 170 -1%Australian 63% Fe spot Lump FOB Pilbara (Australia) US$/t 200 199 1% 205 -2% 187 7%Mt Newman high grade Fines FOB Pilbara (Australia) USc/dmtu 218 218 0% 218 0% 112 95%Hamersley lump Lump FOB Pilbara (Australia) USc/dmtu 190 190 0% 194 -2% 97 96%CVRD standard sinter feed - Europe Lump FOB Tubarão USc/dmtu 169 169 0% 169 0% 97 75%CVRD blast furnace pellet - Europe Pellet FOB Tubarão USc/dmtu 243 243 0% 243 0% 114 113%CVRD Carajas fines (CJF) - Japan Fines FOB Ponta da Madeira USc/dmtu 174 174 0% 174 0% 90 94%Indian spot fines 58% Fe (TSI) Fines CFR China US$/t 104 104 0% 102 2% 129 -20%Indian spot fines 62% Fe (TSI) Fines CFR China US$/t 139 143 -3% 145 -4% 155 -10%Implied TSI quality premium per 1% Fe Fines CFR China USc per 1% Fe 11.6 13.1 -11% 14.7 -21% 6.9 67%Indian spot fines 63.5% Fe (MB) Fines CFR China US$/t 146 150 -3% 169 -14% 150 -3%Iron ore concentrate 66% Fe wet Concentrate Ex-works US$/t 168 167 0% 170 -1% 143 17%

CoalSpot coke China (export) US$/t 470 470 0% 465 1% 495 -5%Hard Coking Coal FOB Australia US$/t 220 220 0% 220 0% 125 76%PCI FOB Australia US$/t 170 170 0% 170 0% 85 100%

Ferrous ScrapEast Asia import East Asia US$/t 365 368 -1% 410 -11% 455 -20%Domestic Heavy scrap China US$/t 434 432 1% 432 1% 431 1%Heavy Melt Scrap No. 1 80:20 mix Turkey import CFR US$/t 315 338 -7% 361 -13% 443 -29%Shredded Turkey import CFR US$/t 319 343 -7% 365 -13% 448 -29%Heavy Melt Scrap No. 1 (TEX) US export US$/t 370 370 0% 410 -10% 454 -19%Heavy Melt No. 1 US East Coast export FOB US$/t 270 313 -14% 353 -23% 398 -32%Shredded US East Coast export FOB US$/t 275 318 -14% 358 -23% 403 -32%No. 2 bundles US East Coast export FOB US$/t 274 285 -4% 285 -4% 302 -9%

FreightBaltic Freight Index Capesize Points 2,713 2,695 1% 5,217 -48% 3,301 -18%Baltic Freight Index Handysize Points 1,165 1,205 -3% 1,477 -21% 1,399 -17%SSY Spot Iron Ore Freight Capesize Western Australia to China US$/t 8.8 9.5 -8% 13.7 -36% 10.1 -13%SSY Spot Iron Ore Freight Capesize Brazil to China US$/t 22.0 23.3 -5% 33.5 -34% 24.3 -9%

SteelHot Rolled Coil Flat US (export) US$/s ton 660 675 -2% 720 -8% 660 0%Cold Rolled Coil Flat US (export) US$/s ton 793 793 0% 830 -5% 760 4%Slab Flat East Asia (import) US$/t 590 590 0% 680 -13% 615 -4%Hot Rolled Coil Flat East Asia (import) US$/t 610 610 0% 643 -5% 695 -12%Billet Long East Asia (import) US$/t 513 505 1% 573 -10% 600 -15%Rebar Long East Asia (import) US$/t 555 560 -1% 618 -10% 620 -10%Hot Rolled Coil Flat China (export) US$/t 635 605 5% 605 5% 608 5%Rebar Long China (import) US$/t 559 558 0% 567 -1% 575 -3%

Steel making spread monitor Amount required Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 spotIron Ore 1.6 US$/t of steel 167 186 212 211 240 296 270 234Coke 0.43 US$/t of steel 169 195 203 203 212 195 199 201Scrap 0.15 US$/t of steel 48 50 58 57 68 70 62 55Total Raw material cost US$/t of steel 384 431 473 470 520 560 531 490HRC (East Asia) US$/t 515 530 580 570 695 710 643 610HRC / Raw material spread US$/t 131 99 107 100 175 150 111 120

24 Jun 31 May 31 Mar1 week ago 1 mth ago 3 mths ago

Source: Bloomberg, The Steel Index, Steel Business Briefing, Metals Bulletin, TEX Report, Credit Suisse estimates

01 July 2010

Commodity Prices – Futures Figure 12: Credit Suisse Iron Ore futures Figure 13: NYMEX HRC futures

60

80

100

120

140

160

180

Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12

US$/t

Historical Fwd Curve 29/06/2010

350

400

450

500

550

600

650

700

750

Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12

US$/t

Historical Fwd Curve 29/06/2010

Source: Credit Suisse, SGEX Source: NYMEX, Bloomberg, Credit Suisse estimates

Latest thoughts from our colleagues on the London iron ore trading desk:

■ Spot physical trading $5/t lower at $138 cfr China 62% fe, although we are hearing reports of much bigger falls to come

■ The front quarter has been hit hard on the back of poor forward freight bookings. Q3 last $124, falling $16 on the week

■ Cal11 IO swaps giving away $6 to $118

■ Key concern for iron ore forwards over coming week is a sustained Chinese equities/property sell-off and reduced forecast growth for steel production

Figure 14: SHFE Rebar futures Figure 15: LME Billet Futures

450

500

550

600

650

700

Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12

US$/t

Historical Fwd Curve 26/05/2010 Fwd Curve 29/06/2010

250

300

350

400

450

500

550

600

650

Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12

US$/t

Historical Fwd Curve 29/06/2010 Fwd Curve 28/03/2010 Fwd Curve 24/09/2009

Source: Shanghai Futures Exchange Source: London Metals Exchange

Figure 16: Commodity News Sentiment Indicator (tracks Up / Flat / Down movements as listed over page)

-100%

-50%

0%

50%

100%

14 May 17 May 20 May 23 May 26 May 29 May 01 Jun 04 Jun 07 Jun 10 Jun 13 Jun 16 Jun 19 Jun 22 Jun 25 Jun 28 Jun

NEGA

TIVE

ne

ws

POSI

TIVE

Source: Business Speculator, Platts, Metals Bulletin, TEX Report, Steel Business Briefing

0BAustralian Iron & Steel Review 10

01 July 2010

Commodity Price News and Headlines Figure 17: Commodity News and Headlines

Date Source Commodity Location Price Change Headline29 Jun Platts Iron ore China US$135/t Down Prices of seaborne iron ore bound for China continued to fall as lower offers emerged in a market almost devoid of any buying

interest from steelmakers and traders. The Platts assessment for 62%-Fe fines slipped 50¢ to $135/dry mt CFR North China, respectively.

29 Jun Platts Iron ore China US$141.5/t Down Prices of seaborne iron ore bound for China continued to fall as lower offers emerged in a market almost devoid of any buying interest from steelmakers and traders. The Platts assessment for 63.5/63%-Fe fines slipped 50¢ to $141.50/dmt CFR North China, respectively.

29 Jun Platts Steel - rebar Turkey US$515/mt Up Offers for Turkish rebar inched up to $530-$540/mt FOB Turkey..A limited number of deals were concluded, however, because price expectations from buyers were around $20/mt less. Owing to the deadlock, Platts held its regional rebar assessment steady at a midpoint of $515/mt FOB Turkey basis

29 Jun Platts Steel - rebar USA US$585/t Down The Platts price assessment for US-made rebar dropped in mid- June by $25 to $585/st ex-works Southeast mill and there has been no improvement since

29 Jun Platts Coking coal Asia US$202/t Flat The continued stand-off between sellers and buyers of hard coking coal in the Asia Pacific region meant there was little movement in spot prices. Platts maintained its reference price for Australian HCC exports at $202/mt FOB Hay Point, while the Chinese import price slipped by $1 to $204/mt CFR Qingdao

29 Jun MB Steel - HRC Persian Gulf US$580-590/t Up Very small bookings of hot rolled coil were made at $580-590 per tonne cfr Perisian Gulf, up $10 from bookings at $570-580 cfr last week.

28 Jun MB Iron ore China US$147/t Down Spot iron ore prices for 63.5% Fe Indian iron ore slipped to $146-148 per tonne cfr on Monday, down around $1.50 from last Friday, tracking lower steel prices.

28 Jun MB Steel - Billet China Down Ex-works billet prices in Hebei province fell more than 100 yuan ($14) per tonne to 3,500 yuan per tonne at the weekend, and the September hot rolled coil contract on the Shanghai Steel Exchange fell 0.9% from last Friday to close at 4,165 yuan per tonne on Monday.

28 Jun MB Steel - rebar CIS US$500-510/t Up CIS rebar export prices have increased by $30 for July production and delivery, MB was told. CIS rebar currently stands at $500-510 per tonne fob Black Sea, up from the previous price of $480-500 fob last week, according to CIS mill and trader sources.

25 Jun MB Steel - HRC China US$640-650/t Up Chinese exporters are raising hot rolled coil offers by around 7% for August shipments to offset the removal of a 9% rebate from July 15.

25 Jun MB Scrap - Ferrous Turkey US$470-480/t Up Turkish mini-mills have successfully passed on higher ferrous scrap costs to billet export consumers despite lacklustre demand, Turkish traders told MB. Small tonnages of Turkish billet has been sold at $470-480 per tonne fob main Turkish port for June production and delivery, up by as much as $20 per tonne from the previous booked price of $460-470 fob last week, according to Turkish market mill and trader sources.

23 Jun Platts Steel USA US$645/st Down The Platts assessment for hot-rolled coil in the US market declined another $12.50/st Wednesday to a midpoint of $645/st ex-works Indiana, based on firm bids, offers and transactions reported to Platts.

23 Jun MB Scrap - Ferrous China US$426-440/t Flat China’s domestic ferrous scrap prices could fall soon as the removal of some steel export rebates puts pressure on steel output and dampens scrap demand, market participants said.Mainstream transaction prices for heavy scrap in China have been stable at 2,900-3,000 yuan ($426-440) per tonne, including tax, for nearly a month.

22 Jun Platts Coking coal China US$203/t Down Spot hard coking prices are falling slowly, as Indian and Chinese buyers blighted by fragile domestic steel markets reign in spot purchases. Spot availability still remains relativelytight, however, and Australian producers have not dropped their offers. Platts lowered its Australian export price by $2 to $203/mt FOB Australia for 64% CSR, 25.5% VM material, while theChinese import price fell $3 to $205/mt CFR Qingdao.

22 Jun SBB Iron ore China US$147/t Up Baosteel denies having accepted Q3 iron ore contract prices, according to SBB. Market specialised newswires have recently indicated that Baosteel accepted a price of US$147/ton FOB for Q3 iron ore contracts from Australian miners. This corresponds to 23% q/q price increase. Local Chinese media stated that Baosteel vice-president denied any settlement so far

22 Jun TEX Scrap - Ferrous Taiwan Flat With a weak market for imports of containerized ferrous scrap into Taiwan, recent deals are settled at US$330-335/MT C&F for a mix of 80% No1 HMS/20% No2 HMS and US$335-340/MT C&F for the shredded grade, according to market sources.

22 Jun TEX Scrap - Ferrous USA US$320/t Flat The composite price of US ferrous scrap remained unchanged at $319.83/LT for No1 HMS as of June 21 when it remained unchanged at $274.00/LT for No2 bundles as well. The composite price indicates the average of delivered prices for steelmakers operating in Pittsburgh, Chicago, and Philadelphia.

22 Jun Metals Insider

Steel South Korea Up South Korea’s integrated steelmaker Posco professes to execute domestic price increases of various steel products by an average 6% from July 1, price increases that will take effect in upply contracts from the July-September quarter. The price increases are intended to meet rising costs of Posco’s raw materials imports and widening price differences between what the company sells at home and imported steel products.

22 Jun TEX Steel - HRC Middle East Up Transaction prices of HR coil exports to the Middle East are forecast to rebound if local customers opt to push negotiations before Ramadan on their imports of HR coils for August-September shipments in the wake of dwindling offers from China’s steelmakers, according to information made available in Tokyo.

22 Jun MB Steel - HRC Persian Gulf US$570-580/t Down Bookings for hot rolled coil imported into the Persian Gulf from China and Russia have been booked at $570-580 per tonne cfr main Gulf port, while offers range from $550-$630 cfr.The same material was on offer for $570-640 cfr two weeks ago, although there were no reported bookings at that level.

22 Jun Platts Steel - Rebar Turkey US$515/t Up Turkish steel mills are moving in to buy ferrous scrap from overseas sources at higher prices and lifting their rebar export offers accordingly. Based on these developments, Platts einforcement bar price assessment for B500/BS4449 equivalent material moved up Tuesday by $10 to $515/mt FOB Turkey on an actual weight basis.

Source: Business Speculator, Platts, Metals Bulletin, TEX Report, Steel Business Briefing

0BAustralian Iron & Steel Review 11

01 July 2010

0BAustralian Iron & Steel Review 12

Companies Mentioned (Price as of 30 Jun 10) Atlas Iron (AGO.AX, A$2.35, NEUTRAL, TP A$3.15) BHP Billiton Limited (BHP.AX, A$37.65, OUTPERFORM, TP A$45.00) BlueScope Steel (BSL.AX, A$2.57, OUTPERFORM [V], TP A$3.73) Fortescue Metals Group Ltd (FMG.AX, A$4.35, OUTPERFORM [V], TP A$6.00) Mount Gibson Iron (MGX.AX, A$1.62, NEUTRAL, TP A$2.25) OneSteel (OST.AX, A$3.45, OUTPERFORM [V], TP A$4.50) Rio Tinto Limited (RIO.AX, A$66.66, OUTPERFORM [V], TP A$100.00) Sims Metal Management (SGM.AX, A$21.49, UNDERPERFORM [V], TP A$22.00) See Figures 20, 21, and 26 for other companies mentioned.

Disclosure Appendix Important Global Disclosures I, Nathan Littlewood, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. See the Companies Mentioned section for full company names. 3-Year Price, Target Price and Rating Change History Chart for AGO.AX AGO.AX Closing

Price Target

Price

Initiation/ Date (¥) (¥) Rating Assumption 23-May-07 580000 620000 21-Feb-08 586000 NC 27-Oct-08 257400 450000 O X 30-Jan-09 261000 290000 N 6-Apr-09 272200 299000 8-May-09 247000 232000 19-May-09 268300 340000 O 15-Jun-09 325000 370000 24-Sep-09 319000 340000 N 19-Oct-09 283800 300000 10-Nov-09 253000 255000 3-Dec-09 282200 320000 O 22-Dec-09 308000 N 6-Mar-10 336500 360000 O

620000

450000

290000299000

232000

340000370000

340000300000

255000

320000360000

27-Oct-08

ON

ON

ONO

NC

216500

266500

316500

366500

416500

466500

516500

566500

616500

666500

25-Mar-07

25-May-07

25-Jul-0

7

25-Sep-0

7

25-Nov-07

25-Jan-0

8

25-Mar-0

8

25-May-08

25-Jul-08

25-Sep-08

25-Nov-0

8

25-Jan-0

9

25-Mar-09

25-May-

09

25-Jul

-09

25-Sep-09

25-Nov-09

25-Jan-1

0

¥

Closing Price Target Price Initiation/Assumption Rating

O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC= Not Covered

3-Year Price, Target Price and Rating Change History Chart for FMG.AX FMG.AX Closing

Price Target

Price

Initiation/ Date (A$) (A$) Rating Assumption 31-Aug-09 4.41 4.21 U X 1-Sep-09 X 12-Oct-09 3.9 N 29-Oct-09 3.71 4.21 4-Feb-10 4.77 6 O

4 4

6

31-Aug-091-Sep-09

ONU

1

3

5

7

9

11

13

2-Jul-07

2-Sep-07

2-Nov-0

7

2-Jan-0

8

2-Mar-

08

2-May-08

2-Jul-08

2-Sep-08

2-Nov-

08

2-Jan-0

9

2-Mar-09

2-May-

09

2-Jul-09

2-Sep-09

2-Nov-09

2-Jan-10

2-Mar-10

2-May-

10

A

Closing Price Target Price Initiation/Assumption

$

Rating

O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC=Not Covered

01 July 2010

0BAustralian Iron & Steel Review 13

3-Year Price, Target Price and Rating Change History Chart for MGX.AX MGX.AX Closing

Price Target

Price

Initiation/ Date (A$) (A$) Rating Assumption 6-Jan-10 1.825 1.5 U X 4-Feb-10 1.46 1.8 O 20-Apr-10 1.97 2.25 N 19-May-10 1.37 O

2

2

2

6-Jan-10

O

N

O

U

0

0.5

1

1.5

2

2-Jul-07

2-Sep-07

2-Nov-0

7

2-Jan-0

8

2-Mar-

08

2-May-08

2-Jul-08

2-Sep-08

2-Nov-

08

2-Jan-0

9

2-Mar-09

2-May-

09

2-Jul-09

2-Sep-09

2-Nov-09

2-Jan-10

2-Mar-10

2-May-

10

Closing Price Target Price Initiation/Assumption Rating

A$

O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC=Not Covered

The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities. Analysts’ stock ratings are defined as follows: Outperform (O): The stock’s total return is expected to outperform the relevant benchmark* by at least 10-15% (or more, depending on perceived risk) over the next 12 months. Neutral (N): The stock’s total return is expected to be in line with the relevant benchmark* (range of ±10-15%) over the next 12 months. Underperform (U): The stock’s total return is expected to underperform the relevant benchmark* by 10-15% or more over the next 12 months. *Relevant benchmark by region: As of 29th May 2009, Australia, New Zealand, U.S. and Canadian ratings are based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe**, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. Some U.S. and Canadian ratings may fall outside the absolute total return ranges defined above, depending on market conditions and industry factors. For Latin American, Japanese, and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; for European stocks, ratings are based on a stock’s total return relative to the analyst's coverage universe**. For Australian and New Zealand stocks a 22% and a 12% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively, subject to analysts’ perceived risk. The 22% and 12% thresholds replace the +10-15% and -10-15% levels in the Neutral stock rating definition, respectively, subject to analysts’ perceived risk. **An analyst's coverage universe consists of all companies covered by the analyst within the relevant sector. Restricted (R): In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Volatility Indicator [V]: A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

Analysts’ coverage universe weightings are distinct from analysts’ stock ratings and are based on the expected performance of an analyst’s coverage universe* versus the relevant broad market benchmark**: Overweight: Industry expected to outperform the relevant broad market benchmark over the next 12 months. Market Weight: Industry expected to perform in-line with the relevant broad market benchmark over the next 12 months. Underweight: Industry expected to underperform the relevant broad market benchmark over the next 12 months. *An analyst’s coverage universe consists of all companies covered by the analyst within the relevant sector. **The broad market benchmark is based on the expected return of the local market index (e.g., the S&P 500 in the U.S.) over the next 12 months. Credit Suisse’s distribution of stock ratings (and banking clients) is:

Global Ratings Distribution Outperform/Buy* 46% (63% banking clients) Neutral/Hold* 40% (59% banking clients) Underperform/Sell* 12% (53% banking clients) Restricted 2%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein.

01 July 2010

0BAustralian Iron & Steel Review 14

Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research-and-analytics/disclaimer/managing_conflicts_disclaimer.html Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purposes of avoiding any penalties. See the Companies Mentioned section for full company names. Price Target: (12 months) for (AGO.AX) Method: Our $3.15/sh target price for Atlas Iron is set using a discounted cashflow (DCF) based sum-of-the-parts and deviates from house iron ore assumptions by assuming a +90% JFY10 iron ore outcome. We use house FX forecasts, and a real discount rate of 8.6%. Risks: The risks invloved with acheiving our $3.15 target price for Atlas Iron include pricing risk, ramp up risk (which will be a function of infrastructure access not controlled by AGO), and legal and regulatory risks which could determine a different competitive environment in the Pilbara iron ore industry to that which we have assumed in our modelling. Price Target: (12 months) for (FMG.AX) Method: Our $6.00 target price for Fortescue Metals is set using a Discounted Cash Flow for the operational models as well as 10x FY12 eps. Our DCFs use house commodities and FX Risks: The risks to achieving our FMG $6.00 target price include achieved iron ore prices, actual production/sales volumes differing from our forecasts, and inability of the company to secure suitably priced finance. Price Target: (12 months) for (MGX.AX) Method: We set our $2.25/share target price for Mount Gibson Iron based on a $1.80/share Net Present Value calculation. We use a real (weighted average cost of capital (WACC) of 8.1% and house FX and commodity assumptions. Risks: The risks to MGX achieving our $2.25/share target include ore pricing risk, customer concentration/default risk, adverse weather conditions in what are cyclone prone areas, single commodity exposure and techncial risks most notably at the Koolan Island operation. Please refer to the firm's disclosure website at www.credit-suisse.com/researchdisclosures for the definitions of abbreviations typically used in the target price method and risk sections.

See the Companies Mentioned section for full company names. The subject company (FMG.AX) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse. Credit Suisse provided investment banking services to the subject company (FMG.AX) within the past 12 months. Credit Suisse has received investment banking related compensation from the subject company (FMG.AX) within the past 12 months. Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (AGO.AX, FMG.AX) within the next 3 months. Important Regional Disclosures Singapore recipients should contact a Singapore financial adviser for any matters arising from this research report. The analyst(s) involved in the preparation of this report have not visited the material operations of the subject company (AGO.AX, FMG.AX, MGX.AX) within the past 12 months. Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares. Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report. For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit http://www.csfb.com/legal_terms/canada_research_policy.shtml. Credit Suisse Securities (Europe) Limited acts as broker to RIO.AX. The following disclosed European company/ies have estimates that comply with IFRS: RIO.AX. As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report. Principal is not guaranteed in the case of equities because equity prices are variable. Commission is the commission rate or the amount agreed with a customer when setting up an account or at anytime after that. To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important disclosures regarding any non-U.S. analyst contributors: The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research analysts listed below may not be associated persons of CSSU and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. • Nathan Littlewood, non-U.S. analyst, is a research analyst employed by Credit Suisse Equities (Australia) Limited. • Michael Slifirski, non-U.S. analyst, is a research analyst employed by Credit Suisse Equities (Australia) Limited. For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at www.credit-suisse.com/researchdisclosures or call +1 (877) 291-2683. Disclaimers continue on next page.

01 July 2010Asia Pacific/Australia

Equity Research

This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Credit Suisse AG, the Swiss bank, or its subsidiaries or its affiliates (“CS”) to any registration or licensing requirement within such jurisdiction. All material presented in this report, unless specifically indicated otherwise, is under copyright to CS. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of CS. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of CS or its affiliates. The information, tools and material presented in this report are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. CS may not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. CS will not treat recipients as its customers by virtue of their receiving the report. The investments or services contained or referred to in this report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. CS does not offer advice on the tax consequences of investment and you are advised to contact an independent tax adviser. Please note in particular that the bases and levels of taxation may change. CS believes the information and opinions in the Disclosure Appendix of this report are accurate and complete. Information and opinions presented in the other sections of the report were obtained or derived from sources CS believes are reliable, but CS makes no representations as to their accuracy or completeness. Additional information is available upon request. CS accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to CS. This report is not to be relied upon in substitution for the exercise of independent judgment. CS may have issued, and may in the future issue, a trading call regarding this security. Trading calls are short term trading opportunities based on market events and catalysts, while stock ratings reflect investment recommendations based on expected total return over a 12-month period as defined in the disclosure section. Because trading calls and stock ratings reflect different assumptions and analytical methods, trading calls may differ directionally from the stock rating. In addition, CS may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them and CS is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report. CS is involved in many businesses that relate to companies mentioned in this report. These businesses include specialized trading, risk arbitrage, market making, and other proprietary trading. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a judgement at its original date of publication by CS and are subject to change without notice. The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Investors in securities such as ADR’s, the values of which are influenced by currency volatility, effectively assume this risk. Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility, and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct their own investigation and analysis of the product and consult with their own professional advisers as to the risks involved in making such a purchase. Some investments discussed in this report have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when that investment is realised. Those losses may equal your original investment. Indeed, in the case of some investments the potential losses may exceed the amount of initial investment, in such circumstances you may be required to pay more money to support those losses. Income yields from investments may fluctuate and, in consequence, initial capital paid to make the investment may be used as part of that income yield. Some investments may not be readily realisable and it may be difficult to sell or realise those investments, similarly it may prove difficult for you to obtain reliable information about the value, or risks, to which such an investment is exposed. This report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of CS, CS has not reviewed the linked site and takes no responsibility for the content contained therein. Such address or hyperlink (including addresses or hyperlinks to CS’s own website material) is provided solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link through this report or CS’s website shall be at your own risk. This report is issued and distributed in Europe (except Switzerland) by Credit Suisse Securities (Europe) Limited, One Cabot Square, London E14 4QJ, England, which is regulated in the United Kingdom by The Financial Services Authority (“FSA”). This report is being distributed in Germany by Credit Suisse Securities (Europe) Limited Niederlassung Frankfurt am Main regulated by the Bundesanstalt fuer Finanzdienstleistungsaufsicht ("BaFin"). This report is being distributed in the United States by Credit Suisse Securities (USA) LLC ; in Switzerland by Credit Suisse AG; in Canada by Credit Suisse Securities (Canada), Inc..; in Brazil by Banco de Investimentos Credit Suisse (Brasil) S.A.; in Japan by Credit Suisse Securities (Japan) Limited, Financial Instrument Firm, Director-General of Kanto Local Finance Bureau (Kinsho) No. 66, a member of Japan Securities Dealers Association, The Financial Futures Association of Japan, Japan Securities Investment Advisers Association; elsewhere in Asia/Pacific by whichever of the following is the appropriately authorised entity in the relevant jurisdiction: Credit Suisse (Hong Kong) Limited, Credit Suisse Equities (Australia) Limited , Credit Suisse Securities (Thailand) Limited, Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse AG, Singapore Branch, Credit Suisse Securities (India) Private Limited, Credit Suisse Securities (Europe) Limited, Seoul Branch, Credit Suisse AG, Taipei Securities Branch, PT Credit Suisse Securities Indonesia, and elsewhere in the world by the relevant authorised affiliate of the above. Research on Taiwanese securities produced by Credit Suisse AG, Taipei Securities Branch has been prepared by a registered Senior Business Person. Research provided to residents of Malaysia is authorised by the Head of Research for Credit Suisse Securities (Malaysia) Sdn. Bhd., to whom they should direct any queries on +603 2723 2020. In jurisdictions where CS is not already registered or licensed to trade in securities, transactions will only be effected in accordance with applicable securities legislation, which will vary from jurisdiction to jurisdiction and may require that the trade be made in accordance with applicable exemptions from registration or licensing requirements. Non-U.S. customers wishing to effect a transaction should contact a CS entity in their local jurisdiction unless governing law permits otherwise. U.S. customers wishing to effect a transaction should do so only by contacting a representative at Credit Suisse Securities (USA) LLC in the U.S. Please note that this report was originally prepared and issued by CS for distribution to their market professional and institutional investor customers. Recipients who are not market professional or institutional investor customers of CS should seek the advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary explanation of its contents. This research may relate to investments or services of a person outside of the UK or to other matters which are not regulated by the FSA or in respect of which the protections of the FSA for private customers and/or the UK compensation scheme may not be available, and further details as to where this may be the case are available upon request in respect of this report. Any Nielsen Media Research material contained in this report represents Nielsen Media Research's estimates and does not represent facts. NMR has neither reviewed nor approved this report and/or any of the statements made herein. If this report is being distributed by a financial institution other than Credit Suisse AG, or its affiliates, that financial institution is solely responsible for distribution. Clients of that institution should contact that institution to effect a transaction in the securities mentioned in this report or require further information. This report does not constitute investment advice by Credit Suisse to the clients of the distributing financial institution, and neither Credit Suisse AG, its affiliates, and their respective officers, directors and employees accept any liability whatsoever for any direct or consequential loss arising from their use of this report or its content. Copyright 2010 CREDIT SUISSE AG and/or its affiliates. All rights reserved.

CREDIT SUISSE EQUITIES (Australia) Limited A ustralia: +61 2 8205 4400

870787.doc