Fortescue Metals and BC Iron JV receive additional $15 million from Henghou Industries

A$96 million market-capped iron ore company BC Iron (ASX: BCI)
reported today its Nullagine iron ore joint venture has received US$15
million, a second funding instalment from Henghou Industries of Hong
Kong.

Nullagine is a joint venture between BC Iron 50% and Fortescue
Metals (ASX: FMG).   The payment is part of a US$50 million off-take,
pre-sales agreement with Henghou.

Located in the world-class Pilbara region, Nullagine iron ore
project is located 140km north of Newman - proximal to Fortescue
Metals’ Chichester operation.

Total received to date by the joint venture partners is US$30M.

The funds will be applied towards project development activities, as
Nullagine progresses toward production in the second half of 2010.

FMG will provide port and rail infrastructure access for the life of the mining operation.

Current Direct Shipping Ore Probable Reserve at Nullagine iron
project is 36Mt @ 57% Iron (Fe). The total mineral resource at
Nullagine is 89Mt @ 54.1% Fe.

Competitive advantage that BC Iron has is that the Nullagine DSO
comprises an outcropping, low contaminant “first grade” sinter feed,
which is sought after by steel producers.