It Has Completed The Company's Previously Foreshadowed USD 325 Million Financing Package

Atlas Iron Limited announced that it has completed the Company's previously foreshadowed USD 325 million financing package,ensuring Atlas remains firmly on track to meet its Pilbara iron ore production target of 12 million tonnes per annum by December,2013.

In light of the significant improvement in iron ore markets during the December 2012 Quarter,Atlas has elected to improve the structure of the debt package from that proposed in its ASX release of 18th October 2012.

Atlas has now completed a US institutional Term Loan B offering to USD 275 million,down from USD 325 million.Atlas has also put in place an undrawn AUD 50 million 3 year covenant lite revolving facility.Importantly,both the Term Loan and Revolver terms contain no earnings based maintenance covenants.

The decision to adopt a lower Term Loan and undrawn Revolver reduces the amount of loan drawn down,lowering Atlas overall cost of funding.

The completion of this financing package delivers the Company sufficient funds to complete the development of the Mt Dove,Abydos and Mt Webber mines and the Yard 2 expansion works at Utah Point at Port Hedland.

Atlas continues to adopt a conservative approach to its capital management through modest debt levels in conjunction with incremental,staged project execution.

A summary of the key terms and conditions of the Term Loan B facility are as follows:

1.Principal Amount:USDD 275 million

2.Maturity:5 years

3.Coupon:L+7.50%

4.LIBOR Floor(1):1.25%

5.Guarantors:Atlas and all material subsidiaries