BC Iron Limited ASX Announcement 6 December 2010 Clarification of Media Comment The Australian Financial Review carried an article on Wednesday, 1 December which referred to a Term Sheet for rail and port access between BC Iron and Fortescue Metals Group ("FMG").

The article referred to a more formal agreement to be executed. BC Iron would like to make it clear that the Term Sheet with FMG in relation to rail & port access contains all material commercial and operational terms, is legally binding and in full force and effect and already being operated to by both BC Iron and FMG.

The final agreement will merely be more prescriptive in operational and procedural issues. - ENDS - To view the full announcement please click here: http://www.stocknessmonster.com/news-item?S=BCI&E=ASX&N=519294
For further information please contact: Mike Young/ Morgan Ball Managing Director / Chief Financial Officer BC Iron Limited T: +618 6311 3400 James Harris Professional Public Relations T: +618 9388 0944 E:
About BC Iron Limited BC Iron Limited (ASX: BCI) is an emerging iron ore producer focused on Western Australias world-class Pilbara region.

The Companys core asset is the Nullagine Iron Ore Project, an extensive tenement portfolio which is strategically located 140km north of Newman proximal to Fortescue Metals Chichester operation. The Company has entered into a 50/50 Joint Venture with FMG who will provide port and rail infrastructure access for the life of the mining operation. BC Irons competitive advantage is that the Nullagine DSO comprises an outcropping, low contaminant "first grade" sinter feed that is very attractive to steel producers.
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