Rio Tinto Announces 2008 Iron Ore Price Settlement

Rio Tinto Iron Ore subsidiary Hamersley Iron has today reached agreement with China’s Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing 1 April 2008. Under this agreement, the new prices for Hamersley will be: Pilbara Blend Fines/ Yandicoogina Fines US cents 144.66 per dry metric tonne unit Pilbara Blend Lump US cents 201.69 per dry metric tonne unit Sam Walsh, chief executive of Rio Tinto’s Iron Ore Group, said: "Rio Tinto is pleased to reach this agreement today with Baosteel, China’s leading steelmaker.” "The agreement reflects the continuing very strong demand in the market for Hamersley’s products”, he said. Mr Walsh said, "The agreement builds on the valuation premium for Rio Tinto’s Pilbara iron ore businesses, the importance of which is highlighted as we move towards our 320 and 420 million tonne per annum goals from our expected capacity of about 200 million tonnes in 2008.” The new prices will be the benchmark for all Hamersley long term contract sales for 2008-09 and includes its Pilbara Blend product, which was launched in July 2007 and which has been strongly endorsed by the market. US cents per dry metric tonne unit   2007   2008 Pilbara Blend Fines/Yandicoogina Fines 80.42   144.66 Pilbara Blend Lump 102.64   201.69 About Rio Tinto Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. Forward-Looking Statements This announcement includes "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Rio Tinto’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Rio Tinto’s present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Rio Tinto expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Listing Rules of the Australian Securities Exchange) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Rio Tinto’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.