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Merchant Pig Iron for EAF Steel Mills and Foundries

North Americas first major merchant supplier

November 7, 2015

What we know Will produce pig iron in the bottom half of the global cost curve on a

delivered basis

Will produce steel grade and/or foundry grade, including nodular

Will be based in Ohio or Quebec - will deliver significant cost savings in shipping to mills and foundries north of Ohio River

Before formally approaching capital markets or strategic partners, up to 60% of capital cost is in place

2

Steel Grade % Nodular Triple5 %

C 3.5-4.5 Si 1.5 Mn 1.5 max P 0.12 S 0.05

C 3.5-4.5 Si 0.5 Mn 0.05 P 0.005 S 0.002 max

Next decisions Configuration to start with

850ktpa (requires reduction furnace)

425ktpa (no natural gas required)

425ktpa with scalability to 850ktpa

Smaller plant could satisfy nodular market in North America and Europe Western Europe is less than 7 days by water from Quebec

Focus on Steel Mills or Foundries

Quebec or Ohio for location of first plant

3

Final 2 Locations 18 Port Communities Studied in Detail

QUEBEC, CANADA

Half the cost for electricity

Close shipping distance to Great Lakes, eastern USA and Europe

Year round water access

Access to low cost iron ore nearby

Corporate income tax rate 15%

Strong Government partner

OHIO, USA

Half the cost for natural gas

Trucking distance to mills and foundries

9 months water access

Access to low cost coal nearby

Corporate income tax rate 35%

Strong Corporate partner

4

5

Commercial Melt Tests Validating Operating Cost Model

Successful multi day smelting campaign completed using submerged arc furnace (SAF) Oct 2013

Witnessed by HATCH Engineering as part of an independent technical review for Feasibility work Witnessed by major ferrous metal traders and potential off-take partners Furnaces operated by extremely experiences metallurgists on staff Low cost thermal coal used as a reductant in the manufacturing process of high value pig iron

Demonstration Facility in Forks, Pennsylvania

Photos taken during melt tests conducted in Easton, PA

Own Test Facility

Flow Sheet Combines Proven Technologies

6

Hot DRI is transferred to an electric submerged arc furnace (SAF)

Two layers of material are created in the SAF, iron and slag

Iron is tapped form the furnace and cast into pigs for sale as MPI

Iron fines Coal

Composite Briquetting Pre-reduction in RHF

CBQ with Goose Bay Fe

Pig iron smelting

Raw material inputs are processed, mixed and briquetted to form CBQ

CBQ strength is derived from pressure and binder

CBQ will be transferred by conveyor to a rotary hearth furnace (RHF)

Heat and reducing gas in the RHF causes pre-reduction of iron ore

Binder

Target Market North of the Ohio River 2 potential locations Quebec, Canada and Ohio, USA (Blue Dots = EAFs)

7

Ohio River Mississippi River

Niagara Falls

Ohio River

Focus on the U.S. steel industry north of the Ohio River

Supply & Demand of MPI

EAF Consumption of merchant pig iron

N.A. Pig Iron imports by Destination N.A. Pig Iron Imports by Country of Origin

8

32.2%

46.7%

14.8%

6.3%

Brazil

Russia

Ukraine

Other

0

2

4

6

8

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

mtp

a

Source: CRU & IIMA

As of November 2014 imports were 4.3mt according to data from the IIMA and CRU. Demand has rebounded since 2009 and is moving back towards 5.0mtpa

Captive Iron Ore Resource Eastern Canada

9

At Surface Labrador Ironsands Target Cost

Logistical Competitive Advantages

10

Transportation Cost MPI to USA ($/tonne) Raw Material Consumables

Iron ore concentrate 1.6mpta

Reductant 650ktpa

Lime 150ktpa

Binder c. 60ktpa

Outputs

Merchant pig iron 900-1,000ktpa

Slag 235ktpa

A plant based in Ohio or Quebec will have a significant cost advantage over imported material. In particular, it will avoid the significant costs of material movement from New Orleans to the Midwest

Brazil Russia Ohio Quebec

Freight to Port

$35 $22 $0 0

Port to NOLA

$15 $23 NA NA

To Midwest

$25 $25 $10 $20

TOTAL $75 $70 $10 $20

Positive Demand Factors for MPI

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Recent EAF Projects o Growth in global EAF steel production (4.8% CAGR for 2013-2015) especially in flat rolled steel and special grade steel (both require MPI) based on CRU estimates

o Global scrap supplies are deteriorating in quality accumulating hard to remove impurities with each recycling period. MPI needed to dilute these impurities

o New Russian, Asian & Middle Eastern EAFs to draw Russian and Ukrainian MPI from North American market

Global EAF Steel Production

Big River Steel may increase U.S. AIU demand by 400-500ktpa

The Future US$300 million Pig Iron Plant

BFS Fulfilled by May 2016 Permitting initiated December 2015 Secure Capital, raw material supply and off-take 1H 2016

Labrador Continue to advance the mineral sands of Labrador smaller operating foot print of 10 mpta

of sands Focus on garnets and feldspars Work with community on port infrastructure Revisit an iron making plant after power supply has been stabilized and certainty on pricing Forks, PA Commercialize furnaces e-scrap and other products that can be smelted Newfoundland and Labrador Target projects that have a product to be smelted, as well as early stage opportunities (with

a reasonable amount of drilling and definition0 Partner with opportunities that may be able to use our tools GeoProbes for drilling in

unconsolidated materials; magnetometer/gradiometer and XRF Gun

12

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