Champion Iron Mines Preliminary Feasibility Study Indicates $3.3 Billion NPV and 30.9% IRR for Consolidated Fire Lake North Project

NPV at 8% discount rate (Pre-tax)

$

3,295 million

IRR (Pre-tax)

30.9

%

Payback Period at 8% discount rate

3.4 years

Pre-production Capital Cost (excluding rail cost)

$

1,394 million

–

Rail capital contribution

$

213 million

Average Operating Cost (loaded at Port of Sept-Îles including rail capital and debt service costs)

$

44.05 per tonneof concentrate

FOB Concentrate Selling Price based on CFR China benchmark price at 62 % FeT adjusted for higher CFLN Fe grade @ $5.00 per percent and $20.00/t freight cost

Year 1-5

$

115.00 per tonne

Year 6-20

$

110.00 per tonne

Mine Life

19.6 years

Concentrate Grade (percent contained Fe)

66

%

Process Recovery (Iron)

82

%

Weight Recovery

39.9

%

Average Annual Concentrate Production

9.3 M Tonnes

In-pit Optimized Measured and Indicated Resources West and East Deposits, CFLN Project (COG of 15 %, 31.5% Total Iron)

691.3 M Tonnes

Engineered Optimized In-Pit Mineable Reserves West and East Deposits, CFLN Project (COG of 15 %, 32.4% Total Iron)

464.6 M Tonnes

Projected Concentrator Plant Start-up and Commissioning

Q1 2016

Projected Start of Nominal Production

Q2 2016