NIO Presentation Europes next iron ore producer 1 Contents 1. - - PowerPoint PPT Presentation

NIO Presentation

Europe’s next iron ore producer

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Contents

1. Project Overview 2. Location & Infrastructure 3. Resources 4. Process and Product 5. Investment Case

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Project Overview

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• The Ludvika Mines (the “Project”) is a brownfield iron ore project in central Sweden,

wholly owned by Nordic Iron Ore AB.

• Project highlights:

 3 phase project producing sought after high quality product (66-71% Fe pellet fines)

• Phase 1 = 1.4 mtpa
• Phase 2 = 1.6 mtpa
• Phase 3 = 1.2 mtpa

 All major permits in place for Phase 1  Low capex intensity; Phase 1 capex = US$180m – ITR April 2015

• No new infrastructure required (existing rail and port)
• Exploits existing workings from previous operation worth c.US$130m

 DFS

• Interim Technical Report (ITR) completed
• Phase 1 DFS – requires further $4-5m funding

• Nordic Iron Ore AB

 Private company backed by private Swedish investors and Swedish Sovereign fund  New investor – Garden Growth Industries - October 2015  Successful rights issue for nearly SEK19M – December 2015  Shareholders have invested c.$18m to date  Experienced management & board (see Appendix 1)

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Project Overview (continued)

Bergslagen – A Historic Mining Region for 800+ years

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Iron Ore Base Metal

200 km

Location & Infrastructure

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The Area

(270km)

Large Phase II Expansion Potential

Magnetic Field Map of Väsman (Phase II)

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MagTot (nt) 75000 65000 55000 Targeting mineral resources in excess of 300mt (Fe 35%-45%) N S

Resources

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Väsman (Phase 2) ** Indicated 7 Mt @ 39%Fe Inferred 86 Mt @ 38%Fe Håksberg (Phase 3) ** Indicated 25 Mt @ 36%Fe Inferred 12 Mt @ 36%Fe Blötberget (Phase 1) * Measured 42.5 Mt @ 41.9%Fe Indicated 5.3 Mt @ 38.2%Fe Inferred 5.4 Mt @ 33.5%Fe

* Interim Technical Report (ITR) – DMT -April 2015 – Cut-off grade 25%Fe ** Technical Assessment (MRE) (JORC 2012) – Geovista - 2012

Blötberget Ore Bodies and Infrastructure

HUGGET KALVGRUVAN SANDELL GULDKANNAN FREDMUNDSBERGET

Ludvika Mines – Blötberget – Phase 1

Benefiting from historic archives and existing site Infrastructure

• Total worth of existing installations estimated at : ~USD132m

 Underground (shafts,ramps & adits) USD 97m  Surface (channels/tunnels) USD15m  Drill cores & archive USD ~20m (45 000 meters)

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Overview of Ludvika Mines, Three Phase Development

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• The Project is an

integrated 3 phase underground

• peration that exploits

existing workings

• Phase 1 = Blötberget
• Phase 2 = Väsman
• Phase 3 = Håksberg

Phase I - Materials Handling Flowsheet

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Schematic of the materials flow through from mine to rail

Note: See Slide 14 - Flowsheet

Process Plant Schematics

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Primary Crushing < 250mm Secondary Crushing < 70mm HPGR < 0.5mm

(d80)

LIMS Spirals Re- Grinding Re- Grinding LIMS Spirals Phosphate Flotation Phosphate Flotation Tailings Tailings Tailings Pellet Feed < 0.1mm

Phase I Process Flowsheet

Products – Pellet fines ROM feed to crushers < 1000mm Tailings Tailings Tailings

Process Layout

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SGA Pilot scale Process flowsheet and mass balance estimates

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Cleaner Magnetite (LIMS) Conc Cleaner Hematite (Flot.) Conc Blend Product Pile Product Pile Mag 63% Pilot Test SGA SGA Hem 37% Fe, % 70.5 66.5 69.0 FeO, % 29.2 1.11 18.8 SiO2, % 1.31 3.00 1.93 Al2O3, % 0.24 0.60 0.37 CaO, % 0.21 0.40 0.28 MgO, % 0.21 0.20 0.21 P, % 0.039 0.096 0.060 S, % 0.002 0.008 0.004 Na2O, % 0.016 0.091 0.044 K2O, % 0.020 0.020 0.020 Mn, % 0.058 0.015 0.042 TiO2, % 0.083 0.31 0.167 V, % 0.054 0.0105 0.038 LOI, %

• 3.08

0.05

• 1.93

Cr, % 0.003 0.0137 0.007 Co, % 0.0018 <0.0005 0.001 Ni, % 0.0040 0.0024 0.003 Cu, % 0.0006 0.0008 0.0007 Zn, % 0.0060 0.0019 0.0045 Pb, % <0.0005 0.0018 0.0010 As, % <0.0005 0.0017 0.0009 Cd, % <0.0005 <0.0005 <0.0005 Tl, % <0.001 <0.001 <0.001 SrO, % 0.003 0.0007 0.0022 BaO, % 0.015 0.0008 0.010 Product Type

These concentrates were generated during the pilot scale tests conducted recently at SGA in Germany. Slide 18 shows the year by year production values and the tonnage of the blend at 1.7:1

• f Mag:Hem concentrate and the surpluses

for each of the concentrates year-by-year

Product Assays

Pilot Plant Production Concentrates

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Cleaner Magnetite (LIMS) Conc Cleaner Hematite (Flot.) Conc Blend Product Pile Product Pile Mag 63% Pilot Test SGA SGA Hem 37% d80, mm 0.141 0.116 0.132 d50, mm 0.057 0.060 0.058 <0.1mm, % 70 74 71 <0.04mm, % 40 35 38

• Spec. surface,

Blaine 965 760 889

• Spec. weight,

g/cc 5.10 5.06 5.09 Product Type

Product Size Specification

Pilot Plant Production Concentrates

These concentrates were generated during the pilot scale tests conducted recently at SGA in Germany.

Skeppmora facility

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Process Plant and Train Loading Terminal Existing national rail network Future terminal rail loop

Location & Infrastructure - Rail to Oxelösund Port

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• Product will be

transported to port (c.270km) by existing railway; multiple routes possible

• Swedish government

has allocated c.$65m to upgrade the line

• Nordic will construct a

rail load-out facility to connect to the rail network

Location & Infrastructure - Oxelösund Port

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• Oxelösunds is the

preferred export point for Ludvika production

• Existing high capacity dry

bulk handling port

• Total storage available to

NIO at port planned up to 300,000 tonnes (equal up to 3 large ships)

Investment Case: Key Considerations

• Long-term vision:

– Nordic represents an attractive option to take advantage when higher iron

• re prices return

– Perfectly positioned to become long term provider of a premium product – Very low execution risk allows Nordic to capitalize on recovery in iron ore prices  No major infrastructure required = low capital intensity  All necessary permits in place  Desirable high-grade product; - Some buyers expected to secure long term supply of quality products as available supply tightens during the next global recovery  Excellent jurisdiction, with strong national and regional governmental support as well as high rating in the EY reports of good location for mining projects − Scalability: Phase 1 unlocks very attractive economics of Phases 2 & 3

Investment Case: Immediate Goals

• Long-term vision:

– Now that the process flowsheet has been refined during pilot plant trials at SGA in Germany, a high product quality and a high recovery of the iron to the products provides an opportunity to secure customer support during the final stages of the feasibility study – Seek strategic investors as partners/off-takers to provide a long and sustainable market for the NIO products – Optimise the business plan during the final stages of the FS to secure an attractive business proposition – Immediate goal: raise around $5m to complete DFS and prepare for financing the main development in 2017

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• Broad mix of skills, knowledge and

experience

• Three directors incentivised through

large stock ownership

Lennart Eliasson

CFO & Deputy Managing Director

Hans Thorshag

Technical Director

Paul Marsden

Managing Director

Appendix 1: Quality Management and Board

Management Board of directors