GEORANGE Är Järn Guld för Pajala 2

GEORANGE Är Järn Guld för Pajala ? 2 april 2009 Planned Iron Ore Mining in the Pajala/Kolari Region Karl-Axel Waplan MD of European Operations April 2, 2009 1

Infrastructure Key events • MOU signed with operator as well as port authorities to develop Kemi port for the initial tonnage • MOU signed with GIIC on long term shipment of concentrate from the Pajala/Kolari area • Consortium organized to support the development of the Rail transportation to port; NRI, Bombardier and VR • EPA Filed April 1, 2009 • Application to the Border River Commission to be filed May/April 2, 2009 2

Mo. U with GIIC Contractual Year 2011 2012 2013 2014 onwards April 2, 2009 Annual Basic Quantity (in WMT) 250, 000 1, 500, 000 2, 000, 000 3

Investment Highlights • Focus on Tapuli, Hannukainen, Stora Sahavaara and Pellivuoma • Management priority is developing early cash flow – start up of Tapuli mine with Kaunisvaara mill • Existing infrastructure support early production of up to 2 -3 Mt pa • Resource base growing • Staged growth of production up to 8 -10 Mt pa of iron ore products April 2, 2009 4

●Kaunisvaara April 2, 2009 5

Fast Track Tapuli: Fast Track to Cash Flow • Open-pittable resource • Existing infrastructure can take Tapuli’s full production with minor upgrades • Preliminary studies suggest lowest Cap. Ex, highest IRR and quickest payback • Synergies with nearby Stora Sahavaara and Pellivuoma projects April 2, 2009 6

Tapuli mine • • • Open cast mine Minimum operation time 10 years Verified resource 65 Mton (NI 43 -101) Additional reserves ca 40 Mton Blasting daytime, ca 1 -4 times/week April 2, 2009 7

Planned industry layout: • Mine • Mill • Service facilities • Office • Waste rock deposit • Tailings storage facility • Access & transportation roads April 2, 2009 8

Artists impression of the mine during operation April 2, 2009 9

Waste rock • A total of 250 Mton will be mined • May be used for construction purposes • Area ca 330 ha • Height ca 75 m April 2, 2009 10

Anrikningsprocess • Planerad genomsnittlig produktion År 1: 3 Mton malm, motsvarande ca 1 Mton Slig År 2 -10: 10 Mton malm, motsvarande ca 3 Mton Slig Ansökan avser 20 Mton per år • Process Krossning, malning, magnetseparering, avvattning och möjligen torkning Inget flotationssteg April 2, 2009 11

Mill tailings storage • Total tonnage c. 70 Mton • Total area c. 340 ha • Final height c. 60 m ca 2 -3 m April 2, 2009 12

Efterbehandling • Byggnader tas bort och vägar återställs. Ledningar kvar i marken. • Gråberg täcks med morän och vegeteras. Sandmagasin vegeteras. Gödningsmedel kan behöva tillföras. • Dagbrottet bildar en sjö April 2, 2009 13

Transport • Initially truck (60 ton net) to Kolari – rail to Kemi • Extension of railroad to Kaunisvaara being investigated • 290 return transports per day (c. 12 per hour) April 2, 2009 14

Transloading station alternatives April 2, 2009 15

April 2, 2009 16

Rail & Port Options Narvik Pajala Kolari Existing rail link Kalix Luleå April 2, 2009 Kemi 17

Infrastructure Logistics – Key issues • Initial transportation Kaunisvaara – Kolari on road • Long term solution Kaunisvaara – Kolari to be railroad • Increase capacity on rail from Kolari region to Tornio up to 10 Mt • Develop Kemi port initially for 3 Mt and up to 10 Mt in case Kemi is the only port going forward • Kemi port dredging to enable access by feasible vessels April 2, 2009 18

Infrastructure Transportation from Kaunisvaara/Tapuli to Finnish Rail • 2011 – 2013 trucking • Rail alternative is studied • Alternative studies on pipeline and conveyor belt in progress • Future solution operational from 2012/13 • Loading station south of Kolari, land available • Rail – Necassary April 2, 2009 19

Northland’s Future Growth Production Timeline Estimate 2013 / 2014 2012 • Tapuli – ramp up production to 1. 5 Mt Concentrate 2011 2010 • Tapuli – Begin production of Concentrate • Pellivuoma – begin production of Concentrate April 2, 2009 • Pellivuoma – ramps up production to 1. 5 Mt of Concentrate • Stora Sahavaara – begin production of 2 Mt of Concentrate • Hannukainen begins production and ramps up to 2 -3 Mt of DR pellet feed • Tapuli – Begin construction Production: • Tapuli at full production 1. 5 Mt Concentrate 1 -2 Mt/y 3 Mt/y 8 -10 Mt/y 20

Summary NRI projects • Staged development to build the assets in Sweden and Finland • Initial cash flow will be the base to increase production and employment • Joint effort necessary - NO “Finnkamp” • The projects will create employment within NRI as well as support structures, services etc • Employment will be created in the whole region – in both countries April 2, 2009 21

Summary Logistics • Rail Kaunisvaara – Tornio with capacity + 8 Mt necessary for development of the projects • Rail from Kaunisvaara to be operational from 2013 • Port development Kemi ready 2011 • Dredging Kemi ready 2011/12 • Ice breaker capacity must be expanded April 2, 2009 22