Labrador Iron Mines Holdings Ltd. · OTC:LBRMF

Labrador Iron Mines — Investor Presentation (August 2013)

40 slides from Labrador Iron Mines's investor presentation, August 2013

  1. Slide 1: Canada's newest iron ore producer

    Canada’s newest LABRADOR IRON MINES iron ore producer August 2013 Investor Presentation

  2. Slide 2: Forward Looking Information

    Forward Looking Information Labrador Iron Mines Holdings Limited (“LIM” or the “Company”) has prepared this presentation for information purposes only. The information contained herein was prepared by management on a best efforts basis and is believed to be accurate. It contains forward-looking stat

  3. Slide 3: Canada's Newest Iron Ore Producer

    Canada’s Newest Iron Ore Producer LIM Advantages The Labrador Trough: Canada’s foremost iron ore producing region We’re currently one of only four iron ore producers in Canada We’re the only independently-owned iron ore producer in Canada Our projects are close to extensive & existing infrastructure

  4. Slide 4: We're in Production

    We’re in Production Sales Rail Shipments Aerial view of Silver Yards (foreground) and James mine (background) (dry tonnes) (wet tonnes) sold 1.6 1.6 10 2011 vs. 2012 2011 Increase in 2012 tonnes sold Increase in 0.6 tonnes railed 3 0.39 Increase in shipments sold 2013 Targeting iron ore sales of 1.7

  5. Slide 5: One of Four Producers in the Labrador Trough

    One of Four Producers in the Labrador Trough Producers Mine Ownership 59% Iron Ore Company – Labrador City of Canada – Carol Lake 26% 15% – QCM (Mont Wright) 15% interest in ArcelorMittal + Fire Lake) Mines Canada1 – Wabush Wuhan Iron & Steel 25% interest in Bloom Lake – Bloom Lake (WISCO) Labrador

  6. Slide 6: Mine-to-Port Solution

    Mine-to-Port Solution Mine and Process Rail Port and Sales – James + surrounding deposits – Life-of-mine agreements: – Ore handling facilities with access – LIM wet & dry process plants TSH, QNS&L: LIM spur line to cape-size vessels – Sinter and lump products – Railcar maintenance facility – Sales a

  7. Slide 7: Iron Ore Sales

    Iron Ore Sales New 2-year iron ore sales agreement with the Iron Ore Company of Canada: 100% of LIM’s production sold to IOC for next two years 2013 and 2014 YTD 20131 In 2011 & 2012 Shipments totalling Shipments totalling LIM iron ore re-sold in Chinese spot market ~700 million tonnes ~2 million to

  8. Slide 8: Off-take Financing with RB Metalloyd

    Off-take Financing with RB Metalloyd US$35 million off-take financing LIM Strategic Advantage leading  Provides important working international commodity capital for 2013 operating trading house season Pre-payment to be credited  Brings experience and expertise against future committed sales of in

  9. Slide 9: LIM's Shipping Advantage

    LIM’s Shipping Advantage Deep sea port  on Atlantic seaboard » Access to markets: Europe, Asia and North America Shipping advantage to  markets in North America and Europe » Shorter distance relative to other primary iron ore regions Current access to key Asian markets  Western Europe (Rotterdam)

  10. Slide 10: LIM's Portfolio

    LIM’s Portfolio Eclipse (northwest – not shown on map) DSO North Zone Deposits (Stage 5) Trough 1 59.5 mt 57% Fe NI 43-101 Resource1 Wollett Central Zone (Stages 1, 2, 3) North Central (Stage 3) From 6 DSO deposits Fleming 9 Lance Ridge South Central (Stage 2) (James, Redmond, Denault, Knob Lake, Ho

  11. Slide 11: Sustainable production + flexible growth

    Sustainable production + flexible growth 6 Mining in Stages Up to 5.0 million tonnes (mt) Current Production 5 (Stage 1) Flexible Production Growth 4 Stage 1: Current Production Profile ~2.0 mtpa 3 Growth Objective 2 ~2.0 Up to 5.0 mtpa 1 Target to more than 0 double current Current Future productio

  12. Slide 12: With Access to Extensive Infrastructure

    With Access to Extensive Infrastructure Direct rail link to port LIM process plants (wet and dry) Roads, airstrip, town Hydro power Direct rail access to Port LIM Wet Process Plant LIM Dry Process Stream Town of Schefferville with airstrip Road access Access to power Labrador Iron Mines – TSX: LIM 1

  13. Slide 13: LIM's Operations

    Canada’s newest iron ore producer LIM’s Operations

  14. Slide 14: James Mine

    James Mine  2013: LIM’s third season of operations » Waste stripping program in March; full-scale operations in April  Q1 Mining impacted by slower than anticipated contractor mobilization and challenging weather conditions, impacting train loading, railing and shipping volumes  Planned ore minin

  15. Slide 15: Silver Yards Processing Facility

    Silver Yards Processing Facility Wet and dry processing plants » Dry plant: averaged 5,000 wet tpd in Q1 » Wet plant: construction + commissioning 7,250 wet tpd; substantially completed in June 50% recovery » WHIMS (wet high intensity magnetic separator) Target 10,000 wet tpd; commissioning in July

  16. Slide 16: 2013 Mine Plan and Forecast

    2013 Mine Plan and Forecast  Mining at James expected to be completed in 2013 1,450,000 wmt  Redmond Mine commenced in July (~12 km from James) 450,000 wmt  Ferriman stockpiles bulk sample (5 – 7 km from James) 120,000 wmt  Low strip ratio (Redmond); no waste removal (Ferriman) to offset cost of

  17. Slide 17: Stage 2 Houston Flagship Deposit

    Stage 2 Houston Flagship Deposit When in full production, targeting ~2.5 million tonnes annually Potential year-round operation Goal: establish long-term relationships with steelmakers NI 43-101 Resource: Stage 2: Houston Deposits 31.3 million tonnes M+I @ 57.5% Fe • 15 km SE of James mine + 3.2 mil

  18. Slide 18: Stage 2 Houston Flagship Deposit

    Stage 2 Houston Flagship Deposit Proposed Houston Development  Simple Development Plan  Surface and mining leases in place Phase 1 Development1 Phase 2 (Year 3) $57 million (Year 1 – $37M and Year 2 – $20M)  Addition of Houston  Access road (10km) + bridge (permits received) wet process plant 

  19. Slide 19: Stage 2 Houston Flagship Deposit

    Stage 2 Houston Flagship Deposit Current Focus  Advancing the planning, engineering and design in 2013  Receipt of remaining permits in Fall  Potential strategic partnerships, credit facilities, and/or off-take agreements Upside Nearby Malcolm Deposit Houston (Quebec) NW extension Deposits 9.2 mt

  20. Slide 20: Strategic Relationship Established with TSMC

    Strategic Relationship Established with TSMC Framework arrangement with Tata Steel Minerals Canada, subsidiary of Tata Steel Limited Multi-part cooperation agreements in areas of: Logistics Cost synergies; key logistics + infrastructure issues Property Rebuilding of rail line: Timmins plant to Silve

  21. Slide 21: Stage 3 Howse Deposit

    Stage 3 Howse Deposit Joint venture with TSMC on LIM’s Howse deposit; $30 million payment to LIM for 51% interest1 TSMC option to increase up to 70% for additional $25 million Significant cost savings using TSMC’s Timmins plant (LIM plant relocation not required) Potential to develop Howse several y

  22. Slide 22: Rail Operations

    Rail Operations Life-of-Mine Rail Agreements in Place GWRR leases locomotives and (Genesee & Wyoming) operates LIM’s 6 km spur line TSH Railway to Emeril Junction in Labrador: ~200 km QNS&L to Port of Sept-Îles: ~360 km Current / » Using longer 164-car train sets » Use of iron ore (rotary dumper com

  23. Slide 23: Enhancing Long-term Port Access

    Enhancing Long-term Port Access Progress: Port indicates project on time (March ‘14) + New multi-user berth, Port of Sept-Îles: 5 mt capacity reserved on budget ($220M) LIM would benefit from first-mover advantage as Dredging completed only current producer summer 2012 Major civil/structural Estimat

  24. Slide 24: Resources continue to expand: 59.5 million tonnes

    Successful Exploration in 2012 : 14,000m Drilled Resources continue to expand: 59.5 million tonnes ↑33% YOY Stage 2 Houston & Malcolm significant increase: doubled to 40.6 million tonnes Houston 31.3 mt @ 57.5% Fe (↑37%); Malcolm 9.2 mt @ 57.6% Fe (more than triple) Initial resource for stockpiles t

  25. Slide 25: Elizabeth Taconite Project First Resource

    Elizabeth Taconite Project First Resource LIM’s exploration efforts have identified large iron orebody  620 million tonnes inferred @ 31.8% Fe1  Exploration potential of 350 – 600 million tonnes @ 31.9% Fe1  Alongside existing infrastructure (roads, rail bed and power line corridor);  4 km from

  26. Slide 26: Agreements with First Nations

    Agreements with First Nations Impact and Benefit Agreements Social License to Operate July 2008 Innu Nation of Labrador (left) Naskapi Nation of Local employment September 2010 Kawawachikamach (2nd from left) Training programs June 2011 Innu Matimekush-Lac John (2nd from right) Business opportunitie

  27. Slide 27: Strengthening Iron Ore Prices

    Strengthening Iron Ore Prices $170 Aug 12 ‘13 $160 Fe price: $150 US$140/ tonne $140 $130 $120 Iron Ore Spot Price 62% Fe CFR China1 $110 (US$/tonne) More favourable iron $100 ore market $90 conditions currently $80 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Stronger iron ore prices fav

  28. Slide 28: Guidance + Outlook

    Guidance + Outlook 2013E Sales: 1.7 million tonnes in 10 cape-size shipments Operations: Mining + rail volumes currently achieving plan objectives; wet plant product recoveries improving 2013 Mine Plan: James Mine, Redmond Mine and Ferriman stockpiles Reduction in costs: expected to be substantially

  29. Slide 29: Appendix

    Canada’s newest iron ore producer Appendix

  30. Slide 30: LIM Capital Structure

    LIM Capital Structure Simple Capital Structure with No Debt1,2 Share Structure3 Analyst Coverage TSX Symbol LIM / LIM.WT Gary Lampard Common Share Price $0.53 Jackie Przybylowski Share Price (52 week range) $0.42 – $2.25 Colin Healey Issued and Outstanding 126.2 million Macquarie Capital Daniel Gree

  31. Slide 31: LIM Advantage: We're in the Labrador Trough

    LIM Advantage: We're in the Labrador Trough Labrador Trough: Most Prolific Iron Ore Region in Canada  Canada’s foremost iron ore producing region » 99% of Canada’s current production Labrador Iron Mines » In continuous production since 1954 » Existing rail and port infrastructure » Politically stab

  32. Slide 32: Track record + experience

    Track record + experience James Mine Fleet Proven Track Proven Management: Proven Experience: Record: Mining + technical Two operating seasons Rapid road to expertise successfully completed production  Strengthened key 2007 – 2011 Baffinland Iron Mines stakeholder relationships Dec 2007: Closed IPO

  33. Slide 33: LIM Executive Team

    LIM Executive Team John Kearney Mining executive with over 40 years of industry experience; Chairman and CEO of numerous mining Chairman & CEO companies Rod Cooper Over 30 years of experience in resource industry; previously held positions as VP and Senior Analyst, President & COO Mining, with Dunde

  34. Slide 34: LIM Board of Directors

    LIM Board of Directors John Kearney Mining executive with over 40 years of industry experience; Chairman & CEO Chairman and CEO of numerous mining companies. Bill Hooley Professional mining engineer with 40 years experience. Vice Chairman CEO of Anglesey Mining plc and former President & COO of LIM.

  35. Slide 35: LIM Q1 June 30 Financial Results

    LIM Q1 June 30 Financial Results ($ millions, except per share data) Q1 June 30 Revenue $ 17.9 Net loss $ (28.5) per share (0.23) Depreciation and depletion (5.6) Operating loss (18.2) At June 30, 2013 Cash and cash equivalents (unrestricted) $ 27.3 Accounts receivable and prepaids 26.2 Inventory 11

  36. Slide 36: LIM Q1 Operating Results

    LIM Q1 Operating Results Quarter Ended June 30 June 30, 2013 June 30, 2012 (all tonnes are dry metric tonnes) Tonnes Grade (% Fe) Tonnes Grade (% Fe) Total Ore Mined 345,100 56.7 668,200 62.6 Waste Mined 1,033,700 — 1,369,400 — Ore Processed and Screened 545,900 56.5 127,500 55.6 Lump Ore Produced 1

  37. Slide 37: LIM Resources

    LIM Resources1,2 (Refer to Technical Reports on SEDAR) Stage 1 and 2 Deposits Stage 3 Deposits- North Central Stage 1A and 1B Deposits Indicated (000t) Stage 3 (000t) NI 43-101 Compliant Historical (Non NI 43-101 Compliant)2 James (Central) 3,500 Howse3 25,700 Redmond (Central) 2,900 Barney 5,700 De

  38. Slide 38: Product Mix & Specifications

    Product Mix & Specifications Sinter Fines: Lump: – Size fraction -6 mm – Size fraction -32 mm, +6 mm Product Mix Product Mix Element Content % Element Content % Fe 63 – 65% Previous ~ 40% Previous ~ 10% Fe 61 – 63% Current Current SiO2 4 – 6% >80% SiO2 5 – 8% Plan <20% Plan  ~62% Fe saleable produc

  39. Slide 39: LIM Process Flowsheet

    LIM Process Flowsheet Labrador Iron Mines – TSX: LIM 39

  40. Slide 40: Investor Relations Contact

    LABRADOR Canada’s IRON MINES newest iron ore producer John F. Kearney Chairman and CEO Rod Cooper President and COO Investor Relations Contact Keren Yun VP, Investor Relations & Communications Main Office 220 Bay Street, Suite 700 Toronto, ON, M5J 2W4 Tel: (647) 728-4125 Fax: (416) 368-5344 www.labr

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