Faq

Q: What are the NML’s principal holdings? A:

NML owns 20% of 25 DSO deposits containing a total of 120 mt of certified and historical resources. In addition, NML controls the Millennium Range, 210 km long taconite belt containing over 9.0 billion tonnes of reserves and resources in just two deposits: KéMag and LabMag. Only 20% of the range has been explored.

Q: What are NML’s plans to explore its gigantic property? A:

In 2011, NML has started to explore several promising anomalies. NML has drilled 3800 meters at Lac Ritchie. NML plans to drill 6500 meters in 2012 in several other properties. Based on our Consultant’s observations, the range can hold other properties to rival KéMag and LabMag.

Q: What will NML do with such huge resources? A:

NML’s corporate vision is to expediently develop the range to add to the shareholders’ value. Once additional resources have been certified, NML will have the opportunity to find another strategic partner to jointly develop another taconite project.

Q: How does NML plan to add to shareholders’ value during the interim period? A:

Our partnership with Tata Steel provides us the opportunity to become a significant player in the iron ore field. First, we are already constructing the DSO Project. This will provide us some cashflow starting in 2013. We are jointly undertaking a feasibility study of the large taconite project. This would be a company builder.

Q: How does partnership with Tata Steel benefit NML? A:

Tata Steel is consumer which needs the ore. Tata Steel plants are located in Europe, which is the natural market for Canadian ore. All production from the DSO project will sold to Tata Steel Europe based on the prevailing world market price. DSO is a starter project. Tata Steel’s real goal is to develop the Taconite Project.

Q: What makes the Taconite Project attractive for investors? A:

The Taconite Project is a multigenerational project because of the size of the resources. The project plans to produce a variety of high quality magnetite concentrates and pellets, which Tata Steel needs for its European operations. Most importantly, it will potentially be the lowest cost pellet producer in North America.

Q: Is the planned slurry pipeline feasible? Is cold weather a risk for pumping water during the winter? A:

Iron ore slurry pipeline is a proven mode to transport slurry. This is being successfully undertaken since the 1960s. There are many examples of long slurry pipeline operating continuously for over 30 years in Brazil, India and Tasmania. Operating in winter is an engineering issue. There are examples of pipelines operating in the northern climates in countries, such as Russia, USA, and China. We will engage the world’s best engineers to ensure that the line will be properly designed.

Q: How could NML become the lowest cost pellet producer in North America? A:

Fine grained concentrates are ideal for slurry transportation. Because of this, NML plans to build 600-700 km long slurry pipeline to transport the concentrates to the pelletizing plant. The cost of slurry transportation will be less than $2/ton of product compared to around $20/t for the rail haul. Furthermore it is doubtful if rail capacity will be available to haul 20-25 mtpa of products from the Project.