April 2, 2009 1

GEORANGEÄr Järn Guld för Pajala ?

2 april 2009Planned Iron Ore Mining in

the Pajala/Kolari Region

Karl-Axel WaplanMD of European Operations

April 2, 2009 2

Key events

2

Infrastructure

• 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

April 2, 2009 3

MoU with GIIC

Contractual Year Annual Basic Quantity (in WMT)

2011 250,0002012 1,500,0002013 2,000,0002014 onwards 3,000,000

April 2, 2009 4

• 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

Investment Highlights

4

Investment Highlights

April 2, 2009 5

●KaunisvaaraKaunisvaara

April 2, 2009 6

Tapuli: Fast Track to Cash Flow• Open-pittable resource

• Existing infrastructure can take Tapuli’s full production with minor upgrades

• Preliminary studies suggest lowest CapEx, highest IRR and quickest payback

• Synergies with nearby Stora Sahavaara and Pellivuoma projects

Fast Track Tapuli

April 2, 2009 7

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 8

Gråbergsupplag

Sandmagasin

1:32 000 (A3)

Temporär sedimenteringsbassäng och översilningsyta

ProcessvattenbassängKaunisvaaraanrikningsverk

Klarningsmagasin

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

April 2, 2009 9

Artists impression of the mine during operation

April 2, 2009 10

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 11

Anrikningsprocess• Planerad genomsnittlig produktion

År 1: 3 Mton malm, motsvarande ca 1 Mton SligÅr 2-10: 10 Mton malm, motsvarande ca 3 Mton SligAnsökan avser 20 Mton per år

• Process Krossning, malning, magnetseparering, avvattning och möjligen torkningInget flotationssteg

Storage ore

Storage crushedore

Thickeners

Concentratestorage

DewateringMagnetic separatorsGrinding

April 2, 2009 12

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 13

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 14

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 15

Transloading station alternatives

April 2, 2009 16

Tentative production schedule

01000200030004000500060007000800020

11

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

production year

kt/y

ear

Hannukainen

Sahavaara

Pellivuoma

Tapuli

April 2, 2009 1717

KemiLuleå

Kalix

Narvik

Rail & Port Options

KolariPajala

Existing rail link

April 2, 2009 18

Logistics – Key issues

18

Infrastructure

• 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 19

Transportation from Kaunisvaara/Tapulito Finnish Rail

19

Infrastructure

• 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 20

Production Timeline Estimate

1-2 Mt/y 3 Mt/y 8-10 Mt/yProduction:

2010

2012

2013 / 2014

• Tapuli – Begin construction

• Tapuli – ramp up production to 1.5Mt Concentrate

• Pellivuoma – begin production of Concentrate

• Tapuli at full production 1.5 Mt Concentrate

• 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

2011

• Tapuli – Begin production of Concentrate

20

Northland’s Future Growth

April 2, 2009 21

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 22

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