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Mar 10, 2023 •191 likes •431 views

NIO Presentation Europes next iron ore producer 1 Contents 1. Project Overview 2. Location & Infrastructure 3. Resources 4. Process and Product 5. Investment Case 2 Project Overview The Ludvika Mines (the Project) is

  1. NIO Presentation Europe’s next iron ore producer 1

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

  3. Project Overview  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 3

  4. Project Overview (continued)  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) 4

  5. Bergslagen – A Historic Mining Region for 800+ years Iron Ore Base Metal 200 km 5

  6. Location & Infrastructure The Area (270km) 6

  7. Large Phase II Expansion Potential Magnetic Field Map of Väsman ( Phase II) 75000 65000 MagTot (nt) 55000 Targeting mineral resources in excess of 300mt (Fe 35%-45%) N S 7

  8. Resources Håksberg (Phase 3) ** Indicated 25 Mt @ 36%Fe 3 Inferred 12 Mt @ 36%Fe Väsman (Phase 2) ** Indicated 7 Mt @ 39%Fe Inferred 86 Mt @ 38%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 8 ** Technical Assessment (MRE) (JORC 2012) – Geovista - 2012

  9. Blötberget Ore Bodies and Infrastructure FREDMUNDSBERGET GULDKANNAN SANDELL KALVGRUVAN HUGGET

  10. 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) 10

  11. Overview of Ludvika Mines, Three Phase Development • The Project is an integrated 3 phase underground operation that exploits existing workings • Phase 1 = Blötberget • Phase 2 = Väsman • Phase 3 = Håksberg 11

  12. Phase I - Materials Handling Flowsheet Schematic of the materials flow through from mine to rail Note: See Slide 14 - Flowsheet 12

  13. Process Plant Schematics 13

  14. Phase I Process Flowsheet 14 ROM feed to crushers < 1000mm Primary < 250mm Products – Pellet fines Pellet Feed Crushing Secondary < 70mm < 0.1mm Crushing Re- Phosphate < 0.5mm HPGR LIMS LIMS Grinding Flotation (d 80 ) Re- Phosphate Spirals Spirals Grinding Flotation Tailings Tailings Tailings Tailings Tailings Tailings

  15. Process Layout SGA Pilot scale Process flowsheet and mass balance estimates 15

  16. Product Assays Product Cleaner Cleaner Pilot Plant Production Concentrates Type Magnetite Hematite (LIMS) Conc (Flot.) Conc Blend These concentrates were generated during Product Product Pile Pile Mag 63% the pilot scale tests conducted recently at Pilot Test SGA SGA Hem 37% SGA in Germany. Fe, % 70.5 66.5 69.0 FeO, % 29.2 1.11 18.8 SiO2, % 1.31 3.00 1.93 Slide 18 shows the year by year production Al2O3, % 0.24 0.60 0.37 values and the tonnage of the blend at 1.7:1 CaO, % 0.21 0.40 0.28 MgO, % 0.21 0.20 0.21 of Mag:Hem concentrate and the surpluses P, % 0.039 0.096 0.060 for each of the concentrates year-by-year 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 16

  17. Product Size Specification Pilot Plant Production Concentrates Product Cleaner Cleaner These concentrates were generated during Type Magnetite Hematite the pilot scale tests conducted recently at (LIMS) Conc (Flot.) Conc Blend SGA in Germany. Product Product Pile 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 17

  18. Skeppmora facility Process Plant and Train Loading Terminal Future terminal rail loop Existing national rail network 19

  19. Location & Infrastructure - Rail to Oxelösund Port • 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 20

  20. Location & Infrastructure - Oxelösund Port • 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) 21

  21. Investment Case: Key Considerations  Long-term vision : – Nordic represents an attractive option to take advantage when higher iron ore 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

  22. 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

  23. Appendix 1: Quality Management and Board Management Lennart Eliasson Hans Thorshag Paul Marsden CFO & Deputy Technical Director Managing Director Managing Director Board of directors  Broad mix of skills, knowledge and experience  Three directors incentivised through large stock ownership 24

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