Iron Exploration
in Canada

The formation outcrops at 1,440 feet (440 m) above sea level, along the crest of Radio Hill, which protrudes approximately 200 feet (60 m) above the surrounding area. Historical resource estimates are calculated to varying depths ranging from 680 feet (210 m) to 200 feet (60 m) above sea level, depending on the pit shell. Historic drilling and geophysics suggest mineralization continues well beyond these open pit constraints. The Radio Hill deposit has been economically enhanced and thickened by folding. The banded iron formation (BIF) strikes east-west and is open down-plunge to the northwest.

Historic resource estimates (non NI 43-101 compliant) were calculated on the Radio Hill portion only using various pit shells and depths:

Historic Estimate (acid-soluble iron)	Strip Ratio	Reference
90 mT @ 27.3%	0.99	FENCO, 1965
158 mT @ 27.8%	1.14	Behre Dolbear, 1961
427 mT @ 27.3%	0.77	Gerson, 1961
326 mT @ 25.7%	0.69	Pesonen, 1960

A feasibility study was conducted by FENCO Ltd. in 1965 with reserve limitations and optimization based on the market for a 1.2 million long tons per annum pellet operation and calculated assuming 14.5% magnetic iron cut off, hence the smaller pit.

The historical estimates and feasibility values mentioned are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, the Company is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term "ore" is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability.