Black Iron Progresses Offtake Discussions and Updates PEA - Seite 2

Description	Units	2017 PEA		Amended PEA
IRR  (pre-tax)   (after-tax)	(%)	43% 36%		41% 34%
NPV @ 10% discount (pre-tax)   (after-tax)	($M)	2,115 1,662		1,852 1,442
Payback period	(Years)	2.6		2.9
Initial Capital Cost	($M)	436		452
Operating Cost (mine, process, rail, load boat)	($/t conc.)	31.46		32.63
Realized selling price FOB   Based on CFR China price for 62% Fe Month to date actual $87/T for 62% Fe	($/t conc.)	97 62		97 62
Subset of Resources within open pit	(Mt)	507		411
Mine Life	(Years)	20		17
Strip Ratio		0.6		1.0

The amended NI 43-101 technical report (the “Amended Report”) retains the same title and effective date: “Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit" effective November 21, 2017.  The Amended Report replaces the 2017 PEA as the current NI 43-101 technical report for the Project. With exception of the updated mine plan and the associated operating, capital and project economics, the remainder of the Amended Report remains unchanged from the 2017 PEA, including sections relating to the mineral resource estimate, processing, infrastructure and environmental management plans.  The Amended Report can be found on www.sedar.com under the Company’s profile.