Labrador Iron Mines Holdings Ltd. · OTC:LBRMF

Labrador Iron Mines — Investor Presentation (June 2012)

41 slides from Labrador Iron Mines's investor presentation, June 2012

1. Slide 1: Labrador Iron Mines: Canada's New Iron Ore Producer

   Labrador Iron Mines: Canada’s New Iron Ore Producer Investor Presentation June 2012

2. Slide 2: Forward Looking Information

   Forward Looking Information Labrador Iron Mines Holdings Limited (“LIM”) has prepared this presentation for information purposes only. The information contained herein was prepared by management on a best efforts basis and is believed to be accurate. It contains forward- looking statements about the

3. Slide 3: The LIM Advantage

   The LIM Advantage Canada’s newest and only independently- owned iron ore producer 20 direct shipping (DSO) deposits in prolific Labrador Trough Growing production profile and 20+ year mining life NI 43-101 Resource 46 MM tonnes1 Additional historical resource 121 MM tonnes2 Extensive infrastructure:

4. Slide 4: LIM Fast Track

   LIM Fast Track Advanced from construction to production in only 10 months  Closed IPO Dec 2007  Two year environmental & permitting 2012 process starting in 2008  Signed IBA with four 2011  First full season of production at James First Nations 2010  Sales forecast: 2009 2.0 Mt iron ore 2008 

5. Slide 5: The LIM Strategy

   The LIM Strategy production Favourable short-term growth profile growth Potential to increase production from 2.0 Mt in 2012 to 5.0 Mt iron ore by 2015 cost Efficiencies and improvements Larger equipment, lower unit costs and reduction improve rail efficiency Attractive exploration targets explorati

6. Slide 6: The LIM Portfolio: DSO Deposits (100% owned)

   The LIM Portfolio: 20 DSO Deposits (100% owned) 46.0 Mt Current / near-term operations 57 Fe% NI 43-101 M&I Murdoch James: 8.1 Mt Resource 1 (currently in production) Resources1,2 Eclipse Houston: 22.9 Mt Resource 2 121.0 Mt Kivivic (future production) 57 Fe% Historic Resources3 Howse James Scheffer

7. Slide 7: LIM Today

   Image: James Mine LIM Today Labrador Iron Mines – TSX: LIM

8. Slide 8: James Mine commenced pre-commercial operations in June 2011

   LIM Today James Mine commenced pre-commercial operations in June 2011 James  Mined 1.2 million tonnes (June – December 2011) Open pits » 440,000 tonnes direct rail ore (run-of-mine) @ 65% Fe » 570,000 tonnes ore plant feed » 563,000 tonnes railed to port  Achieved 16,000 tpd (Sept & Oct)  Sold 40

9. Slide 9: James Mine: Year over Year Production Growth

   LIM Today James Mine: Year over Year Production Growth  Production commenced April 2, 2012 Increasing  2012 Forecast: 2.5 to 3.5 Mt ore mined production » Direct Rail (DRO): 500,000 – 750,000 tonnes » Plant feed: 1.8 to 2.0 million tonnes – Product: 1.25 to 1.5 million tonnes (lump, sinter and fin

10. Slide 10: James Mine: Improvement and efficiencies to lower costs

    LIM Today James Mine: Improvement and efficiencies to lower costs  Lower contractor unit costs 2012  Use new fleet and larger equipment for increased efficiency Objectives  Connect to hydro grid in Q3 Longer term objective: reduction in operating costs Current Longer term $60 – $65 $50 – $55 per

11. Slide 11: Silver Yards: Producing quality sinter fines and lump ore

    LIM Today Silver Yards: Producing quality sinter fines and lump ore  572,000 tonnes of ore processed Processing in 2011 » 8,000 tpd reached in Sep/Oct  Successfully completed Phase 1 & 2 expansion in 2011  2012 processing season  Wet processing facility  Ore beneficiated by crushing, re-commenc

12. Slide 12: Houston Flagship Deposit: Targeting Production H2 2013

    LIM Building for a Stronger Tomorrow Houston Flagship Deposit: Targeting Production H2 2013 Large, open 23 million tonnes at 57.2% Fe1 NI 43-101 compliant: resource » More than double the historical resource2 Key Development Project for LIM 10+ year » Doubles current production mine-life » Establish

13. Slide 13: Houston Flagship Deposit: Fast-tracking development

    LIM Building for a Stronger Tomorrow Houston Flagship Deposit: Fast-tracking development  Capital Cost: ~$60 million Simple Development 2012: ~$35 million 2013: ~$25 million Plan » 10 km access road » Mine facilities + bridge » Open pit pre-strip High-quality » 6 km railway siding » In-pit crushing

14. Slide 14: LIM Successful Re-Start in 2012

    LIM Successful Re-Start in 2012 Operational Progress Update April 2 Full-scale operations commences at James Mine  April 4 First train departs Silver Yards (railed ~110,000 tonnes of run-of-mine stockpile in April)  Mid-May Four trains sets at 120 cars each, one month ahead of schedule (~10,000 to

15. Slide 15: LIM 2012 Guidance and 2011 Operating Results

    LIM 2012 Guidance and 2011 Operating Results 2012E 20111 2012 Goals (dmt) Tonnes Tonnes Total Ore Mined 2.5 million – 3.0 million 1,205,600 5x increase 2012 Iron Ore Sales Direct Rail Ore 500,000 – 750,000 438,400 Waste Mined Plant Feed 3.5 million 1.8 million – 2.0 million 2,855,000 572,000 12,000

16. Slide 16: LIM 2012 CAPEX Forecast

    LIM 2012 CAPEX Forecast1  James Mine and Silver Yards C$35 MM – $45 MM » Phase 3, fines recovery, camp expansion and grid power Phase 3 expansion  Houston development C$20 MM – $35 MM » Site access costs – road / siding  Railway C$20 MM – $25 MM » Prepaid tariffs and capital improvements (QNS&L,

17. Slide 17: First Nations, Rail, Sales and Port Agreements

    First Nations, Rail, Sales and Port Agreements Labrador Iron Mines – TSX: LIM

18. Slide 18: LIM Agreements with First Nations

    LIM Agreements with First Nations Social licence to operate Agreements with First Nations  Local employment July 2008 Innu Nation of Labrador (left)  Training programs Sep 2010 Naskapi Nation of Kawawachikamach (2nd from left)  Business opportunities Innu Matimekush-Lac John June 2011 (2nd from r

19. Slide 19: LIM Rail Agreements

    LIM Rail Agreements Near and Long-term Strategies  Rail agreements in place » Genesee & Wyoming locomotive lease operator » TSH Rail to Emeril Junction in Labrador: 235 km » QNS&L Railway to Port of Sept-Îles: 360 km Four trains currently » 10,000 tonne per train; Near- 124-car train set (550 car f

20. Slide 20: LIM 2012 IOC Sales Agreement

    LIM 2012 IOC Sales Agreement Near-Term Strategy  Renewed 2011 agreement with Iron Ore Company of Canada 2012 (“IOC”; majority owned by Rio Tinto): Ore sale agreement » 100% of 2012 production sold to IOC » Product sold at spot less participation for handling, loading, shipping and sales costs LIM +

21. Slide 21: LIM Shipping Advantage

    LIM Shipping Advantage Access to key  European and Asian markets » Deep sea port on Atlantic seaboard Shipping advantage to  North American and European markets » Shorter distance relative to other primary iron ore regions Current access to key Asian markets  Western Europe (Rotterdam) 5,000 km t

22. Slide 22: LIM Port Strategies

    LIM Port Strategies Options for long-term port capacity Exploring options to secure Port long-term port capacity Strategies » IOC » New multi-user berth » Pointe Noire  New multi-user berth announcement: » Government of Canada to contribute $55 million of estimated $220 million CAPEX » Deep-water,

23. Slide 23: Value Creation through Exploration

    Value Creation through Exploration Labrador Iron Mines – TSX: LIM

24. Slide 24: Value Creation through Exploration: resource conversion

    Value Creation through Exploration Proven track record of resource conversion More than doubled resources (historical to NI 43-101) Current 46.0 million NI 43-101 resources 24 1 Historical resource identified by IOC prior to 1983 were not prepared in accordance with Labrador Iron Mines – TSX: LIM 24

25. Slide 25: LIM Large Resource Base, Growing Production Profile

    LIM Large Resource Base Growing Production Profile Planned iron ore Potential ~20+ years production @ 5.0 Mtpa million tonnes (Mt) 5.0 4.0 3.0 Large Resource base 2.0 supportive of 20+ Year Mining Life 2012 2013 2014 2015 Potential Mining Plan 2016 – 2030 and beyond 1 Chart for illustration only and

26. Slide 26: NI 43-101 Compliant Resource Estimates

    Value Creation through Exploration NI 43-101 Compliant Resource Estimates Houston Updated Estimate: 23 Mt @ 57.2% Fe (at March 31, 2012) Deposits Deposit remains open along strike; further drilling in 2012 Knob New Measured and Indicated Resource Estimate: Lake 5.7 Mt @ 54.2% Fe (at March 31, 2012)

27. Slide 27: Aggressive exploration programs

    Value Creation through Exploration Aggressive exploration programs  8,200 m of drilling in 2011 Malcolm 1 2011 drilling (select holes)  Gill: confirmed general location of historic Length Hole ID ETT (m) Fe % Mn % Si02 % resources (4.6 Mt @ 50.5% Fe) (m) RC-M-007 42 29.7 61.06 1.00 4.01  Malcolm

28. Slide 28: Blue-Sky Potential

    Value Creation through Exploration Blue-Sky Potential 1 Bulk sampling of historical stockpiles in 2012  ~10 million tonnes of crushed >50% Fe  Easy access to Silver Yards plant (within 10km)  Potential to convert to resources  2012: bulk sample in Silver Yard Plant 2 Taconite drill targets  Lar

29. Slide 29: Delivering Results

    Delivering Results Labrador Iron Mines – TSX: LIM

30. Slide 30: LIM Delivering Results in 2012: Completed and Upcoming Catalysts

    LIM Delivering Results in 2012 Completed and Upcoming Catalysts James Mine full-scale operation 1st iron ore sale and shipment Silver Yards plant start-up Houston Environmental Release Updated Resource (Houston) and New Resource (Knob Lake)  Houston Deposit: Development start May May - Iron ore sal

31. Slide 31: LIM Opportunity: Attractive Valuation

    LIM Opportunity Attractive Valuation Canada’s newest and only independently-owned iron ore producer First full season of production in 2012 Strong leverage to iron ore prices Proven resource conversion success: historical to NI 43-101 compliant Growing short and potential long-term production profil

32. Slide 32: Appendix

    Appendix Labrador Iron Mines – TSX: LIM

33. Slide 33: LIM Strong Executive Team

    LIM Strong Executive Team John Kearney Mining executive with over 40 years of industry experience; Chairman and CEO of numerous mining companies Chairman & CEO Rod Cooper Over 30 years of experience in resource industry; previously held positions as VP and Senior Analyst, Mining, with President & CO

34. Slide 34: LIM Board of Directors

    LIM Board of Directors John Kearney Mining executive with over 40 years of industry experience; Chairman & CEO Chairman and CEO of numerous mining companies. Bill Hooley Professional mining engineer with 40 years experience. Vice Chairman CEO of Anglesey Mining plc and former President & COO of LIM.

35. Slide 35: Most Prolific Iron Ore Region in Canada

    Most Prolific Iron Ore Region in Canada LIM’s assets located in Labrador Trough near Schefferville  Canada’s foremost iron ore producing region » 99% of Canada’s current production » In continuous production since 1954 » Existing rail and port infrastructure » Politically stable » Support of Govern

36. Slide 36: LIM Property Map

    LIM Property Map Eclipse (northwest – not shown on map) 46.0 Mt Trough 1 57 Fe% NI 43-101 M&I Resources1,2 From five DSO deposits (James, Redmond, Denault, Wollett Lance Ridge Knob Lake and Houston) Fleming 9 121.0 Mt 57 Fe% Historic Resources3 Labrador Iron Mines – TSX: LIM 36

37. Slide 37: LIM Current Resources

    LIM Current Resources1,2 (Refer to Technical Reports on SEDAR) Stage 1 and 2 Deposits Stage 3 Deposits- North Central Stage 1A and 1B Deposits Indicated (000t) Stage 3 (000t) NI 43-101 Compliant Historical (Non NI 43-101 Compliant) James (Central) 8,100 Howse 28,200 Redmond 2B and 5 (Central) 2,900

38. Slide 38: LIM 2011 Operating Results

    LIM 2011 Operating Results YTD June 1 to December 31, 2011 (Reported in dry metric tonnes) Tonnes Grade % Fe Total Ore Mined 1,205,609 60.7 Direct Railing Ore portion 438,441 64.9 Waste Mined 2,855,007 -- Ore Processed 572,052 58.4 Lump Ore Produced 79,407 63.6 Sinter Fines Produced 152,735 65.0 Tot

39. Slide 39: LIM Process Flowsheet

    LIM Process Flowsheet Labrador Iron Mines – TSX: LIM 39

40. Slide 40: LIM Capital Structure

    LIM Capital Structure Simple capital structure and strong balance sheet1 with no debt2 Analyst Coverage TSX Symbol LIM Canaccord Genuity Gary Lampard Share Price 3 $2.89 Credit Suisse Nathan Littlewood Share Price (52 week range) 3 $2.83 - $12.47 Desjardins Securities Jackie Przybylowski Issued and

41. Slide 41: Canada's New Iron Ore Producer

    Canada’s New Iron Ore Producer Main Office Investor Relations Contact 220 Bay Street, Suite 700 Keren Yun Toronto, ON, M5J 2W4 Vice President, Tel: (647) 728-4125 Investor Relations & Communications Fax: (416) 368-5344 www.labradorironmines.ca Labrador Iron Mines – TSX: LIM

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