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Feb 2016

Disclaimers
Special Note Regarding Forward-Looking Information
This presentation contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated
developments and events that may occur in the future. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the
estimation of mineral resources and mineral reserves; (ii) the market, demand for, and future price of iron ore and related products; (iii) estimates of future steel production; (iv)
estimation of railway capacity; (v) the negotiation,conclusion and potential terms of infrastructure contracts; (vi) expected infrastructure requirements and the completion of the port
facility; (vii) potential economic benefits of the Kami Project; (viii) future freight costs, (ix) the potential advantages of iron ore concentrate produced from the Kami Project and (x) the
results of the FS including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction timelines and production
timelines for the Kami Project.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about
future events or performance. Forward-looking information contained in this presentation is based on certain factors and assumptions regarding, among other things, the estimation of
mineral reserves and resources, the realization of resource estimates, iron ore and other metal prices, the timing and amount of future exploration and development expenditures, the
estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and
develop the Kami Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals , the estimation of insurance
coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these
assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration
and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not
commence at the Kami Property, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to
the ability to access rail transportation, sources of power and port facilities, risks relating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related
products, risks related to increased competition in the market for iron ore and related products and in the mining industry generally, risks related to current global financial conditions,
uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including
the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process,
regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary
to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and
interest, environmental risks, and the additional risks identified in the Risk Factors section of the Companys Annual Information Form for the most recently completed financial year or
other reports and filings applicable with Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking
information is made as of the date of this presentation. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any
forward-looking information.
NI 43-101 Qualified Person
Alderons operational developmental work on the Kami Project is supervised by Brian Penney, P.Eng., the Chief Operating Officer for Alderon and a Qualified Person as defined by
National Instrument 43-101. Mr. Penney has reviewed and approved the technical information contained in this presentation.
Additional Information
Additional information about the Kami Project can be found in the technical report filed on SEDAR at www.sedar.com entitled Feasibility Study of the Rose Deposit and Resource
Estimate for the Mills Lake Deposit of the Kamistiatusset (Kami) Iron Ore Property, Labrador for Alderon Iron Ore Corp. dated effective December 17, 2012 which is filed on SEDAR at
www.sedar.com.

What sets us apart

Partners

Management

Location

Infrastructure

Strategic Partnership

Capable Team

Hebei Iron & Steel

Hands-on
Safe & stable
development &
jurisdiction
operating experience
Long history as
mining region
Former Rio Tinto/IOC

14.5 km to
common-carrier
railway with
80Mtpa capacity
(50Mtpa surplus)

Regional knowledge

15.5km to high
voltage grid

Liberty Metals &

Mining Holdings
Glencore

Excellent working
relationship with
regulators

Labrador Trough

Hydro-electric
power at
competitive rates
Access to skilled
labor

Ideally Located

Access to deepwater port

secured

Underpinned by 1.27 billion tonnes at 29.6% iron

of Measured & Indicated resources
Measured: 536.9 Mt @ 29.9% TFe, Indicated: 737.6 Mt @ 29.5% TFe, & Inferred: 522.6 Mt @ 29.5% TFe

Future of iron ore

Price recovery expected

Growth in iron ore consumption and imports

450Mt New Supply

Rio Tinto (120Mt)

FMG (85Mt)
BHP Billiton (55Mt)
Vale (40Mt)
Others (150Mt)

Considerations
Chinese domestic ore
Falling exports: India, USA,
CIS, Iran, SEA
Project delivery risk
Margin protection by majors

Despite slowing demand growth, long term

demand fundamentals remain robust
Increased supply is significant factor on the
current weakening of the iron ore price
Majors need to strike balance between
oversupply and threatened margins
4

The China Effect = Continued Demand

Growth in Chinas interior will spur continued demand for steel and iron ore
China urban/rural population

Source: United Nations

Chinese household steel intensity

Source: Rio Tinto

Urbanization in developing nations is driving demand for steel, led by strong growth in China
-

Globally, roughly 2 billion additional people will urbanize by 2030

Steel consumption in Chinas rural areas is far behind the export-dominated cities of Beijing and Shanghai
The Chinese government is now focusing efforts in these less developed areas of China

Despite recent volatility, long term demand outlook remains robust

Strong partners with 100% of

production committed

Hebei Iron & Steel Group (Chinas largest steelmaker) invested a

total of C$182.2M to date & will purchase 60% of annual
production

Liberty Metals & Mining Holdings, LLC invested C$49.2M in

equity and C$22M in convertible debt

Subsidiary of Liberty Mutual Insurance

Ranked #81 out of the Fortune 500
$120 billion in assets
$37 billion in revenues

Glencore will purchase 40% of annual production

C$119.9M in project equity for 25% interest in the Kami Project

C$62.3M in corporate equity for 19.9% of Alderon common shares

One of the worlds largest global diversified natural resource

companies

Altius owns 25% of the outstanding shares of Alderon

Exploration and project generation company with focus on

Newfoundland & Labrador

Partners focused on taking Kami into production

Capital Structure

As at Dec 31, 2015 (except where otherwise noted)

SHARE PRICE
SHARES OUTSTANDING
OPTIONS
WARRANTS

$0.09
132,134,061
7,095,000
15,256,250

FULLY DILUTED*

154,485,311

MARKET CAP

CDN $11.9M

Cash & Cash Equivalents

CDN $15.7M

(as of Sept 30, 2015)

TSX : ADV

Significant Holders
Insiders

includes Mark Morabito

2,164,353
2,014,353

1.6%

1.5%

Altius

32,869,006 24.9%

Hebei Iron & Steel Group

25,858,889 19.6%

Liberty Metals & Mining

18,797,454 14.3%
7

Management Team

Proven track record in iron ore

Mark J. Morabito, B.A. J.D.
Chairman & CEO

Over 15 years experience in public markets with strong focus on junior mining, including capital-raising and
corporate development
Founding partner in Alderon - led team that struck an off-take agreement with Hebei, Chinas largest steel
producer
Founder of King & Bay West, focused on funding, developing and managing resource-based opportunities

Tayfun Eldem, P. Eng. *

Vice Chairman

25 years of mining experience with 20 years at the Iron Ore Company of Canada (Rio Tinto) in executive
positions including COO and VP Expansion & Engineering; served 3 years as Director on the JV Board
Most recently accountable for the development & delivery of a ~$2B program of green and brown fields
expansion projects at IOC
Delivered several records for pellet and concentrate production as well as total material movement

Kate-Lynn Genzel, CPA, CA

Chief Financial Officer

Has provided accounting, audit, tax and advisory services to both public and private entities, focused on junior
resource companie
Holds a Bachelor of Commerce (Honours) degree from the Sauder School of business at UBC

Evelyn Cox, B.Sc. (Geo.)

VP Corporate
Communications

Over 14 years experience in public markets within the mineral exploration sector
Most recently held the position of Executive VP Corporate Communications at King & Bay West, a
management services company focused on funding, developing and managing resource-based opportunities

David Li, MBA, Ph.D.

VP Asia Pacific Affairs

Over 20 years of international project and financial management and corporate development experience,
including CFO of Selwyn Chihong Mining Ltd., Asia Finance Controller for a US based manufacturing company
in China, and Director of Strategic Planning for Trina Solar, an NYSE listed public company

Olen Aasen, J.D.

A practicing corporate and securities lawyer

Over 12 years of experience in public companies, capital markets, securities laws and the natural resources
sector

Corporate Secretary

* Former Iron Ore Company of Canada (Rio Tinto)

Board Of Directors
Mark J. Morabito, B.A., J.D., Executive Chairman

Tayfun Eldem, P. Eng. *

Ian Ashby

Spent 25 years with BHP Billiton, including Iron Ore President from 2006 to 2012
Was responsible for global strategy development and execution, and operations and project development for the Iron Ore
business

John Baker

Executive Chairman of Altius

Was a senior partner and chairman of a leading Newfoundland and Labrador law firm with an extensive mining, securities, and
corporate/commercial practice

Lenard Boggio

Partner with PricewaterhouseCoopers LLP (PwC) and its predecessor firm Coopers & Lybrand from 1988 until his retirement
from PwC in May 2012 where he was the Leader of the B.C. Mining Group of PwC, a senior member of PwCs Global Mining
Industry Practice and an audit practitioner for publicly listed Canadian, U.S. and U.K. mineral resource and energy clients.

Brian Dalton

Co-founded several successful private mineral exploration & exploration service companies prior to co-founding Altius in 1997
President and CEO of Altius since 1997, during which time it has achieved strong growth and is now a member of the TSX
SmallCap Index

Liu Jian

Over 24 years of experience in the steel industry and has held positions in operations and project management, as well as in
foreign joint venture cooperation
Prior to joining Hebei, he was the VP and Director of Tangsteel Group Co. Ltd.
Is the Chairman and General Manager of Hebei Iron and Steel Group International Trade Corp.

Wang Jinhui

Vast experience in engineering, project management, import and export trading and investment management
Prior to joining Hebei, he worked for Hanbaosteel
Is the President of Hebei Iron and Steel Group International Holding (Canada) Co. Ltd.

Adrian Loader

20 years working for Shell, including most recently as President & CEO of Shell Canada
Led the merger and acquisition activity and was responsible for strategic directions, scenarios, competitive intelligence and
planning

David Porter *

Previously served as VP Human Resources & Organizational Effectiveness for the Iron Ore Company of Canada
Was responsible for Operations, Safety, Health, Sustainable Development, Communications and Community Relations across the
mining and steel sectors for over 33 years and lead the development and execution of business strategy, negotiated landmark
agreements with international unions, governments and communities and lead business transformation initiatives

B.Eng.

Q.C.

B.A., B.Comm., FCA,

CPA (IL), ICD.D

M.Eng.

PhD.Eng.

M.A.

MBA

* Former Iron Ore Company of Canada (Rio Tinto)

The Labrador Trough

Canadas premier iron ore district

Canadas premier iron ore district, the Labrador Trough has been in
operation since 1954
Two open pit mines in Lab West account for
99.8% of Canadian iron ore output
Rio Tinto Iron Ore Company of Canada
ArcelorMittal AMMC

Labrador Trough = High grade and low

impurities

Lab West

Produces a superior iron ore product

(SiO2 < 4.5%, Al2O3 < 0.3%, P < .008)

Government support is unparalleled:

Port of Sept-les $110M

Foreign steelmakers and traders have been

active investors in the region in recent years
Wisco, HBIS,
Posco, China Steel, Tata, Mitsubishi

10

Kami Property

Ideally located for quick production to market

Local population of ~15,000 people:

highly skilled workforce

multiple equipment vendors
experienced contractors

Paved highway only 2.5km away from

property = low access cost

Access to low cost (~5.5/kWh)

electricity produced at Churchill Falls

Multi-user railway 14.5km away to

transport material to deep sea port

Power lines 15.5km from property

Crosses provincial boundary,

therefore common carrier
guaranteed access
Rail line has ~50MT surplus
capacity

Deep-water port will provide year

round access to global markets

11

Port access secured

Construction of C$220M multi-user complete

Sept-les

IOC s
Port

New
Facility

Federal Government and Port Authority invested

$110M (50%)

Alderon has commercially secured access to the

facility in return for a C$20M investment

Participants include three other mining companies

Pointe-Noire

Multi-user platform in deep water up to

23 meters, suitable for large cape-size
vessels (250,000dwt)

Loading capacity of 50 to 60Mt per year

Estimated completion summer 2015

Potential phase-2 expansion will increase

capacity to 100Mt per year

New Multi-User Wharf Nearing Completion

Source: Port de Sept-les - July 2014

12

Freight To China
Freight cost only marginally higher
than Brazil to China rate
C3

No published index for Sept-Iles to

China freight

Sept-Iles to Qingdao freight

typically averages 15% above C3
(Brazil to China)

Source: SSY, BMO Capital Markets (March 2014)

309 capesize vessels on order

through 2017

160 vessels needed to meet

increased demand from China

Long term freight market likely in

surplus
Current Fleet
Source: Braemar Seascope Research (March 2014)

On Order
13

Power agreement complete

Power availability confirmed by Crown

Utility (Nalcor)

Provinces new industrial rates policy

creates a level playing field
Within the Province of Newfoundland
and Labrador
Across neighboring provinces

Provincial Government to construct

third transmission line
Nalcor has received permits for line
clearing, river crossings and crown
lands
20 km of tree clearing completed
Additional work to commence upon
completion of Alderons financing plan

Power Purchase Agreement complete

Photo: Tree Clearing for New Transmission Line

Source: Nalcor - September 2014

14

Robust project with strong financials*

Feasibility Study Results: Jan 2013
Annual Production (65.2% Fe con)
Initial CAPEX

8.0Mtpa
$1,272.9M

Cash operating cost (FOB)

$42.17/t

Capital Intensity

~$160/t

Average annual cash flow

+$400M

Payback period

3.8 years

Proven and Probable Reserves

Mine life

668.5Mt @
29.5% TFe**
30 years

*Pre-tax
**15% cut-off grade, Proven 431.7Mt @29.7% TFe, Probable 236.8Mt @29.2% TFe

15

Kami differs from Bloom on many fronts

Kami Operating Cost Estimate

(FOB Sept-Iles)

Mining
Processing
Site General
General & Administrative
Environmental and Tailings
Rail Transportation
Port & Shiploading
TOTAL

$/t
17.11
6.51
0.34
1.50
0.52
13.33
2.86
42.17

Over 100 years of hands-on operations and project

experience in the Labrador Trough

(FOB Sept-Iles)
TOTAL

* Current opex
* Based on analyst reports

$/t
90.00

Kami has been designed from ground-up and not

as a patchwork

Avoids capex creep and delivers operating synergies

Significant ore characterization and process testing

have been performed
Process design delivers targeted nameplate
capacity and prevents surprises

Kami operating model ensures lower overhead

Capex/opex trade-off has been avoided

Kami will achieve more favorable contracts for

transportation

* Average, life-of-mine opex

* Excludes royalty to Altius

Bloom Operating Cost

Extensive regional operating experience and

learnings from Bloom have been incorporated

16

Kami projected opex lower than Bloom

Design & operational differences ensure lower opex for Kami than Bloom1
-$16

Bloom Lake

Volume

Tailings

-$5

Labour

-$6

Rail

-$10

Port
(transshipment)

1: These operating cost efficiencies are estimates only and are based on an internal Alderon analysis
2: Based on 70/30 fixed/variable split
3: Number has been rounded from the Feasibility Study operating cost estimate of $42.17

-$6

Phase 2 rail take-or-pay

Operational efficiency
SG&A
Strip ratio

Transhipment

Phase 1 rail cost Vs Kami

Residential Vs FIFO

Trucking due to space constraint

Operating at least 2Mtpa below nameplate

$90

-$4

Others

$433

Kami

17

Conventional Flowsheet
High quality product
Drill and Blast

Load and Haul

Gyratory Crusher

Primary Grinding
%Fe
Fe Rec %
Wt %

Gravity Separation

Magnetic Separation
Spiral Tails

Regrind

Spiral Concentrate

29.5%
100%
100%

Mag Concentrate

%Fe
65.0%
Fe Rec tot % 62.8%
Wt % of feed 28.6%

%Fe
66.0%
Fe Rec tot % 14.9%
Wt % of feed 6.5%

% of total concentrate
81%

% of total concentrate
19%

Final Concentrate
%Fe
65.2%
4.3%
% SiO2
Fe Rec %
77.7%
Wt %
35.1%
%Mn
0.81%
P80
267 um

Final tails

Rail

18

Superior quality concentrate relative to

Australian and Brazilian sinter fines
Value-in-use proposition of Kami concentrate offsets freight disadvantage
Fe %*

P %*

Al2O3 %*

High Fe content
Magnetite content

Lowers fuel cost for sintering

Low phosphorus

Offers potential capital

avoidance no
dephosphorization stage

Reduces operating costs,

improves BOF efficiency
(lower cycle time and heat
loss)

Low alumina

* Platts & Company Disclosures

Improves blast furnace

operation
Lowers slag fluidity
Protects tuyeres

19

Advantage of Kami Concentrate

Value-in-use proposition of Kami Concentrate offsets freight disadvantage
against Brazil

+
142,857 tonnes

1,142,857 tonnes
@ 62% Fe

1,166,667 tonnes
@ 62% Fe

1,000,000 tonnes

+
166,667 tonnes

1,000,000 tonnes

Compared to Brazilian product, 16.7% less tonnes are needed to blend

Australian ore to 62% Fe using Kami concentrate completely offsets
the 10-15% freight differential
* Platts & Company Disclosures

20

Sintering testwork complete

Confirms benefits of Kami concentrate

All tests completed by Dr. Kong from the Beijing University of Science and
Technology
Tests were completed for two different steel mills, offsetting components of
their current reference blends with Kami concentrate:

Steel Co. 1 : Ran two tests using 10% and 15% Kami concentrate to replace Yandi and
FMG Fines
Steel Co. 2: Ran one test using 10% Kami Concentrate to replace IOC concentrate and
Vale South fines
Steel Co. 1

Coke reduction = 7.7%

Strength increase = 1.4%

Steel Co. 2

Coke reduction = 2%
Strength increase = 6.3%

21

Project is significantly advanced

Feasibility Study completed December 2012

Released from Provincial (Jan. 2014) and Federal (Feb. 2014)

Environmental Assessment

Detailed engineering at 52% as of June 27, 2014

Post-EA permitting process on-track

30% 3D process model review completed

Integrated procurement strategy in place c/w China-sourcing

options

Major long-lead equipment committed

Construction strategy in place

Tree-cutting completed at Pointe Noire Terminal

Mining and surface leases secured

Received the 2014 Developer of the Year Award from CIM Newfoundland Branch

Recognized for significant progress in advancing a mine towards production

and for significant contribution to heath and safety, environmental
stewardship and commitment to community
22

Strong Government Support

Alderon and the Kami Project have garnered strong support from the
Canadian Government

Alderon was part of Prime Minister Stephen Harpers business

delegation for the November 5-10, 2014 official visit to China

23

Numerous milestones achieved

Project largely de-risked and shovel ready
Project
Development

Procurement planning; orders for long lead items (complete)

Construction permits (on track)

Infrastructure
Agreements

Port of Sept-Iles Agreement (complete)

Power Purchase Agreement (complete)
Rail Agreements with IOC and Cliffs (commenced)

Environmental
Assessment

Release from Provincial Environmental Assessment (complete)

Release from Federal Environmental Assessment (complete)

Financing

First off-take partner (complete - Hebei)

Second off-take partner (complete - Glencore)
Implementation of financing plan (commenced)

Stakeholder
Agreements

Provincial benefits and diversity plan (complete)

Municipal agreements (2 of 2 complete)
Aboriginal agreements (2 complete)
24

Click to edit Master title style

For more information, please

contact Mark Morabito at:
Email: info@alderonironore.com
Phone: 604-681-8030 or 1-888-990-7989
Mailing Address: 1240 1140 West Pender St, Vancouver, BC, V6E 4G1

www.alderonironore.com
ADV: TSX