Northern Iron is an Australian company headquartered in Perth which was formed to acquire the Sydvaranger Iron Project in northern Norway. Northern Iron intends to redevelop the Sydvaranger Iron Project to commence production of magnetite iron concentrate for supply into the European market.

The Sydvaranger Iron Project encompasses:

• Three magnetite deposits with JORC compliant resources (Bjørnevatn, Fisketind Øst, Kjellmannsåsen);
• A further 20 prospects with known iron mineralisation, several of which have been mined previously; and
• Various infrastructure requiring refurbishment including:
  • Primary crushers (not currently owned by Northern Iron but are subject to a purchase agreement in favour of Sydvaranger Gruve);
  • Cobbing plant (not currently owned by Northern Iron but is subject to a purchase agreement in favour of Sydvaranger Gruve);
  • Secondary and tertiary crushing building;
  • Concentrator facility including six mills and magnetic separators;
  • Rail facility and rolling stock; and
  • Ore storage silos.

Northern Iron’s development plan for the Sydvaranger Iron Project is based on utilising the existing infrastructure at site in order to commence production of a magnetite concentrate product as quickly as possible for the lowest capital cost. This strategy aims to provide investors in Northern Iron with direct exposure to iron ore prices within the next two years.

Current plans for the re-furbished mine are for the mining of 7Mtpa of ore to produce approximately 2.9Mtpa of concentrate grading 67.5% Fe over a 19 year mine life. Commissioning of the operation is expected in the June quarter of 2009 at a total pre-production capital cost (excluding mining fleet which is intended to be lease financed) of approximately US$100 million.

The medium term strategy for Northern Iron is to expand the production of the Sydvaranger Iron Project through exploration of the known iron mineralisation and to further improve economic returns through the potential development of a pelletising plant.