#1Labrador Iron Mines: Canada's New Iron Ore Producer Staying the Course November 2012 3325 3325 W.3327 LIM FIRST EAGLE#2Forward 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 Company's plans for the mining, development and exploration of its properties. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in the development of projects, changes in exchange rates, fluctuations in commodity prices, inflation and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. There can be no assurance that the Company will be successful in any agreement with any First Nations groups who may assert aboriginal rights or may have a claim which affects the Company's properties or may be impacted by the Schefferville Projects. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward- looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Labrador Iron Mines - TSX: LIM LIM 2#3Labrador Trough Schefferville Labrador Iron Mines NEWFOUNDLAND & LABRADOR Labrador City Sept-iles Quebec City NEW BRUNSWICK LIM Advantages Canada's newest and only independently-owned iron ore producer Current sustainable production of 2.0 million tonnes per year of iron ore Flexible production growth: ability to double current production Superior leverage to the recovery in iron ore spot price NI 43-101 Resource 45 MM tonnes 1 QUEBEC ONTARIO Additional historical resource 121 MM tonnes² LIM infrastructure: direct rail link to port, processing plants, roads, airstrip and hydro power Toronto Image: Aerial view of the James Mine 1 NI 43-101 compliant resource as at March 31, 2012 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 PEI NOVA SCOTIA Labrador Iron Mines - TSX: LIM LIM#4LIM Fast Track to Production Advanced From Construction to Sustainable Production in Only 10 Months Dec 2007: Closed IPO 2008-2010: Two year environmental 2012 ■ First full season and permitting 2011 ○2010 2009 2008 at James Mine Commercial production achieved 2007 2010-2011: Mine and plant construction June 2011: Initial production Achieved initial sustainable production with minimal capital expenditures Labrador Iron Mines - TSX: LIM LIM LAM 4#5LIM's First Two Years of Production Valuable experience and market insight 2011 2012E1 Sales 386,000 dry tonnes 1.6 million dry tonnes 600,000 1.6 million Saleable Iron Ore Production dry tonnes millions (Mt) 1.6 Rail wet tonnes wet tonnes Shipments 3 shipments 10 shipments³ 0.4 Strengthened relationships with key stakeholders Full-scale operations experience to achieve greater efficiencies in future years Valuable marketing intelligence from sale of shipments to strategically plan/maximize product revenue in future 2012E for the period April to November 2012 1 2 3 2012 production has been scaled back to 1.6 million dry tonnes, based on market conditions 9 ships sold YTD. 10th shipment set to arrive at port on November 18 2011 2012² Labrador Iron Mines - TSX: LIM LIM 5#6LIM Portfolio: 20 DSO Deposits (100% owned) 45 Mt 57 Fe% NI 43-101 M&I Resources1 121 Mt 57 Fe% Historic Resources² Québec Murdoch Eclipse Kivivic 0 50 Current production Stage 1: James + Kilometres surrounding deposits: 21.7 Mt Resource¹ Future production Stage 2: Houston 22.9 Mt Resource¹ (future production) Quebec Howse Labrador Iron Mines James Schefferville Schefferville Newfoundland & Labrador Redmond Houston Central/South Central Zone + (Stage 1 & 2) 1 NI 43-101 compliant resource as at March 31, 2012 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Sawyer Lake Astray Lake Newfoundland & Labrador Labrador Iron Mines - TSX: LIM LIM 6#7LIM Today Image: James Mine Labrador Iron Mines - TSX: LIM#8LIM Stage 1 James + Surrounding Deposits near Silver Yards plants N Quebec Stage 1B Historical 0 2.5 5 Denault kilometres Stage 1A and 1B NI 43-101 Compliant¹ Indicated (000t) James (Central) 6,700 Redmond (Central) 2,900 Denault (Central) 6,400 Schefferville Knob Lake (Central) TOTAL (1A & 1B) 5,700 21,700 SY Plant Labrador Gill Ruth Lake 8 Knob 必 Lake James (Non NI 43-101)² (000t) Stage 1B Gill (Central) 4,600 Ruth Lake (Central) 400 Redmond Total (1B Historical) 5,000 (10 km from James) TSH Rail 5 smaller satellite deposits within 15 km radius of James/Silver Yards 21 Mt NI 43-101 Resources 5 Mt historical resources ~10 Mt stockpiles (historical) >> Crushed and >50% Fe >> Potential to convert to resources Objective: 5 Years of ~2.0 Mt of Annual Iron Ore Production³ Goal: 10 Mt of Saleable Iron Ore - James Mine and Surrounding Deposits 1 NI 43-101 compliant resource as at Mar 31, 2012 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Labrador Iron Mines - TSX: LIM LIM 3 Subject to detailed engineering, design, environmental assessment and permitting 8#92 LIM James Mine First Full Season of production James mine ☐ ■ ◉ Excellent operating results achieved in 2012 Mined 962,000 tonnes at 60.8% Fe in Q2, 40%+ increase in tonnes mined from Q1 James Mine performed at planned operating rate of 28,000 tpd (ore + waste), prior to September decision to scale back production 1 2012E sales 1.6 million dry tonnes of iron ore C$70/tonne operating cost to port 1,2 Mining, processing and rail operations to be completed in November Initial production June 2011 2012 season started April Direct shipping (DSO) iron ore Conventional open pit mining using contractors 1 2012 production scaled back due to market conditions Operating costs includes mining, processing, transportation and site expenses Labrador Iron Mines - TSX: LIM LIM 9#10LIM Processing Silver Yards Processing Plants Dry processing Ore processed by crushing and screening Wet processing Ore beneficiated by crushing, washing and screening Starting in late August, dry process utilized exclusively to produce lump and sinter products 1,000 tonnes per hour (20,000 tpd) design capacity; Winterized in August Phase 3 construction largely completed » Completion and commissioning deferred to spring 2013; expected to increase recoveries and plant capacity In Q2, 644,000 tonnes of ore processed, yielding 572,000 tonnes of lump and sinter fines, for an average mass yield of 89%. Labrador Iron Mines - TSX: LIM LIM 10 10#11Sharp Decline in Quarterly Iron Ore Prices ■ Iron ore spot prices decreased 33% during the quarter $140 Sharp decline in August saw prices below US$90/tonne $130 (62% Fe CFR China basis) $120 Iron Ore Spot Price 62% Fe CFR China (US$/tonne) Down 33% in the quarter $110 In August, LIM sold 3 shipments totaling ~490,000 tonnes in challenging market conditions $100 Sharp decline in $90 August to below $90/tonne ◉ Net prices of three ships sold in August below LIM's cost of $80 July-12 August-12 September-12 October-12 production Labrador Iron Mines - TSX: LIM LIM 11#12LIM's Decisive Response to Market Conditions¹ 1 Cost Reduction 2 Production 3. CAPEX 4 Financing Focus on cost reduction and cash conservation measures Utilize new dry classifying system to produce lump and sinter Scale back production: revised 2012 production target of 1.6 million dry tonnes (1.7 million wet tonnes) ■ DRO production discontinued; wet processing suspended ~$52 million deferred: >> Silver Yards Phase 3 plant commissioning now planned for 2013 >> Houston development deferred ($37M in 2013 and $20M in 2014) subject to market conditions ■ 2012 exploration budget reduced to $5.3 million (from $8.6 million) Successful completion of $30 million financing in November Rapid development of new strategies and execution of revised plans to reduce costs, conserve cash and optimize production 1 Forecasts herein subject to permitting, planning, design, financing and market conditions. Labrador Iron Mines - TSX: LIM LIM 12#13LIM's Enhancement Plans Opportunities to improve margins immediately 1 Process ✓ Utilize new lower cost dry classifying system 2 Lump and Sinter Produce lump and sinter exclusively 3 Rail & Port Rail and port efficiencies to support higher volumes Developments will further reduce costs over the long term¹ Current $60 - $65 per tonne² 1 Subject to detailed engineering and design 2 Includes mining, processing, transportation and site expenses Longer term ☐ $50 - $55 per tonne² Higher volumes Larger equipment Increased rail & port efficiencies Reduced tariffs Labrador Iron Mines - TSX: LIM LIM 13#14LIM 2012 YTD Highlights On track to sell 1.6 dry million tonnes of iron ore in 2012, a 4X increase over 2011 Achieved commercial production and demonstrated LIM's mine-to-port operational ability Consistently achieved mining rate of 28,000 tpd (ore + waste) at the James Mine Operations: Installed dry crush/screen system at Silver Yards; doubled capacity of accommodation camp Rail: tripled rail volumes from April – August; October milestone: 2 Mt railed to Port since 2011 Decisive and quick response to Q3 steep decline in iron ore prices and challenging market conditions On track for successful completion of 14,000 m exploration program Labrador Iron Mines - TSX: LIM LIM 14#15Iron Ore Signs of Recovery 1 Spot Price Continues to improve to US$120/tonne by Iron Ore Spot Price 62% Fe CFR China (US$/tonne) mid-November $125 $120 Replenishing of inventory Steel $115 2 by Chinese steel mills $110 Demand Global crude steel demand $105 to increase 4.5% in 2013E1 $100 Spot price to $120/t by mid- November $95 China 3 Stimulus ■ Recent announcements for new infrastructure projects totalling ¥800 billion $80 $90 $85 August-12 September-12 October-12 November-12 to ¥1 trillion Rebound in Iron ore prices in Q3 Supports continued demand for steel and iron ore in China ■ 2 LIM shipments of sinter in October: ~322,000 dry tonnes ☐ ■ 10th shipment (lump) by end of November:~100,000 dry tonnes 1 According to World Steel Association. Labrador Iron Mines - TSX: LIM LIM 15#16$150 China Import Iron Ore Fines 62% Fe Spot Price (CFR Tianjin Port) - US$/tonne Mar-09 May-09 Jul-09 $50 Sep-09 Nov-09- Jan-10- 1 Shown for the two year period from March 1, 2009 to February 28, 2011 $100 Mar-10- Читать May-10- Jul-10- Sep-10 Nov-10- Jan-11 LIM Superior Leverage to Iron Ore Prices $250 $200 Historical Iron Ore Recovery 1 151% Increase March '09 Feb '11 Period High Period Low = US$191.90/tonne US$59.10/tonne LIM's Share Price Leverage to Iron Ore Market¹ $16 20x Increase = Period High C$14.32/share $14 Period Low C$0.62/share $0 90 Mar-09 $2 $10 LIM Share Price (C$/share) $4 $6 LIM offers superior leverage to the recovery in iron ore prices May-09 Jul-09 Sep-09 Nov-09- Jan-10 Mar-10 Labrador Iron Mines - TSX: LIM LIM 16 May-10 $12 90% correlation between rising iron ore price and LIM's share price Jul-10 Sep-10 Nov-10- Jan-11#17LIM Stage 2: Houston Flagship Deposit Potential to more than double current production Large resource 15+ year mine-life ~2.0 mt potential annual production Key Development Project 23 million tonnes M+I @57.2% Fe¹ + 3.7 tonnes Inf @56.5% Fe1 (NI 43-101) >> More than double the historical resource² Consistent high quality iron ore product expected Goal: Establish long-term relationships with steelmakers Next steps " ☐ Receipt of remaining permits Development costs Phase 1 $57 million; (2013 $37 million and 2014 - $20 million)³ Potential credit facilities, strategic partnerships and/or off-take agreements Aerial view - Houston Deposit. Access road tree clearing complete 1 As at March 31, 2012; See Technical Reports filed on SEDAR. - 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Labrador Iron Mines – TSX: LIM Subject to market conditions, permitting and financing. LIM 17#18LIM Stage 2: Houston Flagship Deposit Simple Development Plan New dedicated rail siding (6km) Access road (10km) + bridge In-pit crushing and screening (Phase 1) Commencement of full construction activities planned for 2013, subject to market conditions James (13 km NW) Québec Stage 2 Deposits (South Central) M&I (000t) Houston (NI 43- 22,900 101 Compliant) Malcolm (Historical) 2,900 Labrador Malcolm 2.5 kilometres ~ 4 km Redmond TSH Rail Houston Houston open along strike Upside New / updated NI 43-101 resource expected Houston Deposit remains open along strike Nearby Malcolm Deposit (Quebec) extension: historical 2.9 Mt resource² 5 1 As at March 31, 2012; See Technical Reports filed on SEDAR. Labrador Iron Mines - TSX: LIM LIM 18 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101#193327 3327 First Nations, Rail, Sales and Port Agreements FIRST EAGLE 和歌山 WAKAYAMA Labrador Iron Mines - TSX: LIM#20LIM Agreements with First Nations Social licence to operate ☐ Local employment • Training programs Business opportunities Environmental protection Agreements with First Nations July 2008 Sep 2010 June 2011 Feb 2012 Innu Nation of Labrador (left) Naskapi Nation of Kawawachikamach (2nd from left) Innu Matimekush-Lac John (2nd from right) Innu of Uashat (right) Community engagement IBA Implementation Meetings with First Nations held at site Labrador Iron Mines - TSX: LIM LIM 20 0#21LIM Rail Agreements Schefferville Tshiuetin Railway (TSH) Labrador Cityo Labrador Iron Mines Newfoundland & Menihek Power Plant Labrador Wabusi Churchill Falls ° Twin Falls Emeril Jet. Happy Valley- Goose Bay Ross Bay Jet. Quebec Arnaud Railway QNS&L Railway Sept-Îles St. Lawrence River Highway Pointe Noire 0 100 Kilometres First loaded iron ore train in 2012 (departed April 4, 2012) Ore unloaded at Port Near and Long-term Strategies Rail agreements in place Rail Strategies in place » G&W leases locomotive and operates LIM's 6 km spur line >> TSH Rail to Emeril Junction in Labrador: 235 km » QNS&L Railway to Port of Sept-Îles: 360 km Short- term Mid- term Long- term >> Lengthened two train sets (increase capacity by 30%) >> Iron ore gondolas; longer 240-car trains (20,000t/train) >> Rotary car dumper to expedite unloading ore >> Potential new rail line and terminal handling facility (Feasibility study with CN) LIM 21 Labrador Iron Mines - TSX: LIM LIM#22LIM 2012 IOC Sales Agreement Near-Term Strategy 2012 Ore sale agreement LIM + IOC advantage - Renewed 2011 agreement with Iron Ore Company of Canada ("IOC"; majority owned by Rio Tinto): >>> 100% of 2012 production sold to IOC Use of ore handling facilities at Port of Sept-Îles Access to cape size ocean vessels (170,000 dwt) Rio Tinto targeted customers. Counterparty and shipping risk mitigated Product re-sold in China based on spot less ocean freight and IOC participation for handling, loading and sales costs In 2011 and 2012 YTD, 13 shipments totalling ~1.95 Mt of LIM iron ore has been sold to Chinese steel mills and customers LAM 22 Labrador Iron Mines - TSX: LIM LIM#23LIM Shipping Advantage Deep sea port on Atlantic seaboard » Access to European, Asian and North American markets Shipping advantage to North American and European markets Schefferville Rotterdam Sept-Îles Tianjin >> Shorter distance relative to other primary iron ore regions Pta Madeira Current access to key Asian markets through IOC (Rio Tinto) agreement >> Use of cape-size vessels >> Lower counter-party risk 口 Carajas Port Hedland Western Europe (Rotterdam) 5,000 km Eastern Europe (Constantza) 6,100 km China (Tianjin) 22,000 km Labrador Iron Mines - TSX: LIM LIM 23#24LIM Recent Developments Enhancing long-term port access Estimated $220 million New multi-user CAPEX berth Expected completion: March 31, 2014 5 million tonne capacity reserved LIM would benefit from first-mover advantage as only current producer; Good progress: » Dredging completed this summer » Ship-loader contract awarded Major civil / structural contract awarded » Mobilization for pile driving completed >> Port indicates construction on time and on budget Dredging commenced for new multi-user deep water dock Artist rendering: Potential new multi-user dock at Port of Sept-Iles LIM 24 Labrador Iron Mines - TSX: LIM LIM#25LIM Recent Developments Enhanced long-term port access 68°0' 67°0' 66°0' 65°0' CN Feasibility Study Proposed new CN Railway to serve Iron Ore Companies in Labrador (final route selection by Dec 2012 to support EIS submission in Feb 2013) Potential multi-user rail terminal at Port of Sept-Îles 52°0' 389 MANICOUAGAN RESERVOIR Map source: Canadian Environmental Assessment Agency (CEAA) website 68°0' 67°0' FERMONT QUEBEC NEWFOUNDLAND AND LABRADOR Railway Options. Sainte-Marguerite-A option SEPT-ILES 66°0' Sainte-Marguerite-B option Québec-Cartier option Alderon-Emeril option Cliffs-Emeril option GULF OF ST. LAWRENCE 51°0'#26Growth through Exploration 00 Labrador Iron Mines - TSX: LIM#27Growth through Exploration Proven Track Record of Resource Conversion More than doubled resources (historical to NI 43-101) Current 45 million NI 43-101 resources Historical Resource Conversion to NI 43-101 Compliant Resources million tonnes (Mt) 21 120% 45 Further Opportunity for Resource Conversion million tonnes (Mt) 121 Quebec Labrador 60.8 45 6.4 NI 43-101 compliant resource as at March 31, 2012 Historical².3 NI 43-101 Compliant 1.3 38.2 60.5 Current NI 43-1013 Additional Historical Resources 3 Includes James, Redmond, Knob Lake, Denault and Houston Deposits 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Labrador Iron Mines - TSX: LIM LIM 27#28Growth through Exploration 2012 Exploration Program ■ 2012 exploration program expected to achieve 14,000 m of drilling (10,000 m plan), despite reducing budget to $5.3 million Drill programs on Houston (remains open), Malcolm (remains open), James North, James South extension (remains open) and stockpiles with the intention of: Further technical information for more detailed mine planning New / updated NI 43-101 resource estimates in Q4 Commenced drilling on Elizabeth taconite target Labrador Iron Mines - TSX: LIM LIM 28 28#29Delivering Results Labrador Iron Mines - TSX: LIM#30LIM Guidance & Outlook¹ Operations: concluding successful 2012 operating season, despite challenging market conditions 2012 Iron Ore Sales: 10 shipments totalling 1.6 million dry tonnes anticipated Exploration: Successful 2012 field program; new / updated resource estimates Current Sustainable Production: ~2.0 million tonnes/year - Stage 1 resources Process plant enhancements: Silver Yards Phase 3 completion and commissioning in spring 2013 + dry process stream + grid (hydro) power Production growth: Potential to double current production with Houston; permitting ongoing; construction planned for 20131 1 Outlook subject to market conditions, permitting and/or financing. Labrador Iron Mines - TSX: LIM LAM 30#31LIM Opportunity Superior Leverage to a Recovery in Iron Ore Prices Canada's newest and only independently- owned iron ore producer Current sustainable production of 2.0 million tonnes per year of iron ore Operational expertise with strong government and strategic relationships Flexible production growth: ability to double current production NI 43-101 Resource 45 MM tonnes 1 Additional historical resource 121 MM tonnes² LIM infrastructure: direct rail link, processing plants, roads, airstrip and hydro power NI 43-101 compliant resource as at March 31, 2012 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Labrador Iron Mines - TSX: LIM LIM 3 31#32Appendix CAST 80 CATERPILLAR Labrador Iron Mines - TSX: LIM#33LIM Capital Structure Simple Capital Structure With No Debt 1,2 Analyst Coverage Canaccord Genuity TSX Symbol Share Price 3 LIM Credit Suisse $0.66 Desjardins Securities Share Price (52 week range) 3 $0.66 - $6.75 Issued and Outstanding 3 97.7 million Fully Diluted 3 100.5 million Market Capitalization (basic) 3 $64 million Fraser Mackenzie Haywood Securities Macquarie Capital Paradigm Capital Raymond James Strong institutional + management ownership³ Anglesey Mining Institutions Management & Directors 20% -30% ~4% RBC Capital Scotia Capital Stifel Nicolaus Canada Stonecap Securities 12 Analysts (+1 future) 1 No ore sales covenants 2 Finance Leases of $2.7 MM 3 As at November 15, 2012 Buy Gary Lampard Nathan Littlewood Jackie Przybylowski Wojtek Nowak Colin Healey Daniel Greenspan Santo Ranieri Adam Low Robin Kozar Mark Turner Michael Scoon Michael Goldberg $2.50 avg TP LIM 33#34LIM Executive Team John Kearney Chairman & CEO Rod Cooper President & COO Aiden Carey SVP, Operations Michel Cormier VP, Exploration Joseph Lanzon VP, Government & Corporate Affairs Larry LeDrew VP, Sustainable Development Bernie Maskerine VP, Transportation Stephen McGinn VP, HR, Health & Safety Richard Pinkerton VP, Finance Danesh Varma CFO Neil Steenberg Corporate Secretary & Legal Counsel Keren Yun VP, IR, Communications Mining executive with over 40 years of industry experience; Chairman and CEO of numerous mining companies Over 30 years of experience in resource industry; previously held positions as VP and Senior Analyst, Mining, with Dundee Securities and COO with Baffinland Iron Mines Corporation Held senior operating positions with Barrick Gold Corporation and Cliffs Natural Resources Inc. Close to 40 years of experience in exploration and mine geology, including mineral resource and reserve evaluation. Held positions with Mundoro Capital Inc. and Adamus Resources Over 20 years of experience in governmental affairs and development of community partnerships; previously held positions with CGI, GE, Canadian Zinc, Federal Gov't of Canada, NWT Gov't, House of Commons & Senate of Canada. Over 30 years of experience in science and environment field; previously held positions with Sikumiut Environmental Management Ltd., Newfoundland and Labrador Hydro and the Department of Fisheries and Oceans. Over 40 years of experience, holding senior positions at CN Railway, CANAC Inc., and SNC-Lavalin O&M Inc. focusing on all aspects of railway operations Close to 20 years of experience in human resources, general management and consulting. Previous positions held at Kivalliq Marine Transportation Services and Dumas Contracting Ltd. 10 years as an investment banker in mining sector and five years with PricewaterhouseCooper LLP. Over 30 years of experience in mining finance industry. Securities lawyer with over 30 years experience in mineral exploration and corporate finance law. Over 10 years experience in investor relations and communications; previously held positions with Northgate Minerals Corporation and Brookfield Asset Management. Labrador Iron Mines - TSX: LIM LIM 34#35LIM Board of Directors John Kearney Chairman & CEO Bill Hooley Vice Chairman Terence McKillen Richard Lister Matthew Coon Come Eric Cunnigham Gerry Gauthier Mining executive with over 40 years of industry experience; Chairman and CEO of numerous mining companies. Professional mining engineer with 40 years experience. CEO of Anglesey Mining plc and former President & COO of LIM. Mining executive and professional geologist with 40 years of experience. President, CEO and Director of Xtierra Inc. Over 40 years of experience in mining, metallurgical and chemical industries. Previously President & CEO of Zemex Corporation., Vice Chairman of Dundee Bancorp Inc. and Chairman & President of Campbell Resources. Grand Chief of the Grand Council of the Crees (Eeyou Istchee) Quebec. Board member of the Grand Council of the Crees and the Cree Regional Authority. National Grand Chief of the Assembly of First Nations (AFN) from 2000 to 2003. Independent mining consultant since 1996. Director of Aurora Energy Resources Inc. and previous director of Viceroy Exploration Ltd. Former joint owner of the Golden Kopje Mine in Zimbabwe. Mining engineer. COO of Xtierra Inc. and Director of Conquest Resources Limited. Former COO of Nevsun Resources Ltd. Labrador Iron Mines - TSX: LIM LIM 35 35#36Most Prolific Iron Ore Region in Canada LIM's Assets Located in the Labrador Trough Near Schefferville - Canada's foremost iron ore producing region » » In continuous production since 1954 99% of Canada's current production >>> Existing rail and port infrastructure » >>> >>> Politically stable Support of Governments and First Nations Products known to the market Experienced operators, suppliers and labour force Iron ore exports accounted for $3.2B of Canada's output in 2010 Undergoing major expansions Major producers in region: » IOC (Rio Tinto) » QCM (ArcelorMittal) >> Wabush and Bloom Lake (Cliffs and Wuhan) (potential double in 5 yrs) Steel companies: >> Wuhan Iron & Steel (Wisco) » Hebei Metals » China Minerals Prosperity Group » Tata Steel Kemag: Iron (Tata Steel/ New Millennium) Labmag: Iron Tata Steel Minerals Canada Direct Shipping Iron Ore Deposits Scheffery Labrador Iron Mines Labrador Trough Smallwood Resevoi Carol Lake (Rio Tinto 10C) Labrador Bloom Lake, (Cliffs Natural Resources) Mont-Wright (ArcelorMittal Mines Canada Ltd.) City Twin Falls Churchill Falls Generating Station Churchill Falls Julienne Lake (Exempt Mineral Land) Wabush Ross Bay Junction Scully Mine (Cliffs Natural Resources) Kami (Alderon Iron Ore Corp) Quebec Cartier railway QNS&L LABRADOR QUÉBEC 0 150 km Sept lles ☐ Potèntial Producer ☐ 2012E production at over 35 million tonnes within the Labrador Trough Producing Mine A Shipping terminal Port-Cartier Point Noire +++++ Rail Line Hydro Other Road Trans-Labrador Highway Proposed Road INDEX MAP Labrador Iron Mines – TSX: LIM LIM 8 36#37LIM Property Map 20 DSO Deposits 44.6 Mt 57 Fe% NI 43-101 M&I Resources1 From five DSO deposits (James, Redmond, Denault, Knob Lake and Houston) 121.3 Mt 57 Fe% Historic Resources² Eclipse (northwest - (N not shown on map) North Zone Partington Hoyllet Lake Kivivic 1 QUEBEC Barney Wollett Howse Fleming 9 Lance Ridge Star Creek 1 Denault Timmins-Fleming 1 NI 43-101 compliant resource as at Mar 31, '12 3 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 7.5 kilometres Location Map QUEBEC Atlantic Ocean LABRADOR Central Zones North Central South Central Gill Mine Ruth Lake 8 VILLE Knob Lake James Wishart Malcolm 1 Houston +++ Redmond LABRADOR Menihek Legend Road Railroad Power line Power plant LIM/SMI/HNS Properties South Zone Sawyer Lake Astray Lake Labrador Iron Mines - TSX: LIM LIM N 37#38LIM Q2 Financial Results ☐ ($ millions, except per share data) Net income (loss) per share Depreciation and Depletion Cash and cash equivalents (unrestricted) Accounts receivable and prepaids Inventory Total assets Three months ended September 30, 2012 $ Proceeds from four shipments in Q2 (648,000 dry tonnes): $33.0 million - Net loss includes $14.4 million amortization charge ■ Working capital deficit $2.6 million Completed equity offering for gross proceeds of $30 million in November. (31.7) (0.47) (14.4) 0.9 34.5 21.4 359.4 Labrador Iron Mines - TSX: LIM LIM 38#39LIM H2-2012 Operating Results Quarter Ended September 30, 2012 Six Months Ended September 30, 20121 (all tonnes are dry metric tonnes) Total Ore Mined Tonnes Grade (% Fe) Tonnes Grade (% Fe) 961,700 60.8 1,629,900 61.5 Direct Rail Ore portion 569,800 62.4 1,053,200 62.5 Waste Mined 1,533,200 2,902,600 Ore Processed and Screened 643,700 58.2 771,100 57.8 Lump Ore Produced 62,900 60.5 80,600 60.4 Sinter Fines Produced 508,800 61.1 543,500 61.4 Total Product Railed 706,500 62.2 1,238,800 62.4 Tonnes Product Sold 647,600 62.3 1,134,100 62.7 Port Product Inventory 282,300 62.1 282,300 62.1 Site Product Inventory 89,900 60.2 89,900 60.2 Site Run-of-Mine Ore inventory 432,100 56.2 432.100 56.2 Note: tonnage figures in table rounded Labrador Iron Mines - TSX: LIM LIM 9 39#40LIM Resources 1.2 (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 James (Central) Historical (Non NI 43-101 Compliant) 6,700 Howse 28,200 Redmond (Central) 2,900 Barney 6,300 Denault (Central) 6,400 Knob Lake (Central (Stage 1B)) 5,700 Total (Stage 3) 34,500 TOTAL (Stage 1A and 1B) 21,700 - Stages 4 South & Stage 5 North Zones Stage 1B and 1C Deposits (000t) Stage 4 & 5 (000t) Historical (Non NI 43-101 Compliant) Historical (Non NI 43-101 Compliant) Stage 1B Sawyer Lake (South) 12,000 Gill (Central) 4,600 Astray Lake (South) 7,800 Ruth Lake (Central) 400 Total (Stage 4) 19,800 Stage 1C Kivivic (North) 6,600 Wollett (Central) 2,300 Eclipse 37,200 Lance Ridge (Central) 1,400 Partington 2 3,400 Star Creek (Central) 1,500 Trough 2,000 Fleming Group (Central) 3,200 Other 1,600 Total (Stages 1B and 1C) 13,400 Total (Stage 5) 50,700 Stage 2 Deposits (South Central) M&I (000t) Houston (NI 43-101 Compliant) Malcolm (Historical) 22,900 2,900 Total NI 43-101 M&I Resources (000t) Total Historical Resources (000t) 44,600 121,300 1 NI 43-101 compliant resource as at Mar 31, 2012 Note: Resources rounded to nearest 000 2 Historical resource identified by IOC prior to 1983 were not prepared in accordance with NI 43-101 Labrador Iron Mines - TSX: LIM LIM 40#41Product Mix & Specifications Run-of-mine ore: Size fraction -6" (150 mm) Lump: - Product Mix Element Content % Element Current <40% Size fraction -32 mm, +6 mm Content % Product Mix Current -10% Fe 62-64% Fe 61-63% SiO2 5-7% Future n/a SiO2 5-8% Future -10% Sinter Fines: Size fraction -6 mm Ultra Fines: Size fraction -2 mm Product Mix Product Mix Element Fe Content % 63-65% Element Content % Current ~40% Current n/a Fe 62-66% SiO2 4 - 6% Future -80% SiO2 5-8% Future -10% ■ Moisture content typically 6% to 7% Typically low phosphorus (P) and alumina (Al2O3) Labrador Iron Mines – TSX: LIM LIM 41#42UPGRADING (WET) LIM Process Flowsheet CLASSIFYING (DRY) ROM Stockpile Fe-58-66% Soft Ores No Drill/Blast Harder Ores Drill/Blast Fe-58-66% Fe-50-58% Soft/Hard Ores GRIZZLY CRUSHING COARSE SCREENING COARSE SCREENING FINE SCREENING Fe-62-64% +0.1mm -2mm ULTRA FINES Fe-62-64% +2mm -6.2mm FINE SCREENING SINTER FINES Fe-62-64% +6.2mm-31.5mm LUMP IN PLANT CRUSHING SCRUBBING COARSE SCREENING FINE SCREENING FINES RECOVERY Labrador Iron Mines - TSX: LIM LIM 42#43Canada's New Iron Ore Producer Main Office 220 Bay Street, Suite 700 Toronto, ON, M5J 2W4 Tel: (647) 728-4125 Fax: (416) 368-5344 www.labradorironmines.ca John F. Kearney Chairman and CEO Rod Cooper President and COO Investor Relations Contact Keren Yun VP, Investor Relations & Communications 3325 3325 Labrador Iron Mines - TSX: LIM FIRST EAGLE LIM