Century Iron Mines Corporation TSX: FER-- March 2014

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Century Iron Mines Corporation (TSX: FER) is a mining company with mineral exploration and development activities focused on iron ore. Based in Toronto, Canada, it has iron ore rich mining properties in Western Quebec south of James Bay and in the well-known Labrador Trough that spans Northeastern Québec and Western Newfoundland Labrador.

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Century Iron Mines Corporation TSX: FER-- March 2014

  1. 1. Corporation Presentation March 2014 Century TSX: FER www.centuryiron.com IRON MINES CORPORATION
  2. 2. 2 Forward Looking Statement Except for statements of historical fact, this presentation contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “project”; “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain required permits, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally, potential environmental issues and liabilities associated with exploration and development and mining activities. The Corporation is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Corporation undertakes no obligation to update forward-looking information if circumstances or management’s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Corporation. Century Iron Mines Corporation
  3. 3. Financial Highlights & Capital Structure Financial highlights (Dec 31, 2013) Cash and bank $33.2M Receivables (accounts & tax) $23.6M Total corporate working capital $56.8M JV (Attikamagen) cash (in addition to corporate working capital) $22.3M Exploration and evaluation assets $26.1M Investment in a joint venture $59.5M NAV $148.2M Capital structure (Dec 31, 2013) Shares outstanding 98,804,071 Fully diluted  Options/Grants: 10,354,000  Warrants: 1,000,000 110,168,071 Market capitalization (@ share price closed at $0.58, Mar 12, 2014) $57.3M Share structure Founding shareholders 34.1% Management 17.7% WISCO (23.5%) MinMetals (4.7%) 28.2% Public shareholders 20.0% Total 100.0% 3Century Iron Mines Corporation
  4. 4. 4 Strategic Partnerships – A Proxy for China Joint Venture Attikamagen Project 100% Minmetals Exploration & Development (Luxembourg) Limited S.à.r.l WISCO International Resources Development & Investment Ltd (PRC) Approx. 5% Approx. 25% 60% Sunny Lake Project Duncan Lake Project Augyva Mining Resources Inc. (TSXV: AUV) 35%100% Four projects acquired from Altius Minerals Inc. (TSX: ALS) (Note 2) 100% 65% (Note 1) 40% Interest +60% off-take James Bay Area Duncan Lake Note 1: Currently a 65% interest under an option and joint venture agreement with Augyva Mining Resources Inc. Note 2: A portion of the Astray has been spun out to Northern Star which will assume the exploration obligations while Century maintains a 20% therein Century Iron Mines Corporation (TSX: FER) 2 4 NI 43-101 Resources Hayot Joyce (DSO) Full Moon Duncan Total Measured & indicated - 24.3 Mt 7.3 Bt 1.1 Bt 8.4 Bt Inferred 1.7 Bt 0.8 Mt 8.7 Bt 0.6 Bt 11.0 Bt 321 4 1 3 (inBillionsormillionsoftonnes) Iron Ore Projects Multi Bt resources under management Full Moon Hayot Joyce DSO
  5. 5. 5Century Iron Mines Corporation  Century is the top six largest attributable contained iron ore resource in the world (without Vale)  Century is trading at the lowest EV per contained Fe tonne  Century has more equity interest in DSO and taconite projects with a production target of 2015 Source: Company data, Credit Suisse estimates Credit Suisse Analysis
  6. 6. Two Prong Strategy: Short-Term Low Capital Intensity DSO & Long-Term High Volume Project Development Approach to Maximize Economic & Strategic Value to China … 6Century Iron Mines Corporation 0 5 10 15 20 25 30 2015 2016 2017 2018 2019 DSO Taconite High Volume DSO Full Moon Joyce DSO Production Mtpa Target 1 2 3 4 Closest distance Target 2 Mtpa On capex <$100M (conceptual illustration only. Does not represent Company’s current actual assessment of its resource(1) Taconite DSO DSO 1.7Bt (Inferred) 1 2 3 TSH & QNSL Rail to Sept Iles 7.3 Bt (M&I) 8.7 Bt (Inferred) DSO 4 Taconite 24.3 Mt (M&I) 0.8 Mt (Inferred) Labrador Trough 18km (1) Please see cautionary disclaimer statement on page 2 DSO
  7. 7. Progressive DSO Project Development Low capital intensity, short development cycle … Joyce Lake Schefferville W. Lac Le Fer Other DSOs Ownership  60%  WISCO – 40%  100%  60%  WISCO – 40%  100%  60% Resource  M+I: 24.3Mt  Inf: 0.8Mt  Continued drilling to expand/upgrade resource  Geophysics  Orientation drilling  Resource drill ready  Geophysics  Orientation drilling  Resource drill ready  Exploration PEA  BFS  Target completion 2014 Succeeding DSO projects to sustain a continuous DSO operation with movable equipment designed for possible minimal Capex EIS EA  EIS Target completion 2014  EA Target completion 2015 Production  2Mtpa (target)  Targeting 2015-16 Infrastructure  Joyce Lake road and rail loop for all DSO and future projects  Existing rail and port capacity can accommodate Off take  60% WISCO  100% available  60% WISCO  60% WISCO 7Century Iron Mines Corporation
  8. 8. 8Century Iron Mines Corporation Joyce Lake DSO Deposit 143% increase in M&I resource estimate SGS Mineral Resource Estimate Comparison Summary (at 50% Fe cutoff, in tonnes ) Resource Classification Previous Estimate March 20132 Current Estimate February 2014 % Change Measured (“M”) 5,050,000 18,650,000 + 269 Indicated (“I”) 4,950,000 5,640,000 + 14 M+I 10,000,000 24,290,000 + 143 Inferred 5,600,000 840,000 - 85 1. at 50% Fe cut-off 2. NI 43-101 Technical Report, Joyce Lake DSO Iron Project, Newfoundland & Labrador, April 18, 2013, filed on SEDAR
  9. 9. 9 Post-PEA Drilling Update on Joyce Century Iron Mines Corporation Resource Highlights  M+I resource estimate of 24.3 Mt  Resource model based on 172 holes and 18,845 metres  An aerial extent of 1.1 km strike & 600m width  The mineralization remains open to the south along strike February 2014 Estimate Tonnes3 % Fe % SiO2 % Al2O3 % Mn Measured (“M”) 18,650,000 58.67 13.02 0.55 0.81 Indicated (“I”) 5,640,000 58.14 14.39 0.51 0.54 M+I 24,290,000 58.55 13.34 0.54 0.75 Inferred 840,000 62.00 8.43 0.43 0.78 1. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 2. Within Mineralized envelope, % Fe cut-off on individual blocks. The base case for public disclosure DSO is the statement with cut-off of 50% Fe. 3. Variable SG density (equation derived from core measurements), tonnes rounded to nearest 10,000.
  10. 10. 10Century Iron Mines Corporation Joyce Lake DSO Deposit Preliminary Economic Assessment (March 25, 2013) Pre-tax Post-tax Payback 2.5 years 2.6 years IRR 37% 27% NPV @8% $90.4M $51.8M Based on 100% ownership of the project  2 Mtpa of lump (35%) and sinter fines (65%) production at 62.2% Fe with a mine life of 4 years (first year: 1Mt) as a first stage  Total estimated capital costs (excluding sustaining capital) of C$96.6 million  Total estimated operating costs (loaded in a ship at Port of Sept-Iles) of C$62.8 per tonne of lump and sinter fines  Moving into a planned BFS process based on the new resource Note: The PEA is preliminary in nature. It may incorporate inferred mineral resources which are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There can be no certainty that the estimates contained in the PEA will be realized. In additional, mineral resources that are not mineral reserves do not have demonstrated economic viability. PEA based on 10,000,000 tonnes estimated March 25, 2013 Resource Classification March 20131 Estimate February 2014 Estimate % Change Measured (“M”) 5,050,000 18,650,000 + 269 Indicated (“I”) 4,950,000 5,640,000 + 14 M+I 10,000,000 24,290,000 + 143 Inferred 5,600,000 840,000 - 85 1. At 50% Fe Cutoff, in tonnes 2. NI 43-101 Technical Report, Joyce Lake DSO Iron Project, Newfoundland & Labrador, April 18, 2013, filed on SEDAR. Post PEA Resource Estimate Comparison
  11. 11. 11Century Iron Mines Corporation Joyce Lake Preliminary Economic Assessment FOB Operating Cost (Note 1) $/tonne Mine 21.40 Crushing & Screening Plant 4.35 General and Administration 6.85 Product Hauling 2.82 Rail Yard Operation 0.86 Rail Transportation 22.36 Port Handling 4.16 Total Opex FOB, Sept Iles 62.80 Capital Cost $ millions Joyce Lake Mine 10.8 Crushing & Screening Plant 10.5 Railroad and Yard (1) 10.3 Rail Cars (2) 20.4 Haulage Road and Infrastructure (1) 24.3 Trucks (2) 6.7 Total Direct Cost 83.0 Indirect Cost at 10% of Direct (excluding mobile equipment) 5.6 Contingency 10% of Direct Cost 8.0 Total Project Cost 96.6 Highlights: Infrastructure benefiting future operation (1) 34.3 Trucks & Ore Cars (leasable) (2) 27.0 .. A bite-size project within reach of balance sheet & market cap Highlights: 2.0 Mtpa of lump (35%) and sinter fines (65%) production at 62.2% Fe with a mine life of 4 years (first year: 1Mt) as a first stage PEA FOB price assumptions: Lump $ 108/t Sinter fines $ 93/t Note 1: Opex is estimated on FOB Sept Iles basis Note 2: Based on 100% ownership of the project
  12. 12. Joyce Lake Development Roadmap 2013 2014 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Environmental Studies Feasibility (BFS) EA/Permitting & IBA Construction & Overburden removal/ Mining & Pre-Production Commercial Production & Shipping 12Century Iron Mines Corporation 2014 Catalysts Completion of Environmental Impact Study on Joyce Lake Bankable Feasibility Study for Joyce Lake
  13. 13. Helluva Joyce Lake Prudhomme DSO Beyond Joyce Lake A number of DSO targets under exploration Lac Le Fer Area Joyce Lake Area Schefferville West Area
  14. 14. LLF P3 DSO Target, Mag and Gravity Completed Holes Proposed Holes Completed Holes LLF-P3-004 62.3% FeT/45.0m (ended in IF) LLF P3 DSOLLF-P3-004 Assay result Sample ID From to Length (m) TFe % 502509 3 9 6 9.48 502510 9 12 3 52.5 502511 12 15 3 56.3 502513 15 18 3 58.5 502514 18 21 3 60.5 502515 21 24 3 60.8 502516 24 27 3 64.5 502517 27 30 3 64.7 502518 30 33 3 64.6 502519 33 36 3 65.3 502520 36 39 3 64.6 502521 39 42 3 64.7 502522 42 45 3 66.2 502523 45 48 3 65.5 502524 48 51 3 67.1 502526 51 54 3 58.3 Naturally enriched >62% grade & good thickness Century Iron Mines Corporation 14
  15. 15. Schefferville West: Red Dragon DSO target Re-trenching and exploratory drilling  Three gravity anomalous belts are delineated, length at 5 – 12 km long; corresponding to leached BIF;  Two correlated to magnetic low;  High grade mineralized ore exposed;  Two RC holes encountered 12-15 m >60% TFe zone. Century Iron Mines Corporation 15 Redmond  Easier access and close to the railway  Close to LIM’s Redmond Mine  Further exploration planned in 2014
  16. 16. Full Moon Taconite Deposit, Rainy Lake First Resource Estimate by SRK Century Iron Mines Corporation 16  Resource model based on 124 diamond holes on 22,900 meters (out of total 2010-12 total drilling of 30,941 meters over 148 diamond holes;  An update resource estimate to come upon complete results on all holes modeled & analyzed  11km strike length (open both to the north & south of the Deposit) & up to 4km across  Combined true thickness of iron ore units often exceeds 200m * Mineral Resource Evaluation, Full Moon Taconite Iron Deposit SRK Consulting,, Jean-Francois Couture, December 6, 2012 Mineral Resource Estimate* (at 20% Fe cutoff – December 6, 2012) Resource category Billion tonnes Grade TFe% Indicated 7.260 30.18 Inferred 8.694 29.86 Resource Highlights
  17. 17. Transportation – Iron Projects in Labrador Trough Sept-Iles Pointe-Noire Port-Cartier Ross Bay Junction Mont-Wright Labrador City Schefferville Sunny Lake Attikamagen Railway Distance: Schefferville to Ross Bay Junction: 217 km Ross Bay Junction to Sept-Iles: 356 km Labrador City to Ross Bay Jct: 58 km Mont-Wright to Port Cartier: 400 km 0 50 100 km Adriana (WISCO) Altius Projects  QNS&L (Common Carrier) runs 573km from Schefferville to Sept-Iles  Attikamagen to Schefferville: 15km (from the closest point)  Joyce Lake targets 1-3Mtpa DSO • Using existing Railroad infrastructures: QNS&L & TSR  Rainy Lake (Full Moon) targets 20Mtpa+ Full Moon Lac Le Fer Joyce & Hayot Century Iron Mines Corporation 17
  18. 18. Port of Sept-Iles: 50Mtpa Expansion  Main port is over 23.2 m in depth  Accommodates Capesize or larger vessels  Fully equipped, can be operated year- round  50Mtpa $220M expansion plan to be completed in 2014 with more than $100M in commitments from miners and governments, $55M from federal government Alumina Plant Multi user Berth By Port of Sept-Iles • Natural shelters, deep water for year-round access by iron ore ships • Ability to expand as required 0 500 m IOC Port Century Iron Mines Corporation 18
  19. 19. Sandy Chim President & CEO Peter Jones, Executive VP, Mine Development & Logistics Ivan Wong, SVP Corp Finance & Project Development Rebecca Ng, CFO Claude Britt, Chief Geologist Michael Skutezky, General Counsel & Corporate Secretary Bob Leshchyshen, VP, IR & Corporate Development Management Gearing up for 2015-6 production & beyond Century Iron Mines Corporation 19 New iron ore mine development Resource discovery & development China steel mill & iron ore trading Capital market & building materials Iron ore mining & logistic operations Corecompetence,expertise andexperience
  20. 20.  Low capital intensity 2Mtpa DSO production Joyce Lake Project within reach of balance sheet and market cap  Global Fortune 500 Strategic Partners (WISCO & Minmetals) / Off-takers from China – A proxy for China  Top 10 iron resource company in the world providing economic and strategic value for China … second phase longer term development on high volume taconite projects  Management with track record of performance – managed through the last part of cycle well to put company in a strong cash position in a very tough market  Trading below working capital / cash in JV – large valuation gap Summary Century Iron Mines Corporation 20
  21. 21. What sets Century Iron Mines apart Projects • Labrador Trough • Long history as mining camp with operating infrastructure • Joyce Lake (DSO) • PEA  BFS • ~20km to Schefferville / rail • EIS  permit 2014 • Targets 2Mtpa on >$100M capex – bite size • Other DSO targets & high volume deposits along strike • Global Fortune 500 Strategic partners: WISCO & Minmetals Products • DSO (Direct Shipping Ore) – • One of most popular products for blast furnaces • Off-take: 60% WISCO, with balance available to other strategic partners (Minmetals) & traders • Concentrate & pellet products over the long term Competitiveness • Bite-size DSO projects • Low capital intensity • Quick to production • Reasonable cost • 2Mtpa – existing infrastructure can accommodate Capital • $>$100M capex • $50M working capital on balance sheet • Received an additional $20M (Sept) from WISCO by JV 21Century Iron Mines Corporation
  22. 22. 22Century Iron Mines Corporation Appendices
  23. 23. 23Century Iron Mines Corporation Comparable Table (based on total resources) Prepared by: Bob Leshchyshen, MBA, CFA (1) Adriana: Wisco has 60% interest in the property (2) New Millennium: Tata Steel has 80% interest in all the properties except Lac Ritchie (3) Cliffs: WISCO has a 25% interest in Bloom Lake (4) Century: Auguyva has 35% in Duncan Lake and WISCO has 40% interest in all of the other properties. (5) Rio Tinto plc has a 58.72% in IOC, Mistibishi has 26.18% interest and Labrador Iron Ore Royalty Corp. has a 15.1% interest. (6) Alderon: Hebei Iron & Steel Group Co. Ltd has a 25% interest in Kami iron project. Companies in the Labrador Trough NI43-101 Resources Disclosed Stock (Mils) tonnes Proven & Measure Symbol NI43-101 Resource Estimates Probable & Indicated Inferred Total ADI Adriana Resources Inc. (1) 0 20,640 6,840 27,480 NML New Millennium Capital Corp. (2) 5,750 14,048 4,405 24,203 CEV Cap-Ex Ventures Ltd. 0 0 7,200 7,200 CHM Champion Iron Mines Ltd. 0 858 3,997 4,854 FEO Oceanic Iron Ore 1,359 1,268 193 2,821 ADV Alderon Resource Corp. (6) 669 1,275 523 2,466 LIM Labrador Iron Mines Holdings Limited 0 44.6 5.2 49.8 Major Iron Companies MT ArcelorMittal (including Baffinland) 2,340 4,903 1,510 8,753 CLF Cliffs Natural Resources (3) 649 1,976 711 3,336 RIO Rio Tinto plc (IOC) (5) 1,374 1,091 1,372 3,837 FER Century Iron Mines Corp. (4) Duncan Lake 0 1,051 563 1,614 Joyce Lake 0 24.3 0.8 25.1 Hayot Lake 0 0 1,723 1,723 Rainy Lake 0 7,260 8,694 15,953 Total FER 0 8,335 10,980 19,315 Total all companies 12,141 54,437 37,736 104,314
  24. 24. 24Century Iron Mines Corporation Comparable Table (based on attributable resources) Prepared by: Bob Leshchyshen, MBA, CFA Companies in the Labrador Trough Attributable Tonnes Contained FE tonnes Fe% Fe% Fe% Stock (Mils) tonnes Proven & Measure Proven & Measure Proven & Measure Symbol NI43-101 Resource Estimates Probable & Indicated Inferred Probable & Indicated Inferred Probable & Indicated Inferred Total ADI Adriana Resources Inc. (1) 0 6,145 2,038 0 28.94% 30.40% 0 2,402 832 3,234 NML New Millennium Capital Corp. (2) 1,757 4,140 1,303 30.55% 29.63% 30.31% 351 2,496 813 3,661 CEV Cap-Ex Ventures Ltd. 0 0 2,102 0 0 29.20% 0 0 2,102 2,102 CHM Champion Iron Mines Ltd. 0 172 1,670 0 30.58% 28.49% 0 277 1,105 1,382 FEO Oceanic Iron Ore 438 410 64 32.21% 32.36% 32.90% 438 410 64 912 ADV Alderon Resource Corp. (6) 197 378 154 29.52% 29.68% 29.45% 148 284 115 547 LIM Labrador Iron Mines Holdings Limited 0.0 25.2 2.9 0 56.45% 55.42% 0.0 25.2 2.9 28.0 Major Iron Companies MT ArcelorMittal (including Baffinland) 809 1,471 603 34.56% 30.00% 39.94% 809 1,471 603 2,883 CLF Cliffs Natural Resources (3) 198 595 20 30.55% 30.11% 28.60% 155 534 20 709 RIO Rio Tinto plc (IOC) (5) 522 417 521 38.00% 38.21% 38.00% 307 245 306 858 FER Century Iron Mines Corp. (4) Duncan Lake 0 256 139 0 24.39% 24.70% 0 167 90 257 Joyce Lake 14.2 0.5 0 59.45% 55.78% 0.0 8.7 0.3 9.0 Hayot Lake 0 0 538 0 0 31.25% 0 0 323 323 Rainy Lake 0 2,191 2,596 0 30.18% 29.86% 0 1,315 1,558 2,872 Total FER 0 2,462 3,274 0 29.45% 29.81% 0 1,490 1,971 3,461 Total all companies 3,921 16,216 11,753 32.30% 29.79% 31.14% 2,207 9,634 7,935 19,777
  25. 25. 25Century Iron Mines Corporation Comparable Table (based on attributable resources) Prepared by: Bob Leshchyshen, MBA, CFA FE EV P&P FE Close Market Enterprise M&I EV/ Total* EV/ Stock 12-Mar 52 week Shares Cap Cash Value mils FE mils FE symbol Name 2014 Low High O/S (mils) $mils ($mils) ($mils) tonnes tonne tonnes tonne NML New Millennium Capital Corp. $0.45 $0.47 $1.17 180.0 $81.0 $8.0 $73.0 2,847.8 $0.026 3,660.9 $0.020 ADI Adriana Resources Inc. $0.225 $0.155 $0.385 157.6 $35.4 $50.9 ($15.5) 2,401.9 ($0.006) 3,233.6 ($0.005) CEV Cap-Ex Ventures Ltd. $0.045 $0.040 $0.285 97.8 $4.4 $1.0 $3.5 0.0 n/a 2,102.4 $0.002 CHM Champion Iron Mines Ltd. $0.34 $0.155 $0.43 137.9 $46.9 $8.1 $38.8 276.7 $0.140 1,381.7 $0.028 FEO Oceanic Iron Ore Corp. $0.095 $0.08 $0.20 196.6 $18.7 $8.1 $13.7 848.2 $0.016 911.9 $0.015 ADV Alderon Resource Corp. $1.62 $0.88 $2.13 130.1 $210.8 $113.8 $97.0 431.7 $0.225 547.2 $0.177 $397.3 $190.0 $210.5 6,806.3 $0.031 11,837.7 $0.018 FER Century Iron Mines Corp. $0.58 $0.30 $0.72 98.9 $57.3 $33.2 $24.1 1,489.9 $0.016 3,461.2 $0.007 *Total includes Proven and Probable, Measure and Indicated and Inferred Resources.
  26. 26. 26Century Iron Mines Corporation Century Iron Mines Corporation Bob Leshchyshen VP, Corporate Development and IR (416) 977-3188 Ext. 109 bob.leshchyshen@centuryiron.com CHF Investor Relations Robin Cook Senior Account Manager (416) 868-1079 Ext. 228 robin@chfir.com Contact Information

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