Karl-Axel Waplan   President & CEONorthland Resources
Europe’s Premium Iron Ore Miner                                       Mines and Money, London 2012                        ...
Mining has Commenced                 Karl-Axel Waplan, President and CEO at                      Northland (left) and the ...
Europe’s Premium Iron Ore Miner                                                                                 1    Kauni...
A Differentiated Investment Opportunity                                                  Existing                         ...
Listed in Toronto and Oslo           Share Price Development                                           Share Overview     ...
Shareholders and Analysts                                     Shareholders                                       Analyst c...
From Bog to Mine in Two YearsOctober 2010October 2011          September 2012                  9
Recent Development in Kaunisvaara                                                            Top left, the first          ...
Strong Logistical Chain                                                Cool, local design on the trucksOverview of the Pit...
Spiral Discharge System                                              Rail cars are being                                  ...
100% controlled Fagernes Terminalwill Handle Cape-size Vessels                                    27                  13
Benefitting from Existing    Transportation and Logistics Network                   Port of Narvik                        ...
Building a Strong Corporate Culture              Technology can be copied and used elsewhere.  However, it is the unique c...
Support from Central Government                          “Mining is for Sweden what oil is                          for No...
A Stable and Thriving Local Community                                  600 new                                homes will  ...
Production to Reach 4 dmtpa in Q3 2014          Tapuli mine and Kaunisvaara plant:                                Product...
Kaunisvaara Concentrate –Quality Leader                        Low silica and alumina content lead to                     ...
Off-take Agreementsfor 100% of Production Partner                   Agreement details                             Agreeme...
Phase 2 of our Growth Strategy –Pellivuoma                         Located approximately 15 km west of Kaunisvaara       ...
Phase 2 of our Growth Strategy –Hannukainen    Brownfield project located in Northern Finland    Open pit mine operated ...
Funded to Reach Production                  First production in November 2012   On-track to    Expected positive cash flow...
Company Spotlight: Northland Resources
Company Spotlight: Northland Resources
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Company Spotlight: Northland Resources

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by Karl-Axel Waplan, CEO, Northland Resources.

Presented at Mines and Money London 2012.
www.minesandmoney.com

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Company Spotlight: Northland Resources

  1. 1. Karl-Axel Waplan President & CEONorthland Resources
  2. 2. Europe’s Premium Iron Ore Miner Mines and Money, London 2012 Karl-Axel Waplan, President and CEOPlease see Cautionary Statement on last slide 4 December 2012
  3. 3. Mining has Commenced Karl-Axel Waplan, President and CEO at Northland (left) and the Governor of Norrbotten, Mr. Sven-Erik Österberg set off the first iron ore blast in Kaunisvaara.October 2012 4
  4. 4. Europe’s Premium Iron Ore Miner 1 Kaunisvaara: Tapuli and Sahavaara, Sweden (100%) Norway  On-track for first production in Q4 2012 and Narvik first shipment in Q1 2013 Finland  Ramping up to ~4 dmtpa* in Q3 2014 Pellivuoma 3  High grade, low impurity iron ore concentrate Kiruna 3 2 2 Hannukainen 1 Tapuli Kolari Gällivare Sahavaara 2 Potential Production upside Pajala Sweden  Pellivuoma, Sweden (100%) – DFS completion targeted in early 2013 Rovaniemi  Hannukainen, Finland (100%) – DFS completion targeted in early 2013 Kemi Tornio Sweden Finland Norway 3 Extensive Exploration Targets Luleå Oulu  Kupari Rautuvaara  Rautuoja Kaunisvaara Project Mineral Deposits  Untested but identified targets in Kaunisvaara area Rail Road Cities and Communities Existing Mines Kaunisvaara is on-track to start production in the end of November 2012. Northland has material production upside from Pellivuoma, Hannukainen as well as a portfolio of approximately 20 highly prospective exploration targets* Dry million tonnes per annum 5
  5. 5. A Differentiated Investment Opportunity Existing infrastructure On-track to reach and skilled production in workforce in an Q4 2012 established mining region Significant upside potential Blue-Chip from approximately Management 20 highly team has prospective experience exploration developing targets mines Benefits Outlook for of partnering iron ore with high quality market suppliers/ remains High quality iron contractors attractive ore concentrate based expected to regionally achieve a significant price premium 6
  6. 6. Listed in Toronto and Oslo Share Price Development Share Overview Toronto, Stock Symbol NAU NAU / NAUR Toronto Stock Exchange / Oslo Børs Current Share Price* CAD 0.75/ NOK 4.16 Indices MSCI NORWAY INDEX Shares issued 514,178,899 Options 12,660,000 Warrants (Standard Bank) 1,697,995 Oslo, Fully diluted 528,536,894 NAUR CAD 385.6m/ Market Cap* NOK 2,151m (USD 373.2m) CAD 0.56 – 2.05 52 week trading range* NOK 3.35 – 12.45 Bonds NORES01 / NORES02 Oslo Børs* Market Cap based on closing prices onNovember 13, 2012 on TSX and OSL 7
  7. 7. Shareholders and Analysts Shareholders Analyst coverage / Recommendation Rank Holding % Institution Arctic Securities / Buy Kenneth Sivertsen 1 49,245,906 9.6 Avanza Bank AB (Custodian bank) Credit Suisse / Neutral Nathan Littlewood 2 35,232,269 6.9 Deans Knight Capital Mgmt DnB NOR Markets / n.a. Sampsa Karhunen 3 29,950,130 5.8 Handelsbanken, SWE+FIN (Custodian) First Securities / no recomm. Henrik Madsen 4 24,048,741 4.7 Nordnet Bank (Custodian bank) Goldman Sachs / Buy/attractive Fawzi Hanano 5 22,481,088 4.4 Henderson Global Investors GMP Sec / Buy Matt Fernley 6 16,750,361 3.3 SEB, SWE-FIN (Custodian bank) 7 15,318,352 3.0 Swedbank (Custodian bank) Handelsbanken / Accumulate Fredrik Agardh 8 12,885,284 2.5 Pohjola Bank Haywood Sec. / Sector outperf. Colin Healey 9 11,965,814 2.3 Holberg Funds Ocean Equities / no recomm. Adam Lucas 10 11,900,000 2.3 Kommunal Landspensjon Morgan Stanley / Overweight Eric Zaunscherb 11 10,842,188 2.1 DNB Funds Nordea / Hold Johannes Grasberger 12 10,551,842 2.0 Investec Asset Management Pareto Sec / Buy Thomas Aarrestad 13 10,300,000 2.0 Fondsfinans Spar SEB Enskilda / Buy Harald Hornes Øyen 14 8,140,000 1.6 Texas Teachers 15 6,785,400 1.3 Finnish Industry Investment Société Générale / Buy Abishek Shukla ∑ 276,397,375 53.8 TD Securities / Hold Craig MillerNorthland compiled data using internal sources,Oslo Børs and VPS as of November 2012 8
  8. 8. From Bog to Mine in Two YearsOctober 2010October 2011 September 2012 9
  9. 9. Recent Development in Kaunisvaara Top left, the first blast for iron ore in Tapuli. The primary crusher and the conveyor belts started in November and next – the commissioning of the process plant.Kaunisvaara Process Plant beginning of November 2012 10
  10. 10. Strong Logistical Chain Cool, local design on the trucksOverview of the Pitkäjärvi trans-loadingterminal, (mid-September 2012) Storage facilities in Pitkäjärvi will be heated Local rail tracks are now connecting the terminal with the national rail network 27 11
  11. 11. Spiral Discharge System Rail cars are being manufactured in Kiruna Spiral discharge system will be used at the Port of Narvik 27 12
  12. 12. 100% controlled Fagernes Terminalwill Handle Cape-size Vessels 27 13
  13. 13. Benefitting from Existing Transportation and Logistics Network Port of Narvik 1  SEK 1.3 bn will ensure the capability of existing 150 km public road from Kaunisvaara to Pitkäjärvi  Swedish Transport Administration expected to Roadway grant dispensation for 90 tonne trucks 2  New trans-loading terminal at Pitkäjärvi will Narvik provide access to railway 1 Finland 3 Kolari Pajala 2  Existing 226 km Malmbanan “the Ore Railway” has capacity to meet projected demand Pitkäjärvi  Railway owned by Swedish state and is “open Railway access”, requested four slots have been granted  SEK 1.3 bn will be invested by the Swedish Norway Government to upgrade and increase capacity Kaunisvaara Luleå Sweden 3  Port Authority agreement for use of existing port0 25 50 100 km  Northland is constructing a new iron ore terminal Seaport with heated storage facility (Narvik)  10 million tonnes capacity Trucking Route Rail Route  Uncongested port can take Capesize vessels and is ice-free all year round Well-maintained, existing infrastructure, with good accessibility 14
  14. 14. Building a Strong Corporate Culture Technology can be copied and used elsewhere. However, it is the unique composition of individuals in a company that creates competitiveness. Northland offers a unique pioneering spirit We have room for new ideas Many career paths encourage self-development Tough challenges that require skills and personal drive 15
  15. 15. Support from Central Government “Mining is for Sweden what oil is for Norway” Sweden’s Prime Minister, Mr. Reinfeldt ”Gruvnäringen är för Sverige vad oljan är för Norge”, statsminister Fredrik Reinfeldt “… we are working in parallel with a study on how the logistics solution can be solved in short as well long term”Mrs. Elmsäter-Svärd, Minister for Infrastructure Ministry of Enterprise and Energy, on the probability of a railway to Kaunisvaara ”... vi arbetar parallellt med att se hur transportlösningen ska se ut på såväl kort som lång”, infrastrukturminister Catarina Elmsäter-Svärd 16
  16. 16. A Stable and Thriving Local Community 600 new homes will strengthen the Pajala municipality – creating a stable and thriving local community Hbwebben.se, Sep 11, 2012 NSD, Sep 6, 2012 NSD, Sep 6, 2012 17
  17. 17. Production to Reach 4 dmtpa in Q3 2014  Tapuli mine and Kaunisvaara plant: Production Pipeline – On track to start production in Million tonnes Upside potential from November 2012 and make first Pellivuoma, Hannukainen and exploration properties customer shipments in Q1 2013 5 – Production target 2013: 1.4 dmt1) 4 – to reach 4 dmtpa2) in Q3 2014 3  Sahavaara production will commence in late 2016, while Tapuli production is 2 scaled down  Potential production upside from 1 development of Pellivuoma, Hannukainen and additional 0 exploration properties 2013 2014 2015 2016 2017 Tapuli Kaunisvaara Sahavaara 271)Dry million tonnes, 2) Dry million tonnes per annum 18
  18. 18. Kaunisvaara Concentrate –Quality Leader Low silica and alumina content lead to lower flux additions, less slag and lower energy consumption Northland 19
  19. 19. Off-take Agreementsfor 100% of Production Partner Agreement details  Agreement signed November 2010 for delivery of up to ~3 mtpa of iron ore pellet feed for at least 10 years  Pricing to take into account the high product quality  The parties will co-ordinate and co-operate in marketing and sales activities  Agreement signed October 2010 for delivery of ~1dmtpa of magnetite concentrate over 7 years  Pricing to take into account the high product quality  Agreement signed in June 2010 for delivery of ~1 mtpa of magnetite concentrate for 8 years from 2012  Pricing to take into account the high product quality Offtaker commitment to Northland is evidenced by financial commitments from Standard Bank (USD 40m Cost Overrun Facility) and Stemcor (Letter of Intent signed for USD 50m) 20
  20. 20. Phase 2 of our Growth Strategy –Pellivuoma  Located approximately 15 km west of Kaunisvaara  The deposit has the potential to make a significant contribution to the resource tonnage of the Kaunisvaara area  Potential scenarios include an increase in the production of high grade concentrate, or an extension of the life of the Kaunisvaara operation in combination with an increase in production  Definitive Feasibility Study is underway and is expected to be completed early 2013Photos: Erik Karlsson 21
  21. 21. Phase 2 of our Growth Strategy –Hannukainen  Brownfield project located in Northern Finland  Open pit mine operated by Rautaruukki and Outokumpu during the 1970s and 1980s  Planned production rate of 2 million tonnes per annum of 68% Fe iron ore concentrate  Copper/gold concentrate by-product will be a major revenue contributor  Definitive Feasibility Study completion scheduled for the beginning of 2013 22
  22. 22. Funded to Reach Production First production in November 2012 On-track to Expected positive cash flow as of end of Q2 2013 reach production in High-quality concentrate shipped to customers Q4 2012 in Q1 2013 23

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