Century Iron Mines Corporation | Corporate Presentation | November 2012
Speaker: Sandy Chim, C.A., Director, President and Chief Executive Officer
Company Information:
as of Nov 2012
TSX Venture: FER
52-Week high/low: C$0.92-C$2.50
Market Cap: C$97.0m
Recent Price: C$1.02
Shares: 94.9 million
Fully Diluted: 103.8 million
Website: www.centuryiron.com
Century Iron is Canada’s largest holder of iron ore land claims in a public company, with interests in several properties in the Provinces of Quebec and Newfoundland & Labrador. Century’s vision is to exploit its large property asset base to become one of the country’s largest iron ore producers.
Century has structured a unique strategic formula to pave the way to achieving its vision: It has attracted
WISCO and MinMetals, two of the largest Chinese state-owned enterprises, as equity investors and strategic partners (25% and 5% respectively). WISCO is a further 40% JV investor in individual projects, and these partners have committed to 60‑70% off-take agreements for future product. They will also procure to provide up to 70% of production capex on positive feasibility, in the form of nondilutive debt financing for the Canadian company.
1. Century Iron Mines Corporation
Corporate Presentation November 2012
The largest iron ore resource (attributed) & iron claims owner & developer
www.centuryiron.com Sustainable Development TSX: FER
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 2
3. Iron Ore Price Trend Update
Monthly Average Spot Price (1) Price pressure:
(62%Fe CFR Tianjin) Construction industry
200 slowdown—result of months of
$122/t
(16 Nov, 2012)
property price inflation controls
180
Low steel prices squeezing
160 margins on mills
140 Destocking—accelerated by
transformation from CIF spot to
US$ per tonne
120
physical spot
100 No recovery in export markets
80
(especially Europe)
60
Positive outlook:
1 trillion RMB fiscal program
40 announced
20 FOB Spot CRF Tianjin New leadership continuing
domestic/fixed asset
0
investment‐driven policy
Oct-07
Jan-08
Apr-08
Oct-08
Jan-09
Apr-09
Oct-09
Jan-10
Apr-10
Oct-10
Jan-11
Apr-11
Oct-11
Jan-12
Apr-12
Oct-12
Jul-08
Jul-09
Jul-10
Jul-11
Jul-12
Prices still at historic highs
compared with pre‐crisis level
(1) FOB annual benchmark price prior to Q4 2008; thereafter CIF spot price
Century Iron Mines Corporation 3
4. Half the world is growing
Crude Steel Production
Increase 2011 vs. 2012
China and India (half of 7.00%
(Jan – Aug)
world production) are 6.00% 5.71%
growing and the other
half shrinking overall 5.00%
Developing countries 4.00%
taking the lead going
3.00%
forward
Jan-Aug Jan-Aug Increase 2.00%
(‘000 tonnes) 2011 2012 % 1.22%
China 470,855 476,615 1.22% 1.00% 0.60%
India 47,956 50,696 5.71% -0.49%
ROW 493,377 490,948 -0.49% 0.00%
Global 1,012,188 1,018,259 0.60% -1.00% China India ROW Global
Century Iron Mines Corporation 4
5. Developing Countries
Driving Future Steel Growth
Mtpa Over the next 10 years:
Developing economies drive growth ROW China India
2500 Ex-China developing countries contribute 1/3 813 2303
of global growth and > 1/2 of China’s growth 92 164
for the same period
2000 China, though slowing down, still contributes 475
58% of tonnage growth
640 1490 246 1158
1500 51 72
532 683
1000
850 21 57 Other
151 developing 177
500 economies
981
678 735 Developed
economies 69
0
2001 2001-2011 2011 2012-2021 2021 (CRU)
Growth Growth (CRU)
Century Iron Mines Corporation Source: World Steel Association, CRU, Century 5
6. China’s growing reliance on imports
Buying 70% of seaborne iron ore
Iron ore imports to China as % of total
consumption—12-month rolling
Under the current
comparison Five Year Plan,
90.0% “China targets
80.0%
70.0% to import 50%
60.0%
50.0% of its iron ore
40.0%
30.0% from Chinese-
20.0%
10.0%
owned mines
0.0% elsewhere in the
world”
(CISA)
61.4%
2010-11 61.4 2011-12 65.6%
Century Iron Mines Corporation 6
7. Financial Highlights & Capital Structure
Financial highlights (Sept. 30, 2012)
Cash and cash equivalents $41,442,432
(Closed first WISCO JV, received $20M Sept 27, 2012)
Exploration and evaluation assets $42,846,544
Investment in joint venture $59,548,098
Capital structure (Nov 13, 2012)
Shares outstanding 94,864,071
Warrants and options (@$2.92) outstanding 8,954,027
Fully diluted 103,818,098
Share Price $1.03
Market capitalization (approximately) $98 million
Share structure
Founding shareholders and management (voluntary lock-up) 53.94%
WISCO (approx. 25%) and MinMetals (5%) – Strategic Partners 30.00%
Public shareholders 16.06%
Total 100.00%
Century Iron Mines Corporation 7
8. Corporate Structure & Project
Iron Ore Projects
20Bt resources under management
Approx. Approx.
WISCO 25% 5% Full Moon
International
Century Minmetals
Resources Exploration &
Development Iron Mines Development
3
& Investment Corporation (Luxembourg) Hayot
Ltd (PRC) (TSX: FER) Limited S.à.r.l
Joyce
$120M 40% 60% 100% 2
to earn in
40% JVs Four projects
60% Off-take acquired from
70% capex to Altius Minerals Inc.
fund in debt Joint Venture (TSX: ALS) 4
Champion Iron 40-44%
56-60% 51-65% Augyva Mining
35-49% 4
Mines Ltd. (Note 2) (Note 1) Resources Inc.
(TSX: CHM) 100% (TSXV: AUV)
Attikamagen Sunny Lake Duncan Lake
Project Project Project
2 3 1
(in Billions of tonnes)
NI 43-101 James Bay Area
Hayot Full Moon Duncan Total
Resources
Measured &
indicated - 7.3 Bt 1.1 Bt 8.4 Bt 1
Duncan Lake
Inferred 1.7 Bt 8.7 Bt 0.6 Bt 11.0 Bt
Note 1: Currently a 51% registered interest has funded to a 65% interest under an option and joint venture agreement with Augyva Mining Resources Inc.
Note 2: Currently a 56% registered interest and has funded to a 60% interest under an Option/JV Agreement with Champion Iron Mines Inc. 8
9. Financing Strategy Illustration
A User-Banker Model With Strategic Partner
6000 Production Capex: $5B
5150 Shared pro-rata JV
600
5000 financing with SOE
900 12%
in millions of $
Fund source from
18% SOE strategic
4000 partnership
3500
Total project
70% development &
3000
production cost
FER financing
2000
Profile raising $600M
BFS
1000 70% debt financing
60-70% product presold
50 100 Lead order of $900M from
0 partner (top up)
FER valuation supported by
BFS & very substantial
resources/reserves
Century Iron Mines Corporation 9
10. Project Development Roadmap
A strategy of progressive development of 18Bt well located resources
Executed by a mining team with outstanding track record
Targeting a 100Mpta strategic partner & 700Mtpa end user country
(conceptual illustration)
Full Moon Taconite 30
4 7.3 Bt (M&I) Production Full Moon
8.7 Bt (Inferred) Mtpa Target High Volume
25
3 4
Lac Le Fer DSO
20
15
2 Hayot
Taconite DSO
DSO 10
1.7Bt (Inferred) Joyce
Joyce
18.5km Closest distance 3
5 Target 1mtpa
1 2
Schefferville 1 DSO
0
TSH & 2014 2015 2016 2017 2018
QNSL Rail
Labrador Tough to Sept Iles DSO Taconite
DSO Taconite project along strike
From closest low capex high grade DSO projects (target 2015) to high volume & capex taconite
Century Iron Mines Corporation 10
11. Schefferville Projects: Location & Geology
Proven classic iron formation in a mining camp
Adriana (WorldLink & WISCO)
Otelnuk MI&I 11.35 Bt @
Deposit*
28.9% Fe (average)
7.3 Bt @ 33.18% Fe (M&I) Labrador
8.7 Bt @ 29.86% Fe (Inf) Trough
Central Section, Labrador
Trough
Knob Lake Group
Full Moon Deposit
Rainy Lake Section Full Moon: Taconite
Sokoman Iron Formation,
equivalent to Wabush Iron
Formation at South
Lac Le Fer Section
New Millennium (Tata Steel) Prospect 3: DSO
MI&I 3.46 Bt @ 31.24%
Attikamagen Hayot 1.72 Bt @
Fe (average) KéMag*
31.25% Fe (average)
MI&I 5.13 Bt @ 29.4% LabMag* Joyce Lake: DSO
Fe (average) Hayot Lake: Taconite
DSO Projects:
Tata Steel investing Century’s
up to C$300m
Schefferville
Projects
* Information regarding reserves, resources and production capacity are from management and publicly available sources including press releases and NI 43-101 technical reports filed on
www.sedar.com. Century has not confirmed the resource and reserve data and it cannot be relied upon.
Century Iron Mines Corporation 11
12. Attikamagen – Joyce Lake: DSO
Target 2015 Production Confirming grades & thickness
Selected Composite Assay results
L5N L4N L3N L2N Joyce Lake From To Core* Grade
L1N Hole No. (m) (m) Length (m) FE%
L0 JOY-11-06 3 142 139 52.80
includes 96 138 42 64.19
JOY-11-07 12 93 91 52.46
includes 12 54 42 65.26
JOY-11-23 2 129 127 50.65
includes 48 81 33 61.15
and 102 114 12 66.28
2011: drilled 40 holes totalling 5,159 m
* Core lengths are down hole length and not true widths of the
mineral zones.
More typical grades & thickness
Selected Composite Assay results
Joyce Lake From To Core* Grade
Hole No. (m) (m) Length (m) FE%
JOY-12-85 90 132 42 59.80
JOY-12-103 63 102 39 61.02
JOY-12-104 57 123 66 62.75
JOY-12-105 72 93 21 66.40
JOY-12-107 39 75 36 63.52
JOY-12-110A 105 129 24 62.05
JOY-12-111 93 150 57 66.72
JOY-12-117 117 150 33 63.41
2012: drilled 74 holes totalling 7,807 m
Century Iron Mines Corporation 12
13. Drill Sections at Joyce Lake DSO Prospect
Line 4+50N
Line 4N
Line 3+50N
OBD
Mixed
Line 3N
TFe 32%
Trench near Joy 12-65
Leached
DSO TFe > 64%
Line 2N
Century Iron Mines Corporation 13
16. Full Moon Taconite Deposit, Rainy Lake
First Resource Estimate by SRK
SRK Mineral Resource Estimate Summary
(at 20% Fe cutoff – October 22, 2012)
Resource category Billion tonnes Grade TFe%
Indicated 7.260 30.18
Inferred 8.694 29.86
Resource Highlights
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
Century Iron Mines Corporation 16
17. Full Moon Deposit
Thicker than usual, better economics
2.75km Section Line 0
29.0% 31.3% 29.1% 30.4% 30.2% 28.4% 27.9% Usual taconite
115m 152m 234m 272m 224m 341m 242m thickness 100m
Iron Ore Units
Iron Ore Units
Iron Ore Units
Century Iron Mines Corporation 17
18. Hayot Lake Iron Project
Mineral Resource Statement Sept 25, 2012
Volume Quantity Grade
Domain
(Mm3) Mt SG TFe %
Inferred Mineral Resources
LC 60.8 178.8 2.94 23.92
JUIF 125.6 414.9 3.31 31.99
URC 162.6 536.3 3.3 32.89
PGC 100.2 328.8 3.28 32.10
LRGC 80.5 264.4 3.28 31.27
TOTAL 529.6 1,723 3.25 31.25
LC
JUIF Reported at a cut-off grade of 20% total iron inside a
URC conceptual pit envelope optimized considering
PGC LRGC reasonable open pit mining, processing and selling
technical parameters and costs benchmark against
similar taconite iron projects and a selling price of
US$110 per dry metric tonne of iron concentrate.
Century Iron Mines Corporation 18
19. Further Potential of Altius Projects
The Altius iron ore package has been
divided into four broad groups based on
the geology and iron ore target type:
Schefferville: potential for direct-shipping ore
(DSO) comprised of soft red hematite-goethite
typical of what was previously mined (and
currently being re-opened) in the Schefferville
camp; also potential for taconite.
Astray: potential for large resources of taconite as
well as DSO comprised of high-grade specularite-
rich DSO similar to Sawyer lake.
Menihek: target is large tonnage magnetite-rich
taconite similar in structure and geological setting
to the large Labmag/Kemag deposits to the north.
Grenville: targets are polydeformed, recrystallized
magnetite-specularite taconite akin to the deposits
mined by IOCC at Carol Lake.
Century Iron Mines Corporation 19
20. Transportation – Iron Projects in Labrador Trough
QNS&L (Common Carrier) runs
573km from Schefferville to Sept-Iles
Full Moon
Adriana
(WISCO) Lac Le Fer Attikamagen to Schefferville: 15km
Sunny Lake (from the closest point)
Attikamagen Joyce & Hayot Joyce Lake targets 1-3Mtpa DSO
Schefferville
• Using existing Railroad
Altius
Projects infrastructures: QNS&L à, TSR
Ross Bay Rainy Lake (Full Moon) targets
Junction
Labrador City 20Mtpa+
Mont-Wright
Sept-Iles
Pointe-Noire
Port-Cartier
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
0 50 100 km
Mont-Wright to Port Cartier: 400 km
Century Iron Mines Corporation 20
21. Port of Sept-Iles: 50Mtpa Expansion
Largest iron ore exporting port in
Canada - 25.1Mt in 2010
compared to 19.2Mt in 2009
Port Zone consists of a 10 km
sheltered port zone, with a natural
ocean basin for ships up to
IOC Port 400,000 dwt
Multi user Berth
By Port of Sept Iles Main port is over 23.2 m in depth
Accommodates Capesize or
larger vessels
Alumina
Plant
Fully equipped, can be operated
year-round
50Mtpa $220M expansion plan
to be completed in 2014 with
more than $100M in commitments
• Natural shelters, deep water for from miners and governments,
year-round access by iron ore
0 500 m ships $55M from federal government
• Ability to expand as required
Century Iron Mines Corporation 21
22. Duncan Lake Iron Project
Well-Established Infrastructure
10 km south of LG2 regional airport
50 km south of Radisson
Hydro Quebec’s LG1 & LG2 within 100 km
120 km (approx.) from James Bay
Highway 109 connects Matagami and
Radisson through the property
Mineral Resource Estimate Summary
(at 16% Fe cutoff – updated Aug 27, 2012)
Duncan
Project Resource Million Grade
category tonnes %
Measured 406 23.9
Indicated 645 24.7
Subtotal 1,050 24.4
Inferred 563 24.7
Century Iron Mines Corporation 22
23. Duncan Lake Project – Land Transportation
Kuujjuaraapik
Pipeline Solution in a Robert-Bourassa, the world’s 10th - (about
200km)
largest hydroelectric power plant
Well-Studied Area
A planned 150km slurry pipeline1
between the hydro plant in
Radisson and the slurry receptor
LG2
plant on James Bay.
LG1
Based on historic data and
compared with similar existing
pipeline systems in commercial DUNCAN
operations, the operating cost is PROJECT
estimated at US$1.00~1.25 per
tonne2
Quebec government plans
identify a proposed nearby deep-
water port location at Kuujjuaraapik
Note: 1) Where the pipeline crosses junctions or rivers, it will be constructed
(200km north of Duncan Project) above-ground with insulation or heat tracing techniques to reduce the negative
operational impact of extreme cold. 2) Based on publicly available sources and
management calculations.
Century Iron Mines Corporation 23
24. Duncan Lake Project – Oceanic Shipping
Shipping Considerations
Commercial shipping in Hudson Bay has
been well established for 70+ years (e.g.
Port of Churchill)
James Bay water depths permit deep-sea
marine terminal for Capesize vessels, 80-
100 metres in Hudson Bay.
Up to 150 days of ice-free shipping, year-
round shipping with ice class vessels
Possible future direct North-West Passage
to Asia
Kuujjuaraapik Ongoing Studies
Identified two locations for port site
Extensive shipping study is underway
Partnering with shipping and
engineering companies to work out
logistic options
Century Iron Mines Corporation 24
25. 2012-3 Exploration Milestones
2015 Target Production: Joyce
Meters Meters to
production from other targets thereafter
2015 Production from Joyce enhancing
Resources
Project Completed complete in PEA
calculation target
(September) 2012
1.05(M+I)+.56(I) Bt
Duncan 54,306 Completed Aug 27, 2012
Q4 / Q1 2013
7.3 (M+I)+8.7 (I) Bt
Full Moon 26,187 2,500 Oct 22, 2012 Q2‐Q3 2013
Update Q1 2013
Joyce Lake DSO 13,329 1,000 Q4 2013
LLF P3 DSO 826 7,000 * 2013 2013
1.72Bt (I) To be developed with
Hayot Taconite 6,286 Completed Sept 25, 2012 Full Moon in concert
Altius Gravity, EM, mapping and orientation drilling
Simultaneous parallel exploration / development strategy
Achieving near-term cash flow & enhancing future world scale development of taconite / magnetite
* Planned meters subject to agreement with local First Nations and to be executed over fall 2012 to 2013
Century Iron Mines Corporation 25
26. Management For Success
Mine development & logistics in place 2012 for 2015 production
Ghislain Arel, Mine Development
Hubert Vallee
Core competence, expertise
SPV, Mine Development & Logistics
and successful experience
Robert Girardin, Logistics
Ivan Wong, CFO
Sandy Chim
Ricky Chan, VP, Planning & Operations
President
& CEO
Claude Britt, Chief Geologist
Michael Skutezky, General Counsel & Corporate Secretary
Bob Leshchyshen, VP, IR & Corporate Development
New iron ore mine Iron ore mining & Resource discovery China steel mill & Capital market &
development logistic operation & development iron ore trading building materials
Century Iron Mines Corporation 26
27. Enterprise Value Building Highlights
EV per tonne in-situ under favourable conditions:
• Secured off take (60-70%) – captive end-user market
• Leverage on capex in place (up to 70% debt) – end-user as banker
• Chinese SOEs strategic partners – equity & JV asset interests
Multi-billion tonne resources & growing (starting with 1.6Bt)
• Largest claimholding in proven world class iron ore camp
• With near-term production of target 2015 from 1 Mtpa
• With resource backing expansion to 20 Mtpa and beyond
Strong strategic partners: WISCO & Minmetal – unusual
sponsorship of 2 Global Fortune 500 Chinese SOEs – equity, debt &
market support
A development company with an A team of Canadian iron ore
development & mining expertise executing and targeting near-term
production & cash flow
Century Iron Mines Corporation 27
28. Comparable Table
(based on attributable resources)
Iron Ore Industry in Labrador Trough FE
EV P&P FE
With NI43‐101 Resources Close Market Enterprise M&I EV/ Total* EV/
Stock 14‐Nov 52 week Shares Cap Value mils FE mils FE
symbol Name 2012 Low High O/S (mils) $mils ($mils) tonnes tonne tonnes tonne
ADV Alderon Resource Corp. $1.46 $1.41 $3.83 129.9 $189.7 $172.4 333.5 $0.517 415.3 $0.415
NML New Millennium Capital Corp. (2) $1.21 $1.14 $3.23 178.3 $215.7 $116.1 1,759.3 $0.066 2,326.5 $0.050
CHM Champion Iron Mines Ltd. (3) $0.46 $0.47 $2.27 119.3 $54.9 $28.9 172.5 $0.168 1,842.1 $0.016
ADI Adriana Resources Inc. (1) $0.43 $0.43 $1.38 157.5 $66.9 $19.1 1,314.0 $0.015 2,820.6 $0.007
FEO Oceanic Iron Ore Corp. $0.16 $0.13 $0.45 174.7 $27.1 $25.0 848.2 $0.029 911.9 $0.027
$554.4 $361.5 4,427.5 $0.082 8,316.4 $0.043
FER Century Iron Mines Corp. (4) $1.05 $0.92 $2.35 94.9 $99.6 $45.2 1,414.5 $0.032 3,220.1 $0.014
* Total includes Proven and Probable, Measure and Indicated and Inferred Resources.
(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) Champion: Century and WISCO together have 60% interest in Hayot Lake property.
(4) Centruy: Champion Iron Mines has 40% interest in Hayot Lake, Augyva Mining Resources has 35% in Duncan Lake
and WISCO has 40% interest in all of the properties.
Century Iron Mines Corporation Prepared by: Bob Leshchyshen, MBA, CFA 28
29. Contact Information
Century Iron Mines Corp.
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
Century Iron Mines Corporation 29