Houston Flagship Deposit Development Plan

UPGRADING (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

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