Houston Flagship Deposit Development Plan

LIM 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

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