Houston Flagship Deposit Development Plan slide image

Houston Flagship Deposit Development Plan

LIM's Decisive Response to Market Conditions¹ 1 Cost Reduction 2 Production 3. CAPEX 4 Financing Focus on cost reduction and cash conservation measures Utilize new dry classifying system to produce lump and sinter Scale back production: revised 2012 production target of 1.6 million dry tonnes (1.7 million wet tonnes) ■ DRO production discontinued; wet processing suspended ~$52 million deferred: >> Silver Yards Phase 3 plant commissioning now planned for 2013 >> Houston development deferred ($37M in 2013 and $20M in 2014) subject to market conditions ■ 2012 exploration budget reduced to $5.3 million (from $8.6 million) Successful completion of $30 million financing in November Rapid development of new strategies and execution of revised plans to reduce costs, conserve cash and optimize production 1 Forecasts herein subject to permitting, planning, design, financing and market conditions. Labrador Iron Mines - TSX: LIM LIM 12
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