Labrador Iron Mines

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Charter of Audit Committee

The Audit Committee assists the Board of Directors in fulfilling its responsibilities in overseeing financial and accounting matters. The committee is directly responsible for recommending external auditors to be nominated and their compensation, overseeing and monitoring the work of the auditors, reviewing the financial statements and management's discussiona nd analysis (MD&A) and annual and interim financial results, overseeing the integrity of internal controls and financial reporting procedures of the Corporation and ensure implementation of such controls and procedures, and provide oversight to any related party transactions entered into by the Corporation. The Corporation's Audit Committee is governed by an Audit Committee Charter (the "Charter") which has been adopted by the Board in order to comply with NI 52-110 and to more properly define the role of the Committee in the oversight of the financial reporting process of the Corporation.


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