Labrador Iron Mines

Holdings Limited

Schefferville Area Projects

Knob Lake Deposit

The Knob Lake 1 deposit is located about 3 km south-southeast of Schefferville between the north shore of Lejeune Lake, and the southwest shore of Knob Lake. It is accessible by road from Schefferville. The existing railway that provides services between Schefferville and Sept-Iles goes through the property from southeast to northwest.

As at March 31, 2014, the Knob Lake 1 deposit contained a NI 43-101 compliant mineral resource estimate of
5.7 million tonnes at a grade of 54.2% Fe. An additional 803,000 tonnes at a grade of 51.0% Fe is contained in the Inferred category.

Knob Lake 1 Resources (as at March 31, 2014)

See Mineral Resources & Reserve Estimates page for full explanation and disclosure on NI 43-101 compliant resources and historical resources.

Geology

The Knob Lake 1 deposit is a northeast dipping ellipsoidal iron deposit with a direction of N330 degrees in its main axis, and it appears to be structurally and stratigraphically controlled. Despite the proximity of the Knob Lake deposit to the James deposit, the mineralization in Knob Lake is different. The ore body at Knob Lake is capped by a medium grade very hard siliceous hematite mineralization dipping 35 - 45 degrees to the northeast. The high grade iron ore is concentrated at the end of a hill restricted between Knob and Lejuene Lakes, which consists of thin banded hematite intercalated with layers of cherty silica <10cms thick. The overall texture of the underlying mineralization is softer and moderately unconsolidated, similar to that in the Houston deposit.