ALL-SEASON ROAD ACCESS:

In a letter dated August 10, 2012, Ontario's Ministry of Northern Development and Mines ("MNDM") advised Noront that the Province was in early stage discussions with Cliffs Natural Resources regarding a north - south all-season road that would connect the Ring of Fire to existing provincial infrastructure. The letter confirmed the Province's intent to contribute financially to develop the proposed all-season road subject to various environmental, regulatory and financial approvals.

MNDM advised Noront that "the current expectation is that the all-season road would be made available for use by industrial users other than Cliffs, with access fees generally based on proportional road usage, although specific terms are still to be determined."

Details on the estimated capital costs of the proposed north-south road have not been provided to Noront. However, Cliffs has publically stated that the cost of their proposed integrated transportation system is budgeted at $600 million. This cost is consistent with previous work completed by Noront on this alternative and was used as the basis to establish road usage costs in the feasibility study.

In developing the DCF model for the project, Noront has assumed that concentrate shipments from site and supply shipments to site would be subject to a toll charge. On a proportional usage basis, Noront estimates that concentrate shipments represent less than seven percent of the total ore haulage along the road corridor. The Feasibility Study has assumed a toll representing 12.5% of the total road cost which includes capital, interest and maintenance costs.