2012 - 2013 DRILL REPORT CLIFFS CHROMITE PROPERTY

JAMES BAY LOWLANDS NORTHERN

LATITUDE 52º78’ N, LONGITUDE -86º20’

PORCUPINE MINING DIVISION AREA BMA 527 861 G-4306

January, 2014

By: Ryan Weston, P.Geo David Shinkle, P.Geo Bryan Maciag, G.I.T. TABLE OF CONTENTS Page 1. Introduction 1 2. Property Description, Ownership and Access 2 3. Exploration History 7 4. Regional Geology 8 5. Property Geology 12 6. Chromite Mineralization 14 7. 2012-2013 Drill Results 21 8. Conclusions and Recommendations 33 9. References 35 10. Signature Page 37

LIST OF FIGURES Page 1. Location of the Cliffs Chromite property 4 2. Claim map of the Ring of Fire 5 3. Claim map of the Cliffs Chromite property 6 4. Geological map of the Canadian Superior Province 10 5. Regional geology map of the Ring of Fire 11 6. Cliffs Chromite Property Geology 15 7. Chromite textures of the BTCD 16 8. Chromite textures of the BLCD 16 9. Stratigraphic column of the BTIC 17 10. Generalized geological schematic of the Cliffs chromite property 18 11. Cross section along section 1100N in the southwest domain of the BTCD 19 12. Cross section along section 2100N in the central domain of the BTCD 19 13. Cross section along section 2900N in the northeast and faulted domains of the 20 BTCD

LIST OF TABLES Page 1. Claim status of the Cliffs chromite property 2 2. Collar locations of the 2012-2013 Cliffs Chromite drill holes 21-22 3. 2012 high-grade chromite intersections from the BLCD 23-24 4. 2012 high-grade chromite intersections from the BTCD 25-28 5. 2013 high-grade chromite intersections from the BLCD 30 6. 2013 visual estimates of high-grade chromite intersections from the BTCD 32-33

APPENDICES A. Geological Map and Cross-sections B. Drill Logs C. Assay Certificates

1. INTRODUCTION

This report provides a summary of the diamond drilling programs conducted during 2012 and 2013 by Cliffs Chromite Ontario Inc. on the Cliffs Chromite property in the McFaulds Lake area of the James Bay Lowlands in . Five separate drill programs were conducted and include: 1. Black Thor chromite delineation drilling program conducted from July 15 to November 9, 2012 2. Shallow geotechnical drilling program conducted from August 23 to September 21, 2012 3. Black Label chromite delineation drilling program conducted from January 26 to February 25, 2013 4. Shallow geotechnical drilling program conducted from March 4 to March 6, 2013 5. Deep geotechnical drilling program conducted from August 18 to October 23, 2013 The first program was predominantly designed to test the continuity of Black Thor chromite mineralization at depth between sections 1200N to 2000N referred to as “the saddle” area (BT- 12 series holes). Additionally two holes were drilled into the geologic hangingwall to better characterize waste rock lithologies, and five oriented holes were drilled to collect geomechanical and structural data within the limits of the proposed pit (GT-12 series holes). All drilling was performed by Orbit Drilling using two rigs. In total, 15,809m was drilled in 34 holes. The second program was designed to collect geotechnical information from the overburden and shallow bedrock around the property (BH12M series holes). All drilling was performed by Walker Drilling. A total of 242m was drilled in 9 holes. The third program was predominantly designed to fill in gaps in the Black Label drill database with the specific aim of increasing the resource size and/or improving the resource classification (BT-13 series holes). A single oriented geomechanical hole was drilled to finish the program started in 2012 under the first program (GT-13-13). All drilling was performed by Orbit Drilling. A total of 2,082m was drilled in 8 holes. The fourth program was designed to collect geotechnical and geological information from the overburden and shallow bedrock in and around an area of possible quarry material (BH-13M series holes). All drilling was performed by Orbit Drilling. A total 235m was drilled in 9 holes. The fifth program was designed to collect geomechanical and structural data from deep oriented drill holes beneath the proposed open pit for the purpose of an underground mining scoping study (GT-13 series holes). All drilling was performed by Cyr Drilling using one drill rig. In total 3,461m was drilled in 5 holes.

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2. PROPERTY DESCRIPTION, OWNERSHIP and ACCESS The Cliffs chromite property is wholly owned (100%) by Cliffs Chromite Ontario Inc., which is a fully owned subsidiary of Cliffs Natural Resources Inc. The property is located approximately 250km north of the town of Nakina and 80km east of the First-Nation community of Webequie (Figure 1). It is situated in the Porcupine Mining Division in area BMA 527861 (G-4306) (Figure 2). The property consists of four mining claims in good standing, each consisting of 16 claim units (Table 1, Figure 3).

Table 1. Claim status of the Cliffs chromite property (as November 25th, 2013).

Claim # Date staked Recorded Claim Work Total Total Present Due date units required work reserve work assignment 3011028 2003-Mar-29 2003-Apr-22 16 $6,400 $89,600 $31,626 $1,959 2019-Apr-22 3011027 2003-Mar-28 2003-Apr-22 16 $6,400 $89,600 $171,778 $50,899 2019-Apr-22 3012250 2003-Mar-29 2003-Apr-22 16 $6,400 $89,600 $0 $0 2019-Apr-22 3012251 2003-Mar-28 2003-Apr-22 16 $6,400 $89,600 $186,378 $4,160 2019-Apr-22

The property can only be accessed by air, via two possible routes:

1. Chartered fixed wing aircraft equipped with floats (summer) or skis (winter) from Nakina to Koper Lake (~290km, ~1.5 hr flight). From Koper Lake, crew and equipment are transferred to the camp via helicopter (~4km, ~3 min flight) in summer months, or snowmobile and light duty truck in winter months. 2. Commercial aircraft from Thunder Bay to Webequie (~530km, ~2 hr flight), and transfer to the camp via helicopter (~76km, ~20 min flight)

During the shoulder seasons (freeze-up and break-up), access can be gained to the property via the second route only. The closest all weather road to the property is in Nakina, however, a winter road system services the First Nation communities of Marten Falls, Webequie, Lansdowne House, Fort Albany, and Attawapiskat. Drilling operations are facilitated by helicopter in summer and by snowmobile and heavy equipment in the winter.

All mineral exploration operates out of Cliffs’ Esker Camp, located 6km southwest of the property. The camp can accommodate approximately 65 occupants and includes diesel power generation and distribution, sleeping accommodations, kitchen and dining facilities, ablution facilities, shop, core logging, and storage facilities to support all field operations including helicopter operations, core logging and sampling, and diamond drilling.

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The local climate of the project area exhibits extreme temperature fluctuations from the winter to summer seasons. Summer temperatures range between 10ºC and 30ºC, with a mean temperature of 13ºC in July. Winter temperatures usually range between -10ºC and -30ºC with an average January temperature of -23ºC. Lakes typically freeze-up in mid-October and break- up in mid-April. The region receives on average 610 mm of precipitation per year, with 200 mm originating from snow during the winter months.

The project area is located in the Tundra Transition Zone. The majority of the property area can be described as “muskeg” with patchy forested areas around rivers and streams consisting of black and white spruce and tamarack, with minor amounts of trembling aspen, balsam poplar and white birch.

Wildlife species noted in the area include beaver, black bear, otter, red fox, marten, muskrat, mink, squirrel, wolf, moose, and woodland caribou. Birds observed throughout the year include ravens and whisky jacks. Migratory birds typically include loons and Canadian geese. Predatory eagles and hawks have also been noted.

The project area is located between the drainage basins of the Attawapiskat and Muketei Rivers. The Muketei River is a tributary of the larger , which flows eastward into the James Bay, and is located approximately 1.8 km west of Cliffs Chromite Ontario Esker Camp.

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Figure 1. Location of the Cliffs Chromite property

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Figure 2. Claim map of the Ring of Fire

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Figure 3. Claim map of the Cliffs Chromite property

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3. EXPLORATION HISTORY

Prior to the 1990’s the area experienced very little exploration due in large part to its remoteness and the extensive cover of the James Bay lowlands. Diamond exploration during the 1990’s resulted in the discovery of several kimberlite pipes, one of which (Victor) is now a producing diamond mine. In the process of testing kimberlite targets, DeBeers Canada and joint venture partners Spider Resources and KWG Resources made two significant VMS discoveries (McFauld’s No.1 and No.3 VMS deposits), triggering a staking rush in the area.

In 2003 Freewest staked the claims comprising Cliffs’ Chromite property and contracted Fugro to perform an airborne magnetic and GEOTEM electromagnetic survey over the property which identified a large northeast trending magnetic anomaly with several coincident conductors along its northwest margin (Hogg, 2003). In winter 2004, under option to Noront Resources, ground magnetic and HLEM surveys were performed over the property further resolving the magnetic anomalies and identifying numerous weak conductors (Hogg, 2004).

The first significant chromite mineralization in the area was discovered during a Freewest-KWG- Spider joint venture drilling campaign on the McFauld’s Lake property (outside of the Cliffs Chromite property) in February 2006 while targeting VMS-style mineralization. Drill hole FW- 06-03 intersected a 1.05 m thick horizon of chromitite (Novak, 2006) within serpentinized ultramafics at 153m depth within what is now referred to as the Big Daddy deposit.

In September 2007 Noront Resources intersected large widths of high-grade Ni-Cu-PGE mineralization on their Condor property (now referred to as Eagle’s Nest) which has since been the subject of a feasibility study with proven and probable reserves of 11.13Mt at 1.68% Ni, 0.87% Cu, 0.89g/t Pt and 3.09g/t Pd and inferred resources of 8.97Mt at 1.10% Ni, 1.14% Cu, 1.16 g/t Pt and 3.49g/t Pd (Noront website). This discovery highlighted the potential for significant magmatic mineralization within the newly discovered RFI and sparked the largest staking rush yet seen in the area.

In March of 2008, Freewest had a VTEM survey flown on the property which identified a large late-time EM anomaly with coincident magnetic anomaly over the north-central portion of the property (Bournas and Legault, 2008). In September of 2008 Freewest’s first hole into this

target (BT-08-01) intersected 100.8m of chromitite grading 29.7% Cr2O3, resulting in the discovery of the Black Thor chromite deposit. Subsequently, a ground gravity survey executed over the property identified a ~3 km long northeast trending anomaly coincident with the known chromite mineralization and continuous across the entire width of the property. Subsequent drilling of this anomaly from 2009-2013 has returned consistent thick intersections of chromite mineralization extending approximately 2,950m along strike and to depths greater than 650m below surface.

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As a result of the Black Thor discovery, in October 2009 Noront Resources made an unsolicited offer to acquire Freewest Resources. A competing bid was made by Cliffs Natural Resources in November 2009 initiating a bidding war which concluded in January 2010 when the board and shareholders of Freewest Resources accepted the Cliffs offer.

The Black Thor deposit has been the subject of numerous independent resource estimates, the most recent of which was completed in May 2013.

4. REGIONAL GEOLOGY

Regionally, the property lies within the Archean Oxford-Stull Domain of the Superior Province of the Canadian Shield (Figure 4). The property defines part of the Ring of Fire Intrusive Suite (RFIS). Bedrock is generally very poorly exposed in this region with only ~2% outcrop exposure; therefore, much of the regional geology is inferred from publicly available aeromagnetic data and recent exploration drilling. The RFIS is defined by an arcuate magnetic high approximately 60 km in diameter and 150 km in length. Diamond drilling along its length has intersected various magnetic lithologies including serpentinized ultramafic and ferrogabbroic intrusions and to a lesser extent mafic intrusive and metavolcanic rocks and silicate, oxide and sulphide-facies iron formation (Mungall et al., 2010). The RFIS is interpreted to have a core of older, massive to gneissic granodiorite and tonalite (Stott, 2007). Regional metamorphism of RFIS lithologies is present as middle to upper-greenschist facies. Ultramafic intrusions associated with the RFIS generally occur below the metavolcanic sequence, at the contact with older granodiorite/tonalite units. Metsaranta and Houle (2012) have divided the McFaulds Lake greenstone belt into five preliminary subdivisions based on outcrop mapping, geophysics and recent geochronology. Based on this subdivision, the Cliffs Chromite Property lies within the Muketei River Supracrustal package, with age dates ranging between 2737-2770 Ma (Rayner and Stott 2005; Mungall et al. 2011). The Muketei River Supracrustal package trends to the northeast and is interpreted to have a strike length of approximately 110km. Rock comprising this package consist predominantly of mafic to felsic metavolcanic rocks, minor clastic metasedimentary rocks and iron formation. Northeast trending shear zones with apparent dextral displacement transect the package (Metsaranta and Houle, 2012). The timing of emplacement of the ultramafic intrusions hosting chromite and Ni-Cu-PGEs relative to the volcanic stratigraphy of the McFaulds Lake Greenstone Belt has yet to be accurately defined, however, Mungall et al. (2010) dated a potentially coeval ferrogabbro sill at 2734 Ma, suggesting the ultramafic sill hosting Black Thor may be similar in age and potentially related to younger volcanic sequences of the Muketei River Supracrustal Package.

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The RFIS rocks are interpreted to have been derived from a mantle source given their komatiitic signature. A series of short, discordant magnetic anomalies transecting the granodiorite footwall are interpreted to be magmatic conduits that acted as feeders to the RFIS, as evidenced at the Eagle’s Nest Ni-Cu-PGE deposit and in the footwall of the Cliffs Chromite Property. Chromite resources identified to date associated with the RFIS have been shown to be of significant size and high grade (~30% Cr2O3) deposits of a thickly bedded, stratiform nature. Overlying parts of the RFIS, Paleozoic Platform rocks of the James Bay Lowlands consist mainly of upper Ordovician age (450 Ma to 443 Ma) sedimentary rocks. The sedimentary pile thickens significantly to greater than 100 m to the east and north but is only intermittently present in the immediate property area and is rarely ever seen in drill core. It is comprised mainly of poorly consolidated basal sandstone and mudstone overlain by muddy dolomites and limestones. A thin but persistent layer of glacial and periglacial sediments consisting of till and clay deposits comprises the Quaternary cover in the area.

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Cliffs Chromite Property

Figure 4. Geological map of the Canadian Superior Province (from Percival, 2007).

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GEOLOGICAL LEGEND NORONT’S SEDIMENTARY ROCKS THUNDER BIRD GRANODIORITE ROCKS VANADIUM VOLCANIC ROCKS PROSPECT ULTRAMAFIC ROCKS NORONT’S AT12 Ni - Cu Ni-Cu DISCOVERIES PROSPECT VANADIUM DISCOVERY CHROMITE DISCOVERIES 100% CLIFFS FAULT ANTICLINE SYNCLINE BLACK CREEK BLACK THOR 0 2 4 CHROMITE DEPOSIT CHROMITE DEPOSIT

kilometres BLACK LABEL CHROMITE DEPOSIT

NORONT’S EAGLES NEST Ni-Cu-PGE DEPOSIT CLIFFS - KWG J.V.

BLACK BIRD CHROMITE DEPOSIT BIG DADDY CHROMITE DEPOSIT NORONT’S EAGLE TWO Ni-Cu-PGE PROSPECT BLACK HORSE CHROMITE PROSPECT GEOLOGY AFTER MUNGALL AND FRANKLIN

Figure 5. Regional geology map of the Ring of Fire (after Franklin and Mungall 2008)

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5. PROPERTY GEOLOGY

The Cliffs Chromite Property is situated within the Neoarchean McFaulds Lake Greenstone Belt at the contact between a basement granodiorite complex dated at 2773 Ma (Mungall et al. 2010) and mafic metavolcanic rocks of the Muketei River Supracrustal Package (Metasaranta and Houlé 2012) with age dates ranging between 2737-2770 Ma (Rayner and Stott 2005; Mungall et al. 2011). The chromite deposits occur within a northeast striking, steeply dipping ultramafic sill known as the Black Thor Intrusive Complex (BTIC) which is up to 1.5 km thick by over 3 km long on the property. Several other chromite-mineralized ultramafic intrusions (e.g. Big Daddy, Blackbird) of presumably similar age occur along strike to the southwest at, or in close proximity to the granodiorite-metavolcanic contact. Based on the overall cumulate stratigraphy, a pronounced feeder conduit to the north, and the general regional trend, the intrusion is interpreted to be younging to the southeast with a vertical to slightly overturned dip to the northwest. Regional greenschist metamorphism has converted olivine–rich lithologies to an assemblage of serpentine-talc-magnetite, and pyroxene-rich lithologies to an assemblage of chlorite-talc-tremolite/actinolite. Despite the degree of metamorphism, however, orthomagmatic textures remain well preserved throughout most of the stratigraphy. The BTIC is a funnel-shaped sill consisting of cyclically layered dunite to peridotite progressing upward to olivine-pyroxenite, feldspathic pyroxenite, and leucogabbro (Figure 6). Cumulus chromite occurs throughout much of the stratigraphy but is most abundant in two principal horizons: the Black Thor Chromite Deposit (BTCD) and the Black Label Chromite Deposit (BLCD). The BTCD represents ~95% of the chromite mineral resource and occurs as a continuous thickly- bedded chromitite horizon at the transition from olivine-dominant to pyroxene-dominant lithologies. Mineralization in Black Label is located stratigraphically below Black Thor and occurs as discontinuous layers of semi-massive to massive chromitite within peridotite and dunite that are disrupted and brecciated by a late websterite intrusion which is interpreted to represent the final stage of ultramafic magmatism within the sill. Crude modal layering within the sill is evident in airborne magnetic surveys, with olivine- dominant lithologies occurring as pronounced magnetic highs (due to magnetite formation during serpentinization) and pyroxene-rich lithologies occurring as magnetic lows. Finer scale layering is observed in drill core, with cumulate modal layering of olivine, chromite and pyroxene-rich layers defining several fractionation cycles (Figures 7, 8). The BTIC is separated into three principal stratigraphic divisions (Weston and Shinkle, 2013), illustrated in the general stratigraphic column in Figure 9, based on the large-scale appearance of chromite and presence (or absence) of olivine:

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1) Lower Ultramafic sequence: Estimated to average approximately 400m in thickness, but up to 900 m thick, this sequence forms the base of the funnel-shaped intrusion and is dominated by dunite and lherzolite lithologies that are largely barren of chromite mineralization. The upper contact is defined as the onset of large-scale chromite mineralization associated with the Black Label Chromite Deposit. Basal phases of this sequence locally host magmatic PGE-Ni-Cu sulfides. The sequence is cross-cut by a sizeable late-stage websterite body which forms hybrid peridotite units (described in greater detail below).

2) Middle Ultramafic sequence: Estimated to average approximately 200m in thickness, this sequence is dominated by dunite and lherzolite lithologies with chromite as an accessory to minor cumulate mineral phase. The upper contact is defined as the onset of thick chromitite layers associated with the Black Thor Chromite Deposit. The late- stage websterite body forms a sill largely along the base of this sequence.

3) Upper Ultramafic sequence: Estimated to be 100 m to 500 m in thickness, however, sheared contacts and insufficient drilling at the stratigraphic top of the BTIC preclude an accurate estimate of the original thickness. This sequence consists of lherzolite progressing upward to olivine pyroxenite and feldspathic pyroxenite to gabbro (along the southwest margin of the intrusion) and leucogabbro along much of the intrusion. The late websterite body is absent from this sequence. Chromite mineralization ceases abruptly near the base of this sequence above the Black Thor Chromite deposit. Confined to the lower and middle ultramafic sequences, the late-stage websterite body occurs as a funnel-shaped intrusion approximately 1500 m long by up to 700 m wide. It displays a remarkably similar form to its host sill with an inferred feeder conduit to the north, and flat sill- like upper contact preferentially along the Black Label horizon. Geophysically the websterite is manifest as a magnetic low, but gravity high (due to negligible pore-space). This unit is easily distinguished from other ultramafic lithologies by its coarser grain size, general lack of olivine, lighter colour (due to general lack of serpentine minerals) and weak magnetic susceptibility. Along its margins and within thin apophyses, the websterite forms hybrid peridotite zones (i.e. zones of intermingled dunite and websterite) and magmatic breccias (Figure 10) with oblate xenoliths of dunite/lherzolite and chromitite within a mixed matrix suggesting intimate co- mingling with a semi-crystalline host sill. Invariably, these magmatic breccia zones, and often the massive websterite itself, will host disseminated sulfides which often contain significant PGE-Ni-Cu values which are discussed further below. Subsequent to crystallization of the BTIC, a distinct medium-grained massive biotite gabbro was emplaced semi-conformably into the Middle Ultramafic sequence as a 50-100m thick, ~1.2km

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long sub-vertical body striking NE between lines 800-2050N. Between lines 800-1600N it is located stratigraphically below the BTCD often cross-cutting the BLCD. From lines 1600-1850N it crosses and brecciates the BTCD and from 1850-2050N continues semi-continuously above the BTCD. Based on mineralogical, textural, contact and geochemical relationships, this unit is interpreted to be much younger than the BTIC.

6. CHROMITE MINERALIZATION

Chromite mineralization associated with the BTCD is present as thick (40 to 80 m) intervals of fine-grained, heavily disseminated to semi-massive to massive chromitite layers continuous along strike for 2.3 km with discontinuous mineralization occurring over a strike length greater than 3 km. The Black Thor horizon can be subdivided into four main domains along its strike. The southwest and northeast domains, shown in cross-section in Figures 11 and 13 respectively, consist of two prominent chromitite layers separated by weakly mineralized dunite/lherzolite, while the central domain, shown in Figure 12 consists of multiple thinner chromitite horizons separated by dunite/lherzolite. Adjacent to the northeast domain, the principal chromitite horizon appears to be structurally repeated along longitudinal faults roughly parallel to the stratigraphy in an area known as the faulted domain (Figure 13). Chromite mineralization of the BLCD occurs stratigraphically below (and hence is geologically older than) Black Thor, and consists of thin (5 to 40 m) discontinuous layers of fine-grained, heavily disseminated to semi-massive chromite and chromitite which can be traced intermittently along strike for 2.3 km (Figure x). Where proximal to the late-stage websterite body, mineralization is often disrupted occurring as chromitite-bearing magmatic breccias and partly dismembered semi-massive to massive chromitite (Figure 8). Although largely absent from the center of the late-stage websterite body, individual chromitite horizons present along its margins appear to be traceable across its length suggesting minimal vertical displacement of the Black Label horizon.

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Figure 6: Cliffs Chromite Property Geology

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Figure 7: Chromite textures of the BTCD (from Carson et al., 2013)

Figure 8: Chromite textures of the BLCD (from Carson et al., 2013)

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Figure 9. Stratigraphic column of the BTIC

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Figure 10. Generalized geological schematic of the Cliffs chromite property

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NW SE

Black Label Black Thor (SW Domain)

Figure 11. Cross section along section 1100N in the southwest domain of the BTCD

NW SE

Black Thor Black Label (Central Domain)

Figure 12. Cross section along section 2100N in the central domain of the BTCD

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NW SE

Black Thor Black Thor (NE Domain) (Faulted Domain)

Figure 13. Cross section along section 2900N in the northeast and faulted domains of the BTCD

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7. 2012 - 2013 DRILL RESULTS

Table 2 provides the collar locations and orientation information of each hole drilled in the 2012-2013 period. All core is stored at the Cliffs Esker Camp core yard. Drill holes were spotted by either handheld GPS or by gridlines cut on the property. With the exception of the shallow geotechnical drill holes, all holes were aligned to their target azimuth using a Reflex APS (azimuth pointing system) tool and had downhole surveys performed using a Devico Deviflex instrument. Details of each drill program follow below.

Table 2: Collar locations of the 2012-2013 Cliffs Chromite drill holes

Elev. Line Stn. Azi Dip Campaign DDH Easting Northing Depth (m) Comment (m) No. No. (°) (°) BT-12-206 552747 5847840 167 1200N 275W 130 -52 570 BT-12-207 552747 5847840 167 1200N 275W 130 -61 558 BT-12-208 552864 5848004 167 1400N 304W 130 -50 447 BT-12-209 552866 5848003 167 1400N 304W 130 -62 475 BT-12-210 552806 5848061 167 1400N 385W 130 -62 657 BT-12-211 553000 5848148 167 1600N 308W 130 -58 456 BT-12-213 552942 5848206 167 1600N 388W 130 -59 621 BT-12-212 552944 5848204 167 1600N 388W 130 -60 621 BT-12-214 552944 5848204 167 1600N 388W 130 -66 699 BT-12-215 553132 5848300 167 1800N 321W 130 -59 558

BT-12-216 553059 5848371 167 1800N 422W 130 -58 743 BT-12-217 553295 5848417 168 2000N 285W 130 -59 588 BT-12-218 553241 5848477 168 2000N 365W 130 -60 740 BT-12-219 552924 5847248 166 900N 270E 310 -46 468 BT-12-220 552483 5847678 168 900N 347W 131 -50 639 BT-12-221 552883 5847504 166 1050N 65E 130 -58 162 Metallurgical BT-12-222 554099 5848918 163 2912N 60W 315 -75 123 Metallurgical BT-12-223 554099 5848918 163 2912N 60W 215 -45 60 Metallurgical BT-12-224 553250 5847905 165 1600N 46E 215 -55 255 BT-12-225 552813 5847918 167 1300N 278W 315 -45 513 BT-12-226 552813 5847918 167 1300N 278W 130 -61 561 BT-12-227 553072 5848214 167 1700N 300W 130 -69 399 BT-12-228 552924 5848085 167 1500N 310W 130 -59 423 BT-12-229 552975 5848310 167 1700N 437W 130 -50 678 2012 Black Thor Chromite Delineation Drilling Thor Delineation Chromite 2012 Black BT-12-230 552869 5848140 167 1500N 390W 130 -58 540 BT-12-231 552869 5848140 167 1500N 390W 130 -53 569 BT-12-232 552973 5848312 167 1700N 437W 130 -62 582 BT-12-233 552870 5847439 167 1000N 150E 130 -46 351 Waste Rock BT-12-234 553605 5848113 165 2000N 150E 150 -45 351 Waste Rock GT-12-09 553057 5847537 167 1200N 163E 135 -61 300 Geomechanical GT-12-10 553360 5848077 166 1800N 0E 150 -69 150 Geomechanical GT-12-11 553765 5848515 165 2400N 15W 145 -60 261 Geomechanical GT-12-12 554130 5848430 164 2600N 300E 315 -60 392 Geomechanical GT-12-14 554200 5848790 164 2900N 100E 99 -60 300 Geomechanical Subtotal 15,809m

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Elev. Line Stn. Azi Dip Campaign DDH Easting Northing Depth (m) Comment (m) No. No. (°) (°) BH12M-07 552919 5846703 167 500N 650E 0 -90 14 BH12M-08 553861 5847519 168 1750N 750E 0 -90 25 BH12M-09 554473 5848271 165 2700N 660E 0 -90 25 BH12M-14 553866 5848780 165 1350N 220E 0 -90 24

BH12M-15 553422 5848448 168 2100N 215W 0 -90 18 BH12M-16 552739 5847772 167 1150N 230W 0 -90 32 Drilling BH12M-17 553193 5847591 168 1350N 220E 0 -90 34 BH12M-27 554279 5849382 165 3375N 250W 0 -90 40 BH12M-28 554474 5849181 163 3375N 20E 0 -90 58 2012 Shallow Geotechnical 2012 Shallow Subtotal 268m BT-13-235 553211 5848290 167 1850N 252W 315 -46 279

BT-13-236 553211 5848290 167 1850N 252W 315 -67 357 BT-13-237 553088 5848134 167 1650N 230W 315 -45 225 BT-13-238 553478 5848592 167 2250N 275W 315 -45 285 BT-13-239 553421 5848649 167 2250N 355W 315 -45 141 BT-13-240 553198 5848653 167 2100N 515W 135 -44 315 BT-13-241 552728 5847578 167 1000N 100W 315 -55 180 Delineation Drilling GT-13-13 553560 5848997 166 2600N 500W 160 -60 300 Geomechanical

2013 Black Label Chromite Chromite Label 2013 Black Subtotal 2,082 m BH-13M-B1 553015 5847861 166 1400N 950W 360 -90 6 BH-13M-B2 552799 5847668 167 1100N 110W 360 -90 9 BH-13M-B4 552738 5847584 167 1000N 100W 360 -90 7 BH-13M-B5 552933 5847314 166 950N 230E 360 -90 4

BH-13M-Q1 553158 5847419 167 1200N 320E 360 -90 42 BH-13M-Q2 553154 5847127 166 1000N 520E 360 -90 42 Drilling BH-13M-Q3 552827 5847058 168 700N 335E 360 -90 42 BH-13M-Q4 552908 5847180 167 850N 310E 360 -90 42 BH-13M-Q5 552764 5847187 168 750N 200E 360 -90 42 2013 Shallow Geotechnical 2013 Shallow Subtotal 235m GT-13-15 553429 5848707 163 2300N 390W 130 -56 737 GT-13-16 554209 5848510 165 2700N 305E 310 -55 749

GT-13-17 552726 5847724 165 1100N 205W 130 -70 569 GT-13-18 553232 5847710 170 1450N 170E 324 -55 723 Drilling

2013 Deep GT-13-19 553729 5848064 163 2050N 270E 315 -51 683 Geomechanical Geomechanical Subtotal 3,461m Total 21,855m

2012 Black Thor Chromite Delineation Drilling Program Drilling for the 2012 Black Thor chromite delineation program took place between July 15 and November 9, 2012. Drilling was performed by Orbit Drilling utilizing two diamond drill rigs. Drill moves, crew transport and core movement was all helicopter supported. In total 15,809m were drilled in 34 holes. The majority of drilling was done between lines 1200N and 2000N in the “saddle area” of the proposed pit in order to test the extent of the mineralization at depth. The 24 holes drilled into the BTCD included BT-12-206 to 220 and BT-12-224 to 232. Additionally three metallurgical

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holes (BT-12-221 to 223) and two waste rock holes (BT-12-233 and 234) were drilled totalling 14,407m in 29 holes for this program. Additionally, five oriented geomechanical holes were drilled into the BTIC to gather structural and geomechanical information for lithologies within the pit. During the course of drilling to depth on the BTCD, most of the holes also intersected the BLCD at shallower depths. Summaries of the high-grade (>20% Cr2O3) chromite intersections from the BLCD and BTCD are presented in Tables 3 and 4, respectively.

Table 3: 2012 high-grade (>20% Cr2O3) chromite intersections from the BLCD

Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) 1200N, BT-12-206 No Black Label mineralization > 10 m in length at > 20% Cr O 275W 2 3 1200N, BT-12-207 No Black Label mineralization > 10 m in length at > 20% Cr O 275W 2 3 1400N, BT-12-208 No Black Label mineralization > 10 m in length at > 20% Cr O 304W 2 3 1400N, BT-12-209 No Black Label mineralization > 10 m in length at > 20% Cr O 304W 2 3 1400N, BT-12-210 No Black Label mineralization > 10 m in length at > 20% Cr O 385W 2 3 1600N, 111.70 121.50 9.80 27.23 1.52 1.59 BT-12-211 308W that includes 118.45 118.45 3.45 36.55 1.86 0.87 1600N, BT-12-212 179.10 204.20 25.10 28.68 1.39 0.28 388W 1600N, BT-12-213 No Black Label mineralization > 10 m in length at > 20% Cr O 388W 2 3 1800N, BT-12-214 No Black Label mineralization > 10 m in length at > 20% Cr O 321W 2 3 83.43 119.65 36.22 16.93 0.92 0.21 that includes 93.21 99.29 6.08 25.21 1.23 0.17 1800N, followed by 134.15 152.75 18.60 18.45 1.17 1.09 BT-12-215 422W followed by 184.48 221.90 37.42 21.51 1.28 0.73 that includes 189.43 195.06 5.63 27.45 1.57 0.84 and also includes 199.95 210.20 10.25 31.67 1.74 0.57 2000N, BT-12-216 No Black Label mineralization > 10 m in length at > 20% Cr O 285W 2 3 2000N, BT-12-217 No Black Label mineralization > 10 m in length at > 20% Cr O 365W 2 3

BT-12-218 900N, 270E No Black Label mineralization > 10 m in length at > 20% Cr2O3 BT-12-219 900N, 347W 288.93 304.60 15.67 30.07 1.52 1.25 358.75 369.70 10.95 24.60 1.37 1.00 that includes 363.00 368.70 5.70 34.85 1.88 1.12 BT-12-220 900N, 347W followed by 473.40 483.55 10.15 25.22 1.06 0.46 that includes 475.65 483.55 7.90 29.84 1.20 0.55

BT-12-224 1600N, 046E No Black Label mineralization > 10 m in length at > 20% Cr2O3

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Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) 1300N, BT-12-225 No Black Label mineralization > 10 m in length at > 20% Cr O 278W 2 3 1300N, BT-12-226 No Black Label mineralization > 10 m in length at > 20% Cr O 278W 2 3 1700N, BT-12-227 No Black Label mineralization > 10 m in length at > 20% Cr O 300W 2 3 1500N, BT-12-228 No Black Label mineralization > 10 m in length at > 20% Cr O 310W 2 3 205.70 272.00 66.30 22.84 1.38 0.66 1700N, BT-12-229 that includes 206.65 208.00 2.05 30.85 1.48 1.65 437W and also includes 223.35 247.00 23.65 30.04 1.68 0.41 1500N, BT-12-230 No Black Label mineralization > 10 m in length at > 20% Cr O 390W 2 3 1500N, BT-12-231 No Black Label mineralization > 10 m in length at > 20% Cr O 390W 2 3 110.00 143.20 33.20 22.75 1.12 0.31 that includes 122.70 131.45 8.75 35.85 1.70 0.35 1700N, BT-12-232 and also includes 135.40 137.65 2.25 32.46 1.47 0.39 437W and also includes 140.80 143.20 2.40 36.34 1.45 0.21 followed by 155.55 172.00 16.45 22.68 1.35 1.19

Table 4: 2012 high-grade (>20% Cr2O3) chromite intersections from the BTCD

Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) 305.45 411.00 105.55 28.18 1.55 0.35 that includes 308.85 316.20 7.35 31.04 1.68 0.23 1200N, BT-12-206 and also includes 347.00 352.00 5.00 32.12 1.54 0.43 275W and also includes 369.20 403.00 33.80 40.08 2.03 0.36 which includes 380.00 402.00 22.00 43.78 2.16 0.41 345.00 383.50 38.50 24.50 1.46 0.33 that includes 350.00 352.00 2.00 32.27 1.64 0.35 and also includes 356.00 360.00 4.00 32.80 1.76 0.36 and also includes 366.00 371.00 5.00 33.23 1.83 0.47 followed by 393.50 436.60 43.10 32.55 1.74 0.37 1200N, that includes 394.95 410.50 15.55 31.45 1.69 0.36 BT-12-207 275W and also includes 415.30 424.95 9.65 40.65 1.99 0.41 and also includes 427.00 436.00 9.60 39.93 1.99 0.44 which includes 430.00 436.60 6.60 41.69 2.01 0.46 followed by 460.10 512.50 52.40 33.30 1.68 0.51 that includes 475.50 500.00 24.50 41.29 2.01 0.46 which includes 483.00 498.00 15.00 43.89 2.11 0.51 293.00 317.00 24.00 22.74 1.42 0.32 that includes 295.00 299.00 4.00 31.54 1.69 0.31 and also includes 302.00 305.00 3.00 30.80 1.81 0.42 1400N, BT-12-208 and also includes 307.00 311.00 4.00 31.66 1.80 0.41 304W followed by 331.00 352.80 21.80 27.92 1.68 0.33 that includes 338.30 350.35 12.05 33.57 1.89 0.35 which includes 346.30 350.35 4.05 41.13 2.08 0.33

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Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) 349.45 378.00 28.55 25.23 1.48 0.33 that includes 350.40 363.00 12.60 32.88 1.74 0.35 and also includes 371.00 373.00 2.00 30.10 1.68 0.35 1400N, followed by 397.00 428.00 31.00 29.08 1.67 0.33 BT-12-209 304W that includes 416.40 418.80 1.40 42.74 2.19 0.41 and also includes 419.25 426.80 7.55 41.23 2.11 0.42 followed by 432.50 438.25 5.75 35.67 1.96 0.46 that includes 434.50 436.30 1.80 42.00 2.23 0.49 445.25 470.00 24.75 29.37 1.73 0.42 that includes 445.25 456.95 11.70 34.04 1.86 0.47 and also includes 460.50 465.00 4.50 33.55 1.89 0.55 followed by 474.00 484.00 10.00 22.93 1.47 0.42 followed by 516.05 544.35 28.30 37.04 2.00 0.40 1400N, BT-12-210 that includes 516.05 520.00 3.95 40.32 2.00 0.47 385W and also includes 521.00 523.15 2.15 41.07 2.01 0.44 and also includes 523.60 526.10 2.50 39.34 1.80 0.41 and also includes 528.10 538.75 10.65 41.11 2.25 0.42 followed by 550.40 566.30 15.90 30.43 1.50 0.81 that includes 550.40 558.00 7.60 42.01 1.96 0.65 345.55 374.00 28.45 24.14 1.35 0.31 that includes 346.40 356.80 10.40 33.52 1.98 0.41 1600N, BT-12-211 and also includes 361.25 369.85 8.60 30.95 1.42 0.25 308W followed by 377.80 404.95 27.15 18.68 1.22 0.31 that includes 377.80 384.95 7.15 28.37 1.64 0.40 473.60 485.70 12.10 17.13 1.10 0.24 followed by 495.90 509.60 13.70 28.45 1.68 0.34 that includes 502.00 509.60 7.60 38.87 2.14 0.45 1600N, followed by 516.50 548.35 31.85 29.18 1.64 0.40 BT-12-212 388W that includes 519.90 524.70 4.80 39.41 2.23 0.56 and also includes 533.40 546.15 12.75 39.21 1.88 0.42 followed by 553.70 561.20 7.50 35.28 1.70 0.64 that includes 554.80 560.80 6.00 40.99 1.84 0.66 511.55 526.05 14.50 22.16 1.34 0.35 that includes 516.50 519.00 2.50 39.88 1.87 0.42 followed by 559.00 574.60 15.60 34.95 2.03 0.44 that includes 560.00 567.00 7.00 40.99 2.30 0.49 1600N, BT-12-213 and also includes 569.45 574.60 5.15 39.92 2.14 0.49 388W followed by 590.40 645.00 54.60 31.12 1.75 0.56 that includes 592.80 597.90 5.10 39.73 2.27 0.61 and also includes 618.30 633.00 14.70 43.18 2.07 0.76 and also includes 636.00 640.00 4.00 41.24 1.99 0.53 264.00 289.00 25.00 19.41 1.18 0.37 that includes 276.03 280.00 3.97 40.11 2.00 0.66 1800N, followed by 325.92 347.00 21.08 14.35 1.11 0.20 BT-12-214 321W followed by 348.90 373.65 24.75 17.48 1.22 0.21 that includes 366.83 368.73 1.90 33.22 1.88 0.42 and also includes 369.42 371.45 2.03 31.08 1.77 0.35 543.00 597.00 54.00 18.16 1.28 0.22 1800N, BT-12-215 followed by 666.90 694.80 27.90 32.50 1.79 0.27 422W that includes 668.00 676.55 8.55 39.95 2.21 0.28

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Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) and also includes 683.20 694.20 11.00 42.70 2.21 0.33 398.30 453.00 54.70 20.56 1.26 0.32 that includes 406.55 413.50 6.95 42.45 2.27 0.30 and also includes 415.20 420.20 5.00 31.35 1.75 0.45 and also includes 423.40 425.70 2.30 41.17 2.12 0.55 and also includes 433.30 436.20 2.90 30.12 1.62 0.56 2000N, followed by 473.30 496.25 22.95 16.42 1.07 0.33 BT-12-216 285W that includes 473.30 474.60 1.30 34.23 2.26 0.45 and also includes 481.00 485.35 4.35 31.75 1.79 0.50 and also includes 494.15 496.25 2.10 39.17 2.17 0.50 followed by 501.55 527.25 25.70 23.37 1.46 0.32 that includes 506.90 510.50 3.60 38.90 2.15 0.46 and also includes 520.40 525.20 4.80 37.53 2.13 0.35 509.85 519.90 10.05 18.77 0.95 0.3 that includes 509.85 513.15 3.30 37.25 1.58 0.54 followed by 535.80 553.90 18.10 16.56 0.99 0.30 2000N, that includes 536.45 539.40 2.95 36.02 1.84 0.20 BT-12-217 365W and also includes 549.30 551.05 1.75 40.53 1.83 0.44 and also includes 552.30 553.90 1.60 34.93 1.64 0.67 followed by 576.70 581.20 4.50 25.04 1.56 0.31 that includes 579.50 581.20 1.70 37.05 1.90 0.40 323.35 343.10 19.75 30.19 1.54 0.34 BT-12-218 900N, 270E that includes 326.00 335.27 9.27 38.85 1.92 0.29 and also includes 339.20 342.00 2.80 39.28 1.84 0.37 508.45 576.55 68.10 33.41 1.7 0.32 that includes 508.45 534.75 26.30 42.96 1.99 0.34 BT-12-219 900N, 347W and also includes 548.00 551.00 3.00 40.15 1.93 0.29 and also includes 560.90 567.35 6.45 36.10 1.82 0.29 and also includes 572.00 576.55 4.55 40.12 1.91 0.35 BT-12-220 900N, 347W Hole abandoned at 639m prior to reaching BTCD due to jammed rods 175.00 208.15 33.15 28.62 1.68 0.47 1600N, BT-12-224 that includes 183.75 196.65 12.90 39.48 2.03 0.36 046E and also includes 202.75 206.50 3.75 37.65 2.14 0.43 314.70 348.00 33.30 25.16 1.51 0.39 followed by 361.50 401.60 40.10 30.36 1.70 0.39 1300N, BT-12-225 that includes 379.00 380.00 1.00 41.17 1.90 0.34 278W and also includes 385.25 391.80 6.55 42.67 2.21 0.35 and also includes 397.00 400.00 3.00 40.45 1.86 0.53 381.38 498.10 116.72 25.24 1.47 0.36 that includes 385.17 394.50 9.33 30.57 1.71 0.27 which includes 385.17 385.88 0.71 41.09 1.83 0.30 and also includes 396.87 401.95 5.08 30.64 1.75 0.47 which includes 396.87 397.72 0.85 42.63 1.98 0.54 1300N, BT-12-226 and also includes 404.60 405.60 1.00 30.11 1.60 0.31 278W and also includes 410.58 413.00 2.42 32.08 1.73 0.37 and also includes 437.50 496.35 58.85 31.62 1.75 0.41 which includes 438.30 439.25 0.95 41.63 2.07 0.47 as well as 441.55 443.45 1.90 40.81 2.05 0.35 as well as 445.67 447.00 1.33 41.32 2.07 0.42

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Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) as well as 449.10 450.10 1.00 41.39 2.18 0.60 as well as 452.65 454.45 1.80 42.41 2.15 0.39 as well as 456.45 458.25 1.80 40.39 1.95 0.37 as well as 459.95 469.50 9.55 40.66 2.15 0.43 as well as 476.00 495.00 19.00 40.11 2.01 0.54 1700N, 374.85 399.00 24.15 31.64 1.71 0.49 BT-12-227 300W that includes 383.00 396.50 13.50 40.14 1.93 0.65 299.05 367.18 68.13 21.43 1.31 0.32 that includes 299.80 309.00 9.20 32.16 1.88 0.44 and also includes 310.73 312.30 1.57 35.56 1.79 0.57 and also includes 316.00 318.00 2.00 30.14 1.66 0.53 1500N, BT-12-228 and also includes 339.70 360.20 20.50 31.42 1.78 0.36 310W which includes 346.00 348.00 2.00 41.34 2.03 0.48 as well as 353.50 360.20 6.70 40.69 2.14 0.46 and also includes 363.10 364.40 1.30 30.56 1.80 0.40 and also includes 365.75 367.18 1.43 31.37 1.65 0.43 559.75 618.50 58.75 21.34 1.24 0.38 that includes 562.05 563.70 1.65 40.57 2.18 0.51 and also includes 565.85 566.90 1.05 31.89 1.85 0.50 and also includes 567.55 568.35 0.80 35.07 1.53 0.59 1700N, and also includes 574.40 579.35 4.95 35.73 2.01 0.40 BT-12-229 437W which includes 576.00 579.35 3.35 40.45 2.27 0.41 and also includes 586.15 589.90 3.75 35.41 2.06 0.45 which includes 587.05 589.90 2.85 41.08 2.27 0.53 and also includes 596.75 618.50 21.75 31.78 1.67 0.63 which includes 598.45 610.55 12.10 41.19 1.98 0.46 411.70 479.50 67.80 20.82 1.27 0.32 that includes 413.40 420.00 6.60 31.86 1.81 0.28 which includes 416.70 417.70 1.00 45.21 2.01 0.21 1500N, BT-12-230 and also includes 448.60 476.10 27.50 30.65 1.71 0.39 390W which includes 453.15 453.90 0.75 40.91 1.98 0.84 as well as 460.00 463.10 3.10 40.34 2.09 0.41 as well as 467.10 476.10 9.00 40.60 2.06 0.48 446.75 545.80 99.05 20.54 1.26 0.34 that includes 446.75 458.40 11.65 35.24 1.94 0.40 which includes 446.75 451.90 5.15 40.18 2.05 0.53 as well as 455.25 456.35 1.10 40.56 2.14 0.50 and also includes 465.50 467.70 2.20 32.15 1.74 0.42 1500N, and also includes 493.15 504.85 11.70 30.67 1.73 0.36 BT-12-231 390W and also includes 506.65 508.50 1.85 35.89 1.74 0.21 and also includes 512.80 515.80 3.00 33.13 1.89 0.35 and also includes 521.10 535.45 14.35 34.97 1.99 0.44 which includes 522.30 526.70 4.40 40.25 2.32 0.49 as well as 530.90 535.45 4.55 40.32 2.06 0.43 and also includes 541.00 543.00 2.00 30.94 1.48 0.93 452.15 489.10 36.95 22.32 1.23 0.35 that includes 452.15 454.20 2.05 35.73 1.91 0.41 1700N, BT-12-232 and also includes 457.85 460.55 2.70 36.09 1.84 0.39 437W and also includes 469.15 473.55 4.40 35.07 1.97 0.44 which includes 471.00 473.00 2.00 40.75 2.25 0.51

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Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (g/t) and also includes 475.95 489.10 13.15 35.10 1.70 0.60 which includes 477.00 485.00 8.00 40.27 1.84 0.58 1000N, BT-12-233 Waste rock hole, no chromite mineralization intersected 150E 2000N, BT-12-234 Waste rock hole, no chromite mineralization intersected 150E 1200N, GT-12-09 Geomechanical hole, no chromite mineralization intersected 160E GT-12-10 1800N, 0E Geomechanical hole, no chromite mineralization intersected 2400N, GT-12-11 Geomechanical hole, no chromite mineralization intersected 015W 2600N, GT-12-12 Geomechanical hole, no chromite mineralization intersected 300E 2900N, GT-12-14 Geomechanical hole, no chromite mineralization intersected 100E

Based on the results from this drilling program, the BTCD extends from approximately 50 m asl to greater than -400 m asl on line 1600N (which is the narrowest point of the “saddle area” in the pit outline). Thus, the BTCD may not be present at surface on line 1600N, but it begins relatively close to surface and extends to considerable depth beneath what is referred to as the “saddle area” of the pit outline. On all sections drilled in this campaign chromite mineralization remains open at depth. Results of deep drilling on each section are summarized below: • 900N: chromite mineralization appears to narrow significantly then greatly increases at depth • 1200N: chromite mineralization increases in thickness and grade and is open at depth • 1300N: chromite mineralization maintains a consistent thickness and grade at depth and is open at depth • 1400N: chromite mineralization increases slightly increasing in thickness and grade at depth and remains open • 1500N: chromite mineralization maintains a consistent thickness but is bifurcating significantly resulting in a decrease in grade at depth but remains open at • 1600N: chromite mineralization increases in thickness and grade at depth and remains open • 1700N: chromite mineralization narrows and bifurcates at depth resulting in a decrease in thickness and grade. In addition, the ore zone is intruded by biotite gabbro and tonalite dykes at depth. However, the ore zone still remains open • 1800N: chromite mineralization is truncated by biotite gabbro at depth resulting in the loss of the highest grade portion of the ore zone. Lower grade parts of the ore zone remain open at depth.

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• 2000N: chromite mineralization bifurcates significantly at depth resulting in an increase in thickness but a decrease in grade. In addition, the stratigraphically lower portion of the mineralization seems to have been faulted out and is not present in both of the deep holes drilled on this section. However, the mineralization still appears to be open at depth. Holes BT-12-227 and BT-12-220 had to be abandoned during the drill program prior to reaching their target depth. In BT-12-227, the rods became jammed in the ore zone and the DDH was re- drilled as BT-12-232 at a different location. In hole BT-12-220, a fault zone was encountered at depth prior to reaching the ore zone resulting in the rods becoming badly jammed.

2012 Shallow Geotechnical Drill Program Drilling for the 2012 Shallow Geotechnical program took place between August 23rd and September 21st, 2012. Drilling was performed by Walker Drilling utilizing one overburden drill with diamond drilling capability. Drill moves, crew transport and core movement was all helicopter supported. Nine holes (BH12M-07 to 09, 14 to 17, 27 and 28) totaling 268m were drilled on Cliffs Chromite property. Results of the drilling indicate an average overburden depth of 17.75m with as much as 47.7m encountered in BH12M-28. Despite being primarily overburden holes, all holes were drilled into the top of bedrock (up to 33m) providing valuable geological information in areas with no exposure and no past drilling. This information was used to confirm and/or modify the property geology map largely interpreted from airborne geophysical surveys.

2013 Black Label Chromite Delineation Drill Program Drilling for the 2013 Black Label chromite resource program took place between January 26th and February 25th, 2013 and was performed by Orbit Drilling utilizing one diamond drill rig. Drill moves were done using a D4 Caterpillar while crew transport and core movement was all snowmobile supported. In total 2,082m were drilled in 8 holes. The goal of the 2013 winter drill program was to target areas of Black Label chromite mineralization with the greatest chance of increasing the resource size at shallow depths from +150m asl to 0m asl. Given the discontinuity of Black Label chromite mineralization, due in part to the late websterite and biotite gabbro intrusions, this proved a daunting task. Of the seven holes drilled for this program (BT-13-235 to 241), six intersected high grade chromite mineralization (>20% Cr2O3) with three holes in particular (BT-13-235, 236, 239) intersecting wide intervals (>20m) of high grade mineralization. However, this did not result in a significant

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increase in resource size or improvement in resource classification. Summary highlights of high- grade chromite intersections from this campaign are reported in Table 5.

Table 5: 2013 high grade (>20% Cr2O3) chromite intersections from the BLCD

Grid Interval Pt+Pd Hole No. From (m) To (m) % Cr O Cr/Fe Coordinates (m) 2 3 (ppb) 108.90 130.80 21.90 30.74 1.66 403 BT-13-235 1850N, 252W Followed by 210.00 216.00 6.00 20.37 1.15 365 149.7 210.90 61.20 26.49 1.52 907 BT-13-236 1850N, 252W That includes 158.00 180.00 22.00 33.49 1.71 559 74.65 79.75 5.10 29.99 1.37 285 BT-13-237 1650N, 230W That includes 75.65 79.00 3.35 33.13 1.54 270

BT-13-238 2250N, 275W No Black Label mineralization > 5m > 20% Cr2O3 BT-13-239 2250N, 355W 93.25 105.10 11.85 35.75 1.58 467

BT-13-240 2100N, 515W 260.40 263.50 3.10 25.47 1.28 521

BT-12-241 1000N, 100W 78.90 83.30 4.40 26.94 1.52 324 220.90 237.80 16.90 21.12 1.19 343 That includes 226.05 231.00 4.95 34.22 1.79 434 GT-13-13 2600N, 500W which includes 227.10 229.90 2.80 42.78 2.03 503 followed by 249.95 253.65 3.70 22.69 1.45 521 that includes 249.95 251.35 1.40 30.04 1.66 389

Drill holes BT-13-235 to 240 were all drilled between lines 1650N-2250N where Black Label chromite mineralization is thickest and most continuous. All drill holes were oriented to the northwest along the section, with the exception of BT-13-240 which was drilled to the southeast. Hole BT-13-241 was drilled to the southwest on section 1000N where Black Label chromite mineralization is thin but continuous. Chromite mineralization further northeast between sections 2900N-3000N was not targeted in this program as these horizons were deemed to have a lower potential for resource expansion given the presence of the websterite in this area, however future targeting of Black Label chromite mineralization should examine this area in more detail given the results of GT-13-13 described below. One geomechanical drill hole (GT-13-13) not finished in 2012 was drilled into the late websterite body on line 2600N to complete the program. This hole intersected the BLCD between 226-223m, yielding an average grade of 34.2% Cr2O3. This BLCD intersection is completely enclosed by the websterite with magmatic breccia on either side making it effectively blind to gravity surveys as the websterite has a higher density than surrounding ultramafic rocks and tends to mask gravity anomalies associated with chromite mineralization. The stratigraphic position of this BLCD intersection is roughly on strike with the BLCD to the

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southwest and northeast, implying that the BLCD may still be partially present at depth and hidden within the websterite. Key results of the 2013 deep drill program are summarized for each section drilled below: • 1000N: Black Label chromite mineralization continues on this section to a depth of +100m asl • 1650N: Black Label chromite mineralization continues on this section to a depth of +110m asl • 1850N: high-grade Black Label chromite mineralization continues on this section to a depth of -30m asl • 2100N: Black Label chromite mineralization continues on this section to a depth of -20m asl • 2250N: Black Label chromite mineralization is truncated by the late websterite on this section • 2600N: a significant blind intersection of Black Label chromite mineralization was intersected on this section. Its vertical extent is unknown. In general, the distribution and continuity of the BLCD appears to be, in part, controlled by the late intrusive lithologies as the biotite gabbro in the southwest and the late websterite in the central and northeast both truncate and disrupt the BLCD.

2013 Shallow Geotechnical Drill Program Drilling for the 2013 shallow geotechnical program took place between March 4th and March 6th, 2013, and was performed by Orbit Drilling utilizing one diamond drill rig with split spoons for overburden recovery. Drill moves were done using a D4 Caterpillar while crew transport and core movement was all snowmobile supported. In total 235m was drilled in 9 holes. The goal of this program was two-fold, holes BH-13M-Q1 to Q5 were designed to acquire geotechnical information of overburden and shallow bedrock in the area around the leucogabbro outcrop being considered for quarry material for site development and construction aggregates. Holes BH-13M-B1, B2, B4 and B5 were designed to acquire geotechnical information of overburden and shallow bedrock northwest of the leucogabbro outcrop to fill in a gap in geotechnical information for this end of the proposed pit. Results of the quarry drilling program were highly useful in providing details of shallow bedrock in an area of limited previous drilling. A better understanding of the leucogabbro and its relationship to the ultramafic intrusion was acquired based on the results of this drill program. Shallow drilling northwest of the leucogabbro outcrop also allowed for improved interpretation of the surface geology in this area.

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2013 Deep Geomechanical Drill Program Drilling for the 2013 deep geomechanical program took place between August 18th and October 23rd, 2013, and was performed by Cyr Drilling utilizing one diamond drill rig and an ACTIII core orientation device to determine the true orientation of structural elements within the core. Drill moves, crew transport and core movement were all helicopter supported. In total 3,461m was drilled in 5 holes (GT-13-15 to 19). The objective of this program was to collect oriented structural data at depth along the hangingwall and footwall ore-waste rock contacts. The data was collected to determine if underground block caving would be a viable option for future study. All holes were targeted to intersect the Black Thor ore zone between 50 to 100m below the proposed open pit and to continue 50m past the ore zone into waste rock. The holes were spaced along the strike length of the deposit in order to capture as representative a suite of structural measurements as possible with the given drill budget. Geotechnical logging was performed by engineers from Golder and Associates while geological logging was performed by Cliffs' geologists. The program was successful in intersecting wide intervals of high-grade chromite mineralization and acquiring oriented core throughout these intervals and along either side for detailed structural measurements. While samples were recorded and marked for assaying, at the time of writing this report, the core had not yet been cut or assayed as the geotechnical analysis was not yet complete. However a table highlighting the thicker intersections of chromite mineralization based on visual estimates made by Cliffs geologists experienced with the project is presented in the Table 6. While not as accurate as assays, the visual estimate is a reasonable proxy for chromite grade.

Table 6: 2013 visual estimates of high-grade chromite intersections from the BTCD

Estimated Equivalent Grid Interval Hole No. From (m) To (m) Chromite Cr2O3 (%) Coordinates (m) content (%)* Estimate** 334.00 337.30 3.30 55 27.5 Followed by 543.20 545.85 2.65 48 24 GT-13-15 2300N, 390W Followed by 577.70 580.25 2.55 58 28 Followed by 654.00 656.00 2.00 43 21.5 596.80 617.30 20.50 80 40 Followed by 642.80 656.57 13.47 46 23 GT-13-16 2700N, 305E Followed by 669.00 712.00 43.00 42 21 That includes 669.00 689.50 20.55 55 27.5 And also includes 704.85 712.00 7.15 67 33.5 85.00*** 109.75 24.75 44 22 That includes 91.00*** 103.50 12.50 57 27.5 GT-13-17 1100N, 205W Followed by 121.00*** 130.35 9.35 46 23 Followed by 456.80 510.1 53.30 45 22.5 That includes 476.95 504.7 27.75 53 26.5 GT-13-18 1450N, 170E 466.00 546.60 80.60 48 24

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That includes 489.45 513.55 24.10 80 40 Followed by 590.00 671.30 81.30 62 31 That includes 617.55 671.30 53.75 73 36.5 467.50 521.25 53.75 47 23.5 That includes 468.35 481.20 12.85 80 40 And also includes 485.50 493.45 7.95 78 39 GT-13-19 2050N, 270E Followed by 545.90 550.20 4.30 70 35 Followed by 559.90 565.4 5.50 79 39 Followed by 582.50 600.25 17.75 50 25 *Visual estimations made by Cliffs geologists experienced with the geology and mineralization of the project and supported by periodic measurements using a hand-held portable XRF analyser. **Based on average of 50% Cr2O3 content of chromite for Black Thor and Black Label deposits ***Mineralization part of the Black Label chromite deposit

Holes GT-13-15 and 19 were drilled in the central domain on sections 2300N and 2050N respectively, GT-13-16 was drilled on section 2700N into the northeast domain, and GT-13-17 and 18 were drilled in the southwest domain on sections 1100N and 1450N respectively. Holes GT-13-15 and 17 were drilled to the southeast to obtain shallow information within the geologic hangingwall while holes GT-13-16, 18 and 19 were drilled to the northwest to obtain shallow information within the geologic footwall. While all holes intersected the Black Thor chromite horizon, GT-13-17 also intersected Black Label chromite mineralization by nature of its orientation. Key results of the 2013 deep drill program are summarized for each section drilled below: • 1100N: Black Thor chromite mineralization was confirmed to a depth of -300m asl where the upper horizon maintains its thickness • 1550N: Black Thor chromite mineralization was extended to a depth of -380m asl where it appears to thicken slightly • 2050N-2100N: Black Thor chromite mineralization was extended to a depth of -300m asl where it appears to narrow and bifurcate • 2300N: Black Thor chromite mineralization was extended to a depth of -325m asl where it appears to narrow and bifurcate • 2700N: Black Thor chromite mineralization was extended to a depth of -400m asl where it appears to narrow and bifurcate In general, the BTCD remains open at depth with the deepest intersection from the 2013 drilling being approximately 565m below surface (-400 m asl) on section 2700N.

8. CONCLUSIONS & RECOMMENDATIONS

Chromite delineation drilling in 2012 resulted in a significant increase in the size of the BTCD, specifically at depth between sections 1200N to 2000N within the “saddle” area. Deep geomechanical drilling of the BTCD in 2013 confirmed the presence of significant chromite

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mineralization at depth, and increased the known depth of visual mineralization on sections 1550N, 2050N, 2100N, 2300N and 2700N. Upon completion of the geomechanical study, assaying of the mineralized intersections is recommended followed with an updated resource estimate incorporating these assays. Drilling of the BLCD in 2013 resulted in some significant chromite intersections, however the size and classification of the resource did not grow considerably from the previous resource estimate. Due to the complexity and discontinuity of the deposit, much tighter drilling (i.e. 25- 50m spaced lines) is recommended to improve the geological model, and ultimately the resource for the BLCD. The significant chromite intersection in GT-13-13, however, proves the potential for hidden chromite mineralization within the late websterite body between sections 2300N-2900N in an area previously thought to be of low exploration potential. Further drilling, using chromite intersections along the margins of the late websterite body as a primary exploration tool, is recommended in this area to increase the size of the BLCD. Additional geotechnical drilling throughout the property has improved the understanding of the shallow bedrock in areas of limited to no previous drilling. In turn this has resulted in an improved interpretation of the bedrock geology map of the property.

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9. REFERENCES

Aubut, A., 2013. McFauld’s Lake Area, Ontario, Canada, Black Thor Chromite Deposit 2013 Mineral Resource Estimation Update, Technical Report; Cliffs Chromite Far North Inc., 47 p. Bournas, N., Legault, J., 2008, Report on a Helicopter-Borne Time Domain Electromagnetic Geophysical Survey. Internal company report prepared for Freewest Resources Canada Inc. Carson, H.J.E., Lesher, C.M., Houle, M.G., Weston, R.J., Shinkle, D.A., Metsaranta, R.T., 2013, Project Unit 13-002. Stratigraphy, Geochemistry, and Petrogenesis of the Black Thor Mafic-Ultramafic Intrusive Complex and Associated Cr and Ni-Cu-PGE Mineralization, McFaulds Greenstone Belt, Ontario, Ontario Geological Survey, Open File Report 6290: 52.1-52.15 Hogg, S., 2003, Airborne Magnetic and Electromagnetic Survey, McFauld’s Lake - , Compilation and Interpretation Report. AFRI no. 2.29707 Hogg, S., 2004, Ground Magnetic and Horizontal Loop Electromagnetic Survey, McFauld’s Lake - Northwestern Ontario, Compilation and Interpretation Report. AFRI no. 2.29683 Novak, N., 2006, Report on Diamond Drill Program as Completed by Billiken Management Services Inc. For Spider Resources Inc./KWG Resources Inc./Freewest Resources Inc. Option Agreement on their McFauld’s West Property Grid “H and J”. AFRI no. 2.32028 Metsaranta R, Houlé MG (2012) Project Unit 10-004: Progress on the McFaulds Lake (“Ring of Fire”) Region Data Compilation and Bedrock Mapping Project, Ontario Geological Survey Open File Report 6280: 43-1 to 43-12

Mungall J.E., Harvey J.D., Balch S.J., Azar B., Atkinson J., and Hamilton M.A. 2010. Eagle’s Nest: a magmatic Ni-sulfide deposit in the James Bay Lowlands, Ontario, Canada: Society of Economic Geologists Special Publication No. 15, p. 539-557.

Mungall JE, Azar B, Hamilton MA (2011) Ni-Cu-Cr-Fe-Ti-V and VMS Mineralization of the Ring of Fire Intrusive Suite, Ontario, GAC Abstract

Percival J.A. 2007. Geology and metallogeny of the Superior Province, Canada, in Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 903-928.

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Rayner N, Stott GM (2005) Project Unit 03-011, Discrimination of Archean Domains in the Sachigo Subprovince: A Progress Report on the Geochronology, Ontario Geological Survey Open File Report 6172: 10-1 to 10-21 Stott G. M. 2007. Precambrian geology of the Hudson Bay and James Bay lowlands region interpreted from aeromagnetic data – east sheet; Ontario Geological Survey, Preliminary Map P.3597, scale 1:500,000.

Weston, R.J., and Shinkle, D.A., 2013, Geology and Stratigraphy of the Black Thor and Black Label Chromite Deposits, James Bay Lowlands, Ontario, Canada. Mineral Deposit Research for a High-Tech World. Proceedings of the 12th Biennial SGA Meeting, 12-15 August 2013, Uppsala Sweden, 1069-1071

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