Project N Report NI 43-101 Technical Baffin Island-Mary River, Mary RiverIron OreTrucking o . 165926 Mary River, Baffin Island, Canada Mary River Iron Ore Trucking NI 43-101 Technical Report Prepared by: AMEC Americas Ltd. Prepared for: Baffinland George H. Wahl, P. Geo Iron Mines Corporation Rene Gharapetian, P. Eng. February 2010 James E. Jackson, P. Eng Project No. 165926 Vikram Khera, P. Eng VOLUME 1 Gregory G. Wortman, P. Eng REPORT Effective Date, January 13, 2011 IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Technical Re- port for Baffinland Iron Mines Corporation (BIM) by AMEC Americas Lim- ited (AMEC). The quality of information, conclusions, and estimates con- tained herein is consistent with the level of effort involved in AMEC’s ser- vices, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by (BIM) subject to the terms and conditions of its contract with AMEC. This contract permits (BIM) to file this report as a Technical Report with Cana- dian Securities Regulatory Authorities pursuant to National Instrument 43- 101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. Baffinland Iron Mines Corporation Mary River Baffin Island Mary River Iron Ore Trucking NI 43-101 Technical Report TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY ............................................................................................. 1-1 1.1 Introduction and Scope of Work ....................................................................................... 1-1 1.2 Property Description and Location ................................................................................... 1-2 1.3 Exploration Licenses ........................................................................................................ 1-3 1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography ..................... 1-3 1.5 History .............................................................................................................................. 1-7 1.6 Geology and Mineral Resource Methodology .................................................................. 1-8 1.7 Mine Engineering ........................................................................................................... 1-14 1.8 Mineral Processing......................................................................................................... 1-16 1.9 Geotechnical Investigations ........................................................................................... 1-17 1.10 Mary River – Crushing, Screening and Stockpiling ....................................................... 1-19 1.11 Shipping ......................................................................................................................... 1-21 1.12 Infrastructure .................................................................................................................. 1-22 1.13 Port Layout ..................................................................................................................... 1-25 1.14 Environmental ................................................................................................................ 1-26 1.15 Closure ........................................................................................................................... 1-30 1.16 Capital Costs .................................................................................................................. 1-32 1.17 Operating Costs ............................................................................................................. 1-34 1.18 Project Execution Plan and Schedule ............................................................................ 1-35 1.19 Marketing ............................ ...................................................................................... 1-35 1.20 Economic Analysis BIM to provide ................................................................................. 1-35 1.21 Risks and Opportunities ................................................................................................. 1-36 1.22 Conclusions and Recommendations ............................................................................. 1-38 2.0 INTRODUCTION ......................................................................................................... 2-1 2.1 Terms of Reference ......................................................................................................... 2-2 2.2 Sources of Information ..................................................................................................... 2-2 2.3 Site Visits ......................................................................................................................... 2-2 2.4 Scope of Facilities ............................................................................................................ 2-3 3.0 RELIANCE ON OTHERS ............................................................................................ 3-1 3.1 Consultants and Contributors .......................................................................................... 3-1 3.2 Qualifications of Consultants ........................................................................................... 3-2 4.0 PROPERTY DESCRIPTION AND LOCATION ........................................................... 4-1 4.1 Property Locations ........................................................................................................... 4-1 4.2 Mineral Titles .................................................................................................................... 4-1 4.3 Royalty Agreements and Encumbrances......................................................................... 4-7 4.4 Environmental Liabilities .................................................................................................. 4-7 4.5 Existing Permits ............................................................................................................... 4-7 4.6 Jurisdiction ....................................................................................................................... 4-7 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....................................................................................................... 5-1 5.1 Access .............................................................................................................................. 5-1 Project No.: 165926 January 2011 Baffinland Iron Mines Corporation Mary River Baffin Island Mary River Iron Ore Trucking NI 43-101 Technical Report 5.2 Climate ............................................................................................................................. 5-1 5.3 Physiography ................................................................................................................... 5-2 5.4 Local Resources and Infrastructure ................................................................................. 5-3 6.0 HISTORY .................................................................................................................... 6-1 6.1 Ownership ........................................................................................................................ 6-1 6.2 Past Exploration ............................................................................................................... 6-1 6.3 Work in Progress .............................................................................................................. 6-5 7.0 GEOLOGICAL SETTING ............................................................................................ 7-1 7.1 Regional Geology............................................................................................................. 7-1 7.2 Local Geology .................................................................................................................. 7-5 7.3 Geology of the Mary River Iron Deposits ......................................................................... 7-6 8.0 DEPOSIT TYPES ........................................................................................................ 8-1 9.0 MINERALIZATION ...................................................................................................... 9-1 10.0 EXPLORATION ........................................................................................................ 10-1 10.1 History of Relevant Exploration Work ............................................................................ 10-1 10.2 Exploration Work by WGM ............................................................................................. 10-1 10.3 Exploration Work by BIM (2004 to 2010) ....................................................................... 10-2 11.0 DRILLING ................................................................................................................. 11-1 12.0 SAMPLING METHOD AND APPROACH ................................................................. 12-1 12.1 WGM – 1964/65 ............................................................................................................. 12-1 12.2 BIM 2004 to 2009 Exploration