Revised Technical Report: Schefferville Area Direct Shipping Iron Ore Projects Resource Update in Western Labrador and North Eastern Quebec, Canada For Labrador Iron Mines Holdings Limited Prepared By: Maxime Dupéré, P. Geo. (SGS Canada Inc.) Justin Taylor, P.Eng. (DRA Americas Inc.) Respectfully submitted to: Labrador Iron Mines Holdings Limited Effective Date: March 31st, 2012 Revised October 24, 2012 Mineral Services SGS Canada Inc. 10 boul. de la Seigneurie Est, Suite 203, Blainville, Québec Canada t (450) 433 1050 f (450) 433 1048 www.geostat.com www.sgs.com Schefferville Area Direct Shipping Iron Ore Projects in Western Labrador and North Eastern Quebec, Canada 1 CONTENTS i. List of Tables ..................................................................................................................................................... viii ii. List of Figures ..........................................................................................................................................................x 1. Summary (Item 1) ............................................................................................................................................... 11 1.1 Property Description and Location ................................................................................................ 12 1.2 History ........................................................................................................................................................ 12 1.3 Geology ....................................................................................................................................................... 13 1.4 Exploration ............................................................................................................................................... 14 1.5 Drilling and Sampling ........................................................................................................................... 14 1.6 Sample Preparation, Security and Data Verification ............................................................... 15 1.7 Metallurgical Testing ............................................................................................................................ 15 1.8 Mineral Resources ................................................................................................................................. 16 1.9 Interpretations And Conclusions..................................................................................................... 20 1.10 Recommendations ................................................................................................................................. 22 2 Introduction (Item 2) ......................................................................................................................................... 24 2.1 Company Information .......................................................................................................................... 24 3 Reliance on Other Experts (Item 3) .............................................................................................................. 25 4 Property Description and Location (Item 4) ............................................................................................. 26 4.1 James Deposit .......................................................................................................................................... 43 4.2 Redmond Deposits ................................................................................................................................ 43 4.3 Gill Deposit ................................................................................................................................................ 43 4.4 Ruth Lake 8 Deposit .............................................................................................................................. 44 4.5 Knob Lake 1 Deposit ............................................................................................................................. 44 4.6 Denault 1 Deposit................................................................................................................................... 44 5 Accessibility, Climate, Local Resources, Infrastructure, Physiography (Item 5) ......................... 45 5.1 Accessibility .............................................................................................................................................. 45 5.2 Climate ........................................................................................................................................................ 46 5.3 Local Resources ...................................................................................................................................... 46 5.4 Infrastructure .......................................................................................................................................... 46 5.4.1 Railroad ...................................................................................................................................... 47 5.5 Physiography ........................................................................................................................................... 47 6 History (Item 6) .................................................................................................................................................... 49 7 Geological Setting and Mineralization (Item 7) ........................................................................................ 53 7.1 Regional Geology .................................................................................................................................... 53 7.2 Local Geology ........................................................................................................................................... 55 7.2.1 Geology of Schefferville Area ............................................................................................. 55 7.2.2 Iron Ore ...................................................................................................................................... 57 7.2.3 Manganese ................................................................................................................................ 58 8 Deposit Types (Item 8) ...................................................................................................................................... 59 March 31, 2012 Revised October 24, 2012 Page ii Schefferville Area Direct Shipping Iron Ore Projects in Western Labrador and North Eastern Quebec, Canada 8.1 Iron Ore ...................................................................................................................................................... 59 8.1.1 Central Zone ............................................................................................................................. 60 8.1.2 South Central Zone ................................................................................................................ 63 8.1.3 North Central Zone ................................................................................................................ 65 8.1.4 South Zone ................................................................................................................................ 65 8.1.5 North Zone ................................................................................................................................ 67 8.1.6 Other Deposits ......................................................................................................................... 67 8.2 Manganese Deposits ............................................................................................................................. 68 8.2.1 Central Zone ............................................................................................................................. 68 8.2.2 South‐Central Zone ................................................................................................................ 71 8.2.3 Other Manganese Deposits ................................................................................................. 71 9 Exploration (Item 9) ........................................................................................................................................... 73 9.1 Past Exploration ..................................................................................................................................... 73 9.2 LIM Exploration from 2005 ‐ 2007 ................................................................................................. 74 9.3 2008, 2009, 2010 and 2011 Exploration ..................................................................................... 75 9.3.1 2008 Program .......................................................................................................................... 75 9.3.2 2009 Program .......................................................................................................................... 76 9.3.3 2010 Program .......................................................................................................................... 76 9.3.4 2011Program ........................................................................................................................... 77 10 Drilling (Item 10)................................................................................................................................................