2018: Year of Revival and Re-positioning

Press Release

Dear Friends of Alderon Iron Ore Corp.,

As the year comes to a close, Alderon has taken time to reflect on the significant events that have strengthened its commitment to its partners and communities, while the resilience of the iron ore price and grade premia continued to open up a window for financing of the high-grade Kami Project. The Company now turns its attention to the new year, in effort to secure financing and further advance the Kami Project towards production.

Iron Ore Revival

High-grade iron ore, of the type Alderon plans to produce out of its Kami Project, neared US$100 per tonne in 2018, while the benchmark 62%-Fe grade iron ore traded around US$65 per tonne. According to CRU – business intelligence on global metals, the premium for high-grade iron ore over the 62%-Fe benchmark price reached a new record of 45% in 2018. Alderon’s view is that the peak is likely to be contained in the 20–30% range in the coming years as a bifurcated market becomes the norm. The shift in the market is driven by China’s desire to curb pollution, by moving towards premium products with higher iron content and low levels of deleterious materials as part of their supply side reforms.

Company Developments and Milestones

2018 began with the return of Tayfun Eldem as President & CEO, and Director. Tayfun, who previously served in this role between 2011 and 2015, brings with him nearly 30 years of experience in the mining industry. He immediately executed a strategic plan to pursue financing required for the construction of the Kami Mine, which will bring significant economic impacts for Newfoundland and Labrador, Québec and all of Canada. The Company milestones achieved this year are as follows:

2018 Q1: Altius Minerals Corporation (“Altius”) increased its stake in Alderon and John Baker, Executive Chairman and co-founder of Altius, was reappointed to the Board of Directors.

Alderon re-established its office in Montreal and launched a French version of its website, as part of an initiative to better engage with a broader Canadian audience.

2018 Q2: Alderon and HBIS Group’s executive team members engaged Chinese banking institutions on potential financing structures for the Kami Project. This successful China mission included a meeting with Hon. Siobhan Coady, Minister of Natural Resources for Newfoundland and Labrador, and a meeting hosted by the Canadian Ambassador to China, Hon. John McCallum, to discuss how the parties can collaborate further over the development of the Kami Project.

With the closing of the loan facility from Sprott Resource Lending and the repayment of the loan from Liberty Metals & Mining Holdings, Alderon reduced its overall, consolidated debt position and secured additional time to complete the project financing.

Mr. Rolland G. Morier, a veteran mining executive and finance professional, and Mr. Zhou Wei, an experienced commodities trader, were appointed to the Board of Directors, bringing with them their own unique expertise and professional networks to the Alderon family.

2018 Q3: In preparation for the relaunch of the financing efforts, an updated feasibility study was completed confirming pre-tax US$1.7 Billion NPV8 and 24.6% IRR for the Kami Project.

2018 Q4: Alderon’s Director Mr. Zhou (Wayne) Wei, succeeded Jeff Wang as President of HBIS Group Canada, and immediately engaged stakeholders in western Labrador and Sept-Îles, Québec.

Over in China, Chairman of HBIS Group (Alderon’s strategic partner in the development of the Kami Project and China’s second largest steelmaker), met with Newfoundland and Labrador Premier, Hon. Dwight Ball, during a mission to strengthen ties with stakeholders and discuss priorities for the Kami Project.

Financing

The premia garnered by the high-grade iron ore concentrates improves the Kami Project economics substantially and allows Alderon to re-enter the market and pursue financing. Capital markets are receptive to producing or substantially de-risked iron ore projects, such as Kami, and are starting to recognize the value of the Labrador Trough. Alderon and HBIS Group are focused on building capital with traditional and non-traditional sources and are in ongoing discussions with representatives of various banks.

Looking Forward

Starting in the New Year, Alderon will formally kick-off its project financing efforts to raise the capital required to build the project. While its high-grade iron ore concentrates make Kami a rare development opportunity in the iron ore industry, the project also has its major permits in place and port and power agreements concluded. There is only one de-risking step left, being the completion of the financing.

One of the pleasures of the holiday season is having the opportunity to say thank you to Alderon’s partners and stakeholders – HBIS Group, Altius, and the communities in Newfoundland and Labrador, and Québec, in which it plans to operate – for the support shown during the years taken to advance the Kami Project. Alderon remains steadfast in its determination to develop the Kami Project and, in doing so, create significant value for all of its stakeholders.

About Alderon Iron Ore Corp.

Alderon is a leading iron ore development company in Canada. The Kami Project, owned 75% by Alderon and 25% by HBIS Group through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district, the Labrador Trough, and is surrounded by three producing iron ore mines. The Kami product will be shipped through a newly commissioned multi-user, deep-water berth near the Port of Sept-Îles in Québec.

For further information on the Kami Project please refer to the Technical Report entitled “Updated Feasibility Study of the Rose Deposit and Resource Estimate for the Mills Lake Deposit of the Kamistiatusset (Kami) Iron Ore Property, Labrador”, dated effective September 26, 2018, that is available on SEDAR at www.sedar.com. The Technical Report was prepared under the supervision of Mr. Angelo Grandillo, P.Eng, of BBA, a Qualified Person as defined by NI 43-101, with contributions from Mr. Jeffrey Cassoff, P.Eng, of BBA, Mr. James Powell of Gemtec, Mr. Peter Merry of Golder and Mr. Kociumbas. Mr. Grandillo is a Qualified Person as defined by NI 43-101 and is independent of Alderon. Mr. Grandillo has reviewed and approved the technical information contained in this news release, being the results of the feasibility study.

For more information on Alderon, please visit our website at www.alderonironore.com.

ALDERON IRON ORE CORP.
On behalf of the Board
“Tayfun Eldem”
President & CEO, Director

For further information please call:

Mishka Gounden
1-604-681-8030 ext 289
info@alderonironore.com

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