Alderon: Update on New Transmission Line

Press Release

October 2, 2014 (TSX: ADV) (NYSE MKT: AXX)

Alderon Iron Ore Corp. (TSX: ADV) (NYSE MKT: AXX) (“Alderon” or the “Company”) reports that Newfoundland and Labrador Hydro (“Hydro”), a subsidiary company of Nalcor Energy (“Nalcor”) has cleared 20 kilometers in preparation for the installation of a third transmission line from Churchill Falls to Labrador West (the “New Transmission Line”). The New Transmission Line will supply power to the Kami Iron Ore Project (“Kami Project”) as well as other end users in the Labrador West area. The construction timetables for the New Transmission Line and the Kami Project have been aligned and as such the remaining portion of the

Transmission Line project will be executed upon completion of Alderon’s financing plan.

The construction of the New Transmission Line was confirmed in February 2014 (refer to Alderon News Release dated February 13, 2014 for more information) in order to meet the power demands for new mining developments and improve reliability for all customers in the region. As an end user of the New Transmission Line, The Kami Mine Limited Partnership, an affiliate of Alderon, provided a security for its commitment to begin purchasing electrical power under the terms and conditions of the Power Purchase Agreement it signed with Hydro (refer to Alderon News Release dated February 25, 2014 for more information). Alderon provided an initial security deposit in the amount of $21.0 million to Hydro and all project costs incurred to date are covered by this security deposit. Construction will proceed once additional financing is secured.

“Work on the New Transmission Line is ready to resume as soon as our financing plan is complete,” says Tayfun Eldem, President and CEO of Alderon. “The New Transmission Line is a key piece of our infrastructure requirement and an enormous enabler for natural resource development in western Labrador and we are pleased that Hydro is ready to proceed as soon as we are.”

About Alderon
Alderon is a leading iron ore development company in Canada with offices in Montreal, Vancouver, St. John’s and Labrador City. The Kami Project, owned 75% by Alderon and 25% by Hebei Iron & Steel Group Co. Ltd. (“HBIS”) through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district and is surrounded by three producing iron ore mines. Its port handling facilities are located in Sept-Îles, the leading iron ore port in North America. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production. HBIS is Alderon’s strategic partner in the development of the Kami Project and China’s largest steel producer.

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

ALDERON IRON ORE CORP.

On behalf of the Board
“Mark J Morabito” Executive Chairman
Montreal Office
Vancouver Office
T: 514-281-9434
T: 604-681-8030
F: 514-281-5048
F: 604-681-8039
E: info@alderonironore.com
www.alderonironore.com

For further information please call:
Evelyn Cox
1-604-681-8030 ext 223 or 1-888-990-7989

NT3