DIRECT SHIPPING (DSO) IRON ORE Guinea, Africa GUINEA IRON ORE - - PowerPoint PPT Presentation

GUINEA IRON ORE LIMITED 130 Adelaide Street West, Suite 1010 Toronto ON M5H 3P5 Canada giolimited.com T 416 361 2511 F 416 364 5400 November 2012 Presentation World class iron ore in Guinea, Africa

DIRECT SHIPPING (DSO) IRON ORE Guinea, Africa

2

FORWARD LOOKING STATEMENT

Certain information contained herein regarding Guinea Iron Ore Limited (“GIO”) a private Canadian corporation, including management’s assessment of future plans and operations, may constitute forward looking statements under applicable securities law and necessarily involve risks, including but not limited to risks associated with mining exploration, operating costs, production costs, volatility of share prices, currency fluctuations, imprecision of resource and reserve estimates, environmental risks and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in any forward-looking statements. Plans, intentions or expectations disclosed in any forward looking statements or information should not be read as guarantees

• f future results or events, and will not necessarily be accurate indications of whether or when or by which such results
• r events will be achieved.

Except as required by law, GIO expressly disclaims any intention and undertakes no obligation to update any forward looking statements or information as conditions change. The historical resource estimates and grades reported in this presentation were taken from reports prepared by Kumba Iron Ore (subsidiary of Anglo American), and GIO is not permitted to report the results as NI 43 101 conformable. Therefore, GIO is required to make the following disclaimer: The resource results and grades reported by Kumba Iron Ore and subsequently referenced by GIO are to be treated as historical resources and grades and should not be relied

• upon. They have not been verified by GIO and are presented for general information purposes only.

3 GIO owns 100% interests in four iron ore properties in Guinea, Africa. The Company is focused on exploring and developing a direct shipping (DSO) iron ore operation at its Gaoual property. Gaoual is believed to host a potential resource of 3 to 5 billion tonnes. Iron ore grades measure as high as 59%.

GIO AT A GLANCE

4

GIO IRON ORE PROPERTIES

BOROKORO

5

GAOUAL PROPERTY – DSO IRON ORE

• Potential to be a 3 to 5 billion

tonne resource.*

• Direct shipping iron ore – high

grade potential of up to 59%.

• 40 km strike length, 4 to 6 km

width, up to 30 metres thick.

• Within 100 km of modern, multi-

user rail lines. Significant excess capacity (85%) exists on Government rail line.

• Located approximately 200 km

from a port.

• 867 km2 of licensed land.
• Nearest large population centre

is Gaoual (65 km southeast of the property).

• Located in northwest Guinea

between the villages of Foula Mori and Dombiadji.

* Non NI 43-101 compliant resource and reported grades, and should not necessarily be relied upon.

6

GAOUAL GEOLOGY

• High grade FeT

mineralization at surface (59%).

• An iron rich sedimentary

unit dips 15 degrees to the south-west.

• Top image: Displays 37

drill holes completed by Anglo American subsidiary, Kumba Iron Ore on the two iron

• utcrop areas (yellow

border).

• Bottom image:

Geological map with permit boundaries.

7

GAOUAL GEOLOGY

• Hematite mineralization has

been found.

• Deposit is at surface,

extending to a depth of approximately 30 metres. An

• pen-pit mining technique

would be employed.

• Photo: A slope of outcropping

hematite.

• “Dead Zones” are associated

with iron mineralization at the Gaoual Property.

8

GAOUAL DRILL HOLE OR4-BH008

6m - FeT 57% average

9

GAOUAL DRILL HOLE OR4-BH009

6m - FeT 55% average

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GAOUAL DRILL HOLE OR4-BH010

7.5m - FeT 51% average

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GAOUAL DRILL HOLE OR4 CONTINUITY

6m - FeT 57% average 7.5m - FeT 51% average 6m - FeT 55% average

12

GAOUAL EXPLORATION PLAN & BUDGET

Exploration Plan – Phase 1 Objectives: 1 Drill up at Gaoul a Measured and Indicated resource of 400 million tonnes; and 2 “Fence” drill an additional Inferred resource of a billion tonnes plus

• Twin drill six of the previous
• wner’s drill holes for geological

control and to validate historical drilling and assay data

• Infill and step out reverse

circulation drilling of the Orion 3 and Orion 4 areas – tighten drill spacing to 200 x 200 metres

• Complete the XRF survey in

advance of the wide, step-out fence drilling

• Amount of suggested drilling is

anticipated to increase once results are obtained from XRF Analyser survey. This survey is expected to significantly increase the size of the drill target area.

• Total drilling in phase 1 – 3,720

metres

YEAR 1 Site Preparation:

• Camp construction
• Drilling – water
• Project management
• Security

Exploration:

• Analysis
• Geology
• Drill mobilization
• Drilling – reverse circulation – 3,000 metres
• Drilling – core – 250 metres
• Environmental
• XRF survey
• Safety
• Reporting

YEAR 2

• In-fill drilling
• Environmental impact study
• Metallurgical analysis
• Permitting
• Community liaison
• Preliminary economic assessment report

YEAR 3

• Engineering and technical studies of rock properties
• Analysis of open pit design
• Analysis of mining techniques and equipment requirements
• Road engineering, power engineering, environmental impact studies
• Reclamation plan and design
• Permitting
• Bankable feasibility study

TOTAL $17,000,000

13

GAOUAL INFRASTRUCTURE

• A multiuser rail line is

approximately 100 km away and is accessible via the N.23 national highway.

• Rail line constructed to a

capacity of about 100 million tonnes per year but present use is only about 15% capacity.

• The rail line ends at the port
• f Kamsar.

14

GAOUAL INFRASTRUCTURE

• Because of the booming mining

industry, Port Kamsar, located at the mouth of the Rio Nuñez and at the end of the rail line, has become an increasingly prominent port.

• Deep water ocean port

providing direct loading onto ships.

• Port can handle very large

vessels, allowing mining companies to ship out bulk quantities without the need to change carriers. In response to the growing Guinean mining industry, this vessel was designed specifically for the Port of Kamsar, and has a capacity of 82,100 MT.

15

BEYLA-N’ZÉRÉKORÉ PROPERTY & GEOLOGY

• 523 km2 of licensed land.
• Iron ore at the

Beyla-N’Zérékoré site is predominantly magnetite.

• Grab samples measure up to

55% FeT.

• Only 25 km South of Rio Tinto

and BSGR/Vale’s deposits (up to 8 billion tonnes) at Simandou.

• Vale paid BSGR (Simandou

licence holder) US$2.5 billion for 51% interest in BSGR in April 2010.

• Vale is investing

approximately US$5 billion to start production in 2012.

• Photo: Iron rich sediments

exposed on the Beyla licence project.

BEYLA-N’ZÉRÉKORÉ PROPERTY

16

FARANAH PROPERTY

• 573 km2 of licensed land.
• Located in central Guinea south

west of the city of Faranah.

• Only 30 km south from

Bellzone’s Kalia project (6.16 billion tonnes of magnetite averaging 21.8% FeT*) where the China Investment Fund (CIF) is contributing US$2.7 billion for a 286 km rail to Kalia.

• Rail will end close to the

Faranah property.

* Non NI 43-101 compliant resource and reported grades, and should not necessarily be relied upon.

17

FARANAH GEOLOGY

• Iron ore at the Faranah site is

predominantly magnetite.

• Grab samples measure up to

37% FeT.

• Recent work on the Faranah

property located magnetite bearing schist.

• Top photo: A close up of

a banded iron formation with visible hematite crystals.

• Bottom photo: Preserved

banded iron formation block in laterite.

• 2012 exploration program

includes an airborne magnetic survey and extensive bedrock sampling in areas of interest.

18

BOROKORO PROPERTY

• 271 km2 of licensed land.
• Assay results show high

grade iron ore in several areas – 40 to 55% Fe, 60 to 75% Fe203

• Main target in the southwest

part with high iron concentration

• Second target less

homogenerous on the south / southeast part

• Indication of other possible

targets in the north part close to the granite dome

• Previous information states a

reserve of at least 400 million tonnes in the south part of the property

19

KEY CORPORATE EVENTS & TIMELINE

EVENT TIMELINE Closing of financing Q1 2013 Execution of Phase 1 exploration program at Gaoual Q2 2013 Prepare Joint Ore Reserves Committee (JORC) compliant property report Q3 2013 AIM Listing Q4 2013 Commencement of Preliminary Economic Assessment and scoping study Q4 2013

20

CAPITAL STRUCTURE

SHARE STRUCTURE SHARES Shares Outstanding 83,092,403 Warrants (average exercise price of $0.24) 9,535,843 Fully Diluted 92,628,246 SIGNIFICANT SHAREHOLDERS OWNERSHIP Featherstone Industries Limited 21.7% Kodak Enterprises Limited 19.7% Direct Leverage Limited 13.2% Directors and Management 6.1%

21

OTHER MINING INTERESTS IN GUINEA

A PARTIAL LIST OF MINING COMPANIES PRESENTLY IN GUINEA:

• Bellzone
• Benny Steinmetz Group (BSGR)
• BHP Billiton
• China International Fund (CIF)
• China Power Investment
• Chinalco (Aluminum Corp of

China)

• Guinea Iron Ore (GIO)
• Newmont (Euronimba
• wnership)
• RTZ
• RTZ-Alcan
• Rusal
• Sumitomo (Euronimba
• wnership)
• Vale

Rio Tinto’s (38.5%), Chinalco’s (26.85%) and the Government of Guinea’s (35%) Simandou Project has a resource of around 8 billion tonnes grading 65% FeT. The local

• perational vehicle is Simfer SA.

Rio’s shareholding was purchased for $700 million. Chinalco’s shareholding was purchased for $1.35 billion. Project capital is expected to reach $19 billion. Vale’s (33.5%), BSGR’s (31.5%) and Government of Guinea’s (35%) Simandou Project (Zogota Mine) Vale’s shareholding was purchased for $2.5 billion. Bellzone’s Kalia Project has a resource of 6.16 billion tonnes grading 21.8% FeT. The Chinese Investment Fund owns 50% of the project and holds a 100% offtake

• agreement. CIF will fund up to $2.7

billion for infrastructure

• development. Bellzone plans to

ship iron ore from its Forecariah JV project in H1 2012 and also has a nickel and copper project underway called the Sadeka Project. BHP Billiton’s Nimba Project has a resource estimated to be greater than 1 billion tonnes grading 65%

• FeT. Project capital is expected to

exceed $2 billion.

22

ABOUT GUINEA

REPUBLIC OF GUINEA

• Gained independence from

France in 1958.

• Guinean law is based on the

French civil law system.

• Official language is French.

Government is a Democratic Republic.

• A free and clear election was

held on June 27, 2010, resulting in the election of His Excellency Professor Dr. Alpha Condé, who is a past professor of political science at the University

• f Paris. He will serve a seven

year term in office. POPULATION

• Population of Guinea is

approximately 10 million.

• There are 24 ethnic groups, but

three dominate:

• the Malinké
• the Fula
• the Susu
• The groups are harmonious and

there has never been a civil war in the country.

• The country is 245,857 km2,
• r approximately one-quarter the

size of Ontario. ECONOMY

• The economy is dependent on

agriculture and mining.

• Bauxite and alumina are at present

the only major exports.

• Iron ore is expected to become a

major export product during the next few years.

• Gold and diamonds are also found

within Guinea.

• Offshore exploration is underway

for oil.

23

MINING IN GUINEA

• Mining Code written in 1995 and

updated September 2011.

• Mining makes up 20% of GDP.
• Guinea is the world’s largest

producer of bauxite with an estimated 25 to 50% of the world’s

• reserves. Guinea exports 15

million tonnes of bauxite annually.

• Guinea is slated to produce over

10% of the world’s Iron Ore.

• Guinea has between $15 and $20

billion dollars of foreign investment going into development of infrastructure to service mining activities.

• The Government of Guinea is

planning to build a 340 megawatt coal fired electrical station near Boke to service the growing mining industry.

EXPLORATION LICENCES

Exploration Licences are owned 100% by the entity. Mining Licences include a Government 15% carried interest and the option to purchase an additional 20%. For exploration (a prospecting permit):

• Initial three year term, relinquish 50% at end of term.
• Two renewal periods of two years each, 50% relinquishment of remaining

land at end of each term. Upon conversion to mining concession, exploitation permit issuable for 25 years, with multiple renewable extensions for 10 years each term. The properties are subject to a 2% NSR; 0.5% can be bought back for $5 million.

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IRON ORE

Iron ore is rock from which metallic iron is extracted. It is often found in the form of:

• magnetite (Fe3O4)
• hematite (Fe2O3)

MAGNETITE Magnetite is a ferrimagnetic mineral, coloured black or brownish-black with a metallic luster. It is the most magnetic of all the naturally occurring minerals

• n Earth.

HEMATITE Hematite is a mineral, colored black to steel or silver-gray, brown to reddish brown, or red. Huge deposits of hematite are found in banded iron formations.

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GLOBAL SUPPLY OF IRON ORE

• Besides oil, iron ore could be the

most important commodity in the global economy. 1

• Most of the world’s reserves that

contain high-grade iron ore (60% FeT or more) have already been depleted.

• Lower-grade sources of iron ore

are currently being mined around the world as a result of the declining supply of high grade.

1 Christopher LaFemina, a mining analyst

at Barclays Capital. *Calculated by Earth Policy Institute from United States Geological Survey, Mineral Commodity Summaries 2005 (Washington, DC: U.S. Government Printing Office, 2005).

26

MANAGEMENT BIOS

Michael C. Judson, B.A., ICD.D. CEO and Director

• Mr. Judson has over 20 years of experience of forming,

financing and operating both private and public natural resource exploration companies and production projects. He has raised approximately $185 million and has been successful in significantly growing the market capitalizations for a number of junior mining exploration

• companies. He was the founder of Forest Gate

Resources Inc. in 1998 and Blue Note Mining in 2004, both companies that grew in market capitalization from $1.5 to $50 million and $2 to $250 million, respectively. Jean Lafleur, B. Sc., M. Sc. Geology, P. Geo. VP Exploration, Director

• Mr. Lafleur is a geologist with over 30 years of experience in

various capacities, both in Canada and internationally (West Africa, Ecuador and Mexico), with a range of industry companies, such as Newmont Mining Corporation, Falconbridge Limited, and Placer Dome Inc. He most recently was Director and Head of Exploration for Champion Minerals Ltd., a TSX listed company, where he was instrumental in the advancement of Champion’s 2 billion tonne iron ore assets in the Quebec/Labrador iron ore trough. Mr. Lafleur has led teams in the search for base metals, gold, nickel, iron, titanium, vanadium and uranium. His firm is currently managing the drilling and exploration program for Nevado Resources Inc., at La Blache Quebec, a higher grade iron ore, titanium and vanadium project. James Fairbairn, C.A., CFO

• Mr. Fairbairn, C.A., ICD.D, has more than 20 years

experience with publicly-traded companies. He is a Chartered Accountant, having obtained his C.A. designation in 1987 and an Institute-certified Director. Mr. Fairbairn holds a B.A. from the University of Western

• Ontario. His valued experience touches on corporate

governance and financial reporting with respect to junior mining exploration companies. Mr. Fairbairn is an Officer

• f CGX Energy, Ausnoram Holdings Limited, Claim Post

Resources, Mag Copper Limited and Treasury Metals Inc.. He is also a Director of Ausnoram Holdings Limited and Canada Lithium Corp. Scott Young President

• Mr. Young has spent the last 10 years involved in the capital

markets sector, inclusive of six years experience working as the Business Development/Investor Relations Executive for mining companies based in Africa, Canada and South America. Mr. Young specializes in precious and base metals and also works in the technology space in the same capacity. He has contacts in Asia, Europe and North America. Mr. Young has also helped several mining and technology companies raise capital.

27

ADVISOR BIO

• Dr. Yindong Yang

Advisor

• Dr. Yindong Yang is the senior research scientist and the head of steelmaking and chemical analysis laboratory at the

Department of Materials Science and Engineering, the University of Toronto, Dr. Yang received his Master degree from the Beijing University of Science & Technology in 1981 and his Ph.D. degree from the Royal Institute of Technology, Stockholm, Sweden in 1991, and subsequently spent four years as Postdoctoral Research Fellow at the University of Toronto from 1992 to 1996. During the period from 1982 to 1988, he worked in Beijing Central Iron and Steel Research Institute as a project manager for hot metal and stainless steel dephosphorization, and spent two years as a guest researcher in MEFOS Metallurgical Research Centre, Lulea, Sweden for a China-Sweden joint research program on the treatment of high phosphorus ores and hot metal. Dr Yang holds the title of adjunct professor in Wuhan University of Science and Technology as well as Beijing Central Iron and Steel Research Institute. He also serves as grant application reviewer for Chinese National Foundation for Natural Science, and advisor to several large companies in mining, metallurgical, renewable energy and energy storage fields. He has strong ties with several engineering companies from ferrous and nonferrous industries, such as the Beijing Capital Engineering and Research Incorporation (CERI) and Tangshan Iron and Steel Design and Research institute and a number of steel companies in China and other countries in the world. He is the author of more than 100 publications and two patents and was the recipient of the John Chipman Medal in 2003 from the American Iron and Steel Society (ISS) and coauthor of eight award-winning presentations or poster presentations from 2004 to 2012 from AIST, ASM and COM. Dr Yang provided consultation to a number of world-class companies, such as Hatch Association, Canada, IKEA, Sweden and China Aluminum Group Co. Overall he produced 32 consultation reports.

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BOARD OF DIRECTORS’ BIOS

Michael Wood Non-Executive Chairman and Director

• Mr. Wood has over 25 years of senior executive finance and
• perational management experience focusing in the

international oil and gas sector. His experience includes being President and CEO of Heritage Oil, an oil and gas production and exploration company listed on the London Stock Exchange and Toronto Stock Exchange, with

• perations in Africa, the Middle East and Russia; and was a

founder and CEO of TSX listed Candax Energy Inc., developing oil and gas interests in Africa. Diana Metzen, Director

• Ms. Metzen received her B.A. in Political Science from

McGill University and her Bachelor of law degree, LL.B., from Université de Sherbrooke. She has over 10 years experience specializing in joint ventures and corporate

• restructuring. Ms. Metzen advises on a variety of

domestic and international mergers and acquisitions. She has a significant track record in the logistics sector, having served on the board of directors of multiple private

• corporations. Ms. Metzen is fluent in English, French and

German. John Cullen, Director

• Mr. Cullen has 30 years experience in public company

financing, corporate/capital structuring and management. Following 15 years in the Canadian investment brokerage industry, including 10 years with Burns Fry, Mr. Cullen founded a number of public companies including CGX

• Energy. He is a current director of Hy Lake Gold Inc.,

MAG Copper Limited, Southeast Asia Mining Corp. and Victory Gold Mines Inc. Brenda Metzen, Director With over 15 years of financial accounting and reporting experience, Ms. Metzen has actively led the finance department of several high tech enterprises. She has worked extensively with corporations in directing their financial planning and supporting their rigorous growth

• initiatives. She has acquired extensive knowledge in

business development and specializes in offering clear and strategic long term visions. Ms. Metzen holds a Bachelor of Commerce from McGill University and is currently Chief Financial Officer of an international technology corporation. Jean Lafleur, B. Sc., M. Sc. Geology, P. Geo. VP Exploration, Director