CHINA MINING 2013November 2-5, 2013 Tianjin China

Claus Østergaard, M.Sc. Geology, Executive Partner 21st NORTH

The Akuliaruseq Graphite Deposit

A high-grade flake deposit in West Greenland

(contained within exclusive license 2012/40)

21st NORTH

21st NORTH

Project highlights

THE AKULIARUSEQ

GRAPHITE DEPOSIT

• Historic indicated open-pittable resource from 1983 includes 5.34Mt graphite grading 9.5% C including 1.16Mt graphite grading 14.8% C (open-ended)

• The deposit is hosted within a seven kilometer long continuous graphite sequence comprising several graphite zones and is only drilled to 40 meters depth (124 holes totalling 5705 meters).

• Metallurgical test work has demonstrated that substantial proportions of the ore is of high quality, easy to refine and contains a large amount of flake graphite

• Most recent studies has shown the ore to contain up to 20% +48 mesh and 50% +100 mesh graphite flakes

• Having no surface cover the Akuliaruseq deposit is superbly exposed and located right on the coast in the ice-free part of West Greenland

• Additional graphite resources within the same stratigraphy has been discovered during 2013 field work for up to 50 kilometers further inland outlying the potential of a substantial graphite region

• Gentle terrain and large fresh water supplies (potential for hydropower) within the prospect area

21st NORTH

Who we are21st NORTH – Independent Danish exploration company founded in 2009

• Three decades of experience from Greenland with exploration, project assesment and investment marketing covering a wide range of commodities (Au, Fe, Ni-Cu, Pb-Zn, PGE, Ti-V, W, Sb, REE, Graphite, Coal)

• Experts on logistical solutions in remote inaccessible regions of Greenland

On-going exploration projects in Greenland• Greenland Gold Resources Ltd [BVI] – partly owned

subsidiary to 21st NORTH• All projects are located in the southern part of Greenland

where climatic conditions are most favorable and infrastructure and logistics easily accessible

• Akuliaruseq graphite project located in West Greenland

Akuliaruseq Graphite

Ni-Cu

Ni-Cu

Sinarsuk Ti-V PGE

Mo, Au-Ag

A modern political stable democracy

• Greenland has strong ties to Denmark with a Self Rule Government, that shows keen interest in developing the natural resources

• Mineral exploration is offered on commercially attractive terms by the Bureau of Minerals and Petroleum [BMP] and includes a simple basic mining law

• The favorable mineral potential and low-risk political stability of Greenland is emphasized by recent reports from the independent Fraser Institute of Canada, where Greenland is among the top scorers in a number of categories

ABOUT GREENLAND

• 4 municipalities; Kujalleq, Qaasuitsup, Qeqqata, Sermersooq

• Roadways: although there are roads in towns, there are no roads between towns; inter-urban transport takes place either by sea or air

• No railways exits in Greenland

• Airports w. paved runways: 10

• Airports w. unpaved runways: 5

• Ports and Terminals: most towns and settlement have capacity for loading and unloading standard containers

• Communications: adequate domestic and international service provided by satellite, cables and microwave radio relay; totally digital since 1995.

• 44.000 km of coastline

• 2,2 mill km2 (20 pct. ice-free)

• Arctic to subarctic climate

• Terrain: flat icecap covers inland area. The coast is relatively narrow and often mountainous

• Elevation extremes: the highest point is Gunnbjorn Fjeld 3,700 m

• Nuuk is the capital and largest city. Greenland has in addition 18 towns - settlements with more than 500 inhabitants - and 64 minor settlements.

• Population of 57,637 (July 2010)

− Urban population: 84% of total population

− Ethnic groups: Inuit 89%, Danish and other 11 %

− Languages: Greenlandic (official), Danish, English

Facts about Greenland

ABOUT GREENLAND

Location and logistics

• The Akuliaruseq deposit is superbly exposed and located right on the coast in the ice-free part of West Greenland

• Close to International Airport and towns of West Greenland

• Large sources of fresh water

• No conservation areas, national parks or private land owners

• Situated between North American and European markets

REGIONAL SETTING

The Akuliaruseq Peninsula

• The Akuliaruseq peninsula is located in central West Greenland between two deep water inlets north of Nordre Stroemfjord and 140 kilometers from the International airport at Kangerlussuaq. Greenland´s second largest town, Sisimiut is located 90 kilometers south of the deposit area. Access to the project site can be done by boat (3 hours) or helicopter (35-40 minutes)

• The graphite deposit is located on a well exposed low-lying coastal plain, which is terminated by rugged hills to the north and northeast. There are a number of easily approachable beaches along the coast line and water depth quickly increases off shore to 70 meters in the centre of the Eqalussuit inlet. The coastal area is free of pack ice all year round

INFRASTRUCTURE & LOGISTICS

NagssugtoqidianOrogen

KetilidianOrogen

ArchaeanCraton

RinkianOrogen

The Nagssugtoqidian Orogen,West Greenland [1900-1800Ma]

Fundamentals

• Reworked (collisional) Archaean gneisses and supracrustal rocks. Arc magmatism (Palaeoproterozic) occurred in both flanks of the orogen, but is volumetrically less significant

• Graphite-bearing Palaeoproterozic supracrustals mainly occur as narrow linear belts

NAGSSUGTOQIDIAN OROGEN

• Historic small scale mining of graphite mineralisation mineralisation has taken place in the central part of the Nagssugtoqidian orogen for more than 100 years

AKULIARUSEQ DEPOSIT

GRAPHITE MINERALISATIO

N

Akuliaruseq

• The graphite mineralisation comprises three different stratigraphic layers running almost parallel for seven kilometers through most of the prospect area

• The most common type of mineralisation occur in sillimanite gneiss as disseminated flakes, which are orientated parallel to the foliation and lie in between the silicate grains. This rock type has a graphite grade in the order 6-8% C and is not intensely foliated

• The second type of mineralisation occurs in zones in the sillimanite schist that have undergone intense structural deformation. The graphite grade appears to correspond directly with the degree of deformation and narrow zones with 20-24% C occur in mylonitized and brecciated parts of the stratigraphy. Here the graphite occurs as films, seams and lamellae, which envelopes the grain texture of the rock

HISTORIC WORK

GRAPHITE MINERALISATIO

N

Lake Giesecke

• Reconnaissance field work and sampling completed in 2013

• Significant sedimentary units hosting disseminated graphite occur in all prospect areas (A+B)

• Graphite is not evenly distributed in these rocks, but occurs concentrated in narrow zones from 0.5-20.0 meters width

• The volume of coarse flaky graphite appears to be high. The far majority of graphite observed occurs as late overgrowing flakes with sizes from 0.1mm- 2cm

• SkyTEM anomalies in application area B match graphite mineralisation very well, and based on surface exposures it is believed that the majority of these anomalies are caused by graphite and not sulphides

HISTORIC WORK

• From 1982 to 1986 the Danish Cryolite Company carried out exploration work to test the extent of the graphite layers observed on surface. The program included a ground geophysical Mag and EM survey (7000x500 meters), which were used to outline four favorable blocks (A, B, C and D), which were drilled to 40 meters depth (124 Winkey holes totalling 5,705 meters)

• Using visual inspection for cut-off, only sections with >6% graphite were sampled and sent to analysis (18% of total drill core). The targeted blocks were following estimated to comprise an indicated resource of 5,34Mt grading 9,5% C including 1,16Mt grading 14,5% C

Metallurgical test work

• In the period 1984 to 1986 four bulk samples were collected for metallurgical studies of the ore. The work comprised bench-scale floatation tests, mineralogical studies and eventually pilot plant test work including a series of flotation tests to produce clean marketable graphite concentrates (90-94% C in the +100 mesh fraction)

• In 1990 additional sampling was carried out in order to test the flake content. Test work included primary flotation, mineralogical studies and overall quality assessment. Results revealed a higher percentage of flake graphite than anticipated with up to 50% +100 mesh flakes and 20% +48 mesh flakes

• Areas with the highest graphite do not necessarily have the highest proportion of large flakes

Ressource definition

Akuliaruseq

Application area B

Graphite bearing stratigraphy at Lake Giesecke

Kangerlussuaq Int. Airport