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Investor Presentation ‖ February 2017 ‖ ADV:TSX

Re-booting the Kami Project

Disclaimer

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Special Note Regarding Forward-Looking InformationThis presentation contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated developments and eventsthat may occur in the future. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of mineral resources; (ii) the market,demand for, and future price of iron ore and related products; (iii) estimates of future steel production; (iv) estimation of railway capacity; (v) the negotiation, conclusion and potential terms of infrastructurecontracts; (vi) expected infrastructure requirements and the completion of the port facility; (vii) potential economic benefits of the Kami Project; (viii) future freight costs, (ix) the potential advantages of ironore concentrate produced from the Kami Project and (x) the results of the Preliminary Economic Assessment (“PEA”) including statements about future production, future operating and capital costs, theprojected IRR, NPV, payback period, construction timelines and production timelines for the Kami Project.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends","anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "beachieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained inthis presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral reserves and resources, the realization of resource estimates, iron ore and other metalprices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability ofnecessary financing and materials to continue to explore and develop the Kami Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatoryapprovals , the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considersthese assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits,including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Kami Property, risks relating to variations inmineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access rail transportation, sources of power and port facilities, risksrelating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related products, risks related to increased competition in the market for iron ore and related products and inthe mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operationalrisks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encounteredduring the development process, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financingnecessary to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest,environmental risks, and the additional risks identified in the “Risk Factors” section of the Company’s Annual Information Form for the most recently completed financial year or other reports and filingsapplicable with Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of thispresentation. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

Additional InformationFor further information on the Kami Project please refer to the Press Release dated February 28, 2017 disclosing the results of the PEA and, once filed, the Technical Report entitled “Re-Scoped PreliminaryEconomic Assessment of the Kamistiatusset (Kami) Iron Ore Property, Labrador” dated effective February 28, 2017(the “Report”) and that will be available on SEDAR at www.sedar.com.

NI 43-101 Qualified PersonThe technical information presented in this presentation is from the Report. The 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 Gemtec Limited and Watts, Griffis and McOuat (“WGM”). Mr. Grandillo is a Qualified Person as defined by NI 43-101 and Mr. Grandillo is independent of Alderon. Mr. Grandillo hasreviewed and approved the technical information contained in the Report, with the exception of the mineral resource estimate. Mr. Michael Kociumbas, P.Geo. with independent firm, Watts, Griffis andMcOuat Limited, is a Qualified Persons as defined by NI 43-101 and is responsible for reviewing and approving the mineral resource estimate and the QA/QC associated with the mineral resource estimate. Mr.Kociumbas is independent of Alderon.

Recent Developments

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Updated PEA complete

Re-scoping with improved market fundamentals and

lower capex requirements

Improving Iron Ore market

Prices recently hit $90/tonne for the

first time in 2 years

Chinese demand is expected to be strong through

2020

Activity in the Labrador Trough is resuming

Future of Iron Ore

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• Increased supply was significant factor on the weakening of the iron ore price

• Majors need to strike balance between oversupply and threatened margins

• Urbanization in developing nations is driving demand for steel, led by strong growth in China

- Globally, roughly 2 billion additional people will urbanize by 2030

- Steel consumption in China’s rural areas is far behind the export-dominated cities of Beijing and Shanghai

- The Chinese government is now focusing efforts in these less developed areas of China

• Despite recent volatility, long term demand outlook remains robust

Growth in China’s interior will spur

continued demand for steel and iron ore

PEA Highlights

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$1.4BNPV @ 8% discount rate

(USD)

• Capital and operating costs significantly reduced

• $897.5M estimated Initial Capital Cost (USD)

• Utilization of idling neighbouring assets

Reduction in Capex due to re-scoping of project

Comparison Points 2017 Re-Scoped PEA* 2012 Feasibility Study*

Annual Production (65.2% Fe con) 7.8Mtpa 8.0Mtpa

Initial CAPEX $897.5M $1,272.9M

Cash operating cost (FOB) $31.05/t $42.17/t

Payback period 3.9 years 3.8 years

Measured and Indicated Resource of the Rose Deposit (COG=15%, 29.6% Tfe)

1093.2 Mt 1093.2 Mt

Mine life 24 years 30 years

6*Pre-tax. The 2012 Feasibility Study used an exchange rate of $1.00CDN = US$1.00 and was in constant Q4-2012 dollars. No escalation or inflation was applied to costs to bring them to Q1-2017 dollars.

Factors resulting in reduced capex & opex• Re-scoped Tailings Management Facility • Government of Quebec now owner of facilities at Pointe-Noire area of Port of Sept Iles• Downturn of Labrador region• Lower ocean freight rates• Canadian dollar devalued against US dollar

Cash operating costs reduced by ~26%

Capital savings at the mine site

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$375.5MCapital Cost Savings

($CDN)

Tailings Management Facility

• No dam construction for the first 10 years

• Large reduction in pipe and pump requirement

Railway, Roads, and Bridges

• No dam construction for the first 10 years

• Large reduction in pipe and pump requirement

General Infrastructure

• Gensets, warehousing, maintenance facilities existing

• Transmission line much shorter, construction not required

Sensitivity Analysis

Base Case

Initial CAPEX Selling Price OPEX

+25% -25% +25% -25% +25% -25%

$1,122M $673M $81.62/t $48.97/t $38.85/t $23.31/t

IRR 23.8% 19.2% 31.2% 35.4% 10.7% 17.6% 29.7%

NPV NPV NPV NPV NPV NPV NPV

0% $4,688M $4,464M $4,912M $7,570M $1,806M $3,274M $6,102M

5% $2,151M $1,936M $2,366M $3,728M $574M $1,371M $2,931M

8% $1,377M $1,167M $1,587M $2,544M $210M $799M $1,956M

10% $1,023M $816M $1,230M $1,999M $47M $539M $1,507M

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Project economics impacted by 36% reduction in long-term FOB price

Kami is shovel-ready

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Project is significantly advanced

• Feasibility Study completed – December 2012

• Detailed engineering at 52% at the time of suspension in June 2014

• Post-EA permitting process on-track

• 30% 3D process model review completed

• Major long-lead equipment committed

• Construction strategy in place

• Mining and surface leases secured

• Concluded agreements for power and port dock access

• Preliminary Economic Assessment Completed – February 2017

Steps being

taken to de-risk

Numerous Milestones Achieved

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Project largely de-risked

Project Development

• Procurement planning; orders for long lead items (complete)• Construction permits (on track)

Infrastructure Agreements

• Port of Sept-Iles Agreement (complete)• Power Purchase Agreement (complete)• Rail Agreements (access assured through common carrier status)

Environmental Assessment

• Release from Provincial Environmental Assessment (complete)• Release from Federal Environmental Assessment (complete)

Financing• First off-take partner (complete - Hesteel)• Second off-take partner (complete - Glencore)• Implementation of financing plan (commenced)

Stakeholder Agreements

• Provincial benefits and diversity plan (complete)• Municipal agreements (2 of 2 complete)• Aboriginal agreements (2 complete)

Superior quality concentrate relative to Australian and Brazilian sinter fines

Fe %* P %* Al2O3 %*High Fe content

Magnetite content• Lowers fuel cost for sintering

Low phosphorus • Offers potential capital

avoidance – no dephosphorization stage

• Reduces operating costs, improves BOF efficiency (lower cycle time and heat loss)

Low alumina• Improves blast furnace

operation• Lowers slag fluidity• Protects tuyeres

* Platts & Company Disclosures 13

Value-in-use proposition of Kami concentrate offsets freight disadvantage

What sets up apart…

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Underpinned by 1.27 billion tonnes at 29.6% iron of Measured & Indicated resources

Measured: 536.9 Mt @ 29.9% TFe, Indicated: 737.6 Mt @ 29.5% TFe, & Inferred: 522.6 Mt @ 29.5% TFe

Partners Infrastructure Management Location

Labrador Trough

• Safe & stable

jurisdiction

• Long history as a

mining region

• Hydro-electric power

at competitive rates

• Access to skilled labor

Capable Team

• Hands-on

development &

operating experience

• Former Rio Tinto/IOC

• Regional knowledge

• Excellent working

relationship with

regulators

Strategic Partnership

• Hesteel Group

• Liberty Metals &

Mining Holdings

• Glencore

Ideally Located

• 14.5 km to

common-carrier

railway with 80Mtpa

capacity (50Mtpa

surplus)

• 15.5km to high

voltage grid

• Access to deep-water

port secured

Canada’s premier iron ore district

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• Labrador Trough known for high grade and

low impurities

• Local skilled workforce of ~15,000 people

• Government support is unparalleled

• Foreign steelmakers and traders have been

active investors in the region in recent years

• Low access cost to paved highway (2.5km away)

• Access to low cost (~5.5¢/kWh) electricity

• Multi-user railway allows transport to

deep sea port which will provide year round

access to global markets

Kami is strategically located for low cost access to utilities and transport

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Port Access Secured & Power Agreements Completed

• Construction of C$220M multi-user port complete

• Secured access to the facility in return for a C$20M investment

• Multi-user platform in deep water up to 23 meters, suitable for large

cape-size vessels (250,000dwt)

• Loading capacity of 50 to 60Mt per year

• Power availability confirmed by Crown Utility (Nalcor)

• Province’s new industrial rates policy creates a level playing field

• Power Purchase Agreement complete

Access to infrastructure

Kami Project Optimization

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Rose Pit

KamiCrusher

KamiConcentrator

KamiLoad Out

KamiRailway

QNS&L

Kami Terminal

ScullyPit

ScullyCrusher

ScullyConcentrator

ScullyLoad Out

Wabush LakeRailway

QNS&L

Multi UserTerminal

KamiTailings

ScullyTailings

Now Kami TMF

Cliff’s Terminalconverted to

multi-user

= No longer used

= Still used

= Existing / new purpose

Flowsheet Assumptions

• Rose Pit and Kami crusher designs remain

• Kami concentrator built adjacent to Scully concentrator

• Overland conveyor extended to new Concentrator location (+7KM)

• Mined-out Scully pit used for Kami tailings

• Wabush Lake Railway used to connect to QNS&L

Utilization of existing infrastructure provides capital savings at the mine site

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Cost savings achievable by utilizing depleted Scully pit for Tailings Management Facility

Tailings Management Facility (“TMF”)

Opportunity exists for 100% of Kami Tailings to be put in Scully pit

22.9 Mtpa of ROM material expected to produce a - 7.8 Mtpa of concentrate- 15.2 Mtpa of tailings

Total tailings produced over 24 years LOM will be 356 Mt

Cost of environmental and tailings management expected to be US$1.04/t

Use of Scully Mine will produce cost savings

Will reduce greenfield footprint

Strong partners with 100% of production committed

• Hesteel Group (formerly Hebei Iron & Steel) is China’s largest steelmaker and has invested a total of C$182.2M to date & will purchase 60% of annual production • C$119.9M in project equity for 25% interest in the Kami Project• C$62.3M in corporate equity for 19.9% of Alderon common shares

• Liberty Metals & Mining Holdings, LLC invested C$49.2M in equity and C$22M in convertible debt

• Glencore will purchase 40% of annual production• One of the world’s largest global diversified natural resource companies

• Altius owns 25% of the outstanding shares of Alderon• Exploration and project generation company with focus on Newfoundland & Labrador

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Partners focused on taking Kami into production

Management Team

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Mark J. Morabito, B.A. J.D.

Chairman & CEO

Over 15 years’ experience in public markets with strong focus on junior mining, including capital-raising andcorporate development

Founding partner in Alderon - led team that struck an off-take agreement with Hebei, China’s largest steelproducer

Founder of King & Bay West, focused on funding, developing and managing resource-based opportunities

Kate-Lynn Genzel, CPA, CA

Chief Financial Officer

Has provided accounting, audit, tax and advisory services to both public and private entities, focused on juniorresource companies

Holds a Bachelor of Commerce (Honours) degree from the Sauder School of business at UBC

David Li, MBA, Ph.D.

VP Asia Pacific Affairs

Over 20 years of international project and financial management and corporate development experience,including CFO of Selwyn Chihong Mining Ltd., Asia Finance Controller for a US based manufacturing company inChina, and Director of Strategic Planning for Trina Solar, an NYSE listed public company

Olen Aasen, J.D.

GC & Corporate Secretary A practicing corporate and securities lawyer Over 12 years of experience in public companies, capital markets, securities laws and the natural resources sector

Diversified team with expertise in mining, international relations, & capital markets

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Mark J. MorabitoB.A. J.D.

Over 15 years’ experience in public markets with strong focus on junior mining, including capital-raising andcorporate development

Founding partner in Alderon - led team that struck an off-take agreement with Hebei, China’s largest steelproducer

Founder of King & Bay West, focused on funding, developing and managing resource-based opportunities

Tayfun EldemP.Eng.

25 years of mining experience with 20 years at the Iron Ore Company of Canada (Rio Tinto) in executive positionsincluding COO and VP Expansion & Engineering; served 3 years as Director on the JV Board

Most recently accountable for the development & delivery of a ~$2B program of green and brown fieldsexpansion projects at IOC

Delivered several records for pellet and concentrate production as well as total material movement

Ian AshbyB.Eng.

Spent 25 years with BHP Billiton, including Iron Ore President from 2006 to 2012 Was responsible for global strategy development and execution, and operations and project development for the

Iron Ore business

Adrian LoaderM.A.

20 years working for Shell, including most recently as President & CEO of Shell Canada Led the merger and acquisition activity and was responsible for strategic directions, scenarios, competitive

intelligence and planning

David PorterMBA

Previously served as VP Human Resources & Organizational Effectiveness for the Iron Ore Company of Canada Was responsible for Operations, Safety, Health, Sustainable Development, Communications and Community

Relations across the mining and steel sectors for over 33 years and lead the development and execution ofbusiness strategy, negotiated landmark agreements with international unions, governments and communities andlead business transformation initiatives

Wang JinhuiPhD.Eng.

Vast experience in engineering, project management, import and export trading and investment management Prior to joining Hebei, he worked for Hanbaosteel Is the President of Hebei Iron and Steel Group International Holding (Canada) Co. Ltd.

Board of Directors

Capital Structure

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Share Structure as of January 31, 2017

Shares Outstanding (TSX: ADV) 132,134,061

Options 4,760,000

Warrants 5,241,436

Fully Diluted 152,111,253

Cash & Cash Equivalents(as Of December 31, 2016)

CDN $8.85M

Current share price* $0.49

Significant Holders in Alderon Iron Ore Corp.

Altius Minerals 24.9%

Hesteel Group 19.6%

Liberty Metals & Mining 14.2%

Insiders** ~2%

$0.80 52 week high

$0.08 52 week low

* As of February 27, 2017**Source: SEDI

39%

34%

27%Retail

Strategic Partners

Insiders

Investment Highlights

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Improved market fundamentals

and lower capex requirements with

re-scoped project

Ideal location with access to low cost utilities, transport and

skilled labour in Canada’s premier iron ore district

Ability to capitalize on existing infrastructure from the idling

Wabush Scully Mine

Iron ore market is improving with Chinese demand

expected to remain strong through 2020

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Contact Information

Jennifer Paterson, Manager of Corporate Development

Phone: 604-681-8030 ext. 248

Email: info@alderonironore.com

Mailing Address

1240 – 1140 West Pender Street Vancouver, BC V6E 4G1

www.alderonironore.com

ADV: TSX

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Appendix

Kami Project Resource Estimate

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NI 43-101 Mineral Resource Estimate

(15% cut-off grade)

Zone Category Tonnes (Million) Tfe%

Rose Central Measured 249.9 29.4

Indicated 294.5 28.5

Total M&I 544.4 28.9

Inferred 160.7 28.9

Rose North Measured 236.3 30.3

Indicated 312.5 30.5

Total M&I 548.8 30.4

Inferred 287.1 29.8

Mills Lake Measured 50.7 30.5

Indicated 130.6 29.5

Total M&I 181.3 29.8

Inferred 74.8 29.3

Total Measured & Indicated 1,274.5 29.8

Total Inferred 522.6 29.5

Kami Land Status Map

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General Site Plan for Kami Mine Area & Scully Site

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Conventional FlowsheetHigh quality product

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Gravity Separation

Rail

Regrind

Primary GrindingGyratory Crusher

Magnetic Separation

%Fe 29.5%Fe Rec % 100%Wt % 100%

Spiral Concentrate Mag Concentrate

Spiral Tails Final tails

%Fe 65.2%% SiO2 4.3%Fe Rec % 77.7%Wt % 35.1%%Mn 0.81%P80 267 um

Final Concentrate

% of total concentrate19%

% of total concentrate81%

Load and Haul

%Fe 66.0%Fe Rec tot % 14.9%Wt % of feed 6.5%

%Fe 65.0%Fe Rec tot % 62.8%Wt % of feed 28.6%

Drill and Blast

Quality of Kami concentrate offsets freight disadvantage over Brazil

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Parameter Kami Brazil Australia Platt’s Target

% Fe 65.5% 65.05 61.5% 62.0%

% P 0.007% 0.020% 0.090% 0.075%

Al2O3 0.10% 1.20% 2.25% 2.0%

+ =

+ =

4,300kT 700kT

4,400kT 600kT

5,000kT

5,000kT

Fe 62.0%

P 0.080%

Al2O3 1.90%

Quality

Fe 62.0%

P 0.080%

Al2O3 2.10%

Quality

• 16.7% less Kami tonnes to blend Australian iron ore to 62% Fe.

• 54.2% less Kami tonnes to blend Australian iron ore to less than 2.0% Al2O3

• 18.8% less Kami tonnes to blend Australian iron ore to less than 0.075% P

Freight To China

C3

Freight cost only marginally higher than Brazil to China rate

• No published index for Sept-Iles to China freight

• Sept-Iles to Qingdao freight typically averages 15% above C3 (Brazil to China)

Source: SSY, BMO Capital Markets (March 2014)

309 capesize vessels on order through 2017

• 160 vessels needed to meet increased demand from China

• Long term freight market likely in surplus

Source: Braemar Seascope Research (March 2014)

Current Fleet On Order

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Actual data confirms freight from Sept-Iles to Qingdao averages 14.5% higher than C3 Baltic Index

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During drastic swings, data is difficult to correlate due to time lags

Summer – 12.6% (80% of cargoes shipped)Winter – 22.1% (20% of cargoes shipped)

Overall gap: – 14.5%

Actual fixture data over given time period

$/t

Mining 11.16

Processing 5.55

General Site 0.50

General & Administrative 2.22

Environmental and Tailings 1.04Rail Transportation 10.60

TOTAL 31.08

* Average, life-of-mine opex* Excludes royalty to Altius

• Extensive regional operating experience and learnings from Bloom have been incorporated– Over 100 years of hands-on operations and project

experience in the Labrador Trough

• Kami has been designed from ground-up and not as a patchwork– Avoids capex creep and delivers operating synergies

• Significant ore characterization and process testing have been performed– Process design delivers targeted nameplate

capacity and prevents surprises

• Kami operating model ensures lower overhead

• Capex/opex trade-off has been avoided

• Kami will achieve more favorable contracts for transportation

Kami Operating Cost Estimate (2017 PEA FOB Sept-Iles)

Kami differs from Bloom on many fronts

Bloom Operating Cost (FOB Sept-Iles)

$/t

TOTAL 90.00

* Current opex* Based on analyst reports

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