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Graham LettoCommunity & Gov’t Relations Manager

Scully Mine Update18 September 2019

2 Source: Feasibility Study

Scully Mine operated as Wabush Mines from 1965 to 2014, making iron ore concentrate that was pelletized at Pointe Noire, QC

Current Life of Mine > 26 years, Tailings Area > 16 years

Cargill committed for 100% of mine production for 15 years

Overview

(2)

3

Highlights

Employment2

Industry Dynamics1

Production3

Schedule5

Future Growth Opportunities6

Financial Impact4

6

0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

Alumina (%)

0.2%

0.00% 0.03% 0.05% 0.08% 0.10%

Phosphorus (%)

0.007%

0.5% 2.0% 3.5% 5.0% 6.5% 8.0%

Silica (%)

2.58%

57% 59% 61% 63% 65% 67%

Tacora

Canada

Brazil

Australia

Iron (%)

65.9%

Source: AME, Feasibility Study

Tacora

Worse Better Worse Better Worse Better Worse Better

Iron (%) Silica (%) Alumina (%) Phos. (%)

Note: Country grades are estimated as the average of current production from each country.

Canada

Brazil

Australia

% of Global Production

0.3%

3%

23%

45%

Canadian Mines Provide High Grade Specialty Ore Feeds1

Median Median Median Median

Tacora offers an above-standard product in terms of Fe grade as well as other key characteristics

Silica, Alumina, Phosphorus and LOI (loss on ignition) are deleterious to iron ore and Tacora ore is uniquely low in all of these elements

The installation of Mn reduction circuits as part of the restart along with marketing the Scully concentrate as a sinter feedaddresses the historical Mn challenge

Tacora’s concentrate is zero moisture, versus approximately 8.0% for the rest of the world, which means it can be shipped year round without risk of freezing

LOI is a key driver of value in use — benchmark 4-10% LOI means 4-10% of the weight purchased is lost to the off-gas in the sintering process compared to just 0.8% for Tacora

COMMENTARY

LOI

Low

Low

Medium

High

0.8%

7

Employment2

ZERO safety incidents through August 31, 2019

Scully Mine Team Members May 2019 = 52

June 2019 = 117

July 2019 = 158

August 2019 = 180

Total employment ~260 team members

Open Positions Chief Mine Engineer

Operations Supv. – Concentrator

Electrical supv. – Concentrator

Maintenance Planners

Warehouse

Heavy Duty Equipment Tech – Mine

careers@tacoraresources.com

0

5000

10000

15000

20000

25000

30000

January February March April May June July August

Tacora FTE Hours

8

Payroll2

Earned in Labrador West

Competitive base wage rates

Monthly production bonus Paid 2 weeks after month end

everyone measured against the same goal

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Jan Feb Mar Apr May Jun Jul Aug Sept*

Scully Payroll

pay bonus benefits

All values are in Canadian Funds

* Sept wage estimated for month end

9 Source: Tacora Records

Production Milestones3

First ore to crusher – May 25

First Mill startup – May 28

10 Source: Tacora Records

Production Milestones3

Wet concentrate – June 2

First mine blast – June 25

First train loaded – June 25

11 Source: Tacora Records

Production Milestones3

Three mill operations – July 17

Four mill operations - August 9

First vessel shipment – August 26

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jun Jul Aug

Tonn

es

Concentrate Production

On Spec Off Spec

12

Canada 152,496,233

US 12,648,674

Source: Tacora records

Financial Impact (January ~ August 2019)4

All values are in Canadian Funds

These values reflect the amounts paid, they do not include ongoing commitments

$165.1mm total, 93% spent in Canada

Includes Canadian payroll of approximately $1.5mm per month

13 Source: Tacora records

4

All values are in Canadian Funds

Largest portions of QC expense is for Pointe Noire and QNS&L rail

Equipment, contractors, supplies

Financial Impact (January ~ August 2019)

QC79,244,095

NL55,367,688

other CA8,949,255

ON4,565,262

NS4,123,337

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Canada

14 Source: Tacora records

Financial Impact (January ~ August 2019)4

All values are in Canadian Funds

49,762,252

5,605,437

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Labrador Newfoundland

Provincial

93% Labrador; contractors, supplies, payroll

39% of Newfoundland is electrical utility expense

Does not include miscellaneous food, lodging

15

Mn reduction installation Additional storage capacity Concentrator upgrades

Improve material handling equipment at Pointe Noire

2018 2019

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Ramp up production to 6 MTPA of iron ore

Complete fund raising for restart

Project detailed engineering

Commence pit dewatering

Mn reduction engineering

Q2 2019 to 2021

Concentrator commissioning Resume mining

Schedule5

Delivery of new mining equipment

16

Future Growth Opportunities6

Future

2019

Short to Medium Term

Improve Fe recovery; currently at 65.9%; improve mill uptime

A

Medium Term

Potential investment to produce DRI grade concentrate

Substantial resource upside with M&I conversion potential

B

Medium to Long Term

Potential to expand offering to manganese ore production and ferromanganese production

C

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