Notice of Commencement of an Environmental Assessment

Kami Iron Ore Project

Labrador (NL)

January 27, 2012 -- On October 17, 2011, the Canadian Environmental Assessment Agency (the Agency) and the Sept-Îles Port Authority received a project description in accordance with the Establishing Timelines for Comprehensive Study Regulations.

Based on information they have received, the Agency and the Sept-Îles Port Authority have determined that the project is described in the comprehensive study list and that an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. As a result, a comprehensive study commenced on January 13, 2012.

The proposed project consists of constructing and operating an open-pit iron ore mine about 10 kilometres west of Labrador City, Newfoundland and Labrador. The mine would produce up to 16 million tonnes of iron ore concentrate annually and would include waste rock disposal areas, a tailings management facility, processing and support infrastructure, and a 12-kilometre rail connection to the existing Quebec North Shore and Labrador Railway. Mined ore concentrate would be loaded into rail cars and transported to the Port of Sept-Îles, where it would be unloaded, stockpiled and transferred to vessels for delivery to customers. Modifications and additions to the rail system at Sept-Îles are also planned to facilitate unloading and handling of incoming ore concentrate.

An environmental assessment is required in relation to the project because Fisheries and Oceans Canada may take action in relation to section 32 of the Fisheries Act and to subsection 35(2) of the Fisheries Act; the Sept-Îles Port Authority may provide federal lands and because Transport Canada may take action in relation to section 5 of the Navigable Waters Protection Act.

This project is also subject to the environmental assessment requirements of the Government of Newfoundland and Labrador.

For further information on this environmental assessment, please contact:
Kami Iron Ore Project
Canadian Environmental Assessment Agency
Derek McDonald, Project Manager
1801 Hollis Street, Suite 200
Halifax  NS  B3J 3N4
Telephone : 902-426-0564
Fax : 902-426-6550
Email : kami@ceaa-acee.gc.ca

and refer to Registry reference number 12-03-64575

For specific information on the project, please contact the proponent at:
Todd Burlingame
Executive Vice President Environment and Aboriginal Affairs
Alderon Iron Ore Corp.
10 Fort William Place
8th Floor, Baine Johnston Centre
St. John's  NL  A1C 5W2
Telephone : 709-576-5607
Fax : 709-576-7541
Email : kami@alderonironore.com