2015 North American Producer of High Purity Pig Iron

2013 Major Milestones

The primary focus will be to further advance the strategy of being a manufacturer. To further present the strategic benefits of being a manufacturer rather than simply a miner in paramount. By being a manufacturer - a producer of high purity pig iron - the project has created a significant level of insulation from the price volatility of simply mining and selling iron ore concentrate. Further, the focus is to participate in the high value aspect of making pig iron.

The goal remains on being able to produce a tonne of pig iron (less than $280/tonne) below the cost of purchasing scrap metal ($340-380/tonne) and selling to steel mills (electric arc furnaces) at a market cost of $410-450/tonne. Pig iron has fewer impurities than scrap steel and thus of higher value. Additionally, the patent process for iron making allows the Carbon content to be modified to a melter's preference.

The focus will be locating the first iron making plant in a port community with low cost electricity and natural gas and relatively close access to other raw materials. Additionally, the plant will be located near transport infrastructure that allows serving the North American steel market cost effectively. Currently, the USA imports 4-6 million tonnes of pig iron per year from Brazil (cost to produce is $424/tonne) and Russia as well requires approximately 50 million tonnes per year of scrap metal.

March-June 2013

1. Melt test of iron ore concentrate to establish patented iron making process and composition of slag with TiO2
2. Select the community that will host the first 800,000 tonnes per annum iron making plant (9 communities under review) recognizing the second plant will be near the resource in Labrador
3. Undertake permitting for mining in Labrador and iron-making in host community
4. Accept and review the Preliminary Economic Assessment and establish solutions key operating cost centres - mining, separation conveyance, shipping and handling, detailed design of iron making plant and construction
5. Continue infill drilling to further strengthen resource estimation and definition
6. Continue efforts with Innu Nation and governments to finalize agreements
7. Continued and advanced discussions with steel mills, traders, shippers and financial interests with a focus to complete Bankable Feasibility Study in less than 12 months

Grand River Ironsands Incorporated (GRI) is a private company that will control 60% of the Joint Venture with Petmin Limited (publicly traded on the JSE and AIM) who will own 40% (with an option to acquire up to 9.9% at fair market). The third partner will be Cardero Resources (publicly traded on the TSX) who have an earn window for 5.5% in equity. Additionally, the largest shareholder in GRI is Muskrat Minerals Incorporated (publicly traded on the CNSX) who currently own 42.2% of GRI.

NAIC control approximately 450 square kilometres of mineral sands near the port community of Happy Valley-Goose Bay, NL, Canada - located 400 kms east of the Labrador Iron Trough. These ironsands are a low-cost raw material used to make a high quality pig iron.