Lannavaara Iron Project - Hannans Ltd

Lannavaara Iron ProjectAn OpportunityFor Port – Rail – Pipeline19 September 2014Alta, Norway

SCANDINAVIANRESOURCES AB

Ownership Structure

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Hannans Reward Ltd Est. 2002

Listed on the Australian Securities Exchange Based in Perth, Australiawww.hannansreward.com

Scandinavian Resources AB Org No. 556737-6263

Est. 2008Based in Malå, Sweden

100%


Introduction to the Concept

• Potential to be a large, long-life (+25 year) project.

• High iron content product (+69% Fe) in low sovereign risk jurisdictions.

• The Project comprises exploiting a large magnetite iron resource at Lannavaara,

converting the ore into a high quality iron product, transporting the product 170km

to an ice-free, deep-water port and shipping the product to market.

• The Project is at the Conceptual Stage: social, environmental, infrastructure,

marketing, processing, mining and exploration related investigations are at early

stages.

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Lannavaara Iron Project - A Lengthy Process

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Explore for Iron DepositsExplore for Iron Deposits

Mine Rock and Extract OreMine Rock and Extract Ore

Process Ore into Iron ProductProcess Ore into Iron Product

Transport Iron Product on New Rail with Finnish Gauge or Pipeline

Transport Iron Product on New Rail with Finnish Gauge or Pipeline

De-Ice, Unload & Store Product in the Mountain

De-Ice, Unload & Store Product in the Mountain

Reload the Ship at the Quay Reload the Ship at the Quay

Transport to MarketTransport to Market

SwedenSweden

FinlandFinland

NorwayNorway

Social & Cultural

Environmental

Stakeholders

Shareholders


Rail / Pipeline – Lannavaara to Skibotn

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Rail / Pipeline – Lannavaara to Skibotn

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Rail / Pipeline – Unloading & Storage

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Underground (in-the-mountain) de-icing, unloading facility (or dewatering) and storage facility which limits dust, noise and impact on the nature

Rail or pipeline

Note: This image is for illustration purposes only and has not been the subject of analysis by SRAB


Unloading – Storage – Reloading

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Quay & Shiploader

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Note: The shiploader is for illustration purposes only and is not the property of SRAB.


Rail Logistics Assumptions

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Assumptions

Locomotives Diesel / LNGPort Capacity 8Mt pa (with options for expansion)Vessel Capacity 250,000DWTRail Gauge Finnish standard (25 tonne axle-load and 8 t/m)Wagons 100t total weight, loading 80t of product, 12.5m long and 46

wagons in totalTonnes of Ore Per Train 3,680t of oreStandard Train Length 675m (including locomotives)Trains Per Day 7 (planning caters for 8)Train Cycle 12 hoursMarshalling & Train Movements in the Port

Before entering the mountain

Ore Handling In the mountainQuay & Shiploader The center of the ship loader is the only real quay, the vessel

is moored and resting at 5 strong mooring points with fender system, adapted to tidal waters.

Power Requirements 3,700 kWRock Excavation 335,000m3


Energy in Lapland – Supply, Demand & Security

Lannavaara Iron Project may present catalyst for new business opportunities in Lapland (e.g. supply of LNG / NG)

What is the demand for LNG / NG in Lappland?• Industry

– Norrbotten & Finnish Lapland• Power Generation

– Sweden & Finland

Skibotn could provide LNG:• Storage & Bunkering

LNG can be transported by:• Truck and Rail

NG could be transported by:• Pipeline

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Stakeholder Briefings

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Muonio Kommun

Tunturi-Lapin Kehitys Tapani Haapasaari

Kolari Kommun

County of Troms

City of Tromsø

Port of Tromsø

Troms Chamber of Commerce

Confederation of Norwegian Enterprise

Storfjord Kommun

Enontekiö Kommun

Kiruna Kommun

Luleå University of Technology

Regional Council of Lapland

Reindeer Herders' Association, Finland

Käsivarsi cooperative

Lapland Chamber of Commerce

Lannavaara and Övre SoperoCommunities

Norwegian Public Roads Administration

Joint Barents Transport Working Group

Finnish Transport Agency


Next Steps

Communications

• Stakeholders – Introductory Meetings completed

Scoping Study

• Unloading, Storage & Reloading – completed

• Concentrate & Gas Pipeline – initiated

• Rail – tender process completed

• Social & Environment – tender process initiated

• Legal & Permitting – tender process initiated

• Completion Date – December 2015

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Contact

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For more information please contact:

Damian Hicks Managing Director Scandinavian Resources AB +46 703 220 226 (M)[email protected] (E)

Amanda ScottExploration DirectorScandinavian Resources AB +46 703 221 497 (M)[email protected] (E)

SCANDINAVIANRESOURCES AB 15

Tack så mycket Kiitos Takk Giitu Thank you


Lannavaara Iron Project - Hannans Ltd

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