Scully Mine Restart Matt Lehtinen, President & COO · Industrial Supplies (pipe, valves, fittings, steel, welding materials, etc.) Information Technology Janitorial Laboratory services

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Scully Mine RestartNovember 27, 2018

Matt Lehtinen, President & COO

Bob Gagne, VP & General Manager

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The Scully Mine

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The Scully Mine

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The Scully Mine

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Tacora – Town Hall Meeting

Staffing4

Sustainability1

Schedule3

Procurement Priorities5

Business Opportunities6

Pre-Qualification Process7

Our Team Vision2

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BEFORE IMPLICATIONS

Mn Constraints, Deep Pit

Reduced Strip Ratio, Ore Closer

to Surface

AFTER

MILLLimited Mn

Control

Magnetic Separation for

Mn Control

~2% Mn Pellet <2% Mn Concentrate

MINE Lower mining costs

Higher weight recovery

Larger accessible reserves

Proven technology

Modest capital

Better product control

Taps strong concentrate markets instead of oversupplied North American pellet market

Eliminates pelletizer bottleneckPRODUCT

Sustainability1

New 5-year CBA with union aligning incentives, reduced job classifications, and

contracting-out where appropriate

Union Contract

Supplier ContractsCosts reduced, limited “take or pay”

Negotiated rail contract and new multi-user port access with capability to load Cape-size

vessels

Logistics Contracts

Sales & MarketingNegotiated 100% offtake contract through 2033

with Cargill, one of the largest traders of iron ore in the world; more potential end users of

material

OPERATING APPROACH COMMERCIAL APPROACH

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Sustainability1

1. We earn the respect of the regions in which we operate.2. We meet and exceed our customer’s expectations. 3. We are good neighbors. 4. We are focused on the personal safety of our employees. 5. We teach awareness & safety instruction every day.6. Our business is sustainable by producing a high quality product and

maintaining a low cost structure.

Tacora’s Core Values:1. Safety2. Teamwork3. Winning

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To Be the Best Mine in the Labrador Trough1. The Safest Mine2. The Lowest Cost Mine3. Producing The Highest Quality Product

We mandate a flat, team-based organization that empowers our team members to take initiative as problem solvers and make decisions.

We believe in Winning which requires hard work, dedication, creativity, efficient execution and a One Team mindset all while maintaining safety as our top priority.

Our Team Vision2

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The Old Way:

“Not my Job” Many job classes “Us versus Them” “The only way I can make

more money is to work more overtime”

Corporate only visits to criticize

“I tell my manager but nothing ever gets done”

Our Team Vision2

The Tacora Way:

Core business only Few job classes based on skill The better job we do, the

more money we make Sr. Management and

corporate are miners We win and celebrate together High Performance Work

Systems

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Construction

2018 2019Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Ramp up

Financing

Q2 2019 to 2021

Schedule3

Mn reduction installation - Started Concentrator upgrades - Started Construction of additional load-out bin -

Started Improve material handling equipment at

Pointe Noire Concentrator commissioning Resume Mining

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Actively recruiting for the following: Controller/Human Resource Manager/Chief Mine

Engineer/Health, Safety & Environmental Manager ~ 280 team members at Scully Mine, most are expected to come

from the Labrador West region. Although there is no recall, we encourage past Scully employees to apply.

Agreement with USW Competitive compensation. Hiring the best applicants based on skill, experience and fit. Incentive based pay system. Defined contribution retirement plan – 5% of base wages. Typical supplemental healthcare for current employees.

Staffing – Opportunities for Lab West – Work where you live!4

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Using KBRS to accept applications for the Scully Mine Website - https://www.meridiarecruitment.ca/Tacora Email - [email protected] Phone – (709)-722-4462

Phase 1 assessment – an evaluation to identify which individuals are most likely to become valued team members.

Phase 2 assessment – have met the criteria for success through phase 1 and will undergo evaluation which helps identify key motivators and behaviors. An understanding of the impact of personality on job performance – right fit for the right role.

Background verification and reference checks – including drug testing & fit for work testing.

TACORA requires a drug and alcohol free workplace, all of our roles are safety sensitive positions.

Staffing – Hiring Process 4

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Operators – Our core business is operations! Entry level non-trade Employees including HTDs.

Trained and certified on multiple equipment within the

mine and mill including entry level shovel Operators

and boiler Operators.

Trained and certified on all equipment in mine and

incremental multi-disciplined mill Employees.

Certified Millwrights and/or Diesel Mechanics.

Mechanical 1 plus certification in at least one additional

certification. Ex. Millwright plus certified Welder.

Certified Electricians.

Electrical plus certification in at least one additional

certification. Ex. Electrician plus Welder.

Staffing – Team based approach – That is my job!4

Hig

her P

ay

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Administrative assistants Engineers/Technologists – Process, Mechanical, Electrical,

Mining Supervisors – Maintenance and Operations Process Control Technician Mine Dispatchers Planners HSE Advisors/Technicians HR Warehouse Coordinator IT Purchasing Lab Technicians

Staffing – One Team – How can I help?4

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Procurement Priorities

Develop long term relationships which maximize value to both Tacora

and our suppliers

Cost minimization

A fair, transparent and highly competitive sourcing process

Adhere to a disciplined process to pre-qualify vendors

Price is only one metric of value

Capital allocation and payment terms

Commitments in various strategic agreements:

Industrial Benefits Agreement (NL government)

Impact and Benefit Agreement(s) (various Indigenous groups)

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Business Opportunities

Tacora often seeks pre-qualified vendors in the following business areas. This listing is not all-inclusive, but represents the majority of business opportunities within our company.

Vehicle maintenance and repair (cars, small trucks)

Construction Consulting Cranes Electrical equipment and service Environmental Equipment rental Explosives – Blasting Freight – logistics Fuel – Oil – Lubricants Geotechnical Heavy Equipment Industrial Supplies (pipe, valves,

fittings, steel, welding materials, etc.)

Information Technology

Janitorial Laboratory services Landscaping Mechanical maintenance Medical Safety Metal Fabrication Mobile equipment parts and

service Office Supplies & equipment Rail services Roofing Safety Supplies Scaffolding Surveying Training Translators Waste Management

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Pre-Qualification Process

There are several criteria that must be described in the appropriate level of detail. The company should prepare an informational package that addresses the following topics:

Safety, health and environmental procedures and records Previous experience in performing projects of a similar nature, including

quality of work and adherence to schedule and budget Continuity of supply Timely performance Ability to provide the required works, goods or services, including the

ability to provide any required follow-up works, goods or services Qualifications, experience and capabilities of personnel Management structure, including self-identification within applicable

“designated groups” Operational integration of any business partners Financial capacity Insurance and bonding Quality management systems

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Pre-Qualification Process (continued)

Submit the information package to :

Tacora Resources Inc.1 Wabush Mines RoadPO Box 3000Wabush, NL A0R1B0Attn: Purchasing Department

Once a potential vendor’s information package has been reviewed and determined to be acceptable to Tacora, the New Supplier Form is completed. Contact information Banking information Tax filing status “Designated Group” self

identification

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Appendix

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The Port at Pointe-Noire