#NLC3 Mr Damien Hicks Scandinavian Resources 20141126 Olos Lannavaara Iron Project

Northern Lights CorridorIntroduction to the Lannavaara Iron Project26 November 2014Muonio, Finland

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%


Olof ForslundNon-Executive Director

• Director of Hannans Reward Ltd (2012).• Geophysicist with extensive international

experience in the mineral exploration industry.

• Previously Regional Manager of SGU Mineral Resources Information Office.

Jonathan MurrayNon-Executive Director

• Director of Hannans Reward Ltd (2010).• Partner of Steinepreis Paganin• Principal legal practice areas include equity

capital markets, takeovers, project acquisitions and divestments, corporate governance, commercial law and strategy.

Directors & Management

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Damian HicksManaging Director

• Co-Founder of Hannans Reward Ltd (2002).

• Financial, legal and compliance qualifications

• Non-executive director of funds management company Growth Equities

Markus BachmannNon-Executive Director

• Director of Hannans Reward Ltd (2012).

• Corporate finance professional and founding partner of Craton Capital.

• Craton Capital awarded Fund Manager of the Year at the Mining Journal’s “Outstanding Achievement Awards” during December 2010.

Magnus ArnqvistNon-Executive Director, Kiruna Iron AB• MD of Bergteamet• Ex-MD of Europe’s largest zinc mine.• Mining engineer with Rapallo

(Australia) and Mine Manager of the Kristineberg, Storliden and Maurliden Mines (owned by Boliden).

Amanda ScottExploration Manager

• Geologist with 10 years experience.• Responsible for developing the Kiruna Iron

Project portfolio and the SCR gold and base metals portfolio since inception.

• Previously Exploration Manager for Hannans Reward Ltd (2008-2010) and Scandinavian Resources Ltd (2010–2012)


Main Iron Project, Rakkuri

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Potential open pit iron ore mine

Operating iron mine at 1,365m depth

Rakkurijoki Current JORC Inferred resource of 74.5Mt @

39.7% Fe (down to 350m) - mineralisationcurrently open at a depth of >400m - positivescoping study completed in February 2013

Rakkurijärvi Current JORC Inferred resource of 69.6Mt @

28.5% Fe (drill spacing to 150m) - mineralisationcurrently open at a depth of ~150-300m; additionalresource drilling required

Rakkuri (Combined) Ore upgrades to +68% Fe product (DTR-analysis)

& requires flotation of sulphides Excellent location for mining - 4km from Kiruna,

~1km from open access, heavy gauge rail, 250mfrom the road

Area of national interest for mining & reindeerherding

Potential for a 15 year open pit mining operation


Location - Lannavaara

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Introduction to the Concept – Lannavaara

• 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 or Pipeline – Lannavaara to Skibotn

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Rail or Pipeline – Lannavaara to Skibotn

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Gas Pipeline – Skibotn to Lannavaara to Kiruna

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• Study completed by Ausenco (www.ausenco.com)

• Gas pipeline and slurry / water return pipeline technically feasible

• Pipeline:o buried beneath the surface (in

Sweden/Finland)o less impacted by severe

weather eventso less impact on the communityo highly reliable

• Skibotn to:o Kaaresuvanto – 160kmo Lannavaara – 204kmo Svappavaara – 303km

• Review of social and environmental permitting process

Skibotn

Kaaresuvanto

Lannavaara

Svappavaara

Kiruna

Malmberget


Rail Logistics Assumptions

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AssumptionsLocomotives 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


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


Gas Transmission into Lapland – An Opportunity

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

– Norway, Norrbotten & Finnish Lapland

Skibotn could provide LNG:• Storage & BunkeringLNG can be transported by:• Truck and RailNG could be transported by:• Pipeline

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Stakeholder Briefings

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Muonio Kommun

Tunturi-Lapin Kehitys TapaniHaapasaari

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


Competing Interests

Competing interests inVästerbotten and Norrbotten

Many competing interests in Sweden but high prospectivity


Next Steps

Communications• Stakeholders – Ongoing

Scoping Study• Unloading, Storage & Reloading – part-completed • Concentrate & Gas Pipeline – part-completed• Social License – tender process completed• Environmental Permitting – tender process completed• Rail – tender process completed • Exploration & Metallurgy – ongoing throughout 2015• Financial analysis – December 2015

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SCANDINAVIANRESOURCES AB 17

Tack så mycket Kiitos Takk Giitu Thank you



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)

Business

#NLC3 Mr Damien Hicks Scandinavian Resources 20141126 Olos Lannavaara Iron Project