Iron Ore Green Land

Isua is located 150km Northeast of Nuuk and 100km from a proposed deep seawater port. Isua will produce a premium quality 70% Fe pellet feed concentrate with low impurities and benefits from its position in the warmer south-west corner of Greenland which allows for year round shipping.

In February 2011 London Mining released the results of a scoping study compiled by SNC Lavalin International Inc. (“SLII”), for the Isua iron ore project in Greenland. The scoping study considered a 15 year life mine with 15Mtpa open pit, processing plant, pipeline and a deep water port.

A bankable feasibility study (“BFS”) with AACE Class 3 estimates for a 15Mtpa operation considering a 10 year mine life based on the currently available amount of Indicated resources was completed in March 2012. A 15 year scenario was also evaluated to demonstrate the greater potential of the asset. The BFS supports the initial findings of the scoping study, provides a more accurate estimate of cost and provides the foundation to finance and construct a mine at Isua. The detailed results of the BFS for the next stage of the project are outlined below.

Highlights of the Bankable Feasibility Study

Study date	Scoping Study February 2011	BFS March 2012
Annual production (Mtpa)	15	15
Mine life (years)	15	10 with possible extension to 15
Operating cost  (USD/t concentrate)	30	46
Capital expenditure (USD billions)	2.05	2.35
Capital Intensity (USD/tpa)	136	157

Resources and mine life

As part of the BFS programme, 7,656m of drilling was completed during the summer of 2011 which forms the basis for an updated resource statement. Snowden now estimate a total resource for Isua of 1,107Mt grading 32.3% Fe. This improved result has increased the resource by 10% in resource tonnage from the March 2011 resource statement. The modest reduction in Fe grade to 32.6% is the result of the decision to report internally diluted head grades due to incorporation of waste bearing structures in the block model rather than consideration of a selective mining method.

The new resource represents a substantial 82% increase in Indicated resources from 209Mt to 380Mt which is sufficient to support a 10 year mine life. Potential to extend the mine life could be achieved though further drilling necessary to convert Inferred resources into the Indicated category.

Summary of Isua Mineral Resource at March 2012 reported at a 20% Fe cut-off grade and constrained inside an ultimate pit shell.

Category	Tonnes (Mt)	Fe (%)	Al2O3 (%)	SiO2 (%)	S (%)	P (%)
Indicated	380	32.6	2.4	41.8	0.23	0.03
Inferred (1)	727	32.1	2.3	42.3	0.22	0.03
Total	1,107	32.3	2.4	42.2	0.22	0.03

(1) 83% or 607Mt of the inferred resources are extrapolated beyond the current drilling coverage.

The 2011 drilling campaign also confirmed additional mineral resource potential originally indentified by Rio Tinto in 1997. This area of mineralisation potential has been identified as a down dip extrapolation of the Isua banded iron formation (“BIF”) bearing the existing resource. Part of this mineralisation potential is comprised of an area of hematite BIF which has been interpreted at the top of the BIF unit. This appears to be underlain by more typical magnetite BIF.

Summary of the mineralisation potential at the Isua deposit at end December 2011.

Potential mineralisation type	Potential tonnage range (Mt)	Potential Grade Range (Fe%)
Magnetite BIF	800 to 1200	30-33
Hematite BIF	150 to 300	>35

(2)  Snowden considers this material to be an indication of Mineralisation Potential only and makes no guarantees that this material can or will be converted to a Mineral Resource or an Ore Reserve at any time in the future following the collection of additional data.

Flooding can come from various sources, from coastal waters, from rivers (also known as fluvial flooding) and surface water flooding. Of all these sources London is most vulnerable to surface water flooding. Heavy rainfall can swiftly overwhelm the drainage network, leading to flooding of low-lying areas.