Mineral Deposit Report Page 1 OF 18 20.2.2019 Kuervitikko Occurence type: deposit Commodity Rank Total Total production Total resource Importance measure 1 8,77 t 8,77 t Small deposit iron 2 9745090 t 9745090 t Small deposit copper 3 79550 t 79550 t Small deposit Easting EUREF: 371036,298 Easting YKJ: 3371157 Northing EUREF: 7500413,82 Northing YKJ: 7503548 Discovery year: 1979 Discovered by: Rautaruukki Oy Province: Pajala-Kolari (Fe, Cu, Au) District: Kolari (Fe, Cu, Au) Comments: References: 1, 2, 3, 4, 5, 9, 10, 14, 16, 17 Mineral deposit type Group: Metallogenic deposit Main type: Magmatic hydrothermal Comments: This could be a case where the formation of magnetite skarn or ironstone "prepared ground": the a few metres to 140 m wide units of Fe-rich rock then formed a chemical trap and, perhaps, also a structural trap for auriferous solutions during peak deformation and metamorphism. Mineralisation took place from hypersaline fluids, under conditions of 450-550 C, 1.5-3.5 kbar. References: 3, 6, 7, 11 Group: Metallogenic deposit Main type: IOCG (mixed hydrothermal) Sub type 1: Breccia complex References: 3, 6, 7, 11 Dimension Expression: exposed Area (ha): Form: discordant Dip azim: 255 Shape: irregular Dip: 20 Length (m): 1200 Plunge azim: 245 Width (m): 500 Plunge dip: 20 Thickness (m): 50 Orientation method: Depth (m): Dimension comments: Kuervitikko comprises Fe-rich, Cu-rich and Fe-poor, Cu-rich areas, along with internal waste lenses. It measures 1.2 km along strike, 500 m across strike (at its widest point) and is <50 m thick. The mineralisation has a general strike of 165º and dip of between 5-20º towards the west, plunging at approximately 20º towards the southwest 1
Mineral Deposit Report Page 2 OF 18 20.2.2019 Holder history Current holder: Northland Mines Oy Years: 2006-2011 Holding type: Claim (old law) Comments: Previous holders: Company Years Holding type Comments Northland Resources Ab 2005 Polar Mining Oy 2003-2005 Outokumpu Oy 2002-2003 1992-1993 Claim (old law) Rautaruukki Oy 1975-1976 Claim (old law) Otanmäki Oy 1960-1967 Suomen Malmi Oy 1956-1960 2
Mineral Deposit Report Page 3 OF 18 20.2.2019 EXPLORATION ACTIVITY Northland Resources Inc Years Activity type Geologist Exploration result Ref 2007-2008 core drilling 14 Core drilling (reconnaissance drilling): 38 diamond drill holes, total 4311 m in 2007 and 84 diamond drill holes, total 11194 m in 2008 Intersections HoleID KUE07019 From-To 46,8-63,8 Length 17m 0,33ppm iron 40,6% copper 0,25% HoleID KUE07020 From-To 30,1-49,4 Length 19,4m 0,41ppm iron 48,5% copper 0,18% HoleID KUE07021 From-To 59,3-77,1 Length 17,9m 0,41ppm iron 35,5% copper 0,32% HoleID KUE07028 From-To 42,6-65,2 Length 22,6m 0,43ppm iron 29,2% copper 0,32% Years Activity type Geologist Exploration result Ref 2002-2002 regional geophysics key geological features Low-altitude airborne magnetic, electromagnetic and radiometric survey 1992-1995 ore deposit evaluation Veikko Keinänen 6 1992-1995 resource assessment Veikko Keinänen 6 1976-1978 regional geochemistry Regional geochemical till survey 3
Mineral Deposit Report Page 4 OF 18 20.2.2019 Rautaruukki Oy Years Activity type Geologist Exploration result Ref 1974-1987 core drilling Aimo Hiltunen 6, 8 Core drilling (reconnaissance drilling): 49 diamond-drill holes, total 4770 m. Intersections HoleID From-To Length 8,1m 1,14ppm copper 0,9% iron 26,18% 1967-1985 detailed geophysics Aimo Hiltunen 7 Good response on magnetic and gravity methods. 1967-1985 regional geophysics Aimo Hiltunen 4, 7 1967-1985 detailed geology Aimo Hiltunen 4, 7 1967-1985 excavation Aimo Hiltunen 4, 7 1967-1985 detailed geochemistry Aimo Hiltunen 4, 7 Otanmäki Oy Years Activity type Geologist Exploration result Ref 1960-1967 core drilling 7 1960-1967 detailed geophysics 7 Good response on magnetic and gravity methods. 1960-1967 detailed geology 7 Suomen Malmi Oy Years Activity type Geologist Exploration result Ref 1956-1960 core drilling 7 1956-1960 regional geophysics 7 1956-1960 detailed geology 7 Vuoksenniska Oy Years Activity type Geologist Exploration result Ref 1940-1945 detailed geology 7 4
Mineral Deposit Report Page 5 OF 18 20.2.2019 1940-1945 detailed geophysics 7 Good response on magnetic and gravity methods. private enterprise Years Activity type Geologist Exploration result Ref 1600-1930 detailed geology 7 Several small companies (mid-1600 to 1930's): bedrock mapping and attempt to mine the Juvakaisenmaa Fe-only deposit 18 km SW of Kuervitikko 5
Mineral Deposit Report Page 6 OF 18 20.2.2019 RESOURCES AND RESERVES Most recent Type: Company: Year: Date: Calc Method: Reference: Resource Northland Resources Ab 2012 CIM standards 16 Comments: Effective date 24 October 2012. Measured mineral resource 36 Mt iron 22,82 % copper 0,19 % 0,21 ppm Cutoff: Indicated mineral resource 6 Mt iron 21,69 % copper 0,16 % 0,172 ppm Cutoff: Inferred mineral resource 1 Mt iron 22,87 % copper 0,15 % 0,196 ppm Cutoff: Measured, indicated and inferred mineral resource 43 Mt 0,204 ppm iron 22,663 % copper 0,185 % Cutoff: Previous calculations Type: Company: Year: Date: Calc Method: Reference: Reserve Northland Resources Ab 2012 CIM standards 16 Comments: Effective date 24 October 2012. Proved ore reserves 21,9 Mt iron 23,6 % copper 0,183 % 0,216 ppm Cutoff: Probable ore reserves 0,3 Mt iron 23,8 % copper 0,177 % 0,194 ppm Cutoff: 6
Mineral Deposit Report Page 7 OF 18 20.2.2019 Proved and probable ore reserves 22,2 Mt 0,216 ppm iron 23,603 % copper 0,183 % Cutoff: Type: Company: Year: Date: Calc Method: Reference: Resource Northland Resources Inc 2010 NI 43-101 15 Inferred mineral resource 45 Mt 0,17 ppm copper 0,16 % iron 22,9 % Cutoff: iron 15 % Type: Company: Year: Date: Calc Method: Reference: Resource 2006 8 0,7 Mt 0,46 ppm copper 0,39 % iron 40,2 % Cutoff: Type: Company: Year: Date: Calc Method: Reference: Resource Geological Survey of 1995 6 Finland 1,2 Mt 1 ppm iron 36 % copper 0,3 % Cutoff: 7
Mineral Deposit Report Page 8 OF 18 20.2.2019 GEOLOGY Host rock: Diopside Skarn, Quartz vein, Magnetite Skarn Diopside Skarn (Host rock) Rock type: Host rock Proportion: major Grain size: Color: References: 3, 6, 7, 11, 12, 13 Comments: All ore bodies are hosted by the country rocks of the pluton, apparently are stratiform lenses, and seem to have a structural control. Two Au-Cu lodes and two Fe-Cu-Au lodes. Ore minerals: Mineral Proportion Mineral texture Chalcopyrite major Dissemination, Stringer Gold present Associated with chalcopyrite. Magnetite major Banded, Massive Molybdenite minor Pyrite major Stringer, Dissemination Pyrrhotite major Stringer, Dissemination Other minerals: Mineral Proportion Mineral texture Albite present Amphibole present Alteration product Biotite present Chlorite present Diopside present Epidote present Garnet present Alteration product Hornblende present Microcline present Plagioclase present Alteration product Quartz present Scapolite present Alteration product Alteration: Distribution: Degree: Relation to mineralization: albitic alteration biotite alteration calcsilicate alteration Metamorphic description: Type: Facies: Degree: Relation to mineralization: Regional greenschist medium metamorphic facies metamorphic grade Comments: Regional metamorphism possibly peaked during the D2 stage of deformation. Min P- Max P (kbar) MIn T- Max T ( C) 8
Mineral Deposit Report Page 9 OF 18 20.2.2019 Geological age: Geological era: Max age - Minage Inferred age (Ma): Age of mineralization: (Ma): Paleoproterozoic (2500-1600 Ma) 1860-2020 Y Comments: Mineralisation took place between 1.86 and 1.76 Ga. Quartz vein (Host rock) Rock type: Host rock Proportion: minor Grain size: Color: References: 7 Comments: Quartz and carbonate veins Magnetite Skarn (Host rock) Rock type: Host rock Proportion: minor Grain size: Color: References: 3, 6, 7, 11, 12, 13 Comments: Endoskarns are minor, are known to host only low-grade sulphide mineralisation, and are characterised by the formation of albite with minor hornblende and diopside in the (monzo)dioritic marginal unit of the pluton. Metamorphic description: Ore minerals: Mineral Proportion Mineral texture Magnetite present Alteration product Other minerals: Mineral Proportion Mineral texture Actinolite present Alteration product Diopside present Alteration product Tremolite present Alteration product Type: Facies: Degree: Relation to mineralization: Regional greenschist medium metamorphic facies metamorphic grade Comments: Regional metamorphism possibly peaked during the D2 stage of deformation. Min P- Max P (kbar) MIn T- Max T ( C) Figures 9
Mineral Deposit Report Page 10 OF 18 20.2.2019 Regional geology: Regional geology: 10
Mineral Deposit Report Page 11 OF 18 20.2.2019 Structure: Regional geology: 11
Mineral Deposit Report Page 12 OF 18 20.2.2019 Local geology: Wall rocks of the Kolari ores: 12
Mineral Deposit Report Page 13 OF 18 20.2.2019 Regional geology: 13
Mineral Deposit Report Page 14 OF 18 20.2.2019 Native in gangue: 14
Mineral Deposit Report Page 15 OF 18 20.2.2019 Native in gangue: Alteration: 15
Mineral Deposit Report Page 16 OF 18 20.2.2019 Regional geology: 16
Mineral Deposit Report Page 17 OF 18 20.2.2019 REFERENCES 1. Eilu, P. (ed.) 2004. Iron oxide-copper- excursion and workshop, Northern Finland and Sweden 31.5.-4.6.2004., Report M 10.3/2004/1/10. 93 p. http://tupa.gtk.fi/raportti/arkisto/m10_3_2004_1_10.pdf 2.. 2004. Ore Deposit Data Base. 3. Hiltunen, A. 1982. The Precambrian geology and skarn iron ores of the Rautuvaara area, northern Finland., Bulletin 318. 133 p. http://tupa.gtk.fi/julkaisu/bulletin/bt_318.pdf 4. Hugg, R. & Heiskanen, V. 1983. Suomen rautamalmiesiintymät, malmiutumat ja malmiviitteet. Rautaruukki Oy OU 2/79, RAETSU Report 8.2.1983. 412 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/ou_2_79.pdf 5. Hölttä, P., Väisänen, M., Väänänen, J. & Manninen, T. 2007. Paleoproterozoic metamorphism and deformation in Central Lapland, Finland., Special Paper 44, 7-56. http://tupa.gtk.fi/julkaisu/specialpaper/sp_044_pages_007_056.pdf 6. Keinänen, V. 1995 Tutkimustyöselostus Kolarin kunnassa valtausalueella Kuervitikko 1 (Kaivosrekisterinumero 5082/1) suoritetuista kulta-kuparimalmitutkimuksista vuosina 1992-93., Report M06/2714/-95/1/10. 2 p. (in Finnish) http://tupa.gtk.fi/raportti/valtaus/m06_2714_95_1_10.pdf 7. Keinänen, V. 1998. Personal communication on 19/8/1998. 8. Korkalo, T. 2006. Gold and copper deposits in Central Lapland, northern Finland, with special reference to their exploration and exploitation. Acta Univ. Oulensis, A Scientiae Rerum Naturalium 461. 122 p.http://herkules.oulu.fi/isbn951428108x/isbn951428108x.pdf 9. Lehtonen, M., Airo, M.-L., Eilu, P., Hanski, E., Kortelainen, V., Lanne, E., Manninen, T., Rastas, P., Räsänen, J. & Virransalo, P. 1998. Kittilän vihreäkivialueen geologia: Lapin vulkaniittiprojektin raportti. Summary: The stratigraphy, petrology and geochemistry of the Kittilä greenstone area, northern Finland: a report of the Lapland Volcanite Project., Report of Investigation 140. 144 p.http://tupa.gtk.fi/julkaisu/tutkimusraportti/tr_140.pdf 10. Moilanen, M. & Peltonen, P. 2015. The Hannukainen Fe-(Cu-Au) deposit, western Finnish Lapland: an updated deposit model. In: Maier, W.D., Lahtinen, R. & O'Brien, H. (eds) Mineral deposits of Finland. Amsterdam: Elsevier, 485-505. http://www.sciencedirect.com/science/article/pii/b9780124104389000194 11. Niiranen, T., Poutiainen, M. & Mänttäri, I. 2007. Geology, geochemistry, fluid inclusion characteristics, and U-Pb age studies on iron oxide-cu-au deposits in the Kolari region, northern Finland. Ore Geology Reviews 30, 75-105. 12. Niiranen, T. 2004. Locality 2. Hannukainen. In: Eilu, P. (ed.) Iron oxide-copper- excursion and workshop, Northern Finland and Sweden 31.5.-4.6.2004., Report M 10.3/2004/1/10. 42-57.http://tupa.gtk.fi/raportti/arkisto/m10_3_2004_1_10.pdf 13. Niiranen, T. 2004. Personal communication in 18/10/2004. 17
Mineral Deposit Report Page 18 OF 18 20.2.2019 14. Northland Resources Inc. Press Release May 07, 2008. 15. Northland Resources 2010. Press release 12 May 2010 16. SRK Consulting Ltd 2014. Technical report on the Hannukainen iron-copper- project, Kolari district, Finland, January 2014. Prepared for Northland Mines Oy. 17. Väisänen, M. 2002. Structural features in the Central Lapland greenstone belt, northern Finland., Report K 21.42/2002/3. 20 p. http://tupa.gtk.fi/raportti/arkisto/k21_42_2002_3.pdf 18