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Slide 1 - Baffinland Iron Mines Corporation

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									Baffinland
Iron Mines Corporation




Mary River Deposits:
“Simply, The Best…”
  Prospectors and Developers
     Association of Canada
            March 1 – 4, 2009
           Highlights
Fact: “Our wholly-owned Mary River
deposits are the best undeveloped iron
ore deposits in the world”… an opinion
now shared by many informed people.

Objective: To convert the Mary River
deposits into the best developed iron ore
mining operations in the world!
                        Mary River Deposits: The Best
                 Mary River deposits are very large and growing and are the highest grade
                undeveloped iron ore deposits in the world that remain independently owned
              70%
                        Koolan Island
                               Mbalam
              65%                                                                                                                   Mary River
                                           Beeshoek                                            Khumani
                          Tallering Peak
              60%         Extension Hill
                                           Weld Range
                                                                                                  Christmas Creek
              55%                 Labrador Iron Mountain                                                                      Solomon (1,714 Mt)
                        Koolanooka/Blue Hills
Grade (Fe%)




              50%       Corumba (MMX)        Jack Hills


                                          Stora Sahavaara
              45%               Balla Balla

                                                                             Minas Rio (MMX)
              40%
                                                      Amapa (MMX)
                                                                                     Southdown
                                                                                                                                Karara (1,426 Mt)
              35%                             Hannukainen
                                                                                                                                     Cape Lambert
                                                                                                                                       (2,490 Mt)
              30%                                                                                                         Roche Bay (1,139 Mt)
                                                              Peppler Lake
                                                                                                   Bloom Lake                 KeMag (4,590 Mt)
              25%                                                                                                           LabMag (3,665 Mt)
                                                                                                                                    Lac Otelnuk PQ
                                                                                                                                        (1,768 Mt)
              20%
                    0                                 250                          500                              750                     > 1000
                                                                             Tonnage (Mt)
                          1. Roche Bay resource non 43-101 compliant, grade is mid-point of estimate.
                          Source: FactSet, Company filings, Metals Economics Group.
            Highlights (cont’d)
• High Grade: ~ 65% iron ->direct-shipping ore (DSO)
• Large Tonnage Multi-generational Project:
   – 2P Reserves Deposit No. 1: 365 million tonnes
   – Additional Resources In Deposits No. 1, 2 & 3
      • 52 million tonnes of Measured and Indicated
      • 448 million tonnes of Inferred Resources
   – Enormous potential for reserve/resource expansion
• High Quality DSO: 75% of output expected to be
  premium priced lump ore with excellent steel
  making attributes and 25% coveted “coarse” fines
Nunavut Land Claims Agreement
Secures our legal framework and lowers project risk
       “Our Achievements”
• 30,000+ metres of large diameter diamond drilling
  of 3 deposits and expansion of land position
• Comprehensive metallurgical testing of all core by
  SGA (owned by 6 European steel mills)
• 113,000 tonnes mined as a representative bulk
  sample and shipped to European steel mills:
  currently being consumed with excellent results
• 2008 Definitive Feasibility Study at 18 MTY and
  strategic expansion sensitivity: Robust economics
• Excellent relationships with the our core strategic
  partner: the Inuit of Qikiqtani region and Nunavut
In-fill Drilling of Deposit No. 1
Geomechanical Drilling: Deposit No. 1
       “Our Achievements”
• 30,000+ metres of large diameter diamond drilling
  of 3 deposits and expansion of land position
• Comprehensive metallurgical testing of all core by
  SGA (owned by 6 European steel mills)
• 113,000 tonnes mined as a representative bulk
  sample and shipped to European steel mills:
  currently being consumed with excellent results
• 2008 Definitive Feasibility Study at 18 MTY and
  strategic expansion sensitivity: Robust economics
• Excellent relationships with the our core strategic
  partner: the Inuit of Qikiqtani region and Nunavut
Bulk Sample Blasthole Drilling
Crushing Operations
Winter Shipment on the Tote Road
Summer Shipment on the Tote Road
Milne Inlet Overview
Loading Ore onto Barge
Barge Transport to Bulk Carrier
Federal Franklin
Loading Ore onto Bulk Carrier
Federal Franklin Arrives in Europe
First Ore Hits the Ground in Europe
Trial Cargoes: Exceptional Results
                 Cargo 1    Cargo 2    Cargo 3
     Type        Lump Ore   Lump Ore   Fine Ore
     Weight
                 54,464.6   31,050.7   27,701.5
    (tonnes)
  Iron Content    68.02%     68.64%    66.65%
     Al2O3        0.65%      0.47%      0.95%
     SiO2         0.95%      0.56%      2.46%
  Phosphorous     0.010%     0.008%    0.012%
    Sulphur       0.026%     0.027%    0.032%
   Moisture       1.28%      1.26%      3.32%
      LOI         0.81%      0.66%      0.92%
   Undersize      < 3.4%     < 4.2%      N/A
       “Our Achievements”
• 30,000+ metres of large diameter diamond drilling
  of 3 deposits and expansion of land position
• Comprehensive metallurgical testing of all core by
  SGA (owned by 6 European steel mills)
• 113,000 tonnes mined as a representative bulk
  sample and shipped to European steel mills:
  currently being consumed with excellent results
• 2008 Definitive Feasibility Study at 18 MTY and
  strategic expansion sensitivity: Robust economics
• Excellent relationships with the our core strategic
  partner: the Inuit of Qikiqtani region and Nunavut
   “Our Achievements” (cont’d)
• Fednav: Strategic shipping partner coordinating
  shipping pool and advanced ship designs
• Initiated formal permitting process: Part 5 review
  under Nunavut Impact Review Board
• Geotechnical drilling of rail corridor and port site
  on south coast of Baffin Island
• Off-take Letters of Intent with 5 European steel
  mills representing 50% of initial output
• Awarded key EPCM contract to AMEC
• IIBA negotiations well advanced
                   Shipping Route
Ice-strengthened ore carriers have been proven cost effective and reliable for well
over 20 years at Arctic mines including Polaris, Nanisivik, Raglan and Voisey’s Bay

   Polaris

             Nanisivik
                Mary River
                 Steensby Inlet




               Raglan



                                        Steensby – Rotterdam: 3,100 nautical miles
                                        Brazil – Rotterdam: 5,000 nautical miles
                         Voisey’s Bay


                                                                             Rotterdam
     Advancing Shipping Solution
•Completed two years of hydrographic
studies in Steensby Inlet and Foxe Basin

•Fednav: Strategic shipping partner with
over 50 years of experience in the
Canadian Arctic with all major projects

•Advancing the shipping pool via Fednav’s
engagement with other ship-owners and
shipyards

•Optimized ship designs near completion
by two Korean shipyards to provide
competitive freight rates with other
sources of iron units for Europe
   “Our Achievements” (cont’d)
• Fednav: Strategic shipping partner coordinating
  shipping pool and advanced ship designs
• Initiated formal permitting process: Part 5 review
  under Nunavut Impact Review Board
• Geotechnical drilling of rail corridor and port site
  on south coast of Baffin Island
• Off-take Letters of Intent with 5 European steel
  mills representing 50% of initial output
• Awarded key EPCM contract to AMEC
• IIBA negotiations well advanced
Project Location
                          Mary River      Milne Inlet
Camps




                          Steensby Port    Mid-Rail

        * Pictures taken October, 2008
   “Our Achievements” (cont’d)
• Fednav: Strategic shipping partner coordinating
  shipping pool and advanced ship designs
• Initiated formal permitting process: Part 5 review
  under Nunavut Impact Review Board
• Geotechnical drilling of rail corridor and port site
  on south coast of Baffin Island
• Off-take Letters of Intent with 5 European steel
  mills representing 50% of initial output
• Awarded key EPCM contract to AMEC
• IIBA negotiations well advanced
Deposit No. 1 - Looking West


       2,500 metre strike length
Plan View Deposit No. 1
Cross-section South Limb
    Credible & Experienced Partners
•   Partnered with leading engineering and transportation firms…
    Firm                                   Project Role                              Key Credentials
                               EPCM Manager                           100 years experience servicing the mining
                                                                      industry
                               Metallurgical Testwork                 85 years experience in testing iron ore feedstock
                                                                      and raw materials for iron and steelmaking
                               Baseline Studies, Environmental,       Specialized expertise in geotechnical and
                               Geotechnical, Permitting               environmental services
                               Ships and Shipping                     50+ years experience in the Canadian Arctic, with
                                                                      involvement in every major shipping project
                               Rail Transportation                    Ex-CP Rail Engineering Group
    Sandwell                   Port Facilities                        Canada’s Premier Port Designer
           Marketing/Off-take Letters of Intent                   Bulk Sample and Metallurgical Testing
 Key Corporate Activities
• Strategic Partnering:
   – Land based
   – Ocean shipping
• Government and Inuit engagement
• Bulk Sample: Convert off-take letters of intent
  with steel mills to long term contracts
• Global debt providers have expressed strong
  interest in financing of Mary River: nurture it
Key Corporate Activities (cont’d)
• 2009 budget of $30 million fully funded
• Infill drilling of Deposits No. 3 to upgrade
  inferred resources to indicated resources
• Reserve/resource estimation based on 2008
  drilling of Deposit No. 1
• Continued advancement of our sustainable
  development goals and get “shovel ready”
                   Baffinland at a Glance
          Exploration and development company solely focused on advancing its
          wholly-owned Mary River Project on Baffin Island, Nunavut Territory, Canada


•   TSX Stock Symbol:                       BIM
•   Share Price (17-Feb-09):                C$0.23
•   52-Week High-Low:                       C$4.24 - C$0.105
•   Basic Shares Outstanding:               233.1 million (ex 22.2 m RCF escrow)
•   Fully-Diluted Shares:                   271.2 million (includes RCF escrow)
•   Insider Ownership Fully Diluted:        29% (includes RCF’s escrow)
•   Market Capitalization:                  C$60 million
•   Working Capital:                        C$45 million as of December 31, 2008
•   Restricted cash and investments:        C$16 million as of December 31, 2008
•   No Debt
         Forward-Looking Statements
This presentation contains forward-looking information within the meaning of securities laws. Forward-looking information may relate to
management’s future outlook and anticipated events or results, and includes statements or information regarding the future plans, intentions, beliefs
and prospects of the Company. In particular, readers are cautioned that substantially all of the information contained in and/or derived from the DFS
constitutes forward-looking information. Actual results may vary. Without limitation, statements and information relating to or derived from the DFS;
strategic partnering initiative; government and Inuit engagement; long-term offtake contracts; debt financing; $30 million 2009 budget and fully fund
program; 2009 drilling program, sustainable development plans and other 2009 planned activities; is forward-looking information. Forward-looking
information is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the
realization of mineral reserves and resource estimates, iron ore prices, the timing and amount of future exploration expenditures, the estimation of
initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials, including
financing to conduct other activities necessary to continue to develop the Company’s Mary River project in the short and long-term, the progress of
construction and development activities, the receipt of necessary regulatory approvals, and assumptions with respect to environmental risks, title
disputes or claims, weather conditions, climate change and other similar matters. While the Company considers these assumptions to be reasonable
based on information currently available to it, they may prove to be incorrect. Without limitation, in quoting the grade, tonnage and output from the
DFS, the Company has assumed that the key sensitivities of the conclusions reached in the DFS do not materially change. In stating the Company’s
intent to continue to pursue a strategic partner(s), debt providers and the engagement of government and the Inuit the Company has assumed that
there will be some improvements to the global economy and the financial position of potential strategic partners, debt providers and the
government. There can be no assurance that such a strategic partnership, debt financing and government and Inuit engagement can be completed.
In stating that the Company’s intends to convert its offtake letters of intent into long-term offtake contracts, the Company has assumed that it will be
able to successfully negotiate the terms of such contracts and that the financial position of potential such customers will permit the entering into of
such contracts. In stating that the Company’s 2009 program is fully funded and other statements relating to the $30 million 2009 budget; that the
Company intends to complete an infill drill program to complete additional resource estimates and to undertake sustainable development programs,
the Company has assumed that the $30 million budget will be sufficient to complete such activities. Forward looking-information is subject to certain
factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks
inherent in the exploration and development of mineral deposits, risks relating to changes in iron ore prices and the worldwide demand for and
supply of iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River
project including access and supply risks, reliance on key personnel, construction and operational risks inherent in the conduct of mining activities,
including the risk of changes in capital and operating costs and the risk of delays or increased costs that might be encountered during the construction
and development process, the risk of fluctuations in the Canadian/U.S. dollar exchange rate, regulatory risks, including risks relating to the acquisition
of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing required to fund the exploration
and development activities at the Mary River Property may not be available on satisfactory terms, or at all, environmental risks, including risks relating
to climate change and the potential impact of global warming on project timelines and on construction and operating costs, insurance risks, and
insurance risks. You should not place undue importance on forward-looking information and should not rely upon this information as of any other
date. While the Company may elect to, it is under no obligation and does not undertake to update this information except as may be required by
applicable law.
Other Cautionary Notes - Mineral resources which are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty
that may attach to indicated mineral resources, there is no assurance that mineral resources will be upgraded to proven and probable ore reserves.
Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as mineral reserves.
Mary River Deposits:
       “Simply, The Best…”
                      Deposit No. 1




                                      Deposit No. 2
Deposit No. 3




         www.baffinland.com

								
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