updated-definitive-feasibility-study-executive-summary

Engebø Rutile and Garnet Executive Summary

Updated Definitive Feasibility Study 11 May 2021

Engebø Rutile and Garnet

Updated Definitive Feasibility Study
Executive Summary
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© Hatch 2021 All rights reserved, including all rights relating to the use of this document or its contents.
DISCLAIMER
This Executive Summary report was prepared by Hatch Ltd. (“Hatch”), for the sole and exclusive
benefit of Nordic Mining ASA (the “Owner”) for the purpose of assisting the Owner to determine the
feasibility of a mining project at the Engebø Deposit (the “Project”), and may not be provided to, relied
upon or used by any third party. Any use of this Executive Summary report by the Owner is subject to
the Hatch Professional Services Terms and Conditions as detailed in the Hatch proposal P036532
Rev 2 dated 05 October 2020, including the limitations on liability set out therein.
This Executive Summary report is meant to be read as a whole, and sections should not be read or
relied upon out of context. The report includes information provided by the Owner, and by certain
other parties on behalf of the Owner. Unless specifically stated otherwise, Hatch has not verified such
information and disclaims any responsibility or liability in connection with such information.
In addition, Hatch has no responsibility for, and disclaims all liability in connection with, the sections of
this report that have been prepared by the Owner or other third parties. In certain cases, responsibility
for certain sections is shared, with parties taking responsibility based on subject matter.
This Executive Summary report contains the expression of the professional opinions of Hatch, based
upon information available at the time of preparation. The quality of the information, conclusions,
estimates and projections contained herein is consistent with the intended level of accuracy as set out
in this report, as well as the circumstances and constraints under which this report was prepared.
However, this report is a feasibility study and, accordingly, all estimates and projections contained
herein are based on limited and incomplete data. Therefore, while the conclusions, estimates and
projections herein may be considered to be generally indicative of the nature and quality of the
Project, they are not definitive. No representations or predictions are intended as to the results of
future work, nor can there be any promises that the conclusions, estimates and projections in this
Executive Summary report will be sustained in future work.
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Table of Contents
1. Executive Summary .......................................................................................................... 1
1.1 Introduction ................................................................................................................ 1
1.2 Highlights ................................................................................................................... 2
1.3 Project Description, Permits and Licenses ................................................................ 9
1.4 Geology and Mineral Resources ............................................................................. 13
1.5 Mining ...................................................................................................................... 21
1.6 Processing ............................................................................................................... 28
1.7 Project Facilities ....................................................................................................... 35
1.8 Environmental and Social Responsibility ................................................................. 40
1.9 Market Analysis........................................................................................................ 44
1.10 Project Execution Plan ............................................................................................. 49
1.11 Capital and Operating Costs .................................................................................... 52
1.12 Risks and Opportunities ........................................................................................... 53
2. Additional Information .................................................................................................... 55
2.1 List of Tables ............................................................................................................ 55

2.2 List of Figures .......................................................................................................... 55
2.3 Contributors ............................................................................................................. 56
2.4 Abbreviations ........................................................................................................... 58
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1. Executive Summary
1.1 Introduction
The Updated Definitive Feasibility Study (UDFS) is an update of the DFS for the Engebø
Rutile and Garnet project (the Project) which was completed in January 2020. As a
consequence of the COVID-19 pandemic and uncertainties related to the markets for
rutile and garnet, and the opportunities for securing project financing, Nordic Mining
decided in spring 2020 to undertake a Value Engineering process to make the Project
more resilient. The UDFS and this Executive Summary is effective as of 11 May 2021.
The Project comprises a mining and processing operation at the Engebø Deposit. The
hard rock deposit is one of the world’s highest-grade rutile deposits and is unique due to
its substantial content of garnet.
The two minerals, rutile and garnet, which will be produced at Engebø, is briefly described
in the following:
• Rutile is a high-grade titanium feedstock, primarily used in the production of titanium

pigment, titanium metal and welding rods
• Garnet is used in the waterjet cutting and abrasives industries. The Engebø garnet is
almandine, generally considered to be the highest quality in industrial applications.
Nordic Mining ASA is a public company listed on Euronext Expand Oslo (ticker code:
NOM). The mineral rights to the Engebø Deposit is held by Nordic Mining’s wholly owned
subsidiary Nordic Rutile AS.
Lists of tables and figures used in the UDFS are included in Section 2.1 and Section 2.2.
The main contributors to the UDFS together with a list of abbreviations are included in
Section 2.3 and Section 2.4.
The UDFS confirms that production of rutile and garnet in an integrated process is cost
effective and provides an attractive business case with robust project economics, low
environmental impacts and significant upside potential.
The main improvements and risk-reducing measures in the UDFS are:
• Reduced environmental footprint; 99% reduction in consumption of approved

chemicals in the production process (compared with the 2016 environmental permit),
around 80% reduction of CO2 emissions and approximately 40% reduction of the
process plant facilities footprint compared with the DFS
• Contract and execution strategy based on EPC partnerships and early vendor
engagement
• Stick-build construction methodology and improved ore flow logistics
• Reduced initial capital investment needed to realize the Project and commence
operation by USD 93 million compared to USD 311 million in DFS
• Reduced process operating cost by more than 25% following from flowsheet
optimizations, including reduction in energy costs from use of electrical dryers for
drying of minerals
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• Improved mining design for open pit and underground focusing on practical and cost-
effective operations. Mining schedule in open pit has been optimized for the initial
years and the underground mining schedule targets higher grades and simplified
infrastructure design
• Reduced market risk based on post-pandemic market forecasts for rutile and garnet,
retaining flexibility to increase garnet production in line with increasing demand
• Attractive project economics with considerable reductions in market, financing and

execution risks.
1.2 Highlights
1.2.1 Main Project Parameters
Nordic Mining will produce high-quality rutile and garnet products from an annual Run of
Mine (ROM) of 1.5 Mt ore. Open pit mining will be carried out in the first 14 years,
followed by 1 year combined open pit and underground mining operations. From year 16
and for a period of 18 years, the mining operation will be underground. Production will be
extended by approximately 6 years processing lower grade ore that will be stockpiled in
the open pit period at the waste rock area. The overall schedule for the around 39 years
Life of Mine (LOM) operation is illustrated in Figure 1-1.
Figure 1-1: LOM Schedule
The production process for rutile and garnet is integrated from mine to finished products.
The average production and sales volumes of rutile and garnet will be approximately
35.000 tpa and 180.000 tpa, respectively, for the first 10 years of operation. Production of
garnet is based on initial marketing strategies and is forecasted to gradually increase to
200,000 tpa over the first 6 years of operations. Production capacity for garnet can be
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increased with additional future investments, in line with market and demand
development.
A preliminary timeline for financing, construction, commissioning and ramp-up of

production is illustrated in Figure 1-2.
Figure 1-2: Project Schedule
1.2.2 Key Project Characteristics

The Engebø Project has important characteristics which secure a low environmental
footprint and long-term financial returns:
• Low Environmental Footprint
Compact Project layout and infrastructure, minimal internal transportation, mineral

comminution and processing based on renewable hydroelectric power and accessible
sea freight, imply a low carbon footprint and minimal land use. Inert minerals enable
operation without acidic run-off, heavy metal contamination and radioactive pollution.
• Low-Cost Mining Operation
The Deposit is a large, outcropping high-grade resource. This allows for easy
transition from low cost open pit mining with a low pit stripping ratio (waste tonne/ore
tonne) of 0.6 with limited overburden, to efficient underground mining operation.
Favorable geotechnical conditions support cost effective open pit and underground
mining methods.
• Long Project Lifetime
The 39 years Project lifetime will position the operation as a long-term supplier of
high-quality rutile and garnet. From a regional perspective, the Project will contribute
positively and long-term to activity levels, employment, tax income, etc. Substantial
Inferred Resource is documented and may allow for increased future production
and/or extension of the mine life.
• High-Quality Products
Testwork programs have been successful in producing a commercial rutile product

suitable for pigment and metal production. Through extensive testing of various
garnet products, a baseline strategy to produce a high performance 80 mesh garnet
product has been selected to respond to market demand in targeted geographies.
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• Favorable Infrastructure
The Project is located near existing infrastructure with reliable power supply and raw
water generated on site by desalination. The existing deep-water quay caters for low
cost shipping-based logistics during construction and operation
1.2.3 Project Economics

The basis for the Project is the geological properties of the Engebø Deposit including the
Mineral Resource Statement, the Ore Reserve Statement and the mine plan and process
flowsheet with estimates for capital expenditures and operating costs. These
fundamentals are further described in this Executive Summary.
The mining plan and mineral processing for the Project is based on the Measured and
Indicated categories from the Mineral Resource Estimates. Significant mineral resources
(Inferred Resources) may be qualified through future drilling programs to extend the
Project lifetime. The UDFS has been prepared according to JORC reporting standards.
The economics of the Project was evaluated using an Excel-based real-basis DCF-model
(Discounted Cash Flow) to forecast the Unlevered Free Cash Flow (UFCF) over the life of
the Project, and present a valuation of the Project as a stand-alone entity in terms of
Internal Rate of Return (IRR) and Net Present Value (NPV). The rutile and garnet prices
used in the valuation were based on the outlook from TZMI with a long-term FOB-price for
rutile of USD 1,179 per tonne for a 95% TiO2 product (real 2021 USD), and USD 230 per
tonne for 92% garnet product (real 2021 USD). The financial calculations use a USD/NOK
exchange rate of 8.53.
The initial capital investment needed to realize the project and commence commercial
production is USD 217.8 million, including contingency, and comprise of USD 203.4
million capital expenditure for open pit mine and the processing plant, USD 12.6 million
for purchase of land and contributions to infrastructure investments, and USD 1.8 million
in pre-production operating expenditure related to mobilization of operational personnel.
Payment to ConocoPhillips for mining rights of USD 4.7 million is expected to be financed
from cash flow from operations.
The DCF-valuation shows high-margin annual EBITDA of around USD 54 million,

summating to USD 2.1 billion over the life of the Project, corresponding to an average
EBITDA-margin of 68%. The undiscounted operating cash flow of the Project is around
USD 1.7 billion. The high-margin operating cash flow, combined with reduced pre-
production capital expenditure, and low average annual sustaining capital cost of USD 0.6
million, result an unlevered post-tax IRR of 19.8% and post-tax and NPV of USD 260.4
million discounted using a real discount rate of 8%. The Project’s undiscounted payback
period is around 4 years from start of operations, and the discounted payback period
around 6 year.
Table 1-1 summarizes key financial and production metrics for the Project.
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Table 1-1: Key Production and Financial Summary
Description Unit Value
Project Financials
Pre-tax NPV @ 8.0% USD million 354.6

Pre-tax IRR % 22.5
Post-tax NPV @ 8.0% USD million 260.4
Post-tax IRR % 19.8
EBITDA (Undiscounted) USD billion 2.1
EBITDA-margin % 67.6
Free Cash Flow (Undiscounted) USD billion 1.4
Free Cash Flow the first 10 year of full production USD Million/Annum 51.1
Payback Period (from Start of Production) years 4.4
Discounted Payback Period (from Start of Production) years 5.9
Profitability Index (PI) ratio 2.4
Production Capacity
Initial Production Capacity ROM Mtpa 1.5
Pre-Production Capital Expenditure
Initial Capital Expenditure for Open Pit and Processing Plant USD million 203.4
USD/Production
Capital Intensity for Open Pit and Processing Plant 860
Capacity
Inital Capital Expenditure for Outside Battery Limit ("OBSL") USD million 12.6
Pre-Production Operating Expenditure USD million 1.8
Financial Operating Metrics First 10 Years of Commercial Production
Average Cash Cost123 USD/ROM Tonne 14.4
Average Cash Cost123 USD/Sales Tonne 95.9
Average Operating Revenue123 USD/Sales Tonne 375.4
Mining and Processing
Open Pit Phase Years 15
Total Open Pit Ore Production Mt 29.7
Underground Phase Years 19
Total Underground Ore Production Mt 27.4
Stockpile Phase years 6
1 Average first 10 years

2 Rutile and Garnet combined
3 Excludes Royalties
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Description Unit Value

Total Project Life of Mine years 39
Total Project Ore Production Mt 57.1
Ore Grade – Rutile1 % 3.9
Rutile Recovery1 % 56.93
Ore Yield – Garnet1 % 12.49
Rutile Production1 ktpa 35
Garnet Production1 ktpa 180
Product Price Assumptions (2021 dollars)
Average Rutile Price (FOB Engebø) USD/Sales Tonne 1,179
Average Garnet Price (FOB Engebø) USD/Sales Tonne 230
Figure 1-3 below presents a summary of the Project’s Unlevered Free Cash Flow.
Figure 1-3: Unlevered Free Cash Flow
Engebø is positioned in the first quartile of the titanium feedstock industry R/C ratio curve
with a weighted average R/C ratio at 3.6, well above the forecast weighted average; ref.
Figure 1-4
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Figure 1-4: Industry weighted average R/C ratio
Figure 1-5 and Figure 1-6 summarize the Project’s sensitivities to changes in rutile and
garnet prices, and capital costs and operating costs on the unlevered post-tax IRR and
NPV. Rutile and garnet prices have, based on post-pandemic market forecasts for rutile
and garnet, similar impact on the Project’s IRR and NPV, with the NPV being marginally
more sensitive to changes in garnet prices compared to rutile prices. The reduction in
initial capital expenditure for open pit and processing plant has reduced the Project’s
sensitivity to changes in capital cost on IRR and NPV compared to the DFS. The Project
is more sensitive to changes in capital costs compared to operating costs in terms of IRR,
however is marginally more sensitive to changes in operating costs compared to capital
costs on NPV.
Figure 1-5: Project NPV Sensitivity (Post-Tax)
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Figure 1-6: Project IRR Sensitivity (Post-Tax)
1.2.4 ESG Focus Areas

The Project will be developed in accordance with IFC Performance Standards and
relevant Equator Principles as well as applicable regulations in Norway. The Project will
positively impact locally and regionally on people’s livelihood, education, work
opportunities and cultural flourishment. Stakeholders’ engagement will ensure good
dialogue with neighbors, communities and interest groups based on transparency,
respect and responsiveness. A local stakeholder resource group is established and a
digital portal for communication and feedback is organized on the Company’s webpage.
Comprehensive Environmental and Social Management Systems (ESMS) for the Project
will be completed prior to construction and adapted for operation as part of the
operational readiness work.
1.2.5 Upside Opportunities

There are unquantified future upside potentials related to:
• Extending the Project lifetime through increased ore reserves from Inferred
Resources
• Increasing ROM within existing regulatory framework
• Production and sales of speciality rutile products
• Flexible initial production capacity, and potential for future expansion to accommodate
additional sales of garnet
• Production and sales of aggregates and ballasting products to infrastructure projects.
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1.3 Project Description, Permits and Licenses

1.3.1 Location and Area of Property
The Engebø Project is located in Naustdal in Sunnfjord municipality in Vestland county on
the west coast of Norway. The Project site is on the northern side of the Førde Fjord with
short and navigable access to the North Sea; ref. Figure 1-7.
Sunnfjord municipality was established 1 January 2020 from a merger between the
previous Naustdal municipality and three neighbouring municipalities; Førde, Gaular and
Jølster. Sunnfjord municipality has approximately 22,000 inhabitants.
Figure 1-7: Project Site and Infrastructure in the Sunnfjord Region
Engebø is the local name of the hill which contains the Deposit. The hill varies in
elevation from sea level to approximately 335 meter above sea level and runs parallel to
the Førde Fjord.
The Project site at Engebø is located near the Fv 611 county road that runs alongside the
Fjord. There is a haul road from the county road to the top of the Engebø hill.
A closed, small quarry and a quay which were constructed in the mid-1990s for shipping
of armour stone is located in the eastern part of the Project site area. A detailed
assessment by a Norwegian consultant in early 2018 indicated that the quay is in a good
structural condition and is designed for vessels with a capacity of up to 80,000 tonnes,
providing direct access to the North Sea and international ports.
Hydroelectric power for the operations will be sourced from a strengthened 22 kV grid that
passes across the Project site.
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The climate at Engebø is typical for the western Norway coastal climate and is
characterized by long, warm days in summer and colder, darker and shorter days in
winter. Snow is common in winter, but due to the proximity to the sea and the relatively
low altitude there is no permanent freezing or snow accumulation, and operations can be
run year around. Rainfall exceeds 2,000 mm a year, through all four seasons. The Førde
Fjord at Engebø is permanently ice-free.
The nearest town, Førde, with a population of about 10,000 people, is located about
30 km east of Engebø, at the inner most part of the Førde Fjord. Førde is a regional
centre and the largest city on the west coast of Norway between Bergen in south and
Ålesund in north.
The property on which the Project is located consist of two areas:
• The processing plant area including the existing deep-water quay
• The mining, service and rock storage area.
Both areas are located within the regulated area of the approved zoning plan for mineral
extraction and processing at Engebø. The zoning plan area including the areas for
mining, mineral processing and deposition of tailings is shown in Figure 1-9.
Nordic Mining has signed agreements with three private landowners who own the area for
the processing plant, giving Nordic Mining the right to acquire the subject properties. The
option agreements are valid until 2025 with exclusive rights for Nordic Mining to extend
the option period.
The open pit mining, service and rock storage areas are owned by the same three
landowners who owns the processing plant area. Nordic Mining has entered into
agreements with the three landowners which provides exclusive right to access and use
the area for mining operations including required infrastructure and installations. The
agreements regulate the compensation to the landowners for the extraction of rutile,
garnet and possible other minerals.
1.3.2 Prior and Current Ownership

The Engebø Deposit was first recognized as a rutile deposit in the 1970s, after
development of a local road tunnel on county road Fv611. The Deposit was not
systematically explored until the 1990s when DuPont made claims for exploration of rutile.
DuPont carried out comprehensive drilling and sampling programs in the period 1995 to
1998 with assistance from the Geological Survey of Norway (NGU). In 1997, DuPont,
through its subsidiary Conoco (later ConocoPhillips), qualified the initial Exploration
Rights to become Extraction Permits under the Norwegian mineral law.
The company Fjord Blokk AS initiated a small-scale quarrying operations in 1998, with
production of armour stone (block stone) in the eastern part of the Deposit.
In September 2006, Nordic Mining acquired the Extraction Permits from ConocoPhillips.
Since 2011, the permits have been held by Nordic Mining’s wholly owned subsidiary
Nordic Rutile AS.
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1.3.3 Mineral Tenures, Permits and Licenses

Nordic Mining holds nine Extraction Permits covering the entire planned mining area; ref.
Figure 1-8.
Figure 1-8: Extraction Permits and Area for the Operational License
1.3.3.1 Key Permits Overview

The key legislative requirements for mining operations at Engebø have been granted as
detailed in Table 1-2.
Table 1-2: Key Permits and Approvals
Regulatory
Authority Status Comment
Requirements
Ministry of Local Government
Project Zoning Plan Approved, 2015 Final
and Modernisation
Detailed Zoning Plan Naustdal Municipality Approved, 2019 Final
King in Council Approved, 2016

Environmental Permit Final
Environment Agency Approved, 2021
Pending confirmation
from the Ministry of
Operational License Directorate of Mining Approved, 2020
Trade, Industry and
Fisheries
1.3.3.2 Zoning Plan

The zoning plan is regulated by The Planning and Building Act. Approximately 2 km2 is
regulated on land, and 4.4 km2 of seabed area is regulated for submarine disposal of
tailings; ref. Figure 1-9.
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Figure 1-9: Zoning Plan Area
The zoning plan allows for and regulates the areal disposition of the following:
• Process plant
• Open pit and underground mining
• Mining service area
• Waste rock deposition
• Access road between mining area and process plant
• Underground infrastructure for ore transportation and primary crushing
• Seabed Tailings Deposit (STD).
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A detailed zoning plan for the terrestrial part of the Project has been granted by Naustdal
municipality.
1.3.3.3 Environmental Permit

The environmental permit is governed under The Pollution Act, and the responsible
authority is the Environment Agency. The environmental permit covers license to
discharge solids, gas and fluids to the air, water or ground and licences for vibration and
noise pollution, and requirements for environmental monitoring and reporting.
An environmental monitoring program has been developed in collaboration with DNV.

Monitoring of key parameters will start approximately one year prior to operation to track
baseline data. Key requirements for the monitoring and measurement programs are:
• Monitoring of juvenile salmon (starts spring 2021)
• Monitoring of effects on Fjord biodiversity
• Monitoring of spawning ground for cod
• Measurements of particle concentrations and accumulation for STD
• Measurements of dust emissions from operations
• Measurements of noise and vibrations.
1.3.3.4 Operational License

The granting of an operational license is regulated under the Mining Act and is managed
by the Directorate of Mining. The operational licence governs the practical aspects of the
mining operation, such as open pit and waste rock storage area stability, safety and
closure, as well as mining sequence and mineral resource management. Included in the
Directorate’s assessment is an evaluation of competencies required to operate the mine
in a safe and sound manner.
The area for the operational license is shown in Figure 1-8.
The Directorate of Mining’s decision to grant the operational license was appealed by
various stakeholders. In November 2020, the Directorate confirmed that the appeals do
not provide any basis to revoke or change the decision. The matter has been forwarded
to the Ministry of Trade, Industry and Fisheries for final confirmation. Arctic Mineral
Resources AS (AMR) is one of the appellants. In March 2021, AMR summoned Nordic
Rutile claiming that AMR has exclusive rights to the garnet on the western side (Vevring
side) of the Deposit and that Nordic Rutile has no rights to the said garnets. AMR's claim
is contrary to the Directorate of Mining's decision and contrary to the Minerals Act. Nordic
Mining rejects the claim in its entirety.
1.4 Geology and Mineral Resources

1.4.1 Geology
The Engebø Deposit is one of the world’s highest-grade rutile (TiO2) hard rock deposits
as well as being unique for its substantial content of almandine-type (Fe3Al2Si3O12)
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garnet; ref. Figure 1-104. The Deposit has neglible level of radionuclide content; ref Figure
1-11
Figure 1-10: In-situ Rutile Grades for Current Producers and Planned Projects
Figure 1-11: Heavy Metal and Radionuclide Content
The Deposit forms a roughly 2.5 km x 0.5 km E-W trending lens situated in a Proterozoic
gneiss, with an overall dip to the north of approximately 85 degrees. Drilling has not yet
reached the depth of the Deposit, but has demonstrated a span of at least 500 m vertical,
from the surface in the east to the deepest drill holes in the west. The centre of the
4 Source: TZMI, February 2021
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eclogite lens is well preserved with limited alteration, foliation and shearing. Towards the
contact to the surrounding gneisses, the amount of deformation and alteration increases,
and the eclogite is progressively more deformed and altered to amphibolite facies
lithologies.
The contact zone to the gneiss is typically defined by an intensively sheared and folded
mixture of alternating mafic (eclogite and amphibolite) and felsic (gneiss) lithologies.
As a tool for characterization of the Engebø eclogite, the lithology has been subdivided
based on the content of Ti and Fe:
• Ferro eclogite is defined by Fe2O3 > 16% and TiO2 > 3%
• Transitional eclogite is defined by 14-16% Fe2O3 and 2-3% TiO2
• Leuco eclogite is defined by Fe2O3 < 14% and TiO2 < 2%.
Compared to the ferro eclogite, the leuco eclogite is brighter in color and less dense due
to the increasing content of felsic minerals. Figure 1-12 shows the distribution of the high
grade ore type eclogite (transitional and ferro eclogite) and the low grade, non-ore type
eclogite (leuco eclogite).
Figure 1-12: Geology of the Engebø Deposit
In ferro eclogite, rutile is typically the fourth most abundant mineral representing up to 6%
of the mineral composition. Rutile is the most common Ti-bearing mineral in the Deposit
and accounts for, in average, >95% of all the TiO2 in the ferro and transitional eclogite
lithologies. The exception is in local, highly altered zones where rutile more pervasivly
breaks down to form ilmenite. Typically, the in-situ rutile grain size is between 100 and
300 µm.
The structural geology in the Deposit is dominated by eclogite facies folds, shear zones
and foliation. The mechanism behind this deformation is interpreted to be a top-to-left
E-W shearing combined with a N-S shortening.
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1.4.2 Ore Characterization and Resource Data Verification

The ore characterization is based on three drilling campaigns; ref. Table 1-3 and Figure
1-13
Table 1-3: Overview of Drilling Campaigns
Average
Length
Drilling Campaign Focus Area Drillholes Core Size Length/
(m)
Hole (m)
1995 - 1997
Western Part 49 BQ 15,198 310
DuPont/Conoco
2016 Nordic Mining Central Part (Open Pit) 38 NQ2 6,348 167
2018 Nordic Mining Central Part (Open Pit) 10 NQ2 1,581 158
Figure 1-13: Drill Hole Positions in Drilling Campaigns
The DuPont/Conoco drilling was focused on the western part of the Deposit. A few holes
were also drilled further east to define the resource. Sampling along the county road
tunnel and shore line, trenching and surface sampling were also carried out to
supplement the drill hole data. A portable XRF was used as the main acquisition method
for chemical data. This was done on 25 cm intervals along most of the drill cores, and
data were corrected against 116 whole rock XRF assays of drill core composites. No
specific Quality Control and Quality Assurance (QA/QC) program was followed, and no
specific geotechnical investigation was carried out.
The 2016 and 2018 drilling campaigns carried out by Nordic Mining were executed
according to the JORC code. Competent Person Adam Wheeler was engaged to assist in
the planning and execution of the drilling campaigns and to model the ore Deposit and
qualify the resource according to the JORC. NQ2 cores were drilled in a 40 x 60 meter
grid focusing on the open pit area representing the first years of mining. The aim of the
drilling programs were to improve understanding and classification of the resource for a
PFS/DFS level and to provide geotechnical input for mine modelling.
Whole rock XRF assays were done for 5 meter ore composites on all drill holes. An
extensive QA/QC program was executed as part of the 2016 and 2018 drilling campaigns
to assure high standards and JORC compliancy. The garnet content was quantified
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based on a combination of Qemscan and chemical calculations, and qualitative

measurements were carried out to investigate grain size and variations.
The following ore characteristics were recorded for all drill holes for the 2016 and 2018
campaigns:
• Lithological logging
• Rock Quality Designation (RQD)
• Density measurements
• Chemical assaying.
Several oriented drill cores were logged by means of advanced geotechnical logging, and
samples throughout the drill cores were assayed by Qemscan for garnet quantification.
In 2016, verification of the 1995/1997 drill core data based on reinvestigating the older
core material was carried out. A total of 709 meters of ferro and transitional eclogite was
relogged and re-assayed, representing 6% of the total 1995/1997 drill cores and 22% of
the 1995/1997 drill cores within the open pit area. Favorable results were achieved from
every aspect of the analysis, and it was concluded that the historical data could be used
for resource estimation for all resource category levels.
Competent Person Adam Wheeler states that the geological data used to inform the
Engebø resource estimation have been collected in line with good industry practice,
allowing the results to be reported according to the guidelines of the JORC code 2012. It
is considered that all available data is suitable for use in the estimation of all resource
categories including:
• DuPont/Conoco diamond drillhole data
• DuPont/Conoco surface data
• 2016 - 2018 Nordic Mining diamond drillhole data
• 2016 Nordic Mining surface sample data.
As part of the UDFS an extensive logging campaign of the 1995/1997 drill cores were
relogged and reassayed, confirming previous analysis.
1.4.3 Mineral Resource Estimate

The Mineral Resource estimation for the Project was done by Competent Person Adam
Wheeler using Datamine Software. The data used for the resource estimation was based
on drill hole data and surface sampling from the three campaigns referred in
Section 1.4.2.
The main lithology and ore type boundaries were modelled creating wireframes in
Datamine.
All samples from the data acquisition campaigns were converted into 5 meter composites.
A volumetric model was created based on the lithology wireframes. The default block was
15 x 15 x 15 meters and filler blocks down to 5 x 5 x X meters (where X will be
determined by the best fit). The topographic model restricted the volumetric model against
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the surface, and blocks inside the 50-meter Fjord perimeter were flagged since they were
classified as unavailable.
Grade estimation was done based on Kriging Neighbourhood Analysis using three
searching parameters including the search distances applied as well as the minimum and
maximum of composites and drill holes. TiO2 and Fe2O3 grades were estimated using
ordinary kriging, and all other grades are estimated using inverse-distance weighing.
Dynamic anisotropy was applied in the estimation process to orient the search ellipsoids
approximately parallel to the lithology zone geometries.
For the resource classification the following classification criteria was used for searches:
• Measured
At least three drill holes, and samples present in at least 3 octants within a search of
40 x 40 x 24 meters
• Indicated
At least 3 drill holes, and samples present in at least 3 octants, within a search of 75 x
75 x 45 meters
• Inferred
Within interpreted structures and limited by a maximum extrapolation of 180 meters

(down-dip) or 120 meters (along-strike) from available sample data.
The model was validated by the following steps:
• Examination of model/sample cross-section
• Block volume checks
• Comparison of global averages
• Comparison of local averages
• Historical comparisons.
A Mineral Resource estimate was made based on an ore model by Adam Wheeler. The
resource classification is illustrated in Table 1-4 applying a 2% TiO2 cut-off. This
represents the ferro and transitional eclogite ore types which are regarded as
economically feasible resources.
Table 1-4: 2019 Mineral Resource Estimate (2% TiO2 Cut-off)
TiO2 Tonnes Total TiO2 Garnet
Classification
Cut-Off (Mt) (%) (%)
Measured 29.2 3.60 44.5
Indicated 104.0 3.48 43.9
2%
Total – Measured and Indicated 133.2 3.51 44.0
Inferred 254.1 3.15 41.3
Page 18
1.4.4 Ore Reserve Estimate

An Ore Reserve estimate was developed by Competent Person Matthew Randall (Open
Pit) and Anton von Wielligh (Underground), Axe Valley Mining Consultants, based on the
resource model and Axe Valley’s open pit and underground mine plans.Table 1-5 shows
the Ore Reserve estimate for the open pit and underground.
Table 1-5: Ore Reserve Estimate
Tonnes TiO2 Grade
Open Pit Garnet Grade (%)
(Mt) (%)
Proven 19.33 3.56 44.25
Probable 10.33 3.29 44.45
Total Open Pit 29.65 3.47 44.32
Underground
Proven 2.55 3.78 44.92
Probable 24.75 3.66 44.42
Total Underground 27.30 3.68 44.47
Grand Total 56.95 3.57 44.39
The Ore Reserves were calculated from the mining schedule with the following
assumptions:
• All eclogite types with TiO2 grades above 2% are included
• The underground break-even cut-off was calculated at USD 25.9/t ore, rounded up to
USD 26/t ore
• Measured and Indicated ore classes were included as Ore Reserves and were
considered for revenue calculations.Inferred material was included in the
underground (diluted ore tonnes) if it was part of the stope volume, however Inferred
material in stopes were treated as waste dilution only (no grade and no revenue
addition)
• All Inferred material and all other lithologies except eclogite above 2% TiO2 are
reported as waste
• The open pit was constrained to within the Owner’s boundary based on the zoning
plan
• 50 m safety zone between underground mining and the open pit, topography and the
Fjord
• A 2% TiO2 cut-off was applied in the recovery curves due to concentrate grade
considerations
Page 19
1.4.5 Geotechnical Studies

In 2019, SRK conducted geotechnical investigations, analysis, and development of slope
design criteria that substantiated the previous geotechnical work completed on the
Project. Analysis of drill cores and development of rock mass characteristics indicate a
competent rock mass for all lithologies that will be present within the pit wall. Furthermore,
finite element analysis of the whole slope stability returns high safety factor values in
relation to failure through the rock mass and, as such, any significant instability within the
pit walls is likely to be controlled by in-situ structure.
Nordic Mining’s drilling campaigns focused on positioning geotechnical drill holes to

intersect the proposed pit walls. Several holes were surveyed by optical and acoustic tele-
viewing. In addition, spinner tests were done on a number of drill holes together with a
suite of laboratory tests for defining intact rock strength and discontinuity shear strength
to substantiate extensive point load testing. Structural mapping and modelling was also
undertaken.
A brief summary of results, findings and comments from SRK follows:
• Rock Mass Strength
The rock was characterized as very to extremely strong, returning RMR89 (Rock
Mass Rating) values in excess of 70.
• Structural Analysis
SRK undertook kinematic analysis of the pit slopes. A domain in the East was
identified as a higher risk than the rest of the open pit, and here the berm width was
set to 6 meters versus 5 meters as for the rest of the open pit.
• Rockfall Analysis
Trajec3D was used for analyzing the rockfall for verifying the berms. The result was
that majority of the cubic blocks would be retained on the first or second bench below
the seed point. The risk with rockfall of blocks is considered low.
• Finite Element Analysis
Finite element analysis (RS2) was undertaken to define safety factors for the entire
slope along three geotechnical cross-sections developed to intersect the highest
section of the north, south and east slopes. Several different models and parameters
were assessed and all returned factor of safety in excess of 3. Due to the high factor
of safety it was considered unnecessary to run probabilistic analysis.
• Proposed Slope Geometry
Two domains were proposed: Domain 1 covers most of the open pit while Domain 2
covers a relatively small portion in the east. Domain 1 will have a maximum inter-
ramp angle of 63° and Domain 2 will have a maximum inter-ramp angle of 60°. The
only difference between the two domains is the difference in berm width as described
above.
Page 20
• Underground Infrastructure
One of the drill holes in the 2018 drilling campaign intersected the area for
underground infrastructure. No signs of poor ground were noted in the drill core.
Finite element modelling of the interaction between the proposed infrastructure and
the pit slope returned a Strength Reduction Factor of >3.5. No tangible displacement
is evident.
The proposed inter-ramp angles are considered achievable given the existing dataset,
high quality final slope blasting practices, state of the art slope monitoring and a rigorous
Ground Control Management Plan will need to be implemented to provide the best
opportunity to safely achieve such angles. In addition, a constant geotechnical mapping
program, interpretation, updated analysis and, if required, modifications to interim and
final slope design will be implemented when mining commences.
The UDFS geotechnical input used for the open pit design is based on the same
background data as in the DFS, but are slightly more conservative to further reduce the
probability of inpit rockfall. Compared to the DFS, the UDFS pit has wider berms and less
steep bench face angles resulting in a reduction of the inter-ramp angles from 63o to 60o
and 60o to 58o for Domain 1 and Domain 2 respectively; ref. Figure 1-14.
1.5 Mining
The Engebø Project provides easy access to high grade ore with limited waste stripping.
The open pit is restricted from the boundaries in the zoning plan, depth of the pit and
practical mining width. Mining will progress underground towards the West with access
from the open pit. The underground design and schedule is currently at PFS level and will
progress to DFS level during the open pit mining. Low/medium grade ore is stockpiled,
improving the feed grade to the plant. The stockpiled ore will be utilized at the end of the
underground operation; ref. Figure 1-1.
1.5.1 Open Pit Mining

A major factor for mine planning is that orebody is relatively massive and homogeneous,
with economic TiO2 grades ranging between 2% and 6% and garnet grades varying
between 30% and 50%. Grade control is not seen to be a complex process, and it is
expected that a mined ore recovery approaching 100% can be achieved. This accounts
for the fact that most of the expected dilution at the ore contacts is likely to be low grade
material.
1.5.1.1 Pit Optimization

The pit optimization was run with two different software packages:
• NPV Scheduler (NPVS)
• SimSched Direct Block Scheduler (DBS).
NPVS is based on the standard Lerch Grossman algorithm that is an accepted industry
standard for pit optimization. DBS was selected for the detailed mine sequencing of the
open pit as it can explicitly model the stockpiling of ore as part of the mine optimization
process.
Page 21
The chosen pit shell from the optimization delivers approximately 30 Mt in Ore Reserve
and 19 Mt of waste.
The pit limit determined with NPVS in combination with the schedule optimization in DBS
provides a sound framework for design of the open pit. This is based on:
• Multiple pit stages that focus mining on higher grade areas
• Optimizing waste rock stripping
• Early access to the ore-pass.
1.5.1.2 Mine Design

The main design parameters are:
• Geotechnical parameters; ref. Table 1-6 and Figure 1-14
• Zoning plan boundary
• Location of the ore-pass
• Location of the haul road tunnel
• Ramp width of 15 m and gradient of 10%
• Minimum cut width of 35 m
• Maximum vertical sinking rate of 90 m per year.
The pit design was guided by the selected NPVS Pit and the optimum mine sequence
obtained with DBS. The zoning plan boundary was the main constraint for both the pit
optimization and the pit design.
Table 1-6: Design Domain Specifications
Domain 1 - Grey Domain 2 - Brown
Slope Dip Direction 330° - 210° 210° - 330°

Double Bench Height 20 m 20 m
Bench Face Angle 75° 75°
Geotechnical Berm Width 17 m 17 m
Spill Berm Width 6.2 m 7.3 m
Maximum Stack Height 90 m 90 m
Inter-Ramp Angle 60° 58°
Page 22
Figure 1-14: Slope Domains in Open Pit
The open pit has been split into two distinct pushbacks, PB1 and PB2, and PB1 has been
split into 5 stages, ref.Table 1-7. The waste stripping ratio for PB1 is 0.4:1 and 2.2:1 for
PB2. The subdivision of the pit into multiple stages minimizes the pre-production
development and improves access to high grade ore. The staging delays the stripping of
PB2.
Table 1-7: Open Pit Design Summary
TiO2 Garnet
Waste Strip
Pushback Stage Rock (kt) Ore (kt) Grade Grade
(kt) Ratio
(%) (%)
1 220 88 131 3.88 43.1 0.7
2 104 30 74 3.65 42.3 0.4
1 3 883 186 698 3.79 42.7 0.3
4 18,106 3,741 14,365 3.53 44.0 0.3
5 17,045 6,433 10,612 3.41 44.5 0.6
2 6 12,187 8,417 3,771 3.33 45.5 2.2
Total 48,545 18,895 29,651 3.47 44.3 0.6
The first stage of PB1 is mined as part of the pre-production work to establish the access
to the ore-pass. Stages 2 and 3 are primarily pre-production work to establish the ramp
access to the design benches and expose ore. The total rock movement is less than 1 Mt
and will be moved in the first 3 to 4 months of production. Stages 4 and 5 complete PB1
with a total ore production of approximately 18 Mt of medium to high grade, and around
8 Mt of low grade ore, ref. Figure 1-15.
PB2 completes the development of the mine with 3.8 Mt of ore grade material > 2% TiO2,
ref. Figure 1-16 and Figure 1-17. The final collar position of the ore pass is established at
RL 205 on the south side of the main ramp.
Page 23
Figure 1-15: Design for Pushback 1 Figure 1-16: Design for Pushback 2
Figure 1-17: Side Cut of Open Pit with PB1 (dark grey) and PB2 (light grey)
1.5.1.3 Mine Schedule

The final schedule closely matches the chosen pit from pit optimization. This confirms
access to high grade ore in the early periods and delivering >4.0% TiO2 for 4 years. The
high grading strategy ensures that lower grade material is stockpiled during the life of the
open pit and the lowest grade material is only reclaimed once the open pit is mined out.
The schedule for the open pit extends over 15 years with a short pre-production period.
During the pre-production period the access road is constructed from the access tunnel
exit on the pit side to the ore-pass collar at RL 285. The ore-pass will be established as
part of the construction works.
During the first year several benches are established from the road to the ore-pass to
provide sufficient flexibility with multiple mining faces of ore and waste available. The ore
exposure is focused on the higher grade zones to minimize the amount of lower grade
material that is sent to the stockpiles.
Where possible, all low grade ore is stockpiled for reclamation in the last Project years.
Additionally, medium grade ore is stockpiled during the first 4 years. This ore will be
reclaimed early and will therefore be stockpiled in a separate area.
Page 24
The ore pass collar will be lowered in increments of 1 bench (10 m) approximately every
12 to 18 months. The initial collar will be at RL 285 and the final location is at RL 205.
Once the final position is reached then all the remaining ore on and below this elevation is
hauled to this collar position. Prior to this, the collar position will change as the pit is
deepened and the ore haulage distance minimized.
The highwall ramp in PB1 that gives access to PB2 has been designed as a single lane
ramp to reduce waste stripping.
Table 1-8: Open Pit Production Schedule Summary
Unit Value
Total Rock Tonnage Mt 48.5

Waste Tonnage Mt 18.9
Run of Mine Tonnage (Ore to Plant incl. Stockpile) Mt 29.7
Rutile Grade in ROM (incl. Ore to Stockpile) % 3.47
Garnet Grade in ROM % 44.32
Open Pit Mine Life years 15
Ore Plant Feed (incl. Ore from Stockpile) years 21
1.5.1.4 Mining Equipment

The open pit will be operated by a mining contractor for the first 5 years, thereafter by
own staff continuing with leased equipment. The final selection of equipment size, and
model, will be mutually agreed between Nordic Mining and the mining contractor. The
mining fleet was simulated in the open pit mine design by Axe Valley using the fleet
specification as shown in Table 1-9.
Table 1-9: Equipment List
Equipment Specification
Drill 140 to 171 mm diameter DTH drill

Excavator 90 tonnes
Front End Loader 10 m3 bucket size
Trucks 41 tonnes
In addition to the above production equipment, the following support vehicles will also be
employed:
• Grader
• Service Trucks
• Explosive Truck
• Utility Excavator
• Utility Front End Loader.
Page 25
1.5.2 Underground Mining

Two underground options were studied for the UDFS. The first option was Long Hole
Open Stoping (LHOS) with cemented tailings backfill of the stope voids; the second
option considers LHOS without backfill.
The two options showed a similar NPV, and the LHOS without backfill was used as basis
for the underground schedule due to higher accuracy in the estimates. Backfilling may be
a future opportunity.
1.5.2.1 Mine Design

Table 1-10 summarizes the stope geometric settings/parameters used to develop stope
shapes and
Table 1-11 shows the underground production schedule summary. The underground
design is illustrated in Figure 1-19 and Figure 1-20.
Table 1-10: Stope Optimization Geometric Parameters
Long Hole
Description Unit
Open Stoping
Minimum Stope Height m 40
Stope Strike Length m 20
Stope Height (Floor to Floor) m 40
Minimum Stope Dip (angle) Degrees 65
Maximum Stope Segment width (schedule/extraction width
m 20
segments)
Pillar Width m 10
Maximum Stope Width (before leaving an in-situ pillar) m 20
Pillar Minimum Width m 10
Sill Pillar Height m 10
Sill Pillar Spacing (vertically) m 40
Figure 1-18: Open Pit and Underground Mining 3D Model – North-East
Page 26
Figure 1-19: Open Pit and Underground Mining 3D Model – South-West
Table 1-11: Underground Production Schedule Summary
Unit Value
Total Tonnes Mt 28.20

Waste Tonnes Mt 0.78
Run of Mine Tonnes (Ore to Plant) Mt 27.42
Rutile Grade in ROM % 3.66
Garnet Grade in ROM % 44.38
Life (Ore Production) years 18
1.5.2.2 Mining Equipment

The underground design allows for a flexible mining fleet for various operational shift
strategies. The main mechanized mining fleet used for the UDFS is listed in Table 1-12.
Table 1-12: Equipment List
Equipment Specification
Drill Rig - Short hole twin boom development drill rig

Drill Rig - Long hole long hole production drill rig
LHD 17 tonnes
Truck 50 tonnes
The ancillary equipment fleet will consist of various utility vehicles for the transport of
equipment and consumables. Storages are allowed both, inside and outside of the
underground mine. In addition to the utility vehicle fleet, an underground motor grader,
integrated tool handler and light vehicles are included in the costs.
Page 27
1.6 Processing
1.6.1 Process Circuit Development
In 2016, IHC Robbins, Brisbane Australia, was engaged to complete the metallurgical
process development testwork for the PFS for the Project. The testwork focused on a
flowsheet suitable for producing rutile and garnet products. This resulted in a flowsheet
that led to the successful completion of the PFS in October 2017.
Significant additional testwork has since been completed with focus on process
optimization, reducing process related risk, and increasing overall process confidence.
Metallurgical testwork has mainly been carried out by IHC Robbins with additional
testwork by Light Deep Earth and Core Group.
The additional testwork programs spanned over a period of 24 months from November
2017 to November 2019 and formed the basis of the input to the DFS. A key aim for this
work was to optimize and confirm the metallurgical performance of the PFS flowsheet
using a representative blended ore sample (program 1364) with a grade of 3.95% TiO₂,
matching the TiO2 grade from the initial period of mining while also taking into
consideration the relative abundance of ore types.
The DFS also included a variability program (program 1365) to understand the impact of
ore variance in the metallurgical performance by processing different ore types through
an abbreviated flowsheet. The term ‘abbreviated’ was adopted as it refers to the reduced
number of gravity processing stages in a circuit by making use of more selective
equipment, and in the process, allow smaller samples to be processed to overcome time
constraints. Results from these programs indicate consistent performance, and all the
samples produced market grade rutile and garnet products. After the completion of the
DFS, a value engineering exercise was conducted. The DFS flowsheet was re-evaluated
and optimized during the UDFS. The testwork results were re-evaluated corresponding to
the UDFS optimized flowsheet.
The UDFS financial analysis is underpinned by program 1364, program 1365,

program 1663, and the PFS bulk programs (program 1234 and 1308). Table 1-13
summarizes the major testwork programs conducted to inform the UDFS.
Table 1-13: Main Testwork Programs
Program Study Phase Sample Type Aim

Bulk program for process optimization and
1364 DFS DFS Blend design using a DFS Blend. Results from this
program was used to inform the DFS program
5 different ore Variability program - five 150 kg samples
1365
types processed using an abbreviated flowsheet
Determine whether a smaller sample could
1365A DFS Blend
replicate results obtained in program 1364
1365B Ferro_2
DFS
1365C Ferro_1 Determine the performance of the developed
process to a change in ore types and thus
1365D Ferro_4 varying feed grades
1365E Trans_2
Page 28
Bulk program to evaluate the process

1663 DFS DFS Blend performance by replacing the tertiary HSI
crusher with a cone crusher
1234 PFS Low Grade PFS bulk programs used to construct the TiO₂
1308 PFS High-Grade grade-recovery relationship
The results from 1365A were directly correlated to the 1364 bulk program since both
programs used the DFS Blend. The results obtained from the variability program were
then interpreted based on this correlation.
In addition to program 1364 and 1365, a series of 23 different optimization testwork

programs were conducted during the PFS and DFS with varying objectives to
comprehensively understand the metallurgical response of the ore and to optimize the
design of the process.
Furthermore, comminution testwork and simulations were conducted to validate the

selected comminution flowsheet capable of producing a suitable and consistent feed to
the process. The objective was to maximize garnet and rutile liberation while minimizing
the generation of fines and overgrinding.
A second bulk program (program 1663) was conducted during the DFS to determine the
impact of replacing the tertiary Horizontal Shaft Impactor (HSI) with a cone crusher (in the
comminution circuit) on the performance of the developed metallurgical circuit. The
results supported the conclusion that the use of a cone crusher for secondary and tertiary
crushing will not affect metallurgical performance of the ore in the process.
The finalized flowsheet for the UDFS retains all the process areas that were designed in
the DFS phase. The design and operational philosophy of the comminution circuit was
further optimized from an operational and cost efficiency point of view.
The comminution crushing circuit was designed to operate for 5 days a week and 2 shifts
a day in conjuction with the mining operation and is separated from the milling and the
processing circuit by the means of storage silos. Optimization work within the process
areas in the DFS/UDFS resulted in a coarse garnet circuit designed to meet the garnet
product volume requirements, and a significantly de-risked comminution circuit.
The UDFS includes various improvements of the mineral processing flowsheet to

increase efficiency and reduce fines generation. The developed flowsheet will produce a
premium grade rutile product as well as a coarse and a fine garnet concetrate that are
stored separately in product silos. The coarse and fine garnet will be combined in a
particular blend ratio to a generate a garnet product conforming to client particle size
distribution specification prior to shipment.
1.6.2 Flowsheet Summary

The Deposit’s primary constituents are garnet, pyroxene, amphibole,rutile and felsic
minerals. The mineralogical assemblage differs from typical mineral sands, however its
mineralogical constituents mostly share the same physical property differences (i.e.
mineral specific gravity, magnetic susceptibility and conductivity) as seen in minerals
sands. This makes processing of the ore, using the same methodologies and equipment
technologies as in minerals sand operations a viable option. Unlike typical mineral sands,
Page 29
the Engebø ore is sourced from a hard-rock deposit and must be crushed/milled to
achieve the mineral liberation.
Comminution test work has demonstrated that a large amount of garnet can be liberated
at coarser size fractions compared to rutile. This led to the development of a flowsheet
processing +212 μm and -212 μm fractions separately. In addition to producing a coarser
garnet stream, this approach is believed to reduce comminution power requirements and
minimize overgrinding. A secondary grinding stage is included for the rejects from the
+212 μm coarse circuit to liberate the rutile and finer garnet in order to be recovered
downstram.
The optimized flowsheet in the UDFS is presented schematically in Figure 1-20.
Figure 1-20: Simplified Diagram of the Optimized Flowsheet
Page 30
The different areas within the processing plant and their corresponding functions are
summarized in Table 1-14.
Table 1-14: Process Area Description
Process Area Area Description

Ore from Deposit delivered at 1.5 million tonnes
Run-of-mine (ROM) Feed
per annum
Comminution Circuit
Primary Crushing
To crush the rocks to a suitable size to prepare
Secondary Crushing
for milling
Tertiary Crushing
Stockpile Buffer between crushing and milling

To grind the crushed rocks and liberate the
Primary Mill
minerals for separation
Primary Feed Preparation To classify the material for efficient separation
Coarse Garnet Circuit To generate a coarse garnet product stream

To mill the coarse garnet rejects to liberate the
Secondary Milling
rutile
Process Circuit
Feed Preparation Process To remove ultrafine -45µm material
Primary Concentration Process To separate rutile from garnet for fine processing
Fine Garnet Circuit Generate a fine garnet product stream
Secondary Concentration Process To upgrade the rutile for dry processing
Froth Flotation To remove pyrite from rutile concentrate
Rutile Upgrade Process To generate a final rutile product
Tailings Disposal Final tailings handling and disposal

Product Silos To store the final products for shipment
1.6.3 Metallurgical Performance

The PFS and DFS phases have involved extensive metallurgical laboratory testwork
using several ore types and varying sample sizes. Of these, all large-scale bulk programs
and several small-scale programs were conducted using only full scale or scalable
equipment. IHC Robbins and Hatch are of the opinion that sufficient testwork has been
completed to a DFS level, and that the testwork forms a sound basis from which
engineering can be completed.
In IHC Robbins’ and Hatch’s view, a pilot plant would be of limited value as issues with re-
circulating loads, operational changes and inefficiencies for the full-scale process would
remain. To account for the effect of re-circulating streams and potential mismatch in
mineral accouting, Hatch recommended using a mathematical model in order to simulate
full scale production. Hatch performed the modelling based on Limn® which is an Excel
hosted application that allows the user to draw and model the process flowsheet. Limn ®
iteratively solves for a solution based on the re-circulating loads and the input parameters
defined in the model.
Page 31
The final mass pull and recovery results for the testwork programs were calculated using
Limn®. Where available, release curves obtained from testwork were used to model the
performance of the circuit. By doing so, the change in process performance to a change
in feed grade (due to recirculation) can be predicted from a range as opposed to a single
point obtained during testwork.
Table 1-15 presents the data used to construct the TiO₂ grade-recovery relationship.
Table 1-16 shows the data used to construct the relationship between the garnet
recoveries and the TiO₂ head grade.
Table 1-15: Limn® Model TiO2 Results Comparison for Bulk Programs
1364 1663 1234 1308
Head Grade
TiO₂ % 3.95 4.09 2.73 4.89
Recoveries
TiO₂ Recovery % 56.2 58.1 48.6 65.3
Table 1-16: Limn® Model Garnet Results Comparison for Program 1365
1365 A 1365 B 1365 C 1365 D 1365 E
Head Grade
Garnet % 46.6 47.5 47.0 43.8 46.4
TiO₂ % 3.84 4.73 3.53 3.28 2.77
Mass Yield
Coarse Garnet Yield % 4.6 7.1 5.9 2.9 3.5
Fine Garnet Yield % 12.3 14.1 12.7 10.7 12.5
Overall Garnet Yield % 18.7 22.5 19.5 14.3 16.9
Recoveries
Coarse Garnet Recovery % 9.0 13.8 11.5 6.1 6.9
Fine Garnet Recovery % 24.3 27.2 24.8 22.5 24.9
The following conclusions were drawn during the testwork programs and subsequent
Limn® modelling:
• Program 1364 was successful in producing rutile and garnet products at market grade
specifications; ≥95% TiO2 and ≥92% garnet. The PFS testwork programs were also
modelled in Limn® to generate the TiO2 grade-recovery relationship
Page 32
• The variability testwork program (1365) indicated consistent performance of the

developed process for the different ore types with respect to ore feed grade and how
it impacts the garnet yield. Grade-recovery relationships were established between
the TiO2 head grade and garnet recoveries. This relationship indicated that the TiO2
head grade was a better predictor variable for garnet recovery using a simple linear
regression model than the garnet head feed grades. The final target garnet grade was
achieved for 1365A to 1365E
• Program 1663 indicated consistent mass splits compared to program 1364 and
achieved the market-grade rutile and garnet products. The program results supported
the conclusion that using a cone crushing technology for tertiary crushing will result in
similar metallurgical performance as the HSI.
1.6.4 Process Plant Development

The engineering development of the process plant and associated plant infrastructure for
the UDFS was completed by external consultants appointed by Nordic Mining, including
Hatch, Asplan Viak, COWI, and four appointed Engineering, Procurement and
Construction (EPC) contractors.
The basis for the engineering update included:
• Value Engineering study, as compiled by Ausenco
• Updated process flowsheet
• Studies, specifications, design criterias and other engineering work completed in the
DFS, updated where required for the UDFS.
Key inputs into the engineering design included:
• Project specific permits and plans, including zoning plans and the Environmental
Permit
• Process Flow Diagrams (PFDs), Stream Tables and Process Design Criteria
• Specific technical studies, investigations and testwork by sub-consultants to support

the engineering design
• Norwegian legislation.
Nordic Mining elected to structure the UDFS on an EPC execution model, with four EPC
contractors. The split of engineering responsibilities for this approach include:
• Project Management Consultant (PMC) is responsible for the process design, as well
as overall engineering coordination and integration
• EPC 1: Site wide earthworks, tunnelling and underground development
• EPC 2: Site Buildings and civils
• EPC 3: Structural Mechanical Piping and Platework (SMPP)
• EPC 4: Electrical, Control and Instrumentation (E&I)
Page 33
• The UDFS has implemented a stick-build approach for the Project. The process plant
footprint has been reduced, in accordance with the Value Engineering Study, so that
the plant is located South of the Fv611.
The processing circuit layout will include the following major elements:
• Underground primary crushing circuit, and discharge conveyor arrangement to

transfer crushed ROM to the process plant
• Process Plant. The layout of the process plant The process plant layout has been
developed to incorporate the majority of the circuits into three main building
structures, as shown in Figure 1-21
• Comminution and Milling Building
• Wet Plant Building
• Dry Plant Building
• Other key elements of the process plant include:
 Ore silos, to provide a stockpile buffer between the rushing and primary milling
circuits
 Rutile, fine garnet and coarse garnet product bins, as well as a ship-loading
system for material transfer from the product bins into bulk carriers.
 Tailings system, for discharge of tails to the seabed.
 Water storage systems for the plant water requirements
 Administrative office incorporating the change house, laboratory and control room
 Integrated workshop and stores.
Figure 1-21: Process Plant Layout
Page 34
No new untested equipment is used in the process flowsheet. All equipment is standard
industry equipment.
Mechanical equipment sizing and quantities were developed from the updated UDFS
process flowsheet, which formed the basis for the equipment technical specifications that
were issued to the market for pricing of the mechanical equipment.
The updated mechanical equipment list formed the basis for the updated electrical
design.
Piping and Instrumentation Diagrams (P&IDs) were developed from Process Flow
Diagrams (PFD) and the Functional Description updated to reflect changes.
The updated plant layout model and technical documentation formed the basis for the
updated design development with the EPC contractors.
1.7 Project Facilities

The layout for the mining and processing plant areas are shown in Figure 1-21 and
Figure 1-22.
Figure 1-22: Project Layout
The general infrastructure and facilities for the Project includes the following major
elements:
Page 35
• Power Supply
Bulk power will be supplied by SFE, the regional power utility, from a hydro-electric
power station. The existing 22 kV grid from the Øyravatnet transformer station to
Engebø will be upgraded. The SFE line will feed into a Main SFE Intake Substation
located within the process plant. Nordic Mining has an agreement with SFE for
engineering of the grid upgrade. Nordic Mining’s discussions with SFE are based on a
supply of up to 15 MW of power to the Project.
• Raw Water Supply
Raw water will be sourced from the Førde Fjord. A package-type desalination plant
delivering 100 m3/h raw water will discharge into the insulated process plant Raw
Water Tank. The 600 m3 tank will provide raw water to the following services:
 Top up water to the process water tank
 Supply to the process plant facilities
 Supply to the underground primary crusher plant.
 Potable water supply to the offices and buildings
 Supply to the 400 m3 insulated process plant firewater reservoir located at an

elevation of 84 MASL, adjacent to the mine access road. This reservoir will
provide firewater supply to the process plant (gravity line). In addition, water will
also be pumped from this reservoir to the mining services area for raw
water/potable water and firewater requirements.
• Fv611 County Road
 New turn-offs from the Fv611 road will be provided to access the process plant
entrance road (South side of Fv611), as well as mine access road (North side)
 An new avalanche berm will be provided on the Northern side of the Fv611, to
provide protection to the process plant
 A safety barrier will be provided on the south side of the Fv611 road, as a safety
measure due to the cutting required for the process plant access road and plant
terrace.
• Site Communications
External communications from site will be via fiber, or a 5G network, when available.
• Open Pit Infrastructure
 The open pit mine facility will be fenced with a 2.3 m high wildlife fence. Power
supply will be routed into the mine area for dewatering pumping and other
requirements. Dewatering from the open pit will be discharged into the waste rock
settlement dam
 In-pit lighting will be provided by the mining contractor
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• Access Road
An access road will be constructed from the Northern side of the Fv611, to provide
access to the primary crusher tunnel entrance and the mine service area. This road
will be used mainly for personnel movement, as well as the supply and movement of
fuel, spares, explosives and other activities in support of the mining operation. It has
been designed with a maximum gradient of 1:10.
• Mine Service Area
The mine service area will support the mining operations. The principal infrastructure
in this area includes:
 EMV service workshop, for servicing of the mining fleet. The workshop includes
provision for storage of critical spares and limited office space
 Fuel and lubricants storage and dispensing facility. Haul trucks will be able to
refuel at this facility. The EMV fleet permanently located in the open pit area will
be serviced by a fuel truck. A 40 m3 fuel storage tank will be provided, for diesel
and Adblue storage and dispensing
 The mine service area will include a parking area for the mine fleet, a brake test
ramp, as well as other utilities required to support the EMV workshop operations.
• Haul Road
 A haul road will be constructed to connect the open pit mining area to the mine
service area. Access from the haul road to the waste rock and low grade material
stockpile area will be provided
 The final section of the haul road to the open pit will incorporate a tunnel of
approximately 200 m length.
• General Surface Run-off
The design of all new roads and structures will include drainage structures for the
management of general surface run-off water.
• Waste Rock Deposit
 This area will be used for the storage of waste rock, as well as stockpiling of
lower grade material for future reclamation and processing. This area will be
fenced off
 A sedimentation pond will be provided in Eastern side of the storage area. Water
run-off from the waste rock and low grade stockpile areas will be channelled to
the pond by means of temporary berms and channels, which will be progressively
modified by mining operations as the footprint of the stockpiles extends. The
pond shall allow for the settlement of suspended material, and will also receive
discharge water from the pit-dewatering system
 Water will be discharged from the pond to the Fjord via a drainage channel.
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• Underground Facilities
 A 4.2 m diameter vertical ore pass will be constructed in the south-eastern side of
the open pit mining area, and will be connected to an underground crusher
chamber and access tunnel
 ROM material from the open pit operations will be discharged into the vertical ore
pass, via a static grizzly
 ROM material will be extracted from the vertical ore pass by an apron feeder to a
primary jaw crusher, from where the material will be discharged by conveyor
through the access tunnel to a transfer station located outside of the tunnel. The
material will then be conveyed over the Fv611 county road and discharged into
the comminution building in the process plant, for further crushing
 A safety chamber will be located adjacent to the crushing chamber to facilitate

safe personal isolation in the event of a safety incident underground. An
underground ventilation system, consisting of a fan and air ducting system, will be
installed to service the underground tunnel and crusher chamber, to provide a
constant flow of clean air through the working areas
 Sump pumps in the underground working areas will pump water ingress into the
underground working areas out to the process plant. The dominant water ingress
is expected from the vertical ore pass. Floor sloping and drainage channels will
drain water to the sumps.
• Processing Plant
 The process plant area will be accessed from the Fv611 via a ramp road from the
Fv611 turnoff. The site will be constructed with two terrace levels. The upper level
will include the process plant and buildings. The lower level will include the final
product silos and tailings disposal system
 As detailed in Section 1.6.4 above, the process plant circuit (after primary
crushing) has been configured into three main process buildings. In addition, the
following facilities are integral to the process circuit:
▪ Buffer Stockpiling Facilities
o Six storage silos will be installed between the tertiary crushing and
primary milling circuits. These silos are located to the west of the
comminution building
o The three stage crushing circuit is based on a 5 day/week, 16 hour per

day operational cycle. The silos provide a storage buffer to allow for the
continuous operation of the primary milling and downstream processing
circuit.
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▪ Product Storage and Loading Facilities
o The final product storage consists of 9 product bins, including 7 bins for
coarse and fine garnet product, and 2 bins for rutile. The bins will
discharge onto discharge conveyors and final product shiploader. The
bins have been sized in accordance with anticipated shipping volumes
and frequencies
o The existing quay will be used for berthing of vessels for ship-loading. A
technical assessment of the quay conducted in 2018 indicated that the
quay is in a good structural condition.
▪ Tailings Disposal Facilities
A tailings disposal system will transfer tailings from the process plant via a
subsea pipeline to a dedicated subsea deposition area area. The tailings
system comprises a mixing chamber, pumping systems (for startup and
seawater pumping to upsteram mixing circuits) and subsea discharge pipeline
for hydraulic discharge of the tailings.
• Other Site Infrastructure
 An insulated Process Water tank will be used for the storage of recovered
process water, from where it will be pumped to various circuits in the plant
 A dust handling system will be used for dust collection and management from the
dry processing circuit
 A site wide fire protection system will provide detection and protection to offices
and process areas on the site
 Boundary fencing around the site, and an existing quay which will be renovated.
• Compressed Air Systems
Plant and instrument air will be supplied from a centralized compressor plant located
between the wet and dry process building. The compressor system consists of two
compressors (one running, one standby), and two 1.0 m3 air receivers. Plant air is fed
directly from the receiver, whilst instrument air is dried using desiccant dryers.
• Process Plant Buildings, Workshops, Laboratory and Stores
 The administration building including personnel offices and meeting rooms,

change house, control room, reception, canteen, training room, medical room and
laboratory will be located in an integrated double story building
 An integrated plant workshop and stores building equipped with overhead cranes
will be used to provide operational and maintenance support.
• Sewage Treatment Plant
The process plant sewage treatment plant is sized for the operational staffing
requirements. A sludge separator unit will be used for sewage treatment. Sewage
from the mine complex will also be routed to the sludge separator.
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• Process Plant Spillage Control
All process plant areas will be bunded to contain any local spillage of material or
wash down water. Spillage and wash down water will be directed into sumps in the
process areas, from where it will be pumped to a specific process circuit for
processing.
1.8 Environmental and Social Responsibility

The environmental and social standards applicable to Norway forms the basis for the
Engebø Project. Norway is a member of The European Economic Area (EEA) and
policies and regulations are compliant with those of the European Union (EU). EU
regulations such as the Water Framework Directive (WFD), REACH (regulations for use
of chemicals) and the Mining Waste Directive are implemented in Norwegian
environmental legislation.
The Project will be developed in accordance with relevant Equator Principles and IFC's
Performance Standards and Guidelines.
Extensive ESIA studies, in total 67 reports, were carried out in stages to support the
various permitting processes.
1.8.1 Social and Economic Effects

The ESIA concludes that the Project will have significant positive social and economic
effects in the region due to direct and indirect employment and tax revenues. The Project
will employ more than 100 people that will substantially contribute to local employment
and activity. The Project will have a positive impact on local settlement and may lead to
reversing of an historical commuting and migrating workforce trend.
The Project is expected to have substantial indirect effects for a variety of supporting
business and services, both locally, regionally and nationally. A study (SINTEF 2013)
estimated that the Project will have an employment ripple effect factor of 1.9, resulting in
an additional number of approximately 200 jobs.
Sunnfjord municipality will receive increased tax revenue through income, wealth and
property tax related to the Project. A 22% corporate tax for the enterprise will be received
directly by the State. The increased revenues are assessed to have a large positive
effect, in particular in the Sunnfjord region.
The Project will be a long term corner-stone operation in the region. The Project will as far
as possible seek to employ locally and regionally, and will promote educational programs
to secure adequate competencies. A locally based work force, settling and living in the
region, is considered a strategic advantage contributing to a safe and healthy working
environment.
1.8.2 Terrestrial Impact

The region surrounding the Project Area is to a large extent pristine with natural habitats
and some agricultural activity. There is minimal industrial activity in the region. The
Project area has, as part of the ESIA process, been mapped in terms of land use,
landscape qualities, natural habitats, endangered species and wildlife. Some key features
of the terrestrial landscape are:
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• A habitat of conservation importance with rich deciduous woodland is found on the

southern slope of the Engebø hill and one red listed orchid species has been
documented in this area
• There is limited wildlife at Engebø, but several species of birds have habitats in the
forests surrounding the hill
• Traces of deer activity such as grazing and tracks have been documented in the
Project area. The area is however not regarded to be of substantial importance for the
regional deer population
• There is limited agricultural activity at Engebø, but there is some pasture of sheep,
cows and horses, rented out by landowners to local farmers. There is also some
recreational use for hiking by the local population.
Based on the ESIA studies, measures incorporated into the Project design to limit the
effects on the landscape, natural habitats and visual impact include:
• The open pit is restricted to an area on top of the Engebø hill to limit the visual impact
and disturbance of natural habitats. The profile of the hill will largely be preserved
when viewed from nearby areas
• A park belt around the industrial operation will be preserved as habitats for wild life,
and will provide visual screening for the operation to the surroundings in the form of
trees and vegetation
• Revegetation of the waste rock storage area and the visible open pit benches will be
carried out
• The open pit, waste rock storage area, process plant and sections of the access road
will be fenced in to keep people and wild life from entering the operational areas
• Parts of the access road to the open pit will be placed in a tunnel to reduce visual
disturbance, noise and dust.
1.8.3 Impact on Fresh Water

Ground water quality in the area is generally good and is a typical source of drinking
water from small wells to local farms. There is limited surface water at Engebø. As a
result of the lack of major streams or rivers, flood line determination does not apply and
no river diversions will be required.
The Engebø ore and waste rock has no acid producing capability and low heavy metal
content. The risk of heavy metal or acid contamination of nearby streams, ground water is
regarded as low. A sedimentation pond will be constructed at the foot of the waste rock
pile to confine drainage water. Excess water from the pond is diverted to the process
plant area and ultimately discharged to the sea.
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1.8.4 Marine Impact

The Førde Fjord is a typical glacial fjord, 40 km long, with steep slopes and a flat deep
fjord basin. The Fjord is up to 330 m deep and is characterized as a sedimentation
environment. Over the years, millions of cubic meters of sediments have accumulated
from glaciers, rivers and erosion of surrounding landmass on the seabed consisting of
clay and silt.
The Sea Tailings Deposit (STD) area comprises around 5% of the total sea floor and is
located at approximately 300 m depth. In combination, the zoning plan and environmental
permit, forms a 3 dimensional volume that regulates particle dispersion and accumulation
from the STD. Particle concentration and sedimentation outside the regulated area cannot
exceed permitted levels (at non-effect concentrations). The environmental permit also
states that particles cannot exceed the permitted thresholds 40 m above the discharge
point which means that the water column above the discharge point to a large extent is
unaffected.
Main conclusions from the ESIA regarding potential effect of STD:
• Engebø tailings is regarded as inert minerals with low risk for heavy metal pollution to
the Fjord. The composition is similar to natural sediments on the bottom of the Fjord
• There is limited risk for particles spreading in significant concentration outside the
STD area and to shallower water beyond 100 m depth
• The tailings will mainly affect bottom living organisms (benthic fauna) within the
regulated area where the sedimentation rate is high. Mobile species such as fish will
likely avoid areas with high turbidity (sediment concentration)
• There is low risk for effects on commercial and recreational fishing outside the
designated deposit area
• There is low risk for effects on fish farms since these are operated outside the
designated area and in shallow water
• There is low risk for effects on migrating salmon since salmon generally remain within
the upper 30 meters of the water column that is unaffected by the STD
• The benthic community is expected to return to a good state within 10 years after
deposition ends, potentially with a different species composition reflecting the new
sea floor environment
• The effect of the STD is local and there is low probability of serious or irreversible
effects on the Fjord's ecosystem.
The Project has included a comprehensive basis of design to limit and monitor effects of
the STD.
1.8.5 Cultural Heritage

Archaeological mapping and assessments have been carried out in accordance with the
Cultural Heritage Act. Five sites with traces of prehistoric settlement and activities were
documented. The sites have been excavated and released for industrial development.
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There are no further liabilities in terms of archaeological investigations or excavations in

the area prior to construction.
1.8.6 Environmental and Social Management

An Environmental and Social Management System (ESMS) will be established to ensure
that the Project is managed in accordance with the Company’s standards, permits and
Norwegian regulations. The system and supporting programs are progressing and will be
completed prior to construction and adapted for operation as part of the operational
readiness work. The objectives of the ESMS will be to:
• Undertake the ongoing identification and assessment of potential environmental and

social impacts, both adverse and beneficial, building on the ESIA and its supporting
studies
• Avoid, or where avoidance is not possible, minimize, mitigate or compensate for

adverse impacts and enhance positive impacts on workers, affected communities,
and the environment
• Seek to continually improve operational performance by means of adaptive

management
• Ensure affected communities and staff are engaged on issues that could potentially
affect them
• Confirm compliance with regulatory and corporate requirements
• Confirm compliance with IFC Standards and Equator Principles and lenders
commitments.
Main management plans and programs are:
• Environmental Monitoring Plan
 Measurement Program
 Monitoring Program
• Stakeholder Engagement Plan
• Energy Management Plan
• Extractive Waste Management Plan
• Closure and Rehabilitation Plan.
1.8.7 Stakeholder Engagement

Stakeholder engagement is an integral part of the Norwegian permitting process for new
industrial activity. All permit applications and ESIA studies are made publicly available for
a consultation/hearing process where stakeholders can state views.
There has been substantial interest and engagement from stakeholders in all hearings
related to the Project. Each process has generated in the order of 20 to 30 input letters
from different stakeholder groups. In the hearing rounds, the main concerns of the
stakeholders have been related to the STD.
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In addition to the formally organized stakeholder engagement, Nordic Mining has actively
engaged with stakeholders throughout the Project development. This includes numerous
public meetings in Naustdal and Askvoll municipalities with stakeholder participation.
Typically, meetings have been initiated when the Company has submitted new
applications, published results from environmental studies or planned physical work on
site, such as the drilling programs. Attendance at the meetings has been good with 50 to
100 attendees, including municipality representatives, NGOs and local media.
Nordic Mining has established a Resource Group to assist and strengthen stakeholder
dialogues during the construction and operational phases. The purpose is for
stakeholders to have a forum for sharing information and engaging with the Company.
1.8.8 Closure Planning and Costing

The closure of the operation will consist of the following main activities:
• Rehabilitation and revegetation of pit benches and waste rock deposit
• Cleaning and removal of equipment at Project site
• Capping and closure of underground infrastructure and ore passes
• Continued environmental monitoring of tailings deposit and waste rock facility for
15 years after closure
• Removal of buildings at work shop in the service area
• Fencing and maintenance of fence around the open pit.
1.9 Market Analysis

1.9.1 Rutile
Titanium feedstock is the most critical input to the titanium pigment and titanium metal
manufacturing processes. The key minerals mined to supply titanium feedstock are
ilmenite and rutile. While rutile may be used directly as a feedstock, ilmenite is normally
undergoing a smelting process to produce titanium slag and pig iron.
The global TiO2 pigment market accounts for approximately 90% of total feedstock
demand and is therefore the dominant driver of offtake. Titanium metal is the second
largest consumer of feedstock accounting for approximately 5%. Rutile and various forms
of upgraded ilmenite are the main feedstock for further processing using the chloride
technology. The Australian market analysis group TZMI is estimating an overall growth of
global chloride feedstock demand of 5.6% CAGR towards year 2029, ref. Figure 1-23.
Page 44
Figure 1-23: Global Chloride Feedstock Demand 2014 – 2029
TZMI has for several years forecasted a significant reduction in the supply of rutile in the
period 2017 towards 2030. Global rutile supply for 2020 is estimated at 517,000 TiO2
units, down 12% from 2019. A further significant decline in global rutile output from
existing operations is expected from year 2022 as seen in Figure 1-24.
Figure 1-24: Global Rutile Supply 2014 - 2029
The reduction in rutile supply results from closure of major rutile mines in Australia and
Africa. In addition, there has been reduced output from Ukraine. Although much of the
decline will be offset by likely new supply to come in production, TZMI is forecasting a
continous downward trend in rutile supply in the next 10 year period. TZMI expects the
lack of new supply also to affect the total demand for rutile as pigment and metal
producers could seek to partly replace rutile with other high grade feedstock.
The increase in global demand of rutile in chloride pigment applications is expected to be

around 5% in the next decade, while demand for rutile in titanium sponge production
(metal) is expected to be approximately 6%.
Although there is a certain interchangeability between different high grade feedstock,

TZMI forecasts a significant supply deficit beyond year 2023.
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Global demand for rutile is forecasted to remain at 600,000 tonnes TiO2 units per year in
2029, representing a gap in supply/demand of up to 200,000 tonnes TiO2 units per year.
The prevailing outlook for the rutile market leaves good offtake opportunities for the
planned output from Engebø at around 35,000 tpa.
TZMI forecasts the average rutile price to weaken slightly during 2021 due to the effect of
the Coronavirus pandemic. After 2021, the price is expected to firm-up and stabilize
towards the anticipated long term inducement price for rutile being forecasted to USD
1,138 per tonne of rutile (FOB, 2019 dollars) which translates to USD 1,179 in 2021
dollars, ref. Figure 1-25 This is the long-term price assumption used for the UDFS
financial analysis and lower than observed market prices, ref. Figure 1-23.
Figure 1-25: Nominal Rutile Price Forecast
Figure 1-26: Cross border trade prices for rutile
Nordic Mining has entered into a Heads of Agreement (HOA) with a reputable Japanese
trading house for supply and offtake of the majority of its production of rutile. The HOA
also outlines a participation in the construction financing of the Project.
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1.9.2 Garnet
Garnet has for many years been an attractive abrasives mineral due to its hardness.
Historically, garnet has been applied in sand paper and for manual surface preparations,
while the current primary markets for garnet are in abrasive blasting and waterjet cutting.
The development of waterjet cutting machines paved the way for a rapid increase in the
use of garnet since the 1990’s. Production of waterjet cutting machines in China has seen
strong growth recently with a CAGR of 25% from 2013 to 2018.
Garnet is also utilized in abrasive resistant materials such as flooring, however in smaller
volumes. In addition, garnet is used for water filtration in combination with a range of
other minerals. The total demand for garnet has remained stable during the last years at
approximately 1.12 million tpa. Waterjet cutting and abrasive blasting represent the
majority of this demand with approximately 80%. The demand has remained somewhat
subdued during the last 5 years due to weak global growth and also political ban of garnet
export from India since 2016. Estimated demand dropped to below 0.9 million tpa in 2020
due to the Coronavirus pandemic.
Global demand is expected to increase in the next decade with an average growth of
approximately 7.2% CAGR towards year 2030, ref. Figure 1-27. The waterjet segment will
represent the strongest growth with approximately 8.1% CAGR estimated towards 2030.
Figure 1-27: Garnet Demand Forecast by Application
Traditionally, the main supply of garnet has come from Australia and India. Currently an
increasing supply is originating from South Africa, while smaller volumes are produced in
the US. Engebø will be the first producer of garnet in Europe. China has increased its
domestic production of garnet to over 400,000 tpa in 2020. Most of China’s production are
used domestically.
TZMI estimates the total production of garnet to increase to approximately 1.5 million
tonnes in year 2028, including likely production from new projects.
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Figure 1-28: Garnet Supply/Demand Outlook
The supply/demand pattern of garnet, as well as pricing has been affected by the
abruption of Indian garnet supply as well as increased exports from China. The
forecasted growth in the waterjet market segment indicates a good position for Engebø
garnet in the European market, as well as overseas markets, ref. Figure 1-28.
Figure 1-29: Historic Import Prices (CIF) for Garnet
Historic import prices (CIF) for garnet have gradually increased to a level of approximately
USD 300 per tonne; ref. Figure 1-29. TZMI forecasts the average price of garnet to
temporarily decrease from USD 260 per tonne FOB in 2020 towards 2023, before it
increases towards year 2030. The long-term average price assumption for garnet in the
UDFS financial analysis is USD 230 per tonne FOB.
Nordic Mining is proceeding with discussions for long-term offtake arrangements with
selected marketing partners.
1.9.3 Waste Rock

Crushed rock is used as ballast and protection material in various offshore applications in
Norway and internationally, i.a. in connection with platform constructions, windmills,
pipelines, bridges etc, and to support landfill, dykes and similar constructions. High
density rock types like the Engebø eclogite (specific gravity around 3.2 t/m3) are often
preferred due to favorable properties related to high weight to volume ratio.
Page 48
The Project has available area and permit to install crushing facilities in the waste rock
storage area. Costs to produce saleable products of eclogite ballast product based on
waste rock will include crushing/sorting, transportation, storage, and loading. Certain
investments will be required to facilitate commercial production of rock ballast material,
including mobile crusher, conveyor transport equipment from the waste rock storage area
to the port area, and suitable ship-loading equipment.
Business opportunities and technical solutions related to sale of eclogite to ballasting

applications will be further investigated. No revenues from sale of eclogite ballast material
have been included in the UDFS financial analysis.
1.10 Project Execution Plan

The key Project execution objectives are:
• Deliver the Project within schedule, budget and performance requirements
• Implement and maintain the highest health and safety standards
• Compliance with environmental regulations and requirements
• Develop and foster community and social engagement during execution
• Ensure successful commissioning, ramp up and operation of the plant
• Secure recruitment of relevant competencies regionally and nationally.
The Project has selected an execution strategy based on an integrated Owner’s Team,
consisting of the Owner and a Project Management Consultant (PMC), who will manage
and oversee the Project execution. The team will be led by the Nordic Mining Project
Director, reporting to a Project steering committee.
The operations team will be progressively strengthened with new appointments, in line
with the operational readiness strategy and coordinated by the GM Operations.
The process design will be finalised by the PMC. This will serve as the technical basis for
the final selection and procurement by the Owner of the mechanical equipment from
international suppliers, who have tendered in the DFS and UDFS.
The PMC will work with the Owner as in integrated Owner’s Team. The key support from
the PMC will include:
• Project management, including project controls
• Multi-disciplinary engineering technical assurance, design coordination and interface

management of the detail design of the EPC contractors
• Construction management
• Commissioning management, including key technical specialists to support this stage

of the project
A critical success factor for the project will be the integration of the Owner, PMC and EPC
contractors to ensure close alignment of the project planning, detail design, construction
management and commissioning of the project
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Detail design, fabrication and supply of bulks and specified equipment, logistics and
construction of the plant will be done by four EPC’s. These EPC’s were nominated at the
commencement of the UDFS and have been actively involved in the design and
engineering in the UDFS.
1.10.1 Project Organization

• The organisational structure for the project implementation is shown in Figure 1-30
• The Owner and PMC will be structured as an integrated team, under the leadership of
the Project Director. The Owner is planning to set up a project office in the Førde
region to support the engineering development of the project
• The four EPC contractors will be Norwegian companies.
Figure 1-30: Project Organization
1.10.2 Health, Safety, Environmental and Social Management

The integrated Owner’s team will finalise the project HSE requirements and the
Construction Environmental Management Plan (CEMP), which will be implemented on
site with by the responsible EPC according to the Plan and Building Act. The CEMP will
consolidate the various applicable Norwegian environmental and social standards into
one management plan.
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1.10.3 Commissioning
Commissioning will be executed in accordance with the Project commissioning plan. The
PMC commissioning manager shall set up and develop the required commissioning
systems, plans and procedures, to ensure close alignment of the construction schedule
with the commissioning plan.
The commissioning manager will be supported by various specialists and groups,

including:
• PMC process and other specialists
• Owner’s operations and maintenance staff
• Key resources from EPC3 and EPC4
• OEM equipment specialists
• Other specialists as identified.
On completion of cold commissioning, the Project will proceed with hot commissioning
and operational ramp-up with continued support from the PMC and EPCs.
1.10.4 Operational Readiness

The operational design for the Project is based on a lean staff count, high degree of
automation and optimal use of digital technology to support managerial, operational and
maintenance work functions.
A strategy has been developed to provide the framework for operational readiness in the
next phase.
All management, operational and maintenance functions will be performed by permanent

staff. In the first 5 years of operation, a contract miner will be engaged for the mining,
including maintenance of mining fleet supplied by the contractor. Current planning
indicates a total operational head count in excess of 100 people, including the mining
contractor.
The Project will use the services of either the PMC or similar third-party specialist, to
assist with operational readiness implementation during the construction phase leading to
steady state operation; ref.Table 1-17.
Table 1-17: Head Count
Summary Head Count
Management and Administration 14

Technical Services 4
Mining ~30
Comminution and Process 38
Laboratory 7
Maintenance 11
Total ~104
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1.10.5 Project Schedule

The Project schedule has been developed utilizing a bottom-up estimation approach and
the Critical Path scheduling Method (CPM). The schedule has been developed with key
inputs from equipment vendors (equipment delivery lead times) and the four EPC
contractors.
The schedule has been developed to a Level 3 detail. Refer to Table 1-18 for preliminary
key dates.
Table 1-18: Preliminary Project Schedule
Activity Start Finish
Detail engineering August 2021 September 2022

Construction – EPC 1 September 2021 March 2023
Construction – EPC 2 May 2022 June 2023
Construction – EPC 3 October 2022 September 2023
Construction – EPC 4 October 2022 September 2023
Mechanical Completion June 2023 September 2023
Cold Commissioning August 2023 December 2023
Hot Commissioning December 2023 February 2024
1.11 Capital and Operating Costs

1.11.1 Capital Cost Estimate
Key inputs into the Capital Cost Estimate included:
• The EPCs developed Bills of Quantities from the plant layout and building area
designs, which formed the basis for pricing for the major site contracts. Firm EPC
pricing will be obtained before contract award
• Equipment supply pricing were predominantly based on a competitive bidding and

adjudication process. Equipment sizing was derived from the engineering design
• Estimates were also obtained from other Project consultants/contributors and

incorporated into the overall Project estimate
• Estimates for Owner’s costs, and other indirect costs were developed based on
estimations of activities, resources and deliverables
• Contingency was determined in a Quantitative Risk Assessment (QRA); ref Section

1.12
The capital cost estimate for the open pit mining operation and the process plant is USD
203.4 million, as summarized in Table 1-19.
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Table 1-19: Capital Cost Estimate
Description USD million
Open pit mining, underground infrastructure and primary crushing 16.691

Comminution, mineral processing and tailings handling 95.475
Site wide infrastructure, product storage and loadout 61.137
Indirects (excluding Contingency) 13.044
Contingency 17.090
Total 203.437
1.11.2 Operating Cost Estimate

The operating cost for all key operating cost drivers were developed from first principals.
Unit costs for consumables and spares were obtained from potential suppliers. Each cost-
generating activity was identified as well as the underlying cost drivers.
Major contributors to the operating cost include contract mining costs, labour, electric
power, reagents, spare parts and consumables.
The total weighted average operating cost over the first 10 years is USD 14.4/ROM tonne
and USD 95.9 per sales tonnes of rutile and garnet combined.The operating cost were
forecasted based on the production schedule and is summarized in Table 1-20 below.
Table 1-20: Operating Cost Summary
Description Unit USD/tonne
Open Pit - Waste Mining (Including Fleet lease) Waste tonne 2.53
Open Pit - Ore Mining (Including Fleet lease) Ore tonne 2.48
Underground Mining (Including Fleet lease) Mined tonne 11.43
Process ROM tonne 6.99
Sales, General and Administrative (SGA) ROM tonne 2.23
Average Cash Cost56 ROM tonne 14.4
Average Cash Cost567 Sales tonne 95.9
Average Cash Cost Project lifetime6 ROM tonne 17.1
Average Cash Cost Project lifetime67 Sales tonne 113.6
All-in Sustaining Costs ROM tonne 14.9
1.12 Risks and Opportunities

A robust risk assessment process was followed through the UDFS whereby both
qualitative and quantitative risk approaches were undertaken. Information was
5 Average first 10 years

6 Excludes Royalties
7 Rutile and Garnet combined
Page 53
accumulated into a quantitative risk analysis of the capital estimate and project execution
schedule, to derive the total capital risk profile. Given that Project capital and operational
costs can be impacted by estimate uncertainty, schedule uncertainty, revenue uncertainty
and risk events, an integrated risk process was followed:
• A schedule risk profile model was developed to capture duration uncertainty and
schedule risk events that result in variations to the deterministic schedule. The
schedule was used to assess the cost impact of time variable capital costs that will
vary in line with schedule variations from the plan
• A capital cost risk profile model was developed to understand the potential variability
in the base cost estimate
• A project risk register risk event model was developed to understand the potential
impact of project risk events on schedule and cost.
The risk analysis, using a Monte Carlo simulation method, resulted in a contingency risk
allowance from the capital base estimate of USD 186.35 million to the statistical Mean
value of USD 203.44 million, equating to USD 17.09 million or 9.17% of the base
estimate. The Project implementation schedule is targeting 02 February 2024 for the
completion of hot commissioning, carrying a nine week schedule risk allowance to the
Mean of 09 April 2024. Through the rigour of the QRA workshop, attended by Nordic
Mining and Hatch, risks were accounted for, recognizing that further risk treatment and
mitigation strategies will be carried out during the next Project stage to gain further
definition and confidence. When evaluating the stanalone project risks, a further time
allowance of six weeks to the Mean needs to be catered for. The total schedule risk
allowance is therfore, fifteen weeks. The capital estimate is within a AACE(I) Class II
accuracy.
The QRA analysis excludes growth provision, forex and escalation.
During the UDFS, an update to the feasibility study Hazop was carried out, focusing only
on those nodes where changes were introduced.
Several project risk workshops were undertaken during the UDFS, documented in the
study report. The risk process included reviewing the risks identified through the DFS
process. In addtion, further risk identifcation together with risk treatment plannning
characterised the risk work undertaken.
The most significant risk areas observed:
• EPC coordination and integration (Delivery model)
• Technical design
• Project management
• Steel price inflation
• Operational readiness
Page 54
2. Additional Information
2.1 List of Tables
Table 1-1: Key Production and Financial Summary ............................................................................... 5
Table 1-2: Key Permits and Approvals ................................................................................................. 11
Table 1-3: Overview of Drilling Campaigns ........................................................................................... 16
Table 1-4: 2019 Mineral Resource Estimate (2% TiO2 Cut-off) ............................................................ 18
Table 1-5: Ore Reserve Estimate ......................................................................................................... 19
Table 1-6: Design Domain Specifications ............................................................................................. 22
Table 1-7: Open Pit Design Summary .................................................................................................. 23
Table 1-8: Open Pit Production Schedule Summary ............................................................................ 25
Table 1-9: Equipment List ..................................................................................................................... 25
Table 1-10: Stope Optimization Geometric Parameters ....................................................................... 26
Table 1-11: Underground Production Schedule Summary ................................................................... 27
Table 1-12: Equipment List ................................................................................................................... 27
Table 1-13: Main Testwork Programs ................................................................................................... 28
Table 1-14: Process Area Description .................................................................................................. 31
Table 1-15: Limn® Model TiO2 Results Comparison for Bulk Programs ............................................. 32
Table 1-16: Limn® Model Garnet Results Comparison for Program 1365 ............................................ 32
Table 1-17: Head Count ........................................................................................................................ 51
Table 1-18: Preliminary Project Schedule ............................................................................................. 52
Table 1-19: Capital Cost Estimate ........................................................................................................ 53
Table 1-20: Operating Cost Summary .................................................................................................. 53
Table 2-1: Key Project Contributors ...................................................................................................... 56
Table 2-2: Abbreviations ....................................................................................................................... 58
2.2 List of Figures

Figure 1-1: LOM Schedule ...................................................................................................................... 2
Figure 1-2: Project Schedule................................................................................................................... 3
Figure 1-3: Unlevered Free Cash Flow ................................................................................................... 6
Figure 1-4: Industry weighted average R/C ratio .................................................................................... 7
Figure 1-5: Project NPV Sensitivity (Post-Tax) ....................................................................................... 7
Figure 1-6: Project IRR Sensitivity (Post-Tax) ........................................................................................ 8
Figure 1-7: Project Site and Infrastructure in the Sunnfjord Region ....................................................... 9
Figure 1-8: Extraction Permits and Area for the Operational License .................................................. 11
Figure 1-9: Zoning Plan Area ................................................................................................................ 12
Figure 1-10: In-situ Rutile Grades for Current Producers and Planned Projects .................................. 14
Figure 1-11: Heavy Metal and Radionuclide Content ........................................................................... 14
Figure 1-12: Geology of the Engebø Deposit ....................................................................................... 15
Figure 1-13: Drill Hole Positions in Drilling Campaigns ........................................................................ 16
Figure 1-14: Slope Domains in Open Pit .............................................................................................. 23
Figure 1-15: Design for Pushback 1 ..................................................................................................... 24
Figure 1-16: Design for Pushback 2 ..................................................................................................... 24
Figure 1-17: Side Cut of Open Pit with PB1 (dark grey) and PB2 (light grey) ...................................... 24
Figure 1-18: Open Pit and Underground Mining 3D Model – North-East ............................................. 26
Figure 1-19: Open Pit and Underground Mining 3D Model – South-West ........................................... 27
Figure 1-20: Simplified Diagram of the Optimized Flowsheet ............................................................... 30
Figure 1-21: Process Plant Layout ........................................................................................................ 34
Figure 1-22: Project Layout ................................................................................................................... 35
Figure 1-23: Global Chloride Feedstock Demand 2014 – 2029 ........................................................... 45
Figure 1-24: Global Rutile Supply 2014 - 2029 ..................................................................................... 45
Figure 1-25: Nominal Rutile Price Forecast .......................................................................................... 46
Figure 1-26: Cross border trade prices for rutile ................................................................................... 46
Figure 1-27: Garnet Demand Forecast by Application ......................................................................... 47
Figure 1-28: Garnet Supply/Demand Outlook....................................................................................... 48
Figure 1-29: Historic Import Prices (CIF) for Garnet ............................................................................. 48
Figure 1-30: Project Organization ......................................................................................................... 50
Page 55
2.3 Contributors
The UDFS has been prepared through collaboration between a number of recognized
contributors representing a broad range of expertise. The key Project contributors are
summarized in Table 2-1.
Table 2-1: Key Project Contributors
Company/Person Primary Source of Services
• Main Technical Consultant

• Mineral Comminution and Processing
• Project Infrastructure and General Infrastructure
Hatch
Johannesburg, South
• Engineering Design Update Coordination with EPC Contractors
Africa • Technical Support for Procurement
• Capital and Process Operating Cost Estimates
• Human Resources and Operational Readiness
• UDFS Coordination, Report Write-Up and Quality Assurance
Adam Wheeler
Independent Mining
• Competent Person for Mineral Resource Estimations in
Accordance with the Guidelines of the JORC Code
Consultant
Cornwall, United Kingdom • Mineral Resource Statement
• Mine Design and Scheduling
Axe Valley Mining
• Mine – Techno-Economical Modelling including Operating Cost
Estimate
Consultants Ltd
Swanage, United Kingdom • Competent Person for Ore Reserve Estimations in accordance
with the guidelines of the JORC Code
• Ore Reserve Statement
IHC Robbins • Metallurgical Testwork Programs and Results
Brisbane, Australia • Flowsheet Development and Advisory
Light Deep Earth
Pretoria, South Africa • Metallurgical Testwork Programs and Results
SGS in Perth, Australia • Comminution testwork and results
Core Group
Brisbane, Australia • Flotation Testwork
COWI
Fredrikstad, Norway • Tailings Disposal Design and Engineering
• Regulatory Works
Asplan Viak
Bærum & Leikanger,
• Infrastructure Design
Norway • Infrastructural Geotechnical investigations
• Waste Rock Deposit and Rehabilitation
DNV • Environmental Assessments
Bærum, Norway • Environmental Monitoring Program
• Mining Geotechnical (Open Pit Mine Design)
SRK
Cardiff, United Kingdom • Hydrogeology
• ESG Evaluations
SINTEF
Trondheim, Norway • Tailings Management Modelling
TZMI • Rutile Market Information
Perth, Australia • Garnet Market Information
TAK Industrial Mineral
Consultancy
Gerrards Cross, United • Garnet Market Information
Kingdom
Page 56
Company/Person Primary Source of Services

Mintek in Johannesburg, • Comminution testwork and results
South Africa
JKTech in Brisbane, • Metallurgical testwork programmes and results
Australia
SGS in Johannesburg, • Comminution testwork and results
South Africa
IMS in Johannesburg, • Metallurgical testwork programmes and results
South Africa
Nippon Elriech in Perth, • Verti-mill Piloting Testwork
Australia
Page 57
2.4 Abbreviations
The abbreviations used in the UDFS are listed in Table 2-2.
Table 2-2: Abbreviations
Abbreviation Unit or Term
3D three-dimensional
AACE(I) American Association of Cost Engineers (International)”
amsl above mean sea level
°C degrees Centigrade
Ca calcium
CAGR Compound Annual Growth rate
CAPEX Capital Expenditure
cm centimetre
CP Competent Person
CPM Critical Path (Scheduling) method
DFS Definitive Feasibility Study
° degree (degrees)
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
EEA European Economic Area
EIA Environmental Impact Assessment
ESG Environmental and Social Governance
ESIA Environmental and Social Impact Assessment
ESMS Environmental and Social Management System
FEED Front-End Engineering and Design
FCF Free Cash Flow
FEL Front End Loader
FOB Free on Board
G Gram
g/cm3 grams per cubic centimetre
GSI Geological Strength Index
g/t gram per tonne
Ha hectare
HCl hydrochloric acid
HOA Heads of Agreement
ICP-MS Inductively coupled plasma mass spectrometry
IFC International Finance Corporation
IFRS International Financial Reporting Standards
Page 58

IRR Internal Rate of Return
JORC (Australasian) Joint Ore Reserves Committee
kg kilograms
kg/m3 kilogram per cubic metre
km kilometre
km2 square kilometre
kV kiloVolt
kW kiloWatt
LOM Life of Mine
LPG Liquid Petroleum Gas
m metre
m/s metre per second
m2 square metre
m3 cubic metre
m3/s cubic metre per second
masl metre above sea level
mm millimetre
Mn Manganese
Mt Million tonnes
Mtpa Million tonnes per annum
MW Million Watts
NGU Geological Survey of Norway
NOK Norwegian Krone
NPV Net Present Value
NSR Net Smelter Return
NTNU Norwegian University of Science and Technology
OPEX Operating Expenditure
% percent
P&ID Piping and Instrumentation Diagram
PEP project execution plan
PFD Process Flow Diagram
PFS Prefeasibility Study
PSD particle size distribution
QA/QC Quality Assurance/Quality Control
QEMSCAN Quantitative Evaluation of Materials by Scanning
Page 59

QRA Quantitative Risk Assessment
QXRD Quantitative X-ray Diffraction
RED Rare Earth Drum
RER Rare Earth Roll
REACH Regulations for use of chemicals
ROM Run of Mine
S second
SEP Stakeholder Engagement Plan
SG Specific Gravity
SPMT Self-Propelled Mobile Transporter
STD Submarine Tailings Deposit
t tonne (metric tonne) (2,204.6 pounds)
TiO2 titanium dioxide
Tpa tonnes per annum
tph tonnes per hour
tpd tonnes per day
t/m3 tonnes per cubic metre
µm micron or microns
UDFS Updated Definitive Feasibility Study
USD U.S. Dollar
V Volts
W Watt
WACC Weighted Average Cost of Capital
WBS Work Breakdown Structure
WFD Water Framework Directive (WFD)
WHIMS Wet High Intensity Magnetic Separator
XRF X-ray Fluorescence
y Year
Page 60

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Engebø Rutile and Garnet Executive Summary

Updated Definitive Feasibility Study 11 May 2021

Engebø Rutile and Garnet

Updated Definitive Feasibility Study

2. Additional Information .................................................................................................... 55

2.1 List of Tables ............................................................................................................ 55

• Rutile is a high-grade titanium feedstock, primarily used in the production of titanium

The main improvements and risk-reducing measures in the UDFS are:

• Reduced environmental footprint; 99% reduction in consumption of approved

• Stick-build construction methodology and improved ore flow logistics

• Attractive project economics with considerable reductions in market, financing and

Figure 1-1: LOM Schedule

A preliminary timeline for financing, construction, commissioning and ramp-up of

Figure 1-2: Project Schedule

1.2.2 Key Project Characteristics

• Low Environmental Footprint

Compact Project layout and infrastructure, minimal internal transportation, mineral

• Low-Cost Mining Operation

• Long Project Lifetime

Testwork programs have been successful in producing a commercial rutile product

1.2.3 Project Economics

The DCF-valuation shows high-margin annual EBITDA of around USD 54 million,

Table 1-1: Key Production and Financial Summary

Description Unit Value

Pre-tax NPV @ 8.0% USD million 354.6

1 Average first 10 years

Description Unit Value

Figure 1-3: Unlevered Free Cash Flow

Figure 1-4: Industry weighted average R/C ratio

Figure 1-5: Project NPV Sensitivity (Post-Tax)

Figure 1-6: Project IRR Sensitivity (Post-Tax)

1.2.4 ESG Focus Areas

1.2.5 Upside Opportunities

• Increasing ROM within existing regulatory framework

• Production and sales of speciality rutile products

• Production and sales of aggregates and ballasting products to infrastructure projects.

1.3 Project Description, Permits and Licenses

Figure 1-7: Project Site and Infrastructure in the Sunnfjord Region

The property on which the Project is located consist of two areas:

• The processing plant area including the existing deep-water quay

• The mining, service and rock storage area.

1.3.2 Prior and Current Ownership

1.3.3 Mineral Tenures, Permits and Licenses

1.3.3.1 Key Permits Overview

Detailed Zoning Plan Naustdal Municipality Approved, 2019 Final

King in Council Approved, 2016

1.3.3.2 Zoning Plan

Figure 1-9: Zoning Plan Area

• Open pit and underground mining

• Mining service area

• Waste rock deposition

• Access road between mining area and process plant

• Underground infrastructure for ore transportation and primary crushing

• Seabed Tailings Deposit (STD).

1.3.3.3 Environmental Permit

An environmental monitoring program has been developed in collaboration with DNV.

• Monitoring of juvenile salmon (starts spring 2021)

• Monitoring of effects on Fjord biodiversity

• Monitoring of spawning ground for cod

• Measurements of particle concentrations and accumulation for STD