Mary River Iron Ore Project - Deposit No. 2 and 3 Lease

This is the lease boundary for Deposit #2 and Deposit #3 if the mine goes ahead may be the second phase of mining. The Mary River desposits were discovered in 1962 by Murray Watts, who was head of Ungava British Explorations Ltd,Baffinland's predecessor. He flew over the site in a Cessna and discovered 4 massive iron ore deposits, which turned out to 65-70% pure. “You didn’t have to be a genius to discover this thing,” Gordon McCreary, Baffinland’s CEO from 2004 to 2010, was quoted as saying in 2006. “You fly over the top, you see all that black stuff and quite likely your compass would be spinning in circles.” After Watts died in 1982 he was inducted into the Mining Hall of Fame in 1989 for his many mineral discoveries in Nunavut, Quebec and Northwest Territories.

Deposit No. 2 and 3 combined have 0.4 Mt of Measured Resources, 52 Mt of Indicated Resources, and 448 Mt of Inferred Resources. Deposit 2 is on the north side of the ridge and deposit 3 is on the south side as the attached picture shows.