JORC EQUIVALENT RESERVE ESTIMATE STATEMENT (BEHRE …

1 A Member of the Behre Dolbear Group Inc. 2009, Behre Dolbear International Ltd. All Rights Reserved. NMDC LTD jorc EQUIVALENT RESERVE ESTIMATE STATEMENT (BEHRE DOLBEAR PROJECT NUMBER J10-012) 21 January 2010 PREPARED BY: BEHRE DOLBEAR INTERNATIONAL LIMITED, Hydra House, 26 North Street, Ashford, Kent, TN24 8JR, United Kingdom jorc EQUIVALENT RESERVE ESTIMATE STATEMENT January 2010 Project No. J10-012 i BEHRE DOLBEAR CONTENTS Page no. INTRODUCTION 1 SCOPE OF WORK 1 TENEMENTS GRANTED TO NMDC 1 IRON ORE TENEMENTS IN BAILADILA REGION OF CHHATTISGARH 1 IRON ORE TENEMENTS IN BELLAR-HOSPET SECTOR OF KARNATAKA 2 DIAMONDS TENEMENT AT PANNA IN MADHYA PRADESH 2 MAGNESITE ORE TENEMENT AT PANTHAL IN JAMMU & KASHMIR 2 LIMESTONE TENEMENT AT ARKI IN HIMACHALPRADESH 2 IRON ORE TENEMENTS OF NMDC 2 IRON ORE TENEMENTS GRANTED IN CHHATTISGARH (Table 1- a to f)

2 2 IRON ORE TENEMENTS GRANTED IN KARNATAKA (Table 2- a to b) 5 DIAMONDS TENEMENT AT PANNA IN MADHYA PRADESH 6 MAGNESITE ORE TENEMENT AT PANTHAL IN JAMMU & KASHMIR 7 LIMESTONE TENEMENT AT ARKI IN HIMACHAL PRADESH 8 BENCH MARK APPLIED 9 DISCLAIMER 9 10. COMPETENT PERSON'S CONSENT FORM 10 jorc EQUIVALENT RESERVE ESTIMATE STATEMENT January 2010 Project No. J10-012 ii BEHRE DOLBEAR LIST OF TABLES Page no. TABLE-1: IRON ORE TENEMENTS IN CHHATTISGARH 1 TABLE-2: IRON ORE TENEMENTS IN KARNATAKA 2 TABLE-3: SUMMARY OF DRILLING IN CHHATTISGARH GROUP 3 TABLE-4: jorc EQUIVALNET RESERVE STATEMENT - CHHATTISGARH 4 TABLE-4a: STATEMENT ON EXPLORATION RESULTS- CHHATTISGARH 4 TABLE-5: SUMMARY OF DRILLING IN KARNATAKA GROUP 5 TABLE-6: jorc EQUIVALNET RESERVE STATEMENT - KARNATAKA 6 TABLE-7: PROJECT-WISE IRON ORE PRODUCTION VS PLANNED FOR 2008-09 6 TABLE-8: jorc EQUIVALNET RESERVE STATEMENT - PANNA DIAMOND 7 TABLE-9: jorc EQUIVALNET RESERVE STATEMENT - PANTHAL MAGNESITE 8 TABLE-10: jorc EQUIVALNET RESERVE STATEMENT - ARKI LIMESTONE 8 TABLE-11: SUMMARY OF ORE RESERVE AND MINERAL RESOURCE STATEMENT AS ON 01-04-2009.

3 ALL TENEMENTS OF NMDC 8 FIGURES (Refer Annexure) : LOCATION MAP OF NMDC TENEMENTS 1 : LOCATION MAP OF IRON ORE DEPOSITS OF BAILADILA 1 : LOCATION MAP OF IRON ORE TENEMENTS IN CHHATTISGARH 1 : LOCATION MAP OF IRON ORE TENEMENTS IN KARNATAKA 2 ANNEXURE 1. LIST OF DOCUMENTS PROVIDED BY NMDC FOR jorc CODIFICATION 1 2. jorc CODE: A SUMMARY 1 jorc EQUIVALENT RESERVE ESTIMATE STATEMENT January 2010 Project No. J10-012 1 BEHRE DOLBEAR INTRODUCTION NMDC Ltd is a public limited company incorporated under the Ministry of Steel, Government of India in the year 1958 with the mandate to explore and develop minerals to produce raw materials for the industry.

4 It has grown to the status of the single largest producer of iron ore products in India with supplies to both domestic and overseas customers. The company has plans to step up its iron ore production to 50 million tonnes by the year 2015 from the million tonnes produced in the year 2008-09, through development of new mines and expanding production capacity of the existing mines. It also has plans to expand its business through horizontal integration in the fields of coal, rock phosphate, limestone, gold and diamond. It is equipped with a drilling division to take up strategic exploration in iron ore rich states of India, at no cost to the state governments, while concentrating on establishing additional resources through exploration in the existing tenements.

5 It has developed a sophisticated Research & Development Centre at Hyderabad to carry out technology development missions in mineral processing, flow sheet development, mineralogical studies and product development. The operating tenements of NMDC that are considered for this report are shown in (refer page ). SCOPE OF WORK The scope of this work includes preparation of the jorc Compliant Ore RESERVE / Mineral Resource STATEMENT (by reclassification based on desk top reviewing of the United Nations Framework Classification (UNFC) Codified Reserves/ Resources in conjunction with the supportive documents provided by the NMDC; and discussion held with the concerned personnel. The list of documents provided by the NMDC for this desk top review are given in Annexure-1.)

6 In all, there are 11 tenements to be considered for this purpose and they are geographically distributed in five administrative States of India. Six iron ore tenements (Bailadila group) are located in the state of Chhattisgarh and two (Bellary-Hospet group) in the state of Karnataka; one diamonds tenement (Panna) in the state of Madhya Pradesh; one magnesite tenement in the state of Jammu and one limestone tenement in the state of Himachal Pradesh. A summary of jorc Code is given in Annexure 2. TENEMENTS GRANTED TO NMDC The salient points related to these 11 tenements are briefly summarized below: Iron ore tenements and deposits in Bailadila region of Chhattisgarh state (refer (page no. 18) & fig 3 (page )) The Mining Lease (ML) area granted & the validity period in the SIX iron ore tenements of Bailadila region are given in Table 1.

7 jorc EQUIVALENT RESERVE ESTIMATE STATEMENT January 2010 Project No. J10-012 2 BEHRE DOLBEAR Table 1 Tenement Area ML validity period a Deposit 5 ha valid till 11-09-2015 b Deposit 10 ha valid till 10-09-2015 c Deposit 11 ha valid till 12-09-2017 d Deposit 13 ha Received govt. approval but ML execution awaited e Deposit 14 ha valid till 11-09-2015 f Deposit 14 NMZ ha valid till 06-12-2015 Iron ore tenements in Bellary-Hospet sector of Karnataka state (refer (page )) The ML area granted & the validity period for the TWO iron ore tenements of Bellary-Hospet region are given in Table 2. Table 2 Tenement Area ML validity period a Donimalai ha valid till 03-11-2028 b Kumaraswamy ha valid till 17-10-2022 Diamonds tenement at Panna in Madhya Pradesh a.

8 Panna ha Valid till 14-07-2005 Magnesite ore tenement at Panthal in Jammu & Kashmir a. Panthal ha Valid till 01-01-2009 Limestone tenement at Arki in Himachal Pradesh a. Arki ha Valid till 06-08-2011 IRON ORE TENEMENTS OF NMDC Iron ore tenements in Chhattisgarh (Table1-a to f) The six iron ore tenements from the state of Chhattisgarh are located in the Bailadila hills Range. Tenement 11 consists of three Deposits viz. 11A, 11B & 11C (part). Major part of Deposit 11 is named as Deposit 14 NMZ. For the purpose of simplicity of administration and optimal utilization of infrastructure & ore processing facilities, Deposits 10, part of 11 (11A) and 5 are jorc EQUIVALENT RESERVE ESTIMATE STATEMENT January 2010 Project No.

9 J10-012 3 BEHRE DOLBEAR grouped under Bacheli Complex; and Deposits 11 (11B, 11C) and 14 are grouped under Kirandul Complex. These iron deposits form part of Bailadila hills Range trending North-South with two sub-parallel ridges. Deposits 10, 11, 14 and 14 NMZ fall in the Eastern ridge where as Deposit 5 is located in the Western ridge. These two ridges merge and coalesce into one ridge in the North, far beyond Deposit 11 and widens towards South with the maximum width between Deposits 11 and 5. Mining operations have been in progress in five of the six tenements, where as in the sixth tenement (Deposit 13), which would be developed under JV Company NMDC-CMDC Ltd, the lease grant execution is in progress. The Bailadila iron ore series consists of feebly metamorphosed iron ore bearing sedimentary rocks of Precambrian age.

10 The iron ore occurs as separate ore bodies on the crest of the high rising two sub-parallel ridges comprising of shale, Banded Hematite Quartzite (BHQ) and conglomerates containing pebbles of shale and quartzite. The concentration of iron ore took place by the processing of leaching and supergene enrichment of BHQ. The iron ore occurs in several physical forms viz. hard ore, flaky friable ore, soft ore, laterite and blue dust; with widely ranging chemical properties. The iron ore bodies exhibit flat to low dips leading to their exploration by vertical drill holes. NMDC developed its in-house drilling capabilities and the deposits were being explored in detail, by both wet and dry drilling of NX & BX core size, with 50m to 100m/ 125m drill grids. The summary of exploratory drilling (number of boreholes and drilling metreage) carried out in the six tenements is given in Table 3.