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 2 IRON ORE TENEMENTS OF NMDC 2 IRON ORE TENEMENTS GRANTED IN CHHATTISGARH (Table 1- a to f) 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.

3 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.

4 jorc EQUIVALNET RESERVE STATEMENT - ARKI LIMESTONE 8 TABLE-11: SUMMARY OF ORE RESERVE AND MINERAL RESOURCE STATEMENT AS ON 01-04-2009 : 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.

5 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. 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.

6 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.

7 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.)

8 The list of documents provided by the NMDC for this desk top review are given in Annexure-1. 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.

9 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. 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.

10 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. Panna ha Valid till 14-07-2005 Magnesite ore tenement at Panthal in Jammu & Kashmir a.