The Karas Property

The Karas Property is comprised of 15 unpatented contiguous mining claims covering a total of 3,200 hectares in Karas Lake Township, Red Lake mining division, district of Kenora, Ontario.

The property is host to tightly folded iron formation of the Algoma-type (magnetite rich oxide facies (taconite) iron formation) with minor iron-bearing silicates and iron-lean sections, that plunges steeply towards the northwest.

Northern Iron Corp completed a 51 hole, 20,401m-drill program targeted at the Karas South magnetic occurrence. Drill hole locations were based on the ground magnetic survey conducted in 2010, and aimed to satisfy the National Instrument 43-101 mineral resource calculation (Figure 1). Drilling was completed by CoreTech Diamond Drilling, based out of Penticton, BC from May 17, 2011 to November 15, 2012. Core was delivered at SGS preparation facility in Red Lake, and later assayed at SGS Lakefield, Ontario.

Highlights of the drill program include 443.15 metres of 32.43% Fe2O3 on Hole KA-11-18 including 77.6 Metres of 43.21% Fe2O3. Other intersections are 354.97 metres of 31.13% Fe2O3 on Hole KA-11-14, and 71 metres at 40.00 % Fe2O3 on Hole KA-11-13.

The Karas Property is situated approximately 20 km northeast of the town of Ear Falls, Ontario. It can be accessed by an all weather gravel road (South Bay road), that connects with Highway 105 in Ear Falls. A power line mimics the road's location in the vicinity of the claims comprising the Karas Property. Excellent access to other parts of the property is also provided by an extensive network of secondary gravel roads branching off the South Bay Road

Drill hole collar locations were located and aligned using an Azimuth Pointing System (APS) Global Positioning System (D-GPS). After the holes were drilled, all holes were surveyed using a Reflex Maxibor II down- hole survey tool, which provides accurate results in magnetic areas. Fifty of the fifty-one holes were drill at roughly 160o from north, and one hole was drilled at 270o from north (Table 1).  The holes ranged in dip from 43o to 63o from horizontal and were drilled to between 150m and 770m from the surface.

Property Description and Ownership

The table below provides details of the current land holdings.

The registered owner of the claims listed in the MNDM claims database is Northern Iron. To maintain a claim in good standing, approved exploration work of a certain required dollar value must be completed and filed with the MNDM by the applicable due date. As prescribed by the Mining Act (Ontario) and regulations made thereto, work to a value of $400 per year is required per claim unit except for the first year, when no assessment work is required. Assessment work must be performed and applied to each of the mining claims until the holder applies for a mining lease.