1 Evaluation of Mineral Reserves

2 Stages of the Evaluation of Mineral Reserves Evaluation of Mineral Reserves Resources Reserves Inferred Indicated Probable Measured Proven Source: CIM Definition Standards for Mineral Resources and Mineral Reserves (11/22/2005) Geological Knowledge and Confidence Modifying Factors (Considers legal, economic, social, and governamental factors, among others

3 Classification of Mineral Resources Mineral Resources: Demonstrated by the quantity and quality of a mineral asset located in a determined area. Resources can be classified as Inferred , Indicated or Measured, based on growing geological knowledge of the area in question (degree of exploration and recognition of the deposit): Inferred: portion of the resources whose geological continuity and quality are assumed. Sampling stations present ample spacing Indicated: portion of the resources whose geological continuity can be proven and quality is assumed Measured: portion of the resources whose geological continuity and quality can be proved Evaluation of Mineral Reserves

4 Classification of Mineral Reserves Mineral Reserves: That portion of the resources whose production is considered feasible from both the technical and economic point of view. This analysis does not consider several aspects including Legal (social, governmental, environmental), Production-related (extraction method, processing, metallurgy, pit optimization, transportation) and Economic (investments, costs and cash generation). Reserves can be classified as Probable or Proven: Proven: portion of measured resources that is economically feasible Probable: portion of indicated and/or measured resources that is economically feasible Evaluation of Mineral Reserves

5 Estimate of Inferred Mineral Resources Evaluation of Mineral Reserves Objectives: To estimate the volume of Inferred Mineral Resources in accordance with Canadian NI 43-101 standards Activities: Semi-detailed geological mapping Ground geophysics electrical drilling and borehole logging Rotary drilling campaign Detailed mapping Chemical / metallurgical tests

6 Estimate of Inferred Mineral Resources Evaluation of Mineral Reserves Drilling Geophysics Laboratories Engineering Market Fundao Gorceix

7 Exploration Results Mine located in the Urucum Massif, in the southeast portion of the Morraria Santa Cruz Evaluation of Mineral Reserves Geodynamic Configuration of the Basin Edge

8 Exploration Results Evaluation of Mineral Reserves Enriched surface zone: from 100 to 150 meters High average iron content: between 53% andd 58% Inferior zone: from 100 to 300 meters Average iron content: between 45% and 48%