DOTZ NANO LIMITED — Annual Report 2011

Mar 8, 2012

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NORTHERN IRON LIMITED (ASX: “NFE”)

Annual Financial Results

Northern Iron Limited (NFE) is pleased to announce its annual financial results for the year ending 31[st] December 2011.

Highlights for 2011

• Revenue of US$193.8 million, an 89% increase from US$102.4 million for the prior year

• Sales of 1,509,000 dry metric tonnes of concentrate at an average realised FOB price of US$129/dmt, a price increase of 79% year-on-year

• Operating profit before interest and tax of US$9.9 million, compared to a prior year loss of US$46.9 million

• Consolidated profit net of tax from continuing operations rose to US$2.9 million from a loss of US$30.4 million in the prior year

• Refinanced debt by way of a longer term US$30 million facility and a US$25 million working capital facility with DNB Bank as well as successfully concluding a US$21 million equity issue to put the Company on a sound financial footing

• Installation of additional equipment in the Kirkenes concentrator that delivered improved product sizing and higher production rates, resulting in record production achieved in quarter 4 of 2011. Production performance has continued to improve during 2012 with actual concentrate production of 327kt during the January to February period (2.0 Mtpa rate).

Discussion of Financial Result

The operating profit before interest and tax was US$9.9 million, incorporating US$193.8 million of sales revenue, US$180.1 million of operational expenses and administration costs inclusive of depreciation and amortisation, US$3.0m of foreign exchange losses, and US$0.8 million of expenses incurred associated with share based payments.

After including US$7.8 million of net finance expenses and an income tax benefit of US$0.7 million, NFE’s net profit after tax for the year was US$2.9 million (compared of a loss of US$30.4 million in 2010).

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Annual Financial Results

2

Table 1 provides a summary of the full year results for 2011 including key physical drivers and financial results as compared to prior year.

		Year ended	Year ended	%
Physical drivers		31-Dec-11	31-Dec-10	change
Total Mined	Kt	12,444	11,789	6%	
Ore Milled	Kt	3,741	3,260	15%	
Concentrate produced	dry Kt	1,458	1,438	1%	
Concentrate sales	dry Kt	1,509	1,436	5%	
Financial results
Average FOB sales price	US$/dmt	129	72	79%	
Sales revenue	US$m	193.8	102.4	89%	
Direct operating costs	US$m	(150.3)	(124.2)	21%	
Administrative expenses	US$m	(6.3)	(7.3)	14%	
EBITDA1	US$m	37.2	(29.1)	228%	
Depreciation and amortisation	US$m	(23.5)	(19.8)	19%	
Foreign exchange and other costs	US$m	(3.8)	2.0	290%	
Operating profit/(loss) before interest & tax	US$m	9.9	(46.9)	121%	
Net finance expenses	US$m	(7.7)	(9.4)	18%	
Tax benefit	US$m	0.7	25.9	97%	
Netprofit/(loss) after tax	**US$m **	2.9	(30.4)	110%	

1: This is a non-IFRS measure that, in the opinion of the Northern Iron directors, is useful for investors to assist them with their understanding and assessment of the Company’s underlying performance.

Table 1

NFE has amended its presentation currency from A$ to US$ and amounts in the attached directors report and the annual financial report, including comparative information are in US$ unless otherwise indicated.

For and on behalf of the Board

John Sanderson Managing Director / CEO

For enquiries please contact:

John Sanderson Managing Director / CEO Ph: +47 9240 1251 John.Sanderson@northerniron.com.au

Tony Beckmand Chief Financial Officer Ph: +61 447 453 000 Antony.Beckmand@northerniron.com.au

Northern Iron Limited Level 3, 3 Ord Street West Perth WA 6005 Phone: +61 8 9321 9334 Fax: +61 8 9321 9335 www.northerniron.com.au

ABN: 71 125 264 575