DOTZ NANO LIMITED — Capital/Financing Update 2011

Jul 3, 2011

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**NORTHERN

IRON LIMITED (ASX:“NFE” “Company”) Long-­‐term Offtake Contract Signed with Tata Steel UK Limited**

Northern Iron Limited is pleased to announce its wholly owned Norwegian subsidiary, Sydvaranger Gruve AS, has signed a long-­‐term offtake contract with Tata Steel UK Limited for the supply of iron ore concentrate from its mining operation in northern Norway. This new five-­‐year agreement, effective from 1 April, 2011, supersedes the original supply contract between the two parties signed in 2008.

Under the terms of the new agreement:

• Sydvaranger will supply a minimum of 2.5 million tonnes in the five-­‐year contract period, with a potential to extend this to approximately 5.5 million tonnes if quality improvements are achieved.

• Tata Steel is also able to declare annually an additional buyer’s tonnage option of 0.5 mt per annum.

• New specifications for concentrates have been agreed.

• There are pricing incentives for Sydvaranger to further improve quality.

The pricing mechanism is in line with the prevailing market mechanism for iron ore fines in the Atlantic basin, and the FOB price will reflect the proximity of Sydvaranger to Tata Steel in Europe and the quality in terms of higher silica.

In conjunction with entering into a new agreement, Sydvaranger has signed a termination agreement with Tata Steel UK Limited for the contract entered into in 2008. In exchange for the termination Tata Steel will receive US$15 million, expected to be settled by means of a rebate applied to Tata shipments over the term of the new agreement. The rebate will be calculated as a discount of between US$5 -­‐ US$12 per tonne (depending on the prevailing price for Sydvaranger concentrate at the time of shipment), subject to which Tata Steel has released Sydvaranger from any claims in relation to its concentrate not achieving the . required quality in the first 18 months of the original contract

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Long Term Offtake Contract Signed with TATA Steel UK

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Commenting on the signing of this new agreement, Managing Director of NFE John Sanderson stated: “Northern Iron is delighted to have secured this new offtake agreement with Tata Steel UK Limited, a customer located only five sailing days from our operations in Norway. We are very grateful for the patience that Tata Steel has demonstrated over the last 18 months as the team at Sydvaranger has worked to improve product quality, with the values demonstrated reaffirming our view of Tata Steel as a reliable, long-­‐term offtake partner for our project. Having successfully completed a number of test shipments to Tata already, we are optimistic that further quality improvements are achievable over the next 12-­‐18 months which are expected to result in an increase in both volume sold to Tata Steel and the price realized.”

For and on behalf of the Board.

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2 John Sanderson Managing Director / CEO

This report contains some references to forward looking assumptions, estimates and outcomes. These are uncertain by nature and no assurance can be given by Northern Iron Limited that its expectations, estimates and forecast outcomes will be achieved.

For enquiries please contact:

John Sanderson Tony Beckmand Managing Director / CEO Chief Financial Officer Ph: +47 9240 1251 Ph: +61 447 453 000 John.Sanderson@northerniron.com.au Antony.Beckmand@northerniron.com.au

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