DOTZ NANO LIMITED — Capital/Financing Update 2013

May 21, 2013

ASX ANNOUNCEMENT 22 May 2013

Update on Primary Mill at Sydvaranger

Northern Iron Limited wishes to provide an update on recent developments regarding the performance of the primary mill at the Sydvaranger Project.

Following recent maintenance work designed to repair a manufacturing fault the mill has experienced a radial bearing failure that has resulted in unplanned downtime. This event is expected to have a material impact on concentrate production for the quarter.

The Sydvaranger project experienced a 4 week unplanned outage of its primary mill in the September quarter of 2011. After investigation by external experts, it was determined that the primary mill was operating outside of its design tolerances and it was assessed this was likely due to a manufacturing fault.

The Company has been planning rectification work with the supplier of the mill for the last 18 months, and a 3 day planned shut to permanently repair the manufacturing defect was executed between the 13th and 16th of May 2013, supervised and under the control of the original equipment manufacturer (OEM). The mill was successfully restarted on Thursday the 16th May and swiftly returned to normal production rates, however on Monday morning ( European time) the mill experienced a radial bearing failure which is expected to take approximately 2 weeks to repair. The repair duration is being determined by the need to manufacture replacement parts.

The Company is presently working with representatives of the OEM to identify and fix the root cause of the failure and bring the mill back in to operation as soon as possible. Once the impact has been fully quantified the Company will provide updated guidance for the June quarter, which is expected to be materially lower than the 550kt advised at the AGM on the 15th May.

Northern Iron Limited Ph : +61 8 9321 9334 Level 3, 3 Ord Street Fax : +61 8 9321 9335 West Perth, WA 6005 www.northerniron.com.au Australia ABN: 71 125 264 575

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