DOTZ NANO LIMITED — Management Reports 2014

May 28, 2014

NORTHERN IRON LIMITED

ABN 71 125 264 575 Level 1, 44 Ord Street, West Perth WA 6005

Tel: +61 (0) 8 9321 9334 Fax: +61 (0) 8 9321 9334

www.northerniron.com.au

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Dear Fellow Shareholders,

Concentrate production in 2013 was approximately 2 million tonnes which was consistent with the prior year. However it is very significant to note that the performance of the operation in the second half of the year and into the first half of the current year, 2014, demonstrates a consistently improving production profile. A new quarterly concentrate production record of 553kt was set in the March quarter, 2014, (which included an extensive planned shutdown for a mill refine) and is the third consecutive quarter in which a production record has been set. These improvements have been achieved without sacrificing product quality with the premium grade of 68% Fe with low impurities consistently maintained.

The successive increases in production since the middle of 2013 is underpinned by reliability improvements gained from the implementation of better maintenance and operating practices and alignment of business units. The 2014 year-­‐to-­‐date annualised concentrate production rate of approximately 2.3Mt validates the Company’s belief in further improvements are achievable.

Sydvaranger’s premium quality iron ore concentrate continued to attract the attention of a diverse customer base during 2013 as well as during the current year. Our concentrate which is valued for its chemistry is successfully utilised in various European sintering plants as well as pelletising plants in Europe and the Middle East. The strategy of focusing our sales to nearby markets has assisted in reducing freight costs and maximizing the FOB price. The sales mix to these markets to derive the highest possible return is a matter of ongoing optimisation.

Despite significant operational and financial improvements during the last 9 months, the recent drop in the iron ore price to below US$100/t and the uncertain outlook if sustained is likely to place pressure on our financial performance. As a matter of prudence, the Company is investigating various options to maintain a financial safety net whilst further operational and cost improvements are being delivered over the next one to two years.

Safety performance improved year-­‐on-­‐year with 9 Lost Time Injuries sustained versus 16 in 2012 and a reduction in the Total Reportable Injury Frequency Rate from 41 to 15, a 63% improvement. Whilst we are pleased with the improving trend, a continued and unrelenting focus on safety remains our priority. Good safety performance is a critical enabler of improving our operational reliability and in turn assists in meeting our business targets. Significant time and resources are directed toward investigating the root causes of safety incidents in order to identify gaps in training and risk awareness. Continuing with the strategies and efforts required to demonstrate further improvement requires our continued commitment and focus during the year ahead.

NORTHERN IRON LIMITED ABN 71 125 264 575 Level 1, 44 Ord Street, West Perth WA 6005

Tel: +61 (0) 8 9321 9334 Fax: +61 (0) 8 9321 9334

www.northerniron.com.au

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We are pleased with the continuing support from the local community of Sør-­‐Varanger which approved the scope of work for the environmental and social impact assessment (ESIA), a requirement for expanding production at the Sydvaranger operations beyond current permitted levels. Whilst the Company continues to progress the ESIA work with a view to expansion potential, significant efforts are also ongoing to systematically review step-­‐change opportunities to increase concentrate production to levels of approximately 2.8 Mtpa. Any commitment to more expensive phases of these studies or any significant further capital expenditure will be dependent upon the financial resources of the Company and the outlook for iron ore prices.

On behalf of the Board, I would like to thank our shareholders for their support, all of our employees for their commitment and contribution, the local Kirkenes community, our customers and other business partners for their continuing support as we strive to further improve the robustness of our high quality magnetite operation.