MINE LOCATION & AVAILABLE LOGISTICS

Hierro Norte’s operation is located in the Mutun geological area, located 26 km south of the
Bolivian town of Puerto Suárez, in the Santa Cruz Region. With 375 hectares of mine tittle
rights, the site is described as a “colluvial open pit mining operation”. The surface of the
geological deposit has an area of almost 60 km, with a tenth part located in Brazilian territory.

HIERRO NORTE MAP LOCATION

Across from this location is the Urucom Mine, largest Brazilian private mine located in the
Mato Grosso Region (Brazil) which is worked by Vale do Brazil.
 HIERRO NORTE MINE LOCATION MUTUN GEOLOGICAL REGION

The HIERRO NORTE MINE has access to 3 different River Ports, Puerto Jennifer, Puerto Aguirre
and Puerto Bush. All these ports are located within Bolivian territory adjacent to the Brazilian
border.
All ports are used for shipment of large volumes of different commodities with river barges
that are operated by Paraguayan and Argentinian shipping Companies. Each Barge can handle
up to 2,500 tons of mineral. Usually, the shipping companies will load between 16 and 20
barges and make convoy that would carry 40,000 – 50,000 tons of mineral, soybeans and
fertilizers.
Port Aguirre, Jennifer and Bush are a private riverports operations that specializes in the
export business for both Minerals and Grains. The port has weight scales in place to control
tonnage of delivered mineral, it has its own security surveillance team on site, they have
designated storage area for this type of commodities, plus they have the machinery to load
convoy barges of 2500 tons each at their berth. They have the capacity of loading 40,000 tons
in four days, so just to summarize it would probably take 4 days to dispatch 45,000 tons
through the Paraguay river.
 RIVER BARGES LOADED WITH IRON ORE

The Paraguay River is used by all mayor commodities exporters and traders from Bolivia and
Brazil (Matto Grosso Region) to get either their minerals or grains from Bolivia, Brazil and
Paraguay to reach the larger loading ports located at Rosario (Argentina) or (Nueva Palmira)
Uruguay, so that goods get reloaded to maxi cab vessels capable of sailing to the rest of the
world (Europe or China.) Usually, this traverse takes between 18 to 20 days to reach the
larger ports. (Argentina or Uruguay)
Currently, this export route is being used by the Brazilian Company J&B Minerals (they
recently acquired Vale’s operations from the Mato Grosso in (Brazil) which is located across
our mining operations on the Brazilian side. Our company could provide Incoterms FOB
Puerto Aguirre or Jennifer as they provide full services for storage and shipping for the
different commodities.
I am attaching a map for your reference. I hope this gives you a better perspective of our
location, but above all point out that the logistics and river services, are available for large
producers of minerals and grains in Bolivia.
 SHIPPING ROUTES FROM BOLIVIA TO URUGUAY AND/OR ARGENTINIAN PORTS

Our objective is to try to work together with CTC, to either sell our product EX WORKS AT MINE or FOB
at either of the described ports, we would arrange trucking of mineral to the ports warehouse, so it
gets stock up for post shipment at a later date as required by buyer in coordination with the river
barges companies and post delivered at the main ports either in Uruguay or Argentina for final loading
and set sail to its final destiny.

HIERRO NORTE OPERATION

HIERRO NORTE’S installed production can be adjusted to produce 30,000 tons monthly, we carry strict
sampling codes to ensure that production delivers the correct Iron Ore grade mineral required for our
clients for mill feeding and the cement companies that require the exact iron oxide grades for
processing.

HIERRO NORTE MINE rights account for 3,750,000 square meters, up to date only 100,000 square
meters have been explored, we can account for a preliminary 129,000,000 tons of prospective colluvial
mineral reverses of different grades.
 COLLUVIAL IRON ORE MINERAL

We currently produce both selected Lump Iron Ore mineral (40-10 mm size) and Iron Oxides Fines (10-
+0.02 mm size ).
Grades of the Iron ore Mineral range between 58% T0 66 %, depending on the different extraction
sites in the mine, HIERRO NORTE uses a blending technique to produce lump mineral with the
following grades:

CHEMICAL ANALYSIS

HIGH GRADE A (Fe) MEDIUM GRADE B (Fe)

Chemical Analysis

Fe % 65.62 62.35
SiO2 % 3.99 5.85
Al2O3 % 1.72 0.66
P % 0.10 0.08
S % 0.5 0.8
Moisture % 1 1

40 mm-9.25 mm 40 mm - 9.25 mm
Size distribution

CONCLUSION

Last year HIERRO NORTE began to service the largest cement companies within SANTA CRUZ –
BOLIVIA, by providing them Iron Ore Oxides with the right grade composition.

Unfortunately, due to Geopolitical conflicts (UKRAINE) that affected the oil prices, the cost of the
shipping freights did not allow our company to export the Lump materials to either Europe or Asia.

2023 brings an excellent opportunity to start shipping Iron Ore Lumps, as covid restrictions ease in
CHINA and Europe, and the oil price structure becomes less volatile, allowing for better shipment
freight rates allowing Hierro Norte export the iron ore minerals to other continents.

Our company is seeking for a buyer, that would be willing to partner on this venture to start exporting
our mineral as soon as possible, looking to build a solid relationship for the near future in benefit of
both parties.