Investor Presentation ‖ September 2018 ‖ IRON: TSX

Premium Quality

Disclaimer

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Special Note Regarding Forward-Looking InformationThis presentation contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated developments and eventsthat may occur in the future. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of mineral resources; (ii) the market,demand for, and future price of iron ore and related products; (iii) estimates of future steel production; (iv) estimation of railway capacity; (v) the negotiation, conclusion and potential terms of infrastructurecontracts; (vi) potential economic benefits of the Kami Project; (vii) future freight costs, (viii) the potential advantages of iron ore concentrate produced from the Kami Project and (ix) the results of the UpdatedPreliminary Economic Assessment (“PEA”) including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction timelines and productiontimelines for the Kami Project.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends","anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "beachieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained inthis presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral reserves and resources, the realization of resource estimates, iron ore and other metalprices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability ofnecessary financing and materials to continue to explore and develop the Kami Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatoryapprovals , the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considersthese assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits,including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Kami Property, risks relating to variations inmineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access rail transportation, sources of power and port facilities, risksrelating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related products, risks related to increased competition in the market for iron ore and related products and inthe mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operationalrisks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encounteredduring the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financingnecessary to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest,environmental risks, and the additional risks identified in the “Risk Factors” section of the Company’s Annual Information Form for the most recently completed financial year or other reports and filingsapplicable with Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of thispresentation. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

Additional InformationFor further information on the Kami Project please refer to the Technical Reports entitled “Update to the Re-Scoped Preliminary Economic Assessment of the Kamistiatusset (Kami) Iron Ore Property, Labrador”dated effective November 7, 2017 and “An Analysis of the Economic Impacts Associated with the Kami Iron Ore Project: A 8 Mtpa, 26 Year Project” effective November 25, 2017 (the “Reports”) that areavailable on SEDAR at www.sedar.com.

NI 43-101 Qualified PersonThe technical information presented in this presentation is from the Report. The Report was prepared under the supervision of Mr. Angelo Grandillo, P.Eng, of BBA, a Qualified Person as defined by NI 43-101,with contributions from Gemtec Limited and Watts, Griffis and McOuat (“WGM”). Mr. Grandillo is a Qualified Person as defined by NI 43-101 and Mr. Grandillo is independent of Alderon. Mr. Grandillo hasreviewed and approved the technical information contained in the Report, with the exception of the mineral resource estimate. Mr. Michael Kociumbas, P.Geo. with independent firm, Watts, Griffis andMcOuat Limited, is a Qualified Persons as defined by NI 43-101 and is responsible for reviewing and approving the mineral resource estimate and the QA/QC associated with the mineral resource estimate. Mr.Kociumbas is independent of Alderon.

Investment highlights

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Shovel-ready project with robust economics (USD)• $1.8 billion NPV8

• 25.7% IRR• C1 cost = $29.94 (FOB)• Capex = $999.4 million

Ideal location in Canada’s premier iron-ore district

with secured access to low-cost utilities

and transport

Market dynamics favour premium product

with high-iron content of 65.2% and ultra-low deleterious elements

Iron-ore market has improved with Chinese demand

for higher-grade product expected to remain strong

Projected premium product quality represents an exceptional value-in-use proposition for the steelmakers

Source: Alderon Iron Ore

Kami is a highly-differentiated project

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Underpinned by 1.1 billion tonnes at 29.6% iron of Measured & Indicated Resources

Partners Infrastructure Product Location

Labrador Trough

• Safe & stable

jurisdiction

• Long history

as a mining region

• Hydro-electric power

at competitive rates

• Access to skilled labor

Premium Iron Ore

• High-iron content

at 65.2%-Fe

• Low phosphorus

• Low alumina

• 100% of production

committed

Strategic Partnerships

• HBIS Group

• Altius Minerals

• Glencore

Ideally Located

• 14.5 km to

common-carrier

railway with +80Mtpa

capacity

• 15.5km to high

voltage grid – power

agreement signed

• Agreement in place to

ship year-round via

deep-water port

Source: Alderon Iron Ore

Measured and Indicated Resources of the Rose Deposit 1093.2 Tonnes (Million) 29.6% TFe

Total Inferred 522.6 Tonnes (Million) 29.5% Tfe

Premium product and strong market form the foundation of Kami Project’s launch

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• Kami offers a premium product relative to benchmark 62%-Fe grade with higher iron content and ultra-low impurities

• Chinese steel production remains robust; India positioned to drive next wave of steel intensity growth

• Iron-ore consumption expected to peak by mid to late next decade (CAGR=0.4%)

• Price spread will be sustained in the long term

Source: Accenture Strategy5

Source: Wood Mackenzie

Kami will provide a differentiated product to supply an evolving market

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• High-iron content with ultra-low impurities

• Increasing demand and price support underpinned by tougher environmental standards

• Shift towards bigger blast furnaces in China ➔ require higher quality ores

• Steelmakers turning to premium raw materials to bridge the productivity gap

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Source: Wood Mackenzie

Bifurcation of the market setting in

China’s drive for emissions reduction is leading to supply side reforms and shift to higher-quality raw materials 6

Superior quality concentrate relative to Australian and Brazilian sinter plant fines

Iron %*(Fe)

Phosphorus %*(P)

Aluminium oxide%*(Al2O3 ) Kami Concentrate

High-iron content

Magnetite content• Lowers fuel cost for sintering

Low phosphorus • Offers potential capital avoidance

– no dephosphorization stage• Reduces operating costs, improves

Basic Oxygen Furnace (BOF) efficiency (lower cycle time and heat loss)

Low alumina (Aluminium oxide)

• Improves blast furnace operation– Lowers slag (by-product) fluidity– Protects tuyeres

Source: Platts & Company Disclosures 7

Premium product allows end users to improve productivity, reduce costs and meet stringent environmental standards

Flight to quality has become a well-established theme in the iron ore market

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“Quality ore with 65% iron content gained every month, hitting $91/t on July 13, while the benchmark 62% ore is down 14%. The divergence has exploded the gap between the two.”

– Bloomberg, July 2018

“When profitability is really good, the marginal benefit from producing an additional tonne of steel is bigger, so mills try to push as hard as they can on productivity.”

– Macquarie Analyst, September 2017

“What China needs now and in the future will be more sophisticated ore, with higher iron and lower impurity content.”

– Beijing-based iron ore trader at Concord Fortune, July 2018

“Time was when iron ore was just another commodity.” – Mining Journal, August 2018

“The outperformance of higher grade iron ore does confirm that China’s steel mills have been using better quality ore to maximise output and lower emissions.”

– Reuters, August 2018

Our approach continues to unlock Kami’s potential

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Local Skilled Workforce

High-Grade Product, Low

Impurities

Guaranteed Access to Railway

Strategic PartnershipsEstablished

24-Year Life-of-Mine (LOM)

Year-round Access to Global Market

100% of Product Sold

Port + Power Agreements Concluded

Location in Labrador Trough provides low-cost access to utilities, transportation and skilled labour 9

Rio Tinto IOC

21 Mtpa

Quebec Iron Ore

7.4 Mtpa

ArcelorMittal

24 Mtpa

High-Grade Iron Ore Kami Project

Alderon Iron Ore Corp.

Labrador City

Town of Wabush

Strategic partnerships in place

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• HBIS Group (formerly Hebei Iron & Steel) is China’s second largest steelmaker and has invested a total of C$182.2 million to date & will purchase 60% of annual production − C$119.9 million in project equity for 25% interest in the Kami Project− C$62.3 million in corporate equity for 19.9% of Alderon common shares

• Altius Minerals holds 39% of the outstanding shares of Alderon− An exploration and project-generation company with a focus

on Newfoundland and Labrador− Hold multiple successful investments in the Labrador Trough

• Glencore will purchase 40% of annual production− One of the world’s largest global diversified natural resource companies

Partners will purchase 100% of annual production

Anglo–Swiss multinational commodity trading and mining company.

Newfoundland and Labrador, Canada-based diversified mining royalty company.

Chinese iron and steel manufacturing conglomerate.

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Access to infrastructure secured

• Concluded long-term agreement with Port of Sept-Îles in return for a C$20.46 million investment

• Multi-user berth in deep water up to 23 meters, suitable for large, cape-size vessels

• Loading capacity of 50 to 60Mt per year

• Power availability confirmed by Crown Utility

• Power Purchase Agreement concluded

• Life of mine contract for 65 mega-watts at very competitive rates

• Nearby common-carrier railway with over 80Mt per year capacity → guaranteed access

Source: Alderon Iron Ore 11The Port of Sept-Îles − One of North America's largest ore-handling ports.

Updated Preliminary Economic Assessment (PEA) highlights

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US$1.8 billion NPV8

25.7% IRR

• PEA updated in November 2017

• Capital and operating costs significantly reduced from 2012 bankable feasibility study

• US$999.4 million estimated initial capital cost

• Nationalization of port assets by Québec government −a significant enabler

Labrador City, Canada

A feasibility study refresh is underway

Source: Alderon Iron Ore

Robust economics*

Annual Production (65.2% Fe con) 7.8Mtpa

Initial CAPEX $999.4 million

Cash operating cost (FOB) $29.9/t

Capital Intensity ~$130/t

Average Annual Cash Flow +$300 million

Payback Period 3.7 years

Measured and Indicated Resources of the Rose Deposit 1

1,093.2Mt @ 29.6% TFe

Mine Life 24 years

*Pre-tax, USDNote 1: Only the measured and indicated mineral resources within the Rose Deposit, which consists of the Rose Central and the Rose North deposits, have been considered in the November 2017 PEA. Total Measured & Indicated Resources including Mills Lake is 1,274.5 Mt @ 29.8% TFe.

Updated PEA Results: November 2017

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Kamistiatusset High-Grade Iron Ore Property (the "Property" or "Kami")

Aug-18

Québec

Labrador

Rio Tinto IOC

21 Mtpa

Quebec Iron Ore

7.4 Mtpa

ArcelorMittal

24 MtpaAlderon Iron Ore Corp.

M&I 1.1 Bt @ 29.6%*

Inferred 522.6 Mt @ 29.5%

Labrador City

Town of Wabush

*Note:Measured & Indicated Resources including Mills Lake is 1.27 Bt @ 29.8% TFe. Only the measured and indicated mineral resources within the Rose Deposit, which consists of the Rose

Central and the Rose North deposits, have been considered in the November 2017 PEA.

Conventional flowsheetHigh-quality product

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Gravity Separation

Rail

Regrind

Primary GrindingGyratory Crusher

Magnetic Separation

%Fe 29.5%Fe Rec % 100%Wt % 100%

Spiral Concentrate Mag Concentrate

Spiral Tails Final tails

%Fe 65.2%% SiO2 4.3%Fe Rec % 77.7%Wt % 35.1%%Mn 0.81%P80 267 um

Final Concentrate

% of total concentrate19%

% of total concentrate81%

Load and Haul

%Fe 66.0%Fe Rec tot % 14.9%Wt % of feed 6.5%

%Fe 65.0%Fe Rec tot % 62.8%Wt % of feed 28.6%

Drill and Blast

Summary of CAPEX & OPEX

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Estimated Capital Costs (M$ US)

Mine (Including Pre-Stripping) $ 135.4

Mineral Processing $ 254.1

Site Infrastructure and Utilities $ 312.8

General Services and Indirects $ 246.5

Pre-Operational Capitalized Costs $ 19.6

Owner’s Costs $ 31.0

TOTAL $ 999.4

Estimated Average LOM Operating Costs (US $/t Dry Concentrate)

Mining $ 10.79

Mineral Processing $ 5.40

General Site $ 0.50

General Administration $ 2.26

Environmental and Tailings Management

$ 0.39

Rail Transportation and Port Services

$ 10.60

TOTAL $ 29.94

Capex & Opex estimates show robust project economics

PEA demonstrates significant CAPEX reduction relative to the 2012 feasibility study

Comparison Points 2017 Updated PEA* 2012 Feasibility Study*

Annual Production (65.2% Fe con) 7.8Mtpa 8.0Mtpa

Initial CAPEX $999.4 million $1,272.9 million

Cash operating cost (FOB) $29.94/t $42.17/t

Projected Payback Period 3.7 years 3.1 years

Measured and Indicated Resource of the Rose Deposit (COG=15%, 29.6% TFe)

1093.2 Mt 1093.2 Mt

Estimated Mine life 24 years 30 years

17*Pre-tax and in United States dollars. The 2012 Feasibility Study used an exchange rate of $1.00CDN = US$1.00 and was in constant Q4-2012 dollars. No escalation or inflation was applied to costs to bring them to Q1-2017 dollars.

Factors resulting in reduced Capex & Opex• Government of Quebec now owner of facilities at Pointe-Noire area of Port of Sept Iles, cancelling

need to build own stockyard and terminal

• Considerably slower project activity in the region

• Lower ocean freight rates

• Weaker Canadian dollar

Cash operating costs reduced by ~29%

Our role in sustainability

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Alderon as a corporate citizen

Focus on responsible business behaviors and sustainable practices

CommunityInvolvement

Environmental Responsibility

EconomicGrowth

Be a catalyst for economic growth

Be proactive in environmental

stewardship

Be part of bettering the community

Kami represents significant benefits for Federal & Provincial economies

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• Economic Impact Analysis− Performed by Dr. Wade Locke of Memorial University− Published in November 2017

• Assessment focused on employment, GDP and treasury impacts

• Covers construction and operations

• Spans project lifecycle of 26 years

Kami will create jobs and tax revenue*

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$5.5 billion in total incomes to workers and businesses in Newfoundland & Labrador and Québec

$7.6 billionIncomes to workers and businesses across Canada

$5.1 billionFederal and provincial government revenues

>100,000Direct, indirect and induced Jobs

$21.3 billionNational GDP contributions over 26-year period

* Economic impact assessment completed by Dr. Wade Locke of Memorial University, December 2017.* Over 26 year project cycle.

The Port at Pointe-Noire

Sustainable development

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• Fully released from Federal and Provincial Environmental Assessment; permitted for construction start

• Concluded stakeholder agreements− Provincial benefits agreement with Newfoundland

and Labrador− Municipal agreements with Labrador City and Wabush− Impact/benefit agreement with two Indigenous

organizations

• Project Consultation Plan involves engaging community residents and groups, local businesses, and government regulators

• Indigenous Relations Policy involves information sharing, engagement, and traditional land and resource use studies

Source: Alderon Iron Ore

Kami Project −Newfoundland and Labrador, Canada

Company profile

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Ticker IRON: TSX

Shares Outstanding as of August 31, 2018 138,282,880

Options as of August 31, 2018 7,285,000

Warrants as of August 31, 2018 5,241,436

Fully Diluted as of August 31, 2018 151,709,316

Cash & Cash Equivalents(as of June 30, 2018)

CDN $5.7M

52-week Share Price Range $0.21 - $0.38

Current Share Price as of September 4, 2018 $0.30

Major Shareholders in Alderon Iron Ore Corp*.

Altius Minerals 39%

HBIS Group 19.6%

Other Insiders ~2%

*Source: SEDI

Retail, 39%Strategic Partners &

Other Insiders, 61%

Shareholder Distribution

Board of Directors ManagementMark Morabito – Chairman

Tayfun Eldem

Adrian Loader

John Baker

David Porter

Zhou Wei (Wayne)

Dr. Andrew Furey

Rolland G. Morier

Tayfun Eldem – CEO

Kate-Lynn Genzel – CFO

Gary Norris – Executive VP

Government & Community Affairs

Xinneng (David) Li – VP Asia

Pacific Affairs

Olen Aasen – Corporate

Secretary

Kami has been largely de-risked and remains a shovel-ready project

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Project Development

✓ Detailed engineering advanced to 50%✓ Key processing equipment purchased✓ Extensive flowsheet and product testing completed

Infrastructure Agreements

✓ Port access agreement concluded✓ Power purchase agreement concluded ✓ Rail access guaranteed under common-carrier obligations

Environmental Assessment

✓ Released from Federal & Provincial Environmental Assessments✓ Mining and surface leases secured

Off-Take✓ Long-term agreement with HBIS in place for 60% of production✓ Long-term agreement in place with Glencore for 40% of production

Stakeholder Agreements

✓ Provincial benefits agreement and diversity plan concluded✓ Municipal agreements concluded✓ Indigenous agreements in place (2 out of 5)

Financing→ Updated bankable feasibility set to conclude in Q3-2018→ Financing plan under review; to be launched in Q4-2018

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For more information, please contact:

Mishka Gounden

Phone: 604-681-8030 ext. 289

Email: info@alderonironore.com

Corporate Head Office Montreal St. John’s Labrador City

1240 – 1140 West Pender St. Vancouver, BC V6E 4G1

6500 Autoroute Transcanadienne

4ieme étage/4th FloorPointe-Claire, QC H9R 0A5

102-1 Church Hill, Suite 201St. John’s, NL A1C 3Z7

PO Box 214Labrador City, NL A2V 2K5

www.alderonironore.com

IRON: TSX