Mr. Mark Morabito reports

ALDERON CONFIRMS NO IMPACT AS A RESULT OF CN'S PLAN TO CANCEL FEASIBILITY STUDY FOR A NEW RAIL SERVICE IN NORTHERN QUEBEC

Alderon Iron Ore Corp. is not reliant on the proposed CN rail service in the Labrador Trough, and Canadian National Railway's decision to terminate the feasibility study for an integrated multiuser rail and terminal does not affect the scheduling or the timelines of the Kami project. One of the greatest advantages of Alderon's Kami project is its proximity to the existing common carrier rail line owned and operated by the Quebec North Shore and Labrador Railway (QNS&L). Alderon's feasibility study capital and operating cost projections are based on using the QNS&L railway, which has been the central-case rail solution for the Kami project since its inception.

"The QNS&L railway is a common carrier that operates with the legal obligation to accommodate third party traffic. It currently has ample surplus capacity and runs within 15 kilometres of the Kami property," says Tayfun Eldem, president and chief executive officer of Alderon. "Alderon will continue its rail tariff discussions with QNS&L."

CN announced today that its feasibility study for a new rail line in Northern Quebec is terminated amid anticipated delays in mine development projects in and around the Labrador Trough. The proposed rail line and terminal handling facility were to serve the Quebec/Labrador iron ore corridor.

Alderon has always viewed CN's integrated rail and terminal development project as a potentially high-value alternative option and, as a result, signed on to participate in CN's feasibility study. Now that the feasibility study is cancelled, under Alderon's agreement with CN, CN is obligated to refund the $1.5-million Alderon contributed to the study last year.

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