Mr. Mark Morabito reports

ALDERON FILES UPDATED PRELIMINARY ECONOMIC ASSESSMENT FOR KAMI PROJECT ON SEDAR

Alderon Iron Ore Corp. has filed on SEDAR its National Instrument 43-101 technical report entitled "Update to the Rescoped Preliminary Economic Assessment of the Kamistiatusset (Kami) Iron Ore Property, Labrador," dated effective Nov. 7, 2017. The updated PEA is an update to a rescoped preliminary economic assessment on the Kami iron ore project that was issued on March 14, 2017.

The March, 2017, PEA was prepared based on a plan to use the depleted pit at the Wabush Scully mine as part of a tailings solution for the Kami project. The Wabush Scully mine was recently acquired by a third party who has stated its intention to reopen the mine. As a result, the updated PEA has been prepared to remove the components related to the Wabush Scully mine. Alderon announced the results of the updated PEA in a news release on Nov. 7, 2017. There are no material differences between the results announced in that news release and those contained in the final report, as filed on SEDAR.

"The updated PEA demonstrates that, even without the use of the Wabush Scully mine, the Kami project maintains robust economics," stated Mark Morabito, chairman and chief executive officer of Alderon. "Stricter environmental regulation has driven demand for high-grade, low-impurity iron ore, like the concentrate that will be produced from the Kami project, as it allows end-users to improve productivity, reduce costs and meet more stringent environmental standards."

The updated PEA replaces the company's March, 2017, PEA as the current technical report on the Kami project.

Highlights of the Kami project updated preliminary economic assessment (U.S. dollars)

• Estimated pretax net present value (NPV) at 8-per-cent discount rate is $1,781-million based on an average production rate of 7.8 million tonnes per year of iron ore concentrate at a grade of 65.2 per cent iron, over the life of the mine;
• Total estimated capital cost (excluding sustaining capital) is $999.4-million;
• Average estimated operating cost is $29.94/tonne;
• The FOB (free on board) concentrate sales price used is $72.23 (U.S.) per tonne. This price was calculated at a reference date of Sept. 1, 2017, using the three-year trailing average price of $62.40 (U.S.)/tonne for the Platts IODEX 62 per cent iron, CFR North China, adding the spot Fe premium of $25.07 (U.S.)/tonne and applying the discounts and premiums allowed by the HBIS and Glencore agreements;
• Estimated mine life of 24 years;
• Internal rate of return (pretax) for the project is 25.7 per cent;
• Projected payback period is 3.7 years.

The exchange rate used in the updated PEA is $1 (Canadian) is 77 U.S. cents.

On a posttax basis, the updated PEA shows an NPV of $941-million (U.S.) at a cash flow discount rate of 8 per cent. The posttax internal rate of return for the project is 19.3 per cent and the payback period is 4.5 years. The posttax analysis is based on a number of assumptions fully set out in the updated PEA.

Technical report and qualified person

The technical report was prepared under the supervision of Angelo Grandillo, PEng, of BBA, a qualified person as defined by NI 43-101, with contributions from Gemtec and WGM. Mr. Grandillo is a qualified person as defined by NI 43-101 and Mr. Grandillo is independent of Alderon. Mr. Grandillo has reviewed and approved the technical information contained in this news release. Mr. Grandillo has verified all the data underlying the technical information disclosed in this news release.

Additional information regarding the Kami project and results of the updated PEA can be found in the technical report which is available on SEDAR.

About Alderon Iron Ore Corp.

Alderon is a leading iron ore development company in Canada. The Kami project, owned 75 per cent by Alderon and 25 per cent by HBIS Group Co. Ltd. (formerly Hebei Iron & Steel Group Co. Ltd.) (HBIS) through The Kami Mine LP, is located within Canada's premier iron ore district and is surrounded by two producing iron ore mines. Its port handling facilities are located in Sept-Iles, the leading iron ore port in North America. HBIS is Alderon's strategic partner in the development of the Kami project and China's second-largest steel producer.

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