Oceanic Provides Update ON Advancement of Hopes Advance Project
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3083 – 595 Burrard Street
Vancouver B.C.
V7X 1L3
August 25, 2025 TSX Venture Exchange: FEO
All figures in U.S. Dollars Unless Otherwise Noted
PRESS RELEASE
OCEANIC PROVIDES UPDATE ON ADVANCEMENT OF HOPES ADVANCE PROJECT
Vancouver BC - Oceanic Iron Ore Corp. (“Oceanic”, or the “Company”) is pleased to provide an update on
the advancement of the Hopes Advance Project, located in Northern Québec, Canada (the “Project”).
The Company is currently working on progressing key milestones associated with the development of the
Project, which include, but are not limited to, economic and optimization studies, detailed engineering,
environmental baseline field work and other associated permitting activities.
Steven Dean, Chairman of Oceanic said: “The Hopes Advance Project is undoubtedly a world-class iron ore
development project, located in a tier-one mining jurisdiction in the same geological formation of other
world class producing iron ore mines. We are proud to be a 100% owner of an asset containing a very
large mineral resource, and related significant production profile that will span generations to come, while
also contributing to the economic development of Northern Québec in the short and long term.
Being located at tidewater, the Project’s unique positioning removes significant capital and operating
costs, as well as transportation and logistical constraints related to building, operating and maintaining a
rail line, that is typically a requirement of most large iron ore operations globally. This advantage, along
with a low strip ratio, simple metallurgy and high-grade material lends itself to a significant economic
return for a premium product, desirable not only to steel producers, but to other iron ore producers looking
to supplement depleting resources or blend with existing lower grade material.
Moreover, the ability to operate independently of third party run infrastructure serves as another distinct
competitive advantage over peer unfunded iron ore development projects for a commodity that will
maintain demand over the long term.”
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Hopes Advance – Distinct Attributes
Large Mineral Resource – Several Decades of Production in the Making
• Large tonnage mineral resource over 10 deposits at Hopes Advance in Northern Québec – over
1.3 billion tonnes (Measured and Indicated resource category, at a grade of 32.1% Fe).
• Current mine plan only contemplates mining 3 of 10 deposits over a 28 year mine life.
• Opportunity for significant life extension at Hopes Advance as well as with possible
development of neighboring properties at Roberts Lake and Morgan Lake.
Location: At Tidewater – the “No Rail” Advantage
• Hopes Advance Site located at tidewater. Direct access of product via access road or pipeline
(26km) from site to Private port to be built & operated by Oceanic.
• No Rail – Removes significant cost burden, capacity issues, operational headaches.
Additional Infrastructure Advantage – No Reliance on 3rd Parties
• Port – Privately Built and operated.
• Energy Source - Construction and operations to utilize barge-mounted self-generated power.
Robust Financial Metrics
• Low opex of $30.70/t resulting from “no -rail” advantage being at close proximity to Point
Breakwater, simple metallurgy and low strip ratio (0.81:1 over life of mine).
• Post-Tax NPV8 of $1.4 Billion with an Initial Capex estimate of $1.19 Billion.
• Low NPV/Initial Capex Ratio of 1.18 for a long life bulk commodity Project.
Highly Supported by a Resource Proactive Provincial Government
• Québec remains a strong supporter of mineral project development in Northern Québec as
part of its current Northern Action Plan, supported by the Société du Plan Nord.
Mineral Resource Provides for Generational Mine Life Potential
Hopes Advance has one of the larger iron ore mineral resources globally in respect of single-asset
developers (in excess of 1.3 billion tonnes in the Measured and Indicated resource category, at a grade of
32.1% Fe) with a relatively manageable capital cost to bring the asset to production.
The Hopes Advance iron deposits comprise a total of 10 mineral deposits. These deposits are a typical
stratigraphic iron deposit similar to other Labrador Trough iron deposits of Lake Superior -type iron
formations, located at the northern end of the Labrador Trough. The Hopes Advance iron formations are
thick Sokoman Iron Formation, with magnetite, magnetite and hematite units that strike east-west to
northeast and have gentle dips to the south and southeast. The iron formations are typically 40– 70 m
thick, and often crop out at surface. The three largest deposits are the Castle Mountain, Bay Zone F and
Iron Valley deposits, which comprise the deposits in the life of mine plan in the Company’s most recent
National Instrument 43-101 (“NI 43-101”) Preliminary Economic Assessment (the “PEA Study”).
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Mineral Resources for all 10 deposits were estimated for the Bay Zone B, C, D, E, F, Castle Mountain, Iron
Valley, West Zone 2, West Zone 4 and West Macdonald deposits, and are totaled below. The effective
date of the Mineral Resource Estimate is December 19, 2019.
Table 1 – Mineral Resource Estimate Hopes Advance – All 10 Deposits (25% Fe Cut-off)*
Resource Classification Tonnes (t 000) Head Grade
(% Fe)
Concentrate
Tonnes (t000)
Measured 774,241 32.2 288,971
Indicated 613,796 32.0 226,901
Measured & Indicated 1,388,037 32.1 515,872
Inferred 222,188 32.5 82,475
*Refer to “Technical Disclosure” Section for notes on the Mineral Resource Estimate
This mineral resource estimate does not include the historical mineral resources as the Company’s other
Project Areas, being Roberts Lake and Morgan Lake, which has the potential for extending the production
profile and life of mine in the project area beyond its already significant mine life.
Tidewater Location & the “No Rail” Advantage
Cost - Rail infrastructure is highly capital intensive, involving lengthy permitting processes, and a
significant construction period before first production can be shipped. By being located at tidewater, the
Hopes Advance operations can utilize a relatively short access road to transport material via haul truck at
a fraction of the cost compared to transport via rail. Avoiding rail transportation also eliminates financial
commitments associated with maintaining and operating a dedicated rail line.
Related Execution Risk – Most iron ore operations require significant rail capacity and coverage to
transport its product to port. The associated cost of such infrastructure forces a development plan and
life of mine plan so significant in volume as to justify the excessive capital cost of the rail, that such projects
become nearly impossible to finance.
Avoidance of Logistical/Operating Constraints - Avoiding rail dependency can reduce exposure to
logistical bottlenecks, labor disputes, and related infrastructure maintenance risks.
Figure 1 illustrates the advantage of not requiring rail transportation versus other developments in the
Labrador trough who rely on hundreds of kilometres of transportation via rail to sustain operations and
ensure shipment of product.
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Figure 1 – Hopes Advance’s location at tidewater – the “No-Rail” Advantage
Additional Infrastructure Advantage – No Reliance on Third Party Infrastructure
Further to the Project’s No Rail advantage, The Project also enjoys the following advantages in relation to
lack of reliance on 3rd party infrastructure:
Privately Run Port – Marine facilities proposed to be constructed within 26kms of the Project site at Pointe
Breakwater.
Energy Source – Power is self-generated using diesel fuel. The power plant is a prefabricated, barge
system that is beached and bermed at the port and includes a 120 kV substation. The initial capacity is 48
MW plus 19 MW stand-by. An additional 29 MW will be added for the expansion. A 26 km overhead
transmission line will be installed to deliver power from the power plant to the mine site. There also exists
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the potential to investigate other sources of power to energize operations using alternative fuels such as
LNG and a connection to the Hydro Québec grid to satisfy management’s ESG related targets.
High Grade and Proximity to Tidewater Drives Robust Economics
A Pre-Feasibility Study was published in 2012 (“2012 PFS”), which contemplated the mining of all 10
deposits at Hopes Advance, and produced robust economic results. This 2012 PFS was superseded by the
PEA Study, issued in 2020 and prepared by BBA Engineering Ltd., and contemplated a re-scoped project
development plan in order to de-risk in various areas including initial capital cost reduction as well as the
elimination of reliance on third party run infrastructure, which gives the Company full control over the
development of Hopes Advance. In the PEA Study, only 3 of the 10 deposits are included in the Life of
Mine Plan, again allowing for additional extension to the life of mine for the remaining deposits at the
election of the operator. The PEA Study achieved the same Post-Tax IRR as the 2012 PFS:
Table 2 – Key Statistics from the PEA Study Based on Base Case and Spot Price Case
Description Unit Base Case Spot Case**
Mine Life Years 28 28
Throughput (Expansion throughput - years 5 to 28) Mt/yr 5/10 5/10
Life of Mine Concentrate Production Mt 262 262
Concentrate Grade % Fe 66.6 66.6
Key Financial Metrics
FOB Selling Price/t $ 82 112
Life of Mine Operating Costs $/t 30.70 30.70
Initial Capital Costs $ Million 1,193 1,193
Expansion Capital Costs $ Million 690 690
Sustaining Capital Costs $ Million 632 632
Post-Tax Economics
NPV8 $ Billion 1.4 2.9
IRR % 17 25
NPV/Initial Capex 1.18 2.43
NPV/Initial & Expansion Capex 0.75 1.54
**Spot Case based on July 2025 CFR spot prices, adjusted for Value in Use and Shipping costs
Based on its “no-rail” advantage, low strip ratio and relatively high grades, the Project lends itself to robust
financial metrics such as a post-tax NPV8 of $1.4 billion, and life of mine operating cost/t of $30.70, all
with a relatively financeable initial capital cost requirement, resulting in an NPV/Initial Capex ratio of 1.18.
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Next Steps
The Company is working on the following in connection with the development of the Project over the
coming months:
• Engaging with environmental permitting consultants and support staff to agree on process and
timeline on relevant regulatory permits
• Engaging with relevant engineering firms to determine scope for possible optimization studies
and detailed engineering work
• Revisiting historical metallurgical testwork to assess further possible improvements to product
characteristics and grades
• Re-engagement with representatives of the Inuit of Nunavik
Updates will be provided in due course.
Technical Disclosure
The technical information contained in this news release has been reviewed and approved by Eddy
Canova, director of Exploration of the Company, a Qualified Person as defined by NI 43-101 and
independent of the Company.
Notes related to the Mineral Resource Estimate Disclosure in this News Release
1. The Qualified Person responsible for the estimates (including the current Mineral Resource estimates) is
Mr. Eddy Canova, P. Geo, a consultant to the Company.
2. Mineral Resources are reported assuming open pit mining methods. Mineral Resources were initially
reported with an effective date of 19 September 2012, on a block model that had an effective date of 2
April 2012. A review was undertaken in 2019, which co ncluded that the estimate and its inputs were
current, and the effective date for the reviewed estimate is 20 November, 2019. The Mineral Resource is
now current as at November 20, 2019
3. Mineral Resources are classified using the 2014 CIM Definition Standards. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic viability.
4. The Mineral Resources in the PEA Study were estimated in 2019 using a block model with parent blocks of
50 m by 50 m by 15 m sub -blocked to a minimum size of 25 m by 25 m by 1m and using inverse distance
weighting to the third power (ID3) methods for grade estimation. A total of 10 individual mineralized
domains were identified and each estimated into a separate block model. Given the continuity of the iron
assay values, no top cuts were applied. All resources are reported using an iron cut-off grade of 25% within
conceptual Whittle pit shells and a mining recovery of 100%. The Whittle shells used the following input
parameters: commodity price of USD $115/dmt of concentrate; C$:US$ exchange rate of 0.97; assumed
overall pit slope angle of 50º; 1% royalty; mining cost of CAD $2.00/t material moved; process cost of CAD
$16.22/t of concentrate; port costs of CAD $1.45/t of concentrate; and general and administrative costs of
CAD $3.38/t of concentrate.
5. Estimates have been rounded and may result in summation differences.
Mineral Resources that were estimated assuming open pit mining methods in 2012 were reviewed in 2019
to determine if they were still current. These reviews included checks on the confidence classification
assignments based on changes to defined terms between the 2010 and 2014 editions of the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and
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Mineral Reserves, inputs into the Whittle optimization shells that constrain the estimate, and commodity
price assumptions as a result of the 2019 VIU Study. Eddy Canova, P. Geo, a consultant to the Company
concluded that the estimates remain current, and have an effective date of 20 November, 2019, which is
the date the reviews were completed.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
"Steven Dean"
Executive Chairman
Tel: 604 566 9080
Fax: 604 566 9081
About Oceanic:
Oceanic is focused on the development of its 100% owned Hopes Advance, Morgan Lake and Roberts Lake
iron ore development projects located on the coast in the Labrador Trough in Québec, Canada. In
December 2019, the Company published the results of a preliminary economic assessment completed in
respect of the flagship Hopes Advance project outlining a base case pre-tax NPV8 of USD$2.4 bn (post-tax
NPV8 of USD $1.4 bn) over a 28 year mine life, supported by a NI 43-101 measured and indicated mineral
resource of approximately 1.36 bn tonnes and a life of mine operating cost of approximately USD
$30/tonne. Further information in respect of the Morgan Lake and Roberts Lake projects, both of which
have been explored historically and which have defined historical resources, is also available on the
Company's website.
Forward Looking Statements:
This news release includes certain "Forward-Looking Statements” as that term is used in applicable
securities law. All statements included herein, other than statements of historical fact, including, without
limitation, statements regarding the Study, the assumptions and pricing contained in the Study, the
economic analysis contained in the Study, the results of the Study, the technical report for the Study, the
development of the Project, securing a partner for the Project, securing additional financing for the Project,
the mineral resources at the Project, and future plans and objectives of Oceanic are forward-looking
statements that involve various risks and uncertainties. In certain cases, forward-looking statements can
be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", “objective”,
"believes", “assumes”, “likely”, or variations of such words and phrases or statements that certain actions,
events or results “potentially”, "may", "could", "would", “should”, "might" or "will" be taken, occur or be
achieved. There can be no assurance that such statements will prove to be accurate, and actual results
could differ materially from those expressed or implied by such statements. Forward-looking statements
are based on certain assumptions that management believes are reasonable at the time they are made.
In making the forward-looking statements in this presentation, the Company has applied several material
assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions
affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2)
permitting, development, expansion and power supply proceeding on a basis consistent with the
Company's current expectations; (3) certain price assumptions for iron ore; (4) prices for availability of
natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with
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current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6)
labour and material costs increasing on a basis consistent with the Company's current expectations.
Important factors that could cause actual results to differ materially from the Company's expectations are
disclosed under the heading "Risks and Uncertainties " in the Company’s most recently filed MD&A (a copy
of which is publicly available on SEDAR+ at www.sedarplus.ca under the Company's profile) and elsewhere
in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other
regulatory authorities. Such factors include, among others, risks related to the ability of the Company to
obtain necessary financing and adequate insurance; the ability of the Company to secure a partner for the
Project; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward
price of iron ore or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates;
disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or
unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance
on Forward-Looking Statements. Except as required under applicable securities legislation, the Company
undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of
new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.