Gagnon Holdings

On December 19, 2013, Cartier Iron announced an Initial Inferred Mineral Resource of 531 million tonnes grading 33% Total Iron for the Lac Penguin Deposit, located within the consolidated Round Lake Property, one of Cartier Iron’s Gagnon Holdings.

Cartier Iron intends to continue increasing shareholder value by advancing its Gagnon Holdings and it has commissioned a Preliminary Economic Assessment (“PEA”) of its Lac Penguin Project.

Option and Joint Venture Agreement with Champion Iron Mines Limited

Cartier Iron signed an option and joint venture agreement with Champion Iron Mines Limited, a wholly-owned subsidiary of Champion Iron Limited (ASX: CIA, TSX: CIA), on December 10, 2012, whereby Cartier Iron has been granted an option to earn a 65% interest in the Gagnon Holdings.

Cartier Iron can earn a 65% interest in the properties at its option by expending $6 million in staged exploration and development work expenditures on the properties, making cash payments to Champion totaling $1 million and issuing 2.5 million shares to Champion – all over a four year period. Once Cartier Iron completes its earn-in, Champion and Cartier Iron will form a joint venture (reflective of their proportionate ownership interests in the properties) to explore and develop the retained mineral concessions. Cartier Iron will retain a right-of-first-refusal on any part or all of Champion’s proportionate interest in each of the mineral concessions comprising the properties.