Alderon Engages BBA, Inc. to Prepare Updated Bankable Feasibility Study Underpinning the Focus on Project Financing

VANCOUVER, British Columbia, April 26, 2018 (GLOBE NEWSWIRE) -- Alderon Iron Ore Corp. (TSX:IRON) ("Alderon" or the “Company”) is pleased to announce that it has engaged BBA, Inc. (“BBA”) to update the Feasibility Study (“FS”) on the Rose Deposit of the Kamistiatusset (“Kami”) Iron Ore Property in Western Labrador. This FS will underpin Alderon’s renewed focus on project financing.

Alderon has retained BBA, headquartered in Montreal, Quebec, to lead the study with input from other engineering and consulting firms including Golder Associates, Duro Felguera Mining and Handling, and GEMTEC Consulting Engineers and Scientists (“GEMTEC”). The updated study will build on the previous FS dated December 17, 2012, the most recent Preliminary Economic Assessment (“PEA”) dated November 7, 2017, as well as the detailed engineering carried out between 2013 and 2015. The flowsheet and product characteristics will remain unchanged and focus will be on tailings management facility, market analysis, capital and operating expenditures and updated reserve estimates.

“This marks the beginning of another significant milestone for Alderon as we prepare to update our bankable feasibility study,” stated Tayfun Eldem, President and CEO of Alderon, “this study will further demonstrate the robust economics and strong fundamentals that the Kami Project possesses and will bring us closer to advancing the project into production.”

Given the advanced state of the detailed engineering and recent studies, the Company expects to release the results of the FS and file a technical report prepared in accordance with National Instrument (NI) 43-101 in Q4 2018.

Kami Project Updated Preliminary Economic Assessment Highlights

• US$1,781 million Net Present Value (“NPV”) at 8% discount rate
• 25.7% Internal Rate of Return (“IRR”) and 3.7 projected years to payback
• US$999.4 million total estimated capital cost
• US$29.94/dmt average estimated operating costs (loaded in ship Port of Sept-Îles)

The PEA Highlights are taken from the technical report entitled “Update to the Re-Scoped Preliminary Economic Assessment of the Kamistiatusset (Kami) Iron Ore Property, Labrador”, dated effective November 7, 2017 (the “Updated PEA”). The Updated PEA 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 and Watts, Griffis and McOuat Limited (“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 the PEA Highlights. For further information please refer to the Updated PEA that is available on SEDAR at www.sedar.com.

About Alderon Iron Ore Corp.

Alderon is a leading iron ore development company in Canada. The Kami Project, owned 75% by Alderon and 25% by HBIS Group Co. Ltd. (formerly Hebei Iron & Steel Group Co. Ltd.) (“HBIS”) through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district, the Labrador Trough, and is surrounded by two producing iron ore mines. Its port handling facilities are located in Sept-Îles, 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.

The Kami Project will produce a superior, premium iron ore product with very low levels of impurities and high Fe content (65.2% Fe). The Platts Index assesses the price and premiums for different iron ore products and now includes a 65% premium product assessment with a significant price spread above the base quality iron ore (62% Fe). The market demand for premium iron ore product is higher than for base quality iron ore product due to the advantages it offers to the steelmakers in meeting more stringent emissions requirements. Premium product allows end users to improve productivity, reduce costs and meet stringent environmental standards.

For more information on Alderon, please visit our website at www.alderonironore.com.

ALDERON IRON ORE CORP.
On behalf of the Board
"Tayfun Eldem"
Director & CEO

Alderon is part of the King & Bay group of companies. King & Bay is a merchant bank that specializes in identifying, funding, developing and supporting growth opportunities in the resource, aviation, and technology sectors.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this press release include, but are not limited to, statements with respect to (i) the financing plan for the Kami Project; (ii) future demand for production from the Kami Project; (iii) the next steps in the development of the Kami Project; (iv) the market and future price of iron ore and related products; and (v) the results of the Updated PEA including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction timelines and production timelines 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 "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, receipt of governmental and other approvals, the estimation of mineral resources, the realization of resource estimates, iron ore and other metal prices, the timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Kami Project in the short and long-term, the repayment of the secured note held by Liberty Metals & Mining Holdings LLC that is due December 31, 2018 (the “Liberty Note”), the progress of exploration and development activities, the ability of the Company to use the multi-user terminal facility at the Port of Sept-Îles, the receipt of necessary regulatory approvals, the estimation of insurance coverage, assumptions with respect to currency fluctuations and exchange rates, environmental risks, title disputes or claims, and other similar matters. While the Company considers these 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 different from 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 Project, risks relating to variations in mineral 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, risks relating 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 in the 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, operational risks 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 encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, the risk that funds are not available to repay the Liberty Note; risks related to disputes concerning property titles and interest, risks related to disputes with Aboriginal groups, risks related to insufficient capacity being available for the Company to access the multi-user terminal facility at the Port of Sept-Îles, 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 filings with applicable 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 this press release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

For further information please call:

Mishka Gounden   
1-604-681-8030 ext 289
info@alderonironore.com