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| A.   | KAMI GP, Alderon, HBIS Canada and HBIS Group Co entered into a limited partnership agreement dated August 31, 2012 in respect of the formation of KAMI LP for the purpose of developing and operating the Kami Project (the “LP Agreement”); |
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| B.   | KAMI GP, Alderon and HBIS Canada entered into a shareholders agreement dated August 31, 2012 (the “Shareholders Agreement”); |
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| C.   | KAMI LP and Alderon entered into a management agreement  dated August 31, 2012 (the “Management Agreement”); |
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| D.   | The Parties (or some of them) have entered into other agreements all dated August 31, 2012 in relation to the Kami Project; and |
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| E.   | The Parties have agreed to enter into this Supplemental Agreement before the closing of the contribution of capital and assets into the KAMI LP by HBIS Canada and Alderon respectively as contemplated by the LP Agreement, which the Parties intend to occur on March 15, 2013. |
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| 1.   | Defined Terms |
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| 2.   | Alderon Strategic Investor Financing |
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| (a)   | The Alderon Parties will keep the HBIS Parties (through a person designated by the HBIS Canada in writing from time to time (the “HBIS Designated Person”)) informed of the progress of and will consult with the HBIS Parties (through the HBIS Designated Person) on a regular basis in relation to the efforts of Alderon in raising financing with any strategic investor (including but not limited to investors that are end users, traders of iron ore products and other mining companies) and the Alderon Parties will provide to the HBIS Designated Person copies of any term sheet or correspondence in the negotiation with or in relation to any of  such strategic investors as soon as practical after such materials are drafted, received by or delivered to any of the Alderon Parties; and |
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| (b)   | The Alderon Parties will seek approval and consent from the HBIS Parties (through the HBIS Designated Person) on the terms and pricing of any equity investment (whether new issuance or transfer) by any third party in KAMI GP, KAMI LP or the Kami Project. |
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| 3.   | Project Financing |
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| (a)   | The Alderon Parties jointly and severally covenant and confirm with the HBIS Parties that the Alderon Parties will through the HBIS Designated Person keep the HBIS Parties informed of the progress of and will consult with HBIS Parties through the HBIS Designated Person on a regular basis in relation to the efforts of Alderon in raising Project Financing for the Kami Project and Alderon shall provide to the HBIS Parties copies of any term sheet or correspondence relating to the procurement or negotiation of any such Project Financing as soon as practical after such materials are drafted,  received by or delivered to any of the Alderon Parties. |
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| (b)   | If the HBIS Parties attempt to assist the Alderon Parties in obtaining any Project Financing, each of the Alderon Parties will provide all necessary information, cooperation and assistance to the HBIS Parties as they may reasonably require to facilitate the procurement of such Project Financing. |
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| 4.   | Use of Initial Contribution and Account |
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| (a)   | Pursuant to the LP Agreement, HBIS Canada will make an initial contribution of Cdn$119,926,292.51 to the KAMI LP (the “Initial Contribution”). |
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| (b)   | Alderon confirms that a separate bank account has been set up for the KAMI LP (the “Account”) and the Initial Contribution shall be deposited into the Account. Alderon and KAMI GP shall before the payment of the Initial Contribution from HBIS Canada add a representative designated by the HBIS Parties as a signatory to the Account (the “HBIS Signatory”) and inform and instruct the bank where the Account is located (the “Bank”)  in writing that the HBIS Signatory is entitled to obtain any information about the Account from the Bank directly.  In order to have the HBIS Signatory added as a signatory to the Account, the HBIS Parties acknowledge that the HBIS Signatory will have the need to attend in person at the |
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| (c)   | Alderon and KAMI GP covenant with the HBIS Parties that the Initial Contribution shall be used solely for the development of the Kami Project by KAMI LP and for no other purpose. Alderon and KAMI GP  shall provide all information reasonably requested by the HBIS Parties in order for them to confirm that the KAMI GP, the KAMI LP and Alderon (as the manager under the Management Agreement) are using the Initial Contribution solely for the development of the Kami Project by KAMI LP. |
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| (d)   | Alderon has previously provided to the HBIS Parties an expenditure plan regarding the use of the Initial Contribution (as initialled by Alderon and HBIS Canada for identification purpose and delivered at the same time as delivery of the executed copy of this Supplemental Agreement) (the “Expenditure Plan”).  Based on such Expenditure Plan, Alderon and KAMI GP shall deliver to the HBIS Parties monthly updates regarding the use of the Initial Contribution and the expenditures of KAMI LP for the preceding month, which updates shall include details and backup documents in order to enable the HBIS Parties to confirm and verify such use and expenditures. |
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| (e)   | Alderon and KAMI GP shall further deliver to the HBIS Parties an expenditure forecast for KAMI LP and for the use of the Initial Contribution for each upcoming month (“Monthly Forecast”). Each Monthly Forecast shall be delivered by the 15th day of the month prior to the applicable month that the Monthly Forecast applies to, with the first such Monthly Forecast to be provided on March 29, 2013.  The HBIS Parties shall have the right to review each Monthly Forecast and provide comments to Alderon and KAMI GP within 10 days of receipt of the relevant Monthly Forecast and Alderon and KAMI GP shall consider and accept and implement such comments as Alderon determines is in the best interest of the Kami Project, acting reasonably.  Alderon shall forthwith advise the HBIS Parties of any such determination with reasonable supporting details. |
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| (f)   | In the event that any modifications to the Expenditure Plan are required, such that the payments to be made under the Expenditure Plan will be increased by $1,000,000 or more (in the aggregate), the prior consent of the HBIS Parties shall be required before any funds are taken from the Account in order to pay for such modifications that were not previously contemplated by the Expenditure Plan. |
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| (g)   | The Alderon Parties agree and covenant that, until such time as the KAMI LP has obtained all environmental assessment and related approvals for the Kami Project, including but not limited to the authorization for Harmful Alteration, Disruption |
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| 5.   | Environmental Assessment and Related Approvals |
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| 6.   | Initial Budget and Work Plan |
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| 7.   | Efforts to control the budget for the Kami Project |
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| (a)   | The Alderon Parties will work with the HBIS Parties and the HBIS Parties shall have the right to participate in the review of the design of the plant and the mine development and in all equipment and materials supply and construction procurement processes relating to the development and construction of the Kami Project, such review of by the HBIS Parties to be carried out by the management nominees appointed by HBIS Canada to the management of the KAMI GP pursuant to section 5.3 of the Shareholders Agreement (or if for any reason, no such appointment is made, by a person designated by the HBIS Parties in writing and such person will be provided with information and carry out such review to the level and extent as a nominee appointed within the management of the KAMI GP would).  The Parties agree that they will use their reasonably commercial efforts to have the management nominees (or at least one) appointed by HBIS |
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| (b)   |  If the HBIS Parties manage to arrange for the supply of materials or equipment (being materials and equipment that are proven and conform to and meet the technical specifications, quality requirements and Canadian standards and certification requirements and can be delivered in accordance with the Kami Project schedules, all of which Alderon, as manager appointed pursuant to the Management Agreement, shall have sole authority to determine, acting reasonably) at the same or better price as those that the Alderon Parties can procure, KAMI LP shall purchase such materials and/or equipment for use in the Kami Project; |
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| 8.   | Enforcement of Management Agreement |
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| 9.   | Supplement to and Modification of the LP Agreement, Shareholders Agreement and Management Agreement |
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| 10.   | Notices |
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| 11.   | Further Assurances |
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| 12.   | Governing Law |
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| 13.   | No Waiver |
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| 14.   | Amendment |
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| 15.   | Enurement |
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| 16.   | Termination |
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| 17.   | Counterparts |
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| 18.   | Execution by Electronic Means |
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