Potential strong local demand
First Iron's projects are located close to the Ural regions' steel mills - the hub of the expanding Russian steel industry. This hub is already short of local supply and is therefore dependent on imported raw material, creating strong expected local demand. The Directors of First Iron intend to fill the predicted demand gap and also believe that steel producers will welcome the opportunity to diversify their supply chain.

Access to international demand
The proximity of the Group's iron ore deposits to the Trans-Siberian railway, and its geographical location only 1700 km from the Chinese border, also provides a significant opportunity for the Company to compete against seaborne iron ore into Northern China.

Transportation Cost Advantage
The Company's close proximity to the Trans-Siberian railway and to its target markets, which are predominantly supplied from further afield, means that First Iron has a significant transport cost advantage over most other suppliers.

Infrastructure Cost Advantage
First Iron's flagship Petrovskoe project is less than 10 km from key infrastructure such as rail transport, power, and good asphalt roads. This creates a significant infrastructure cost advantage when compared to most other Iron ore development project currently under development.

Familiar geology and local knowledge
The Company's projects are located on the Russian side of the Valerianov Trend, a major iron ore belt which already has 5 significant mining operations on it in Kazakhstan, including the Sokolovkiy underground iron ore mine. As such the geological setting is well understood, and First Iron has further compounded this advantage by acquiring KGEC, the legacy regional geological exploration survey company and its staff, originally formed in 1958. This means that First Iron has control of the core samples of the exploration dating back over 50 years, as well as all the reports, data, and the corporate memory of this highly experienced team.

Strong Management Team
First Iron has shown itself to be capable of acquiring and developing the first exploration assets in the Kurgan region to be auctioned, and has now assembled a multinational mining industry team in addition to its strong, well connected management team, which has been operating in the Kurgan region for nearly a decade.