Abstract: For the recent years, the ever-increasing iron ore price has caused huge impact on the Chinese iron ore mining industry: On the first hand, economic minable grade of the iron mine has been forced to decrease, some of the resources that used to be not economic turned to be profitable now; On the second hand, some magnetite-bearing rocks which was normally not considered as iron ore become minable ultra-low grade magnetite iron ore resource. According to study and research conducted, taken Heibei Province and Liaoning Province as example, this paper has summarized types, characteristics and utilization status of the ultra-low grade magnetite resource, and thus, has given out some suggestions for its exploration and exploitation.