Interim Management Statement & LIM update

19 August 2011      LSE:AYM

LIM first quarter results and operational update

Interim Management Statement

Anglesey's major activity is its 33% share of Toronto-listed Labrador Iron
Mines Holdings Limited (TSX:LIM) which holds twenty direct shipping iron ore
deposits in western Labrador and north-eastern Quebec and is currently mining
the first of these to be developed at the James Mine.

Anglesey also has 100% of the Parys Mountain zinc-copper-lead deposit in North
Wales, UK with a total historical resource in excess of 7 million tonnes at
over 9% combined copper, lead and zinc.

Labrador

LIM reports that it has filed its unaudited financial statements and MD&A for
the first quarter of fiscal year ending March 31, 2012. The documents are
available under LIM's profile at www.sedar.com and on 
www.labradorironmines.ca.

Ore mining at the James Mine commenced in June 2011 and by the end of July a
total of 305,000 tonnes of ore had been mined and trucked to the Silver Yards
area for processing and transport to Port. LIM is very encouraged by the grade
of James ore which has been in excess of expectations - of the total production
to the end of July, some 170,000 tonnes of direct railable ore at an average
grade of around 65% iron had been mined and is being sent directly to Sept-Iles
without further processing.

The first ore train loaded with direct railing iron ore departed Silver Yards
for the Port of Sept-Iles on June 29, 2011. To the end of July, a total of
50,000 tonnes had been railed to Sept-Iles and is stockpiled awaiting shipment.

The Silver Yards processing plant is now operating satisfactorily, following
commissioning and start-up in June 2011, at the planned initial processing rate
of 6,000 tonnes per day, which will be incrementally increased to 10,000 tonnes
per day. By the end of July, about 100,000 tonnes of material had been fed to
the plant yielding approximately 50,000 tonnes of high grade lump and sinter
fine product.

In August 2011, LIM signed an agreement with the Iron Ore Company of Canada
(IOC) for the sale and shipping of all of LIM's 2011 iron ore production. LIM
believes that the benefits associated with this arrangement, together with the
benefits of the utilization of larger Cape Size Ocean going ships, will ensure
that the maximum possible tonnage of LIM's 2011 iron ore production will be
efficiently shipped and sold during the remainder of calendar 2011.

Iron ore will continue to be delivered to the port by train in increasing
volumes, and inventory stockpiles will be built to sufficient size to enable
shipping to the ultimate customers. It is expected that the first shipment of
iron ore from the James Mine, likely to China, will occur in late August or
early September.

For calendar 2011, it is estimated that a total of about 2.2 million tonnes of
ore will be mined from the James Mine and that approximately 750,000 to
1,000,000 tonnes of saleable product will be railed to the Port of Sept-Iles
before the end of the season. Actual tonnes railed and sold will depend on the
continued build up of rail shipments and the onset of winter conditions. All of
this product will be sold to IOC. In addition to these sales, it is expected
that approximately 1,200,000 tonnes of iron ore will be held in inventory at
Silver Yards and available for treatment and shipping in calendar 2012.

Silver Yards Operations

The Silver Yards processing plant continues to ramp up. This has been somewhat
slower than planned due primarily to a larger percentage of fine material than
originally forecast. Much of this ultra-fine material is currently passing
through the secondary screens resulting in a lower than anticipated level of
iron recovery. A second phase expansion is currently underway at the Silver
Yards plant. When this next phase of expansion, designed specifically for fine
material, is commissioned in early September it is expected that the throughput
and recovery will improve.

Throughput to the plant for the remainder of calendar 2011 will be dependent
upon the continuation of the ramp up, on the scheduled commissioning of the
Phase II equipment, and upon the onset of winter when wet processing will no
longer be possible. It is now forecast that a total of about 800,000 tonnes of
iron ore will be fed to the plant before the onset of winter, which is expected
to yield around 550,000 tonnes of high grade saleable products.

Planning is now well advanced for the Phase III plant extension at Silver Yards
to increase production. This expansion is expected to be in place by mid 2012,
treating between 2.6 and 2.8 million tonnes of ore including material from
stockpiles yielding around 2.0 million tonnes of product in calendar 2012.

Rail to Port

Iron ore from the James Mine is currently transported by rail from Silver
Yards, via the Tshiuetin Rail Transportation Inc. (TSH) railway and the Quebec
North Shore and Labrador (QNS&L) railway, to the Port of Sept-Iles where the
ore is unloaded and stockpiled adjacent to LIM's Point-aux-Basques dock
facilities leased from the Port of Sept-Iles.

The buildup in rail shipments is slower than planned. LIM has purchased a fleet
of 400 previously used railcars of which about half have been delivered to
Sept-Iles where modifications to meet local operating conditions are being
carried out. This process has taken longer than anticipated. LIM continues to
move rail cars into the Sept-Iles to Schefferville rail system. An additional
65 cars will be brought into the system before the middle of September. LIM's
locomotives have now been increased to four and this will permit the
introduction of a second train by the end of August. With the introduction of a
second train and more railcars, the tonnage being transported to the Port of
Sept-Iles should increase significantly.

During 2012, a third train will be introduced to enable approximately 2.5
million tonnes of iron ore, including both plant product and direct railing
ore, to be railed to Sept-Iles. TSH has commenced upgrade work on its Menihek
rail line following a cash investment by both LIM and Tata Steel Canada and
this work will need to be continued to ensure that the tonnages planned for
2012 can be transported. This ongoing TSH rail upgrade will be subject to some
continuing cash investment by the mine operating companies and potentially by
governments.

Iron Ore Sale Agreement with IOC

LIM has entered into an agreement with the Iron Ore Company of Canada ("IOC"),
Canada's largest iron ore producer, for the sale and shipping of all of LIM's
calendar 2011 iron ore production. Under the confidential sales contract with
IOC, the iron ore will be delivered to Asian markets and resold by IOC's
marketing organization on the spot market. The sale price for iron ore sold to
IOC will be based on the actual realized prices to Chinese customers, less an
allocation for handling, loading, shipping and sales costs.

IOC owns 100% of the QNS&L railway and, at the Port of Sept-Iles, owns
established storage and ore handling facilities, including its ship dock
capable of taking ocean going vessels up to 240,000 (dwt) tonnes. LIM's
agreement with IOC will enable utilization of Cape Size Ocean going ships,
where current freight rates are lower than for the alternative but smaller
Panamax vessels, for the shipment of LIM's iron ore.

2011 Exploration Program

LIM commenced its largest ever exploration program on its Schefferville
Projects in early June 2011 aimed at confirming and extending the resources at
its Stage 1 and 2 deposits. A total of 14,500 metres of reverse circulation
drilling will be completed before the onset of winter. Two rigs are now in
operation with a third rig to be added shortly. By the end of July about 2,800
metres had been drilled on a number of deposits with the Houston deposit being
the main focus. Ongoing exploration support programs, including trenching and
air-borne geophysics, will also be completed during the current season.

Stage 2 Houston Deposit and Redmond Plant

LIM is evaluating the development of a new separate Stage 2 operation for the
Houston deposit including a dedicated processing plant to be located at Redmond
which, subject to environmental assessment, permitting and detailed
engineering, could be brought into production commencing in 2013 at an eventual
rate of 2.5 to 3 million tonnes per year. This would be in addition to the
existing processing plant at Silver Yards which, with planned enhancements and
additions, will have a similar design capacity.

Results of Operations

For the three months ended June 30, 2011, LIM reported a loss of $4.7 million,
or $0.09 per share, compared to a loss of $0.9 million, or $0.02 per share,
during the first quarter of the prior year. The variance in the results of
operations relates almost entirely to start-up expenses of approximately $3.5
million incurred in the quarter relating to non-refundable transportation
expenses incurred prior to establishing full scale transportation of iron ore
to the port.

During the quarter, LIM made cash expenditures of approximately $21.2 million
in property, plant and equipment, compared to approximately $4.9 million
incurred in the first quarter of the prior year.

The average life of mine operating costs for the James and Redmond deposits
were estimated to be in the range of approximately $50 per tonne. The calendar
year 2011 is considered to be a short start-up and testing year and initial
unit operating costs for the fiscal year ending March 31, 2012 will be higher
than the anticipated life of mine average.

At June 30, 2011 LIM had $87.9 million in unrestricted and cash equivalents and
$7.5 million in restricted cash. LIM is in a strong financial position that
will allow it to fund its working capital requirements for 2011 production
ramp-up and to fund its exploration and expansion plans.

About Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville Projects involve the development of twenty direct shipping
iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. The properties are part of the historic Schefferville
area iron ore district where mining of adjacent deposits was previously carried
out by the Iron Ore Company of Canada from 1954 to 1982.

Labrador Iron Mines contemplates mining in stages. The first phase of Stage 1
comprises the James Mine and the Silver Yard processing plant which is
connected by a rail spur to the main Schefferville to Sept-Iles railway.

Full scale mining and processing operations commenced in June 2011 and the
first train departed LIM's Silver Yards for Sept-Iles on June 29, 2011. To the
end of July, about 50,000 tonnes of direct railing iron ore had been delivered
to the Port of Sept-Iles where it is stockpiled awaiting shipment.

For further information, please view www.labradorironmines.ca.

Parys Mountain

Work on the detailed review of the resources and the development options for
Parys Mountain referred to in the recent annual report is now getting underway.
Proposals for various aspects of the work have been received from consultants
and a compilation of geological data and environmental reports is being
prepared. Work is also proceeding on the identification of drill targets.

The review will include reappraisal of the previously proposed White Rock mine
which would target near surface resources as a first stage development option,
which would lead to the subsequent development of the deeper lying resources.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 33%
interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that
may be brought forward the company owns 100% of Parys Mountain in North Wales
with an historical resource in excess of 7 million tonnes at over 9% combined
copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive [phone]

Ian Cuthbertson, Finance Director [phone]

Samantha Harrison / Shaun Whyte, Ambrian Partners Limited [phone];

Emily Fenton / Jos Simson, Tavistock Communications

[phone] / [phone].


   D