LIM agreement with Innu Matimekush

Anglesey Mining plc LSE:AYM

7 June 2011

LIM signs Impact Benefits Agreement with Innu Matimekush-Lac John

Anglesey's 33% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM)
is pleased to announce that it has signed a landmark Impact Benefits Agreement
with the Nation Innu Matimekush-Lac John of Schefferville, Quebec ("MLJ"), with
regard to LIM's Schefferville Area direct shipping iron ore mining projects in
the Province of Newfoundland and Labrador and in the Province of Quebec.

The historic life-of-mine Agreement, which was approved by resolution of the
Band Council of Matimekush-Lac John signed by the Chief and Band Council, and
endorsed by community referendum, recognizes that LIM and MLJ wish to work
together to establish a long-term, cooperative, respectful and mutually
beneficial positive relationship, based on confidence, trust and certainty.

Under the IBA Agreement, LIM has agreed to the equitable participation of the
Innu Matimekush-Lac John in its Schefferville Area Projects through employment,
training, contract opportunities and financial benefits, including some
community infrastructure projects, and has agreed to take certain social and
environmental protection measures to mitigate the impact of the Projects on MLJ
families and traditional activities.

MLJ, by entering into this Agreement, has given its consent to the LIM's iron
ore Projects proceeding in accordance with the Agreement and has agreed to
provide LIM continuing and unobstructed access to and quiet enjoyment of the
iron ore projects and its properties.

In a public signing ceremony, held in the presence of members of the MLJ
community, on Monday, June 6, 2011 in the Schefferville Arena, (recently
refurbished with assistance from LIM), John Kearney, LIM's Chairman & CEO,
commented on this ground-breaking event:

"This agreement is a very significant step for LIM and for the Innu Community
of Matimekush-Lac John, paving the way for the development of a project that
will provide opportunities for the local community at Schefferville, and
particularly its youth, and will at the same time protect the environment and
Innu traditional and cultural activities."

"LIM recognizes that its iron ore projects may have an impact upon the Innu of
Matimekush and their traditional lands, and has agreed to take positive steps
towards developing a respectful relationship with MLJ in recognition of these
impacts. LIM is committed to an environmentally and socially responsible
development of the iron ore Projects in a way that respects, addresses and, if
necessary, mitigates the environmental, cultural, economic and spiritual
concerns of MLJ."

"LIM understands the importance of our iron ore mine projects to the people of
the Matimekush-Lac John and is committed to the maximization of associated
benefits - including education, training, employment, business opportunities,
financial participation and economic development - and is committed to
providing fair opportunities to the Members of MLJ to participate in, and
benefit from, LIM's iron ore projects," added Mr. Kearney.

LIM and MLJ have agreed to implement training programs with a view to
encouraging and assisting MLJ Members to receive the education and training
required to maximise their opportunities for employment, retention and
advancement on LIM's iron ore projects. LIM has also agreed, in conjunction
with Tata Steel Minerals Canada Ltd. and the Government of Quebec, to make
certain contributions for the improvement and renovation of the Schefferville
Arena facility, to be accessible to the general public.

"LIM acknowledges the assistance of the Government of Quebec, the Government of
Newfoundland and Labrador and the Federal Minister of Indian and Northern
Affairs in discussions with the Innu of Matimekush- Lac John and in working
towards the resolution of certain issues relating to the development of mining
projects in the Schefferville Area;" added Mr. Kearney.

LIM has also signed an Agreement in Principle with the Innu community of Uashat
Mak Mani-Utenam in December 2010 under which the Uashaunnuat gave their consent
to the Projects and which stipulated the principal terms to be included in a
Final Agreement. The terms of the Final Agreement have been negotiated and
settled between the parties and it is expected that the Final Agreement will be
submitted for ratification to the community of Uashat Mak Mani-Utenam later in
2011.

LIM has previously entered into impact benefits agreements with the Innu Nation
of Labrador and with the Naskapi Nation of Kawawachikamach.

About Nation Innu Matimekush-Lac John:

The Nation Innu Matimekush-Lac John, is an Indian Band legally known as
Montagnais de Schefferville, located in Schefferville Quebec. MLJ claims Indian
title and aboriginal rights to certain lands in the provinces of Quebec and
Newfoundland and Labrador, including various pieces of land where LIM's Iron
Ore Projects are located.

The Agreement has no effect on any existing or potential duties that Canada,
Quebec, and Newfoundland and Labrador may have towards MLJ or its Members or
their rights to be consulted and accommodated, and is without prejudice to any
MLJ comprehensive land claims in the provinces of Quebec or Newfoundland and
Labrador.

About Labrador Iron Mines Holdings Limited (LIM):

LIM's Schefferville Area projects involve the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. The LIM's 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 (IOC) from 1954 to
1982. LIM's new iron ore project marks the first time in 30 years that the
Schefferville area will be again producing iron ore since the IOC ceased
operations in 1982.

Mining has already commenced on LIM's James Deposit. Commissioning of the
Silver Yards processing plant was completed at the end of May and the first ore
was fed into the plant on June 1, 2011. Rail locomotives and rail cars are
being positioned to Silver Yards and the first iron ore train is expected to
depart Silver Yards for the Port of Sept-Iles towards the end of June. The
first shipment of iron ore from Sept-Iles is expected to be loaded in July.

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

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 34%
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 / Charlie Geller,

Tavistock Communications [phone] / [phone]