LIM announces equity financing

Anglesey Mining plc - LSE:AYM

28 Feb 2012

LIM announces equity financing

Anglesey Mining plc's 33% owned associate Labrador Iron Mines Holdings Limited
(TSX:LIM) announces that it has filed a preliminary short form prospectus in
connection with an overnight marketed public offering (the "Offering") of LIM's
common shares ("Common Shares") and flow-through common shares (the "FT
Shares", and together with the Common Shares, the "Underwritten Shares").

The Offering will be conducted through a syndicate of underwriters led by
Canaccord Genuity Corp. (the "Underwriters").

LIM will also grant the Underwriters an over-allotment option to purchase up to
that number of additional common shares (the "Over-Allotment Common Shares",
and together with the Common Shares and FT Shares, the "Offered Securities")
equal to 15% of the Underwritten Shares sold pursuant to the Offering,
exercisable at any time up to 30 days after and including the closing of the
Offering at a price equal to the offering price of the Common Shares.

The Offering will be priced in the context of the market with final terms of
the Offering to be determined at the time of pricing.

LIM intends to use the net proceeds from the Offering for upgrades and
expansion of its Silver Yards project, additional rail equipment and upgrades
of its transportation infrastructure, development of its Houston project,
exploration of LIM's mineral properties, and for general corporate and working
capital purposes.

The Offering is being made pursuant to a short form prospectus to be filed in
each of the provinces of Canada other than Quebec. The Offered Securities will
not be registered under the U.S. Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.

This press release does not constitute an offer of securities for sale in the
United States. The securities being offered have not been, nor will be,
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold within the United States absent U.S. registration or an
applicable exemption from U.S. registration requirements.

About Labrador Iron Mines Holdings Limited (LIM)

LIM is engaged in the production and development of its 100% owned
Schefferville Area direct shipping iron ore (DSO) properties in the Labrador
Trough of western Labrador and north-eastern Quebec. LIM commenced production
from the James Mine in June 2011, following the successful construction and
commissioning of the mine and Silver Yards processing plant earlier in the
year, and recorded its first sales of iron ore in the fall of 2011.

LIM 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. Through a phased expansion
program, LIM plans to grow its iron ore production through the subsequent
development of adjacent deposits. Stage 2 comprises the development of the
Houston deposits, which is currently undergoing environmental assessment and
planning.

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 Anglesey 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].