LIM first iron ore shipment and sale for 2012

Anglesey Mining plc             LSE:AYM

22 May 2012

Labrador Iron Mines - 2012 first shipment and sale of iron ore

Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) provides an operations and status report for the first six weeks of
the 2012 production season as follows:

QUOTE

After the successful re-start of full-scale mining operations at the James Mine
on April 2, we are pleased to announce that LIM's first shipment and sale of
iron ore has been recorded in 2012.

Operational Highlights:

  * The James Mine commenced its first full season of production on April 2 and
    is on track to mine approximately 3.0 million tonnes of iron ore, with a
    saleable production target of 2.0 million tonnes for 2012.
   
  * The first shipment of iron ore containing approximately 170,000 wet tonnes
    of direct rail ore (DRO) at a grade of 63.65% iron (Fe) departed the Port
    of Sept-ÃŽles on May 19. This is five months earlier than the first shipment
    in 2011. Going forward, at least two shipments are anticipated each month
    during the operating year, with the next shipment scheduled in early June.
   
  * The Silver Yards Processing Facility re-started for the season on May 18
    and the Phase 3 plant expansion, designed to increase production capacity
    to approximately 2.0 million tonnes per year, is slated for completion in
    the summer.
   
  * By May 15, four train sets at 120 cars each (~10,000 tonnes per train) were
    in service, approximately one month ahead of the planned schedule. Four
    train sets are expected to be in service for the balance of the 2012
    season.
   
  * Construction at the Houston Project commenced in May. Following the receipt
    of initial permits, a contract has been awarded for tree clearing work to
    be completed along the access road alignment. Development of the Houston
    Project is proceeding according to plan, with an experienced team of
    engineers and construction managers in place.
   
  * As LIM enters an exciting phase of growth, operations and expansion, a
    number of key appointments to strengthen the executive and mine management
    teams have been made.
   
"This has been an extremely positive start to 2012, as we have executed on key
milestones that will ensure a successful operating season," stated Mr. John
Kearney, Chairman and Chief Executive Officer. "With LIM's first shipment and
sale of iron ore, we are off to a good start to meet our production target of
two million tonnes this year."

Mr. Rod Cooper, President and Chief Operating Officer, commented: "On the
operations front, mining at James is progressing well and is now complemented
with the start-up of the Silver Yards plant. As railway operations are critical
to our success, we are very encouraged by the improvements evident in railway
efficiency. We are also encouraged and excited with the development at Houston,
as construction activities are now underway."

"As we forge ahead with our 2012 season, the recent additions to both our
executive and operational teams will ensure we have the organizational capacity
to remain focused on delivering our goals and expanding our operations as we
move forward with the growth and success of our company."

Ramping up production at James

The James Mine commenced its first full season of production on April 2, 2012
and mining operations will continue until the end of November. Mining activity
focused on waste removal from the pit in order to establish the required ore
release for later in the quarter. At the end of April, the mine was operating
at a rate of 17,000 tonnes per day (tpd) and will continue to ramp up to a
planned mining rate of approximately 28,000 tpd.

LIM's First Shipment and Sale of Iron Ore in 2012

The first shipment carrying LIM iron ore departed the Port of Sept-ÃŽles on May
19, bound for China. This is significantly earlier than the 2011 season, when
the first shipment was recorded in the month of October. The shipment contained
170,000 wet tonnes of DRO at a grade of 63.65% Fe. This mixed-size cargo, with
an estimated moisture content of 6.6%, was sold to the Iron Ore Company of
Canada (IOC) based on a price of US$126.00 per dry metric tonne, CFR China
(before ocean freight and IOC allocation). LIM expects the proceeds from the
sale of this shipment to be received in mid-June. Moving forward, at least two
shipments of iron ore are anticipated each month during the operating year,
with the next shipment scheduled in early June.

Iron ore sales are forecasted at 2.0 million tonnes in 2012, including lump
iron ore, sinter fines and ultra fines products. Operating costs for products
delivered to the Port of Sept-ÃŽles are expected to be in the range of $60 to
$65 per dry metric tonne, including mining, processing, general and
administrative costs, railway costs and train unloading.

Railway operations started with two train sets in April and successfully moved
stockpiles at Silver Yards. Early movement of these stockpiles has allowed us
to develop our "just-in-time" rail yard stockpile system, and will advance our
sales by one month. A further stockpile of approximately 230,000 tonnes of DRO
at a grade of about 63% Fe had been built up by May 19 and remains at the Port
after the first shipment.

Starting up the Silver Yards Processing Plant

The Silver Yards processing plant re-started on May 17, 2012. Initial
throughput is targeted at 8,000 tpd. The Phase 3 expansion program, which
includes the installation of a second washing and screening plant and a new
magnetic separator to enhance the recovery of fines material, continues to be
on schedule and is expected to be completed in the summer. This expansion is
expected to increase plant throughput to 12,000 tonnes per day, or an annual
throughput of 2.0 million tonnes per year, and is also expected to improve
weight recoveries to approximately 75% - 80%.

Expanding Rail Capacity

We have expanded our available railway capacity, from two operating trains in
April to four operating trains by May 15, approximately one month ahead of the
original schedule. The four trains will ensure the timely transportation of
LIM's iron ore product to the Port of Sept-ÃŽles and moves LIM closer to
fulfilling its "a train a day" objective in 2012. During the month of April,
LIM railed 108,000 wet tonnes of run-of-mine stockpile to the Port of
Sept-ÃŽles.

Early Start at the Houston Project - Receipt of Initial Construction Permits

The Houston Project will represent LIM's flagship operation in future years.
The Houston Project consists of a series of adjacent open pit deposits with a
NI 43-101 compliant resource containing approximately 22 million tonnes at a
grade of 57.3% (see technical report dated March 25, 2011 filed on SEDAR). LIM
received the environmental approval and project release for the Houston Project
(Stage 1 and 2) from the Government of Newfoundland and Labrador in March 2012.

We are now focused on fast-tracking the development of the Houston Project and
with receipt of the initial permits, a contract has been awarded for the tree
clearing work to be completed along the access road alignment. Subject to
receipt of the remaining permits, commencement of full construction activities
at Houston is planned for the summer of 2012. LIM expects initial production of
Houston ore, including in-pit dry crushing and screening, will commence in the
second half of 2013.

Expanding Infrastructure

LIM is committed to expanding its infrastructure to accommodate the rapid
development at our operations. Currently, electric power at our Silver Yards
plant and camp accommodation is being provided by diesel generators. Plans are
currently underway to connect to the existing hydroelectric grid by the end of
the third quarter of 2012, resulting in fuel savings for the remainder of the
year and subsequent operating seasons.

As a result of expanding activities at site, the camp accommodation is also
undergoing a doubling of capacity, from 70 to 140 persons. Completion of the
expansion is expected by the end of the summer.

Exploration Program

Following on the success of previous exploration programs, a 2012 budget of
approximately CAD$8 million has been set to support LIM's aggressive drilling
efforts. An exploration drill contractor has been selected to carry out this
work in 2012. Drill programs at Houston as well as a number of other deposits
will focus on generating further technical information required for more
detailed mine planning. In addition to this drilling, a bulk sampling program
of some historic stockpiles will be initiated with a view to providing
supplemental plant feed.

In a new initiative to the main focus on direct shipping (DSO) iron ore, LIM
plans an initial core drill program on previously identified, lower grade
taconite iron mineralization, which will be supported by geophysical programs.
In addition, metallurgical test work aimed at evaluating historical manganese
resources will be carried out with a view to ascertaining compatibility with
the Silver Yards processing plant flow sheet.

UNQUOTE

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. 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.

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 has now
completed environmental assessment and is moving to the permitting, development
and construction phase.

About Anglesey Mining plc

Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:
LIM) which is now producing iron ore from its James deposit, one of LIM's
twenty direct shipping iron ore deposits in western Labrador and north-eastern
Quebec. Development of other deposits is underway and production of the high
grade hematite iron ore is targeted to grow from 2Mt in 2012 to 5Mt in 2015.

Anglesey is also carrying out development and exploration work at its 100%
owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is
estimated to be a total 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 / Klara Kaczmarek,

Ambrian Partners Limited [phone];

Emily Fenton / Jos Simson,

Tavistock Communications [phone] / [phone]