LIM preliminary operating results for 2011

13 January 2012      LSE:AYM

LIM Reports Preliminary Operating Results for 2011

Anglesey Mining's 33% held associate Labrador Iron Mines Holdings Limited (TSX:
LIM) is pleased to report preliminary unaudited operating results for the
period to December 31, 2011 from its James direct shipping (DSO) iron ore
project near Schefferville, Quebec.

These operating results reflect the period beginning June 1, 2011 with the
commencement of mining operations at the James Mine and commissioning and
start-up of the Silver Yards processing plant. This is considered to be a
pre-production, start-up and testing period. Commercial production for the
Schefferville Project is expected to be declared in 2012.

Operating Results by Quarter and Year to Date                                  
                          Quarter ended     Quarter ended     YTD June 1 to    
                          December 31, 2011 September 30,     December 31, 2011
                                            2011                               
                          Tonnes   Grade %  Tonnes    Grade % Tonnes    Grade %
                                   Fe                 Fe                Fe     
Total Ore Mined           483,629  60.9     612,596   60.2    1,205,609 60.7   
 Direct Railing Ore       226,372  64.8     177,863   65.3    438,441   64.9   
 portion                                                                       
Waste Mined               592,957  --       1,536,368 --      2,855,007 --     
Ore Processed             171,842  59.0     382,013   57.4    572,052   58.4   
 Lump Ore Produced        20,572   63.7     57,179    64.8    79,407    63.6   
 Sinter Fines Produced    47,825   65.0     101,002   63.0    152,735   65.0   
Total Product Railed      349,624  64.8     208,461   65.1    563,569   64.9   
Tonnes Product Sold       385,898  64.9     --        --      385,898   64.9   
Port Product Inventory    177,669  64.9     170,740   63.3    177,669   64.9   
Site Product Inventory    69,983   65.3     129,715   64.4    69,983    65.3   
Site ROM Ore inventory    195,117  59.0     6,476     57.33   195,117   59.0   

*ALL FIGURES ARE PRELIMINARY AND SUBJECT TO CONFIRMATION REPORTED IN DRY METRIC
TONNES

To the end of December 2011, a total of approximately 1.2 million tonnes of ore
was mined and trucked to the Silver Yards area ahead of processing or transport
to Port. A total of 599,467 wet tonnes was hauled to the Port of Sept-Iles, of
which 411,987 wet tonnes were sold to IOC and shipped to China.

During the operating period to December 31, 2011, a total of 440,000 tonnes of
direct railing ore at an average grade of 64.9% Fe was mined, of which 340,000
tonnes was railed directly to Sept-Iles without further processing.
Approximately 572,000 tonnes of ore was fed to the Silver Yards plant, yielding
approximately 232,000 tonnes of lump and sinter fine products. The grade of ore
mined in 2011 was higher than the average resource grade.

The Silver Yards processing plant improved in throughput and recovery later in
the year, reaching a rate in excess of 8,000 tonnes per day at various times in
September and October. Initially the ramp up of the plant was slower than
planned due to a larger percentage of fine material in the screens that reduced
the throughput rate. Much of this ultra-fine material was being passed through
secondary screens resulting in a lower than expected level of iron recovery.

With the completion of the second phase expansion at the Silver Yards plant
involving the installation of a hydrosizer, designed specifically for fine
material, throughput and recovery rates improved considerably.

Further plant modification and installation of additional equipment at Silver
Yards as part of the Phase 3 expansion program have progressed as planned. A
third parallel line consisting of a second hydrosizer and WHIMS magnetic
separator will be added to recover the finer material and enhance recoveries.

The Silver Yards plant was shut down for the season in early November as wet
processing is not planned in winter conditions. The plant start-up for the 2012
operating season is planned for May or earlier subject to weather conditions.

Rail to Port

Iron ore from the James Mine was transported by rail from the Silver Yards
plant site, via the Tshiuetin Rail Transportation Inc. ("TSH") railway and the
Quebec North Shore and Labrador ("QNS&L") railway, to the Port of Sept-Iles. To
the end of December 2011, 599,467 wet tonnes had been railed to Sept-Iles.

As previously reported, the buildup in rail shipments was slower than
originally planned. A second train was added later in the year, which together
with the introduction of more railcars significantly increased the tonnage
transported to the Port of Sept-Iles from September to November.

Iron Ore Sales

LIM entered into an agreement with the Iron Ore Company of Canada ("IOC") for
the sale and shipping of all of LIM's 2011 iron ore production. Under the
confidential sales contract with IOC, the iron ore was delivered to Asian
markets and resold by IOC's marketing organization on the spot market.

In 2011 a total of approximately 411,987 wet tonnes (386,000 dry) was sold to
IOC and shipped to China. In addition to these shipments, a further
approximately 187,000 wet tonnes of iron ore is being held in inventory at the
Port of Sept-Iles for shipping in 2012.

The first shipment of LIM iron ore sailed from the Port of Sept-Iles for China
in early October, carrying a total of 167,167 wet tonnes of direct railing ore
at an average grade of 64.9% Fe. This shipment was sold into the spot market at
a gross price of about US$176 per tonne CFR China. The second shipment of LIM's
iron ore, carrying 172,743 wet tonnes of sinter fines at an average grade of
64.9% Fe, departed Sept-Iles in early November. This shipment was priced in a
much weaker spot market in the range of $121 per tonne CFR China. A third
partial shipment of about 72,000 wet tonnes sailed in mid-December and was
priced in the market range of US$137 per tonne CFR China. The sale price for
LIM iron ore sold to IOC was based on the actual realized prices to Chinese
customers, less an allocation for handling, loading, shipping and sales costs.

All LIM's iron ore produced in 2011 was sold to IOC and delivered to Asian
markets and re-sold by IOC's marketing organization on the spot market. The
Company continues to review its options for marketing its iron ore production
for 2012 and subsequent years and is evaluating the optimum route to achieve
these sales, while still maintaining maximum flexibility and independence.
Marketing discussions are continuing with potential customers, both in Europe
and in Asia. The Company is also continuing discussions with a number of
internationally recognized commodity traders with specialist knowledge of the
iron and steel industry. The Company has not yet concluded any agreements for
the sale of any iron ore beyond 2011, but expects to conclude shipping and sale
arrangements prior to the start-up of operations in the spring.

Exploration

The 2011 exploration program was successfully completed in November. Three rigs
were in operation drilling a total of about 12,000 metres on a number of
deposits with Houston as the focus. Exploration support programs, including 650
metres of trenching, 65 test pits and air-borne geophysics, were also
completed. The Company anticipates releasing an updated NI 43-101 resource
estimate for its Houston deposit in the first quarter of calendar 2012.

Outlook for 2012

Detailed planning for 2012 is now underway, utilizing the operating experience
gained in 2011, and it is expected that the Company's plans for 2012 will be
announced by the end of February.

Subject to the final operating plan and budget approval, it is expected that
mining will continue at the James North and James South deposits, with planned
total ore mined of between 2.5 to 3.0 million tonnes in calendar 2012. This is
expected to yield up to 2.0 million tonnes of saleable product, including the
187,000 tonnes in stockpile at the Port which will be shipped in calendar 2012.

The first part of the Phase 3 expansion at the Silver Yards processing plant is
underway. To date the civil construction portion of Phase 3 has been completed
on schedule, with steel erection and commissioning to be completed by June
2012.

Project Development

In December 2011, LIM submitted a permit application for the Stage 2 Houston
project to the Government of Newfoundland and Labrador. The goal, subject to
environmental release, permitting and detailed engineering, is to prepare the
Houston 1 and 2 deposits for production in 2013.

As part of this exercise, the Company is conducting a detailed evaluation of
the various scenarios for the development of the Houston deposits. This
includes the mining of some direct railing ore, together with the assessment of
processing alternatives, which may involve either trucking ore to the Silver
Yards plant or the eventual construction of a separate dedicated processing
plant.

The terms "iron ore" and "ore" in this document are used in a descriptive sense
and should not be construed as representing current economic viability. Dry
metric tonnes are used in this release unless otherwise specified.

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 northeastern Quebec. The Company 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.

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.

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

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing holds a 33% interest in
Labrador Iron Mines (TSX:LIM) and owns 100% of Parys Mountain in North Wales
where there is an historical resource in excess of 7 million tonnes at over 9%
combined copper, lead and zinc.

For further information:
Bill Hooley, Chief Executive        01492 541981
Ian Cuthbertson, Finance Director   01248 361333
Ambrian Partners, 
Samantha Harrison/Klara Kaczmarek   020 7634 4700
Tavistock Communications, 
Emily Fenton/Jos Simson             020 7920 3155