LIM second quarter results and second iron ore ...

Anglesey Mining plc LSE:AYM

15 November 2011

LIM Reports Second Quarter Financial Results

Second shipment of LIM iron ore to China

Anglesey Mining's 33% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) reports that it has filed its unaudited financial statements and MD&
A for the quarter and six months ended September 30, 2011, being the second
quarter of fiscal year ending March 31, 2012. The documents are available under
the Company's profile at www.sedar.com and on LIM's website at
www.labradorironmines.ca.

Highlights for the period ended September 30, 2011

- 723,000 tonnes of ore mined & trucked to Silver Yards during the half year
  including 212,000 tonnes of DRO at an average grade of 65% iron

- James mining operations reached 16,000 tonnes per day

- Silver Yards processing plant reached in excess of 8,000 tonnes per day

- Second phase plant expansion completed producing quality sinter fines

- Addition of a second train increases rail shipments

Details of production to date are shown in the following table:

Labrador Iron Mines Production details - Half Year ended September 30, 2011

                    Quarter ended September  Half year ended September
                                   30, 2011                   30, 2011
                                                                      
                        Tonnes   Grade % Fe       Tonnes    Grade % Fe
                                                                      
Ore Mined              612,596         60.2      722,980          59.9
                                                                      
Including DRO          177,863         65.3      212,069          65.1
                                                                      
Waste Mined          1,536,368                 2,262,050              
                                                                      
Plant Feed             310,107         57.4      328,210          57.3
                                                                      
Lump Ore                52,179         64.8       60,435          64.7
                                                                      
Sinter Fines           112,951         63.0      119,587          63.0
                                                                      
Total Railed           208,461         65.1      213,945          65.1

First and Second Shipments to China

Subsequent to the end of the quarter the first shipment carrying LIM iron ore
departed the Port of Sept- Iles on October 3, 2011 bound for China. This
shipment contained 167,167 wet tonnes of direct railable ore (DRO) at a grade
of 64.8% Fe.

The second shipment departed Sept-Iles on November 2, carrying 172,743 wet
tonnes of sinter fines at a grade of 64.9% Fe, also destined for China.

LIM expects a third similar sized shipment to depart at the end of November,
and possibly another smaller shipment to depart in December.

James Mine Operations

Mining at the James Mine commenced in June 2011 and is continuing to operate
well. To the end of September, a total of 723,000 tonnes of ore had been mined
and trucked to the Silver Yards area ahead of processing or transport to Port.
The grade of the James ore in the upper benches of the mine continues to be
generally in excess of expectations. Of the total production to the end of
September, some 212,000 tonnes was direct railable ore at an average grade of
around 65% iron of which 175,000 tonnes had been railed directly to Sept-Iles
without further processing.

Ore mining operations at the James Mine will continue through the remainder of
2011 at an average rate of approximately 16,000 tonnes per day and, depending
upon the weather, it is expected that a total of about 1.6 million tonnes will
have been mined by the end of December with about 3 million tonnes of waste
mined in the same period. Ore mining operations are expected to continue during
the winter months, but at a reduced rate.

Silver Yards Processing

Following commissioning and start-up in June 2011 the Silver Yards processing
plant gradually improved its performance and frequently achieved over 8,000
tonnes per day in September and October. During the quarter ended September 30,
2011, 310,000 tonnes of material were fed to the plant, yielding approximately
165,000 tonnes of high grade lump and sinter fine product

A second phase expansion of the Silver Yards plant was completed during the
second quarter. This second phase expansion was designed specifically for fine
material, and has resulted in an improved throughput and recovery rate. A total
of about 500,000 tonnes of iron ore has been fed to the Silver Yards plant
during 2011, yielding around 260,000 tonnes of high grade saleable products.

The Silver Yards plant was shut down for the season in early November as wet
processing is not planned in winter conditions. Further plant modification and
installation of additional equipment as part of the Phase 3 expansion is
continuing and is designed to increase Silver Yards' production capacity to
about 2 million tonnes per year. It is expected that the planned plant
expansion will be in place by mid 2012.

It is estimated that, subject to weather conditions, approximately 600,000
tonnes of saleable product will be railed to the Port of Sept-Iles for calendar
2011 and will all be sold to IOC.

In addition to these shipments, it is expected that a further 600,000 tonnes of
iron ore will be held in inventory at Silver Yards and be available for
treatment and shipping in 2012, including about 200,000 tonnes of DRO.

2011 Exploration Program

The 2011 exploration program has progressed successfully and is now winding
down. Three rigs were in operation and by the end of September about 8,200
metres had been drilled on a number of deposits with the Houston deposit being
the main focus. It is expected that about 11,500 metres of reverse circulation
drilling will be completed before the onset of winter. Ongoing exploration
support programs, including 650 metres of trenching, 65 test pits and air-borne
geophysics, will also be completed during the current season.

2012 Outlook

Detailed planning for 2012 is now underway and utilizing the operating
experience gained in 2011.

Mining will continue at the James North and James South deposits in the year
2012, with planned total ore mined of between 2.0 and 2.5 million tonnes,
together with about 3.5 million tonnes of waste.

Subject to final operating plan and budget approval, it is now expected that
between 1.8 and 2.0 million tonnes of ore, including material from stockpiles,
will be treated in 2012, expected to yield up to 1.5 million tonnes of saleable
product. In addition, it is expected that about 500,000 tonnes of direct
railable ore from both the 2011 stockpile and from 2012 mining operations will
also be available in 2012, for a total production target of over 2.0 million
tonnes of iron ore to be shipped and sold in 2012. A third train will be
introduced in 2012 to enable this production of iron ore to be railed to the
port of Sept-Iles.

LIM has signed a MOU with the Sept-Iles Port Authority for the use of the
Pointe-aux-Basques terminal for handling and ship loading of LIM's iron ore.
Use of the Pointe-aux-Basques facilities will require train shunting and
unloading in the adjacent rail yard and loading the iron ore onto barges or
bulkers and trans-shipping to larger vessels within the deeper waters of the
bay or to another port. Some work is still on-going to complete infrastructure
facilities at the Pointe-aux-Basques dock. The port handling arrangements for
2012 and future years remain subject to ongoing evaluation and finalization.

Iron ore produced in 2011 is being sold to IOC and delivered to Asian markets
and re-sold by IOC's marketing organization on the spot market. LIM 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. LIM is also continuing discussions with a number of internationally
recognized commodity traders with specialist knowledge of the iron and steel
industry. LIM has not yet concluded any agreements for the sale of any iron ore
beyond 2011.

Results of Operations

The year 2011 (fiscal year ending March 31, 2012) is considered to be a short
start-up and testing year and the Schefferville Projects are not yet considered
to have reached commercial production.

For the three months ended September 30, 2011, LIM reported a loss of $7.0
million, or $0.13 per share, compared to a loss of $1.2 million, or $0.03 per
share during the same quarter of the prior year. For the six months ended
September 30, 2011, the loss was $11.7 million, or $0.22 per share, compared to
a loss of $2.1 million, or $0.05 per share, during the same period of the prior
year.

The variance in the results of operations is attributed almost entirely to
start-up costs of approximately $5.6 million for the quarter and $9.1 million
for the six month period.

During the quarter, approximately $13.7 million was invested in property, plant
and equipment, compared to approximately $3.3 million invested in the same
quarter of the prior year. Approximately $4.0 million was invested in
capitalized stripping and dewatering at the James deposit, while approximately
$5.5 million was invested in the beneficiation plant, including in part, the
purchase, transportation and installation of additional equipment to enhance
recovery. Approximately $4.1 million was invested in transportation
infrastructure and equipment.

It was originally estimated that the average life of mine operating costs for
the James and Redmond deposits would be in the range of approximately $50 per
tonne and that initial unit operating costs for the year 2011 (fiscal year
ending March 31, 2012), which is considered to be a short start-up and testing
year, would be higher than the anticipated life of mine average. It is now
expected that unit operating costs, unloaded in Sept-Iles, for 2011 will be in
the range of $65 per tonne, the increase being primarily attributable to lower
than planned volumes. For 2012 and future years actual unit operating costs
will be dependent on increased volumes of iron ore mined, processed and railed
and, until annual volumes achieve optimum levels, are expected to be about 20%
above the original forecast life of mine average.

As at September 30, 2011, LIM had $37.9 million in unrestricted cash and cash
equivalents and $7.5 million in restricted cash. Subsequent to the end of the
quarter LIM began to generate cash proceeds from the first shipments of iron
ore.

Marketing and Iron Ore Pricing

Marketing discussions are continuing with potential customers in both Europe
and Asia. LIM is also continuing discussions with a number of internationally
recognized commodity traders with specialist knowledge of the iron and steel
industry. LIM has not yet concluded any agreements for the sale of its iron ore
beyond 2011.

Since the end of the quarter, the iron ore market has been subject to
considerable global volatility. While prices had held relatively firm to
quarter end with 62% Fe CFR China trading above the $170 per tonne level
through the first week of October, suppliers swapped deliveries from problem
markets in Europe to spot markets in China causing local over-supply. This was
exacerbated by Chinese buyers withdrawing from the market. This in turn led to
increased pressure by shippers to sell product already in transit. The net
result was that within three weeks, the iron ore price declined 30% to under
$120 per tonne CFR China. The timing of this decline coincided with the pricing
of the second shipment of LIM's iron ore and net proceeds from the second
shipment will be significantly lower than the first shipment.

As of the end of the second week of November, some price recovery to the $135
per tonne CFR China range has occurred with year-end futures trading nearer to
$140 per tonne CFR China.

The pricing forecast for 2012 and beyond remains somewhat mixed. Over the
medium term however, the consensus supports a fairly tight iron ore market as
China continues to be heavily reliant on seaborne product for steel production,
as its marginal cost to domestically produce an additional tonne of iron ore is
comparatively high.

With Chinese domestic production constrained and the acceptance of iron ore
product from the Labrador Trough established, current producers in the Trough
are favourably positioned to benefit from more robust iron ore prices over the
next few years before a number of major projects come online.

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. Production commenced 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 began shipping high quality lump and sinter fine products to China 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.

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 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].