LIM signs iron ore sales agreement

Anglesey Mining plc LSE:AYM

15 August 2011

LIM signs Iron Ore Sale Agreement with IOC

Anglesey Mining's 33% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to report that it has 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.

Iron ore from LIM's new James Mine in northwest Western Labrador is currently
transported by rail from its Silver Yards rail head, near Schefferville, via
the TSH railway and the Quebec North Shore and Labrador (QNS&L) railway, to the
Port of Sept-Iles where the ore is unloaded and stockpiled, adjacent to LIM's
Point-aux-Basques dock facilities leased from the Port of Sept-Iles.

Under the confidential sales contract with IOC, the iron ore will be delivered
to Asian markets and resold by IOC's marketing organization on the spot market.
The sale price for iron ore sold to IOC will be based on the actual realized
prices to Chinese customers, less an allocation for handling, loading, shipping
and sales costs.

IOC is Canada's largest iron ore producer from its mines located in Western
Labrador and is a leading global supplier of iron ore pellets and concentrates.
IOC's major shareholder and operator is the international mining group Rio
Tinto which has activities in more than 40 countries throughout the world. IOC
owns 100% of the QNS&L railway and, at the Port of Sept-Iles, owns established
storage and ore handling facilities, including its ship dock capable of taking
ocean going vessels up to 240,000 (dwt) tonnes.

LIM has previously entered into a life of mine, confidential rail
transportation contract with QNS&L for the rail transportation of LIM's
products on the QNS&L railway. This contract provides for a confidential
tariff, with capacity and volume commitments on the part of each party.

LIM's agreement with IOC will enable utilization of Cape Size Ocean going
ships, where current freight rates are lower than for the alternative but
smaller Panamax vessels, for the shipment of LIM's iron ore.

LIM believes that the benefits associated with this arrangement, together with
the benefits of the utilization of larger ships, will ensure that the maximum
possible tonnage of LIM's iron ore will be efficiently shipped and sold during
the remainder of 2011.

 

About Labrador Iron Mines Holdings Limited

LIM's Schefferville Projects involve the development of twenty direct shipping
iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, 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.

Mining and processing operations commenced in June 2011 and the first train
carrying iron ore departed LIM's Silver Yards for Sept-Iles on June 29, 2011.
To the end of July, about 50,000 tonnes of direct shipping iron ore had been
delivered to the Port of Sept-Iles where it is stockpiled awaiting shipment.
Production is planned to increase in stages over the next several years.

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] / +44
(0) 7788 554035.