New resource estimate at LIM's Denault deposit

4 March 2011   LSE:AYM

                           Anglesey Mining plc

      LIM announces new Denault resource estimate of 6.4 million tonnes

          Drill Program continues to increase historical resources

 
Anglesey Mining plc's 41% owned associate  Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to report a new resource estimate for its Denault
deposit, located in Quebec, about 6 km northwest of the town of
Schefferville.  


The new measured and indicated resource estimate of 6.4 million
tonnes is a significant increase over the previous historical estimate of 3.7
million tonnes and includes a new mineralized zone discovered during the 2010
exploration program.

Commenting on the resource estimate at the Denault deposit, John F.
Kearney, Chairman and CEO of Labrador Iron Mines said, "This is a particularly
encouraging result from Denault which is one of the properties in Quebec that
was acquired by LIM in 2009. Our exploration programs have confirmed not only
the reliability of the historical resource estimates but have identified
previously unknown mineralization that has significantly increasedthe total
resource at Denault."

Denault is part of a Mining Lease covering 2,816 hectares in the
Province of Quebec in which LIM holds a 100% exclusive operating
interest through its wholly-owned subsidiary Schefferville Mines Inc.
("SMI").SMI also holds 257 Mining Titles covering 10,613 hectares in the
Province of Quebec.

The Denault deposit is located about 10 km from LIM's new Silver
Yards beneficiation plant and, subject to permitting, will be included in Stage
One of LIM's planned DSO iron ore operations.

The new estimate, prepared in accordance with NI 43-101, has almost
doubled the historical resource (not NI 43-101 compliant) previously estimated
by the Iron Ore Company of Canada (IOC) prior to 1982. The Denault deposit
includes a total measured and indicated resource of 6.38Mt @ 54.8%Fe and 8%
SiO2. The new resource also includes manganiferous iron ore resources with Mn
grades >3.5% totaling 1.7Mt @ 52.1% Fe, 6.8% Mn and 5.3% SiO2 in the measured
and indicated categories.

A comparison of the new resource estimate with historical resources
is shown in Table 1 and a summary in Table 2.

           Table 1 - Comparison LIMNI 43-101 / Historical resources

                            43-101 (February 2011)             Historical 1982
       Classification    Tonnes      Fe     Mn    SiO2    Tonnes      Fe    Mn  SiO2
                         x 1000      %      %      %      x 1000      %     %     %

Fe Ore    Measured        3,242     56.6   0.7    7.4      2,731     49.1   -    7.7
          Indicated       1,412     55.4   0.7    9.0
          Inferred         237      54.6   0.5    11.6       -        -     -     -
Mn Ore    Measured        1,213     52.2   6.8    5.2       929      45.2  5.4   6.2
          Indicated        516      52.1   6.8    5.6
          Inferred         132      52.8   6.6    5.4        -        -     -     -
TOTAL       M+IND         6,384     54.8   2.3    8.0      3,660     48.8   -    7.6
             INF           369      53.9   2.7    9.4        -        -     -     -
 


         Table 2 -Summary of Denault Resource Estimation (NI 43-101)

       Classification Ore Type SG  Tonnes  Fe%   Mn% SiO2%
                                    x1000
          M+IND        LNB-NB 3.4  4,263  56.2   0.7   7.9
                       HiSiO2 3.3    392  51.6   0.1  20.3
                      LMN-HMN 3.3  1,729  52.1   6.8   5.3
                        Total 3.4  6,384  54.8   2.3   8.0
           INF         LNB-NB 3.4    208  55.0   0.6  10.4
                       HiSiO2 3.3     30  51.4   0.1  20.1
                      LMN-HMN 3.3    132  52.8   6.6   5.4
                        Total 3.4    369  53.9   2.7   9.4


       Ore Types            Ore Colours       T_Fe%     T_Mn% SiO2% Al2O3%

NB (Non-bessemer)        Blue, Red, Yellow     >=55     <3.5   <10    <5
LNB (Lean non-bessemer)  Blue, Red, Yellow     >=50     <3.5   <18    <5
HiSiO2 (High Silica)     Blue                  >=50     <3.5  18-30   <5
HMN (High Manganiferous) Blue, Red, Yellow (Fe+Mn) >=50  >=6   <18    <5
LMN (Low Manganiferous)  Blue, Red, Yellow (Fe+Mn) >=50 3.5-6  <18    <5


- LIM resource definitions includes Hi-SiO2 ores (>=50% Fe <=30% SiO2 dry
basis)

- The original IOC ore definition was: >=50% Fe, <=18% SiO2 dry basis.

- A variable specific gravity (density) was used for the modeled ore blocks
using the following equation previously calculated by LIM based upon 229
specific gravity tests: SG = (2.3388 + Fe x 0.0258) x 0.9

- Blue ores, which are composed mainly of the minerals hematite and martite,
are generally coarse grained and friable.They are usually found in the middle
section of the iron formation.

- Yellow ores, which are made up of the minerals limonite and goethite, are
located in the lower section of the iron formation in a unit referred to as
the "silicate carbonate iron formation" or SCIF.

- Red ore is predominantly a red earthy hematite.It forms the basal layer that
underlies the lower section of the iron formation.Red ore is characterized by
its clay and slate-like texture.

Drilling

The updated resource estimate for the Denault deposit is based on
1,688 metres of RC drilling in 26 holes and 588 samples carried out by LIM in
2010. The deposit remains open along strike to the northwest and to the
southeast. Further drilling is planned during 2011.

Block Modeling

LIM used Gemcom GEMS 6.4.2.1 software for the resource estimation.
The ordinary kriging interpolation method was used to estimate the resources
by block modeling with block sizes of 5x5x5 metres and block rotation of 45.6°
which matches with the general strike of the deposit. LIM used the geological
and ore models interpreted in plane and in sections. LIM used different search
ellipses derived from 3D semi-variogram analyses for the classification of the
resources.

Analyses

Analyses for all of the samples from the 2010 Denault drilling
program were carried out by Activation Laboratories. The analytical method
used was borate fusion whole rock X-Ray Fluorescence.

Qualified Person

The resource estimates and information of a scientific or technical
nature contained in this release has been prepared by or under the supervision
of Terence McKillen, P.Geo., Executive Vice President of the Corporation and a
Qualified Person within the meaning of National Instrument 43-101 of the
Canadian Securities Administrators. A Technical Report will be filed on SEDAR
within the required timeframe.

New Chief Geologist Appointed

LIM is pleased to report that it has appointed Bertrand Brassard,
P.Geo., M.Sc. as the Company's Chief Geologist.Bertrand has over 25 years
experience managing exploration programs for advanced stage projects
particularly in Quebecandis a Qualified Person under NI 43-101.

Mr. Brassard holds a B.Sc. degree in geology and a M.Sc. degree
from the l'Université du Quebécà Montréal and was previously employed as
Senior Exploration Geologist for Canadian Royalties, where he was responsible
for the Raglan South Nickel Project, and as Exploration Manager for Niogold
Mining Corporation primarily focused on gold in the Val d'Or region of Quebec.

Bertrand will take charge of all of LIM's on-going exploration
programs in Labrador and Quebec, where an extensive drilling program is
planned for the 2011 exploration season.


About Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville Area project involves the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. The Company's 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.

 
Labrador Iron Mines contemplates mining in stages, the first phase of Stage 1
comprising the James and Redmond deposits, which are located in close proximity
to existing infrastructure and where construction is being completed and mine
start-up is planned to commence in April 2011.


For further information, please view the Company's website at www.labradorironmines.ca 

 
About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41%
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]
Emily Fenton / Charlie Geller,
Tavistock Communications [phone] / [phone]