New resource estimates for LIM iron

Anglesey Mining plc LSE:AYM

31 May 2012

Labrador Iron Mines Announces New Mineral Resource Estimates for Houston and
Knob Lake Deposits

Drill programs continue to convert historical resources to current NI 43-101
resources

Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited 
(“LIM”) (TSX: LIM) is pleased to report that its 2011 drilling programs 
continued to increase the size of the Houston deposits and that a new 
National Instrument (NI) 43-101 mineral resource estimate has been 
calculated for the Knob Lake deposit, both located in western Labrador.

In its 2011 exploration programs, LIM completed 8,216 metres (m) of reverse 
circulation (RC) drilling in 139 holes drilled on its projects in Labrador 
and 2,794 m of RC drilling in 51 holes drilled on properties in Quebec.

The full release is available on the LIM website at www.labradorironmines.ca.

Houston deposits increased in size

LIM reported that an updated independent mineral resource estimate of the
Houston deposits has confirmed the Measured and Indicated resource estimate of
23 million tonnes at a grade of 57.2% Fe, compared to 22 million tonnes at a
grade of 57.3% Fe previously reported and has increased the Inferred resource
to 3.7 million tonnes at a grade of 56.5% Fe from the 690,000 tonnes at a grade
of 54.9% Fe previously reported. The Houston deposits remain open along strike,
particularly to the southeast, and further drilling is planned for 2012 to test
for possible extensions and to upgrade the Inferred resource.

Commenting on the new resource estimate at the Houston deposits, John F.
Kearney, LIM's Chairman and CEO said, "It is particularly encouraging that this
independent review has confirmed a larger resource at Houston, which is
becoming LIM's major project for the next five years. The increase in tonnage
was more significant in the Inferred category and further drilling is planned
this year to upgrade and further expand the Houston resource."

New Knob Lake mineral resources estimate of 5.7 million tonnes

LIM is also pleased to report a new mineral resource estimate for its Knob Lake
deposit of 5.7 million tonnes at an average grade of 54.2% Fe in the Measured
and Indicated categories, which is a significant increase over the previous
historical IOC estimate of 4.0 million tonnes at an average grade of 48.4% Fe
in the Inferred category.

The Knob Lake deposit is located about 3 kilometres ("km") from LIM's Silver
Yards process plant and, subject to permitting, may be included in Stage 1 of
LIM's direct shipping (DSO) iron ore operations at a later date.

The historical resources referred to in this press release are based on work
completed and estimates prepared by IOC prior to 1983 and were not prepared in
accordance with NI 43-101..

2012 Exploration Programs

Following on the success of the 2011 exploration programs, a 2012 budget of
approximately CAD$8 million has been set to support LIM's aggressive drilling
efforts planned for the summer of 2012. Drill programs, principally at Houston
1, 2 and 3 and Malcolm 1, as well as a number of other deposits, will focus on
generating further mineral resources and technical information required for
detailed mine planning.

In addition to this drilling, a resource definition and bulk sampling program
of historic stockpiles adjacent to former producing mine will be initiated with
a view to providing supplemental plant feed to the Silver Yards processing
plant. Exploration work aimed at evaluating historical manganese resources will
also be carried out along with metallurgical testing with a view to
ascertaining compatibility with the Silver Yards' processing plant flow sheet.

In a new initiative to the main focus on DSO iron ore, LIM plans an initial
core drill program on recently identified taconite iron mineralization on LIM's
mineral claims, which will be supported by geophysical programs. The
Schefferville/Menihek area has a number of taconite deposits being explored/
developed by other companies and these deposits, which usually average about
30% Fe, can often show very significant tonnages.

Qualified Person

The LIM release has been prepared under the supervision of Terence N. McKillen,
Executive Vice President and a Director of LIM and a Qualified Person within
the meaning of NI 43-101. The current resource estimates disclosed herein have
been prepared by Maxime Dupéré, P. Geo of SGS Canada Inc. who is an Independent
Qualified Person within the meaning of NI 43-101.

About Labrador Iron Mines Holdings Limited (LIM)

Labrador Iron Mines (LIM) is Canada's newest iron ore producer. It owns a
portfolio of direct shipping (DSO) iron ore operations and projects located in
the prolific Labrador Trough. Initial production commenced at our 100%-owned
James Mine in June 2011 and we recorded the sale of 400,000 tonnes of iron ore
in our first start-up season. The first full production season commenced on
April 2, 2012, with a sales target of 2 million tonnes of iron ore for the 2012
year.

LIM is focused on a strategic and robust growth plan arising from our portfolio
of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the
town of Schefferville. The James Mine is connected by a direct rail link to the
Port of Sept-Iles, Québec. The area also benefits from established
infrastructure including the town, airport hydro power and railway service.
Starting with the James Mine and leading to the development of the expanding
Houston flagship project, its objective is to ramp up production and sales
towards 5 million tonnes per year by 2015.

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]