Statement re Option of Labrador Iron Properties

Anglesey Mining plc options Labrador iron ore property

Anglesey  Mining plc, which holds the Parys Mountain zinc, copper, lead,  silver
and  gold property in Wales, is pleased to announce that it has entered into  an
option  agreement  to  earn a 70% joint venture interest in  the  Labrador  Iron
Mountain project in Labrador, Canada.

Highlights:

·    Option agreement for 70% interest in 100 million tonnes of hematite iron
     ore in Labrador
·    Former operations of the Iron Ore Company of Canada
·    New direct shipping project producing lump and sinter ores
·    Project already partially developed - short time to production - low
     capital expenditure requirements
·    Existing rail transportation, deep water ports, shipping facilities and
     hydro power
·    Target production of 2 million tonnes per year by 2008, increasing to
     between 3 and 5 mt after 3 years
·    Potential mine life of more than 20 years

Subject  to approvals and to financing, the option gives the company  a  unique
opportunity to re-establish major iron ore mines previously operated by the Iron
Ore  Company of Canada ("IOCC") with estimated remaining resources of  over  100
million tonnes of hematite iron ore.

John  Kearney, chairman of Anglesey Mining, said: "This agreement  provides  the
company  with  a  unique opportunity to diversify into an  exciting  new  mining
venture,  with no acquisition cost and a relatively low initial investment.  The
Labrador  Iron  Mountain  project will restart mining with  a  conventional  and
relatively modest direct shipping operation. As the partially developed  project
will  not  require  major new infrastructure, and therefore involves  manageable
levels  of  capital, we are confident that we will unlock the significant  value
that this asset offers."

The Labrador Iron Mountain Project

The  Labrador  Iron Mountain project is partially developed and  has  near  term
production  prospects. Anglesey's option is to earn a 70 per  cent  interest  in
most  of  the identified former IOCC deposits in Labrador, which comprise  eight
areas  within 22 mining licences covering 92 mining claims, all subject to  a  3
per cent royalty.

The  agreement gives Anglesey the exclusive right to evaluate the project for  a
period  of one year, during or following which Anglesey may exercise the  option
to  earn  the  70  percent  interest by putting  the  project  into  production,
producing  high quality direct shipping lump and sinter iron ore, at  a  minimum
rate of 2 million tonnes per year by 2007 or 2008. In order to maintain its  70
percent interest, Anglesey is required to have achieved commercial production by
September 2010 and to have arranged the project financing by September 2008.

The company plans to undertake, within the next year, a feasibility study of the
technical and economic viability of the project based on the creation of  a  new
hematite iron ore project. Unlike the historic IOCC operations, it is planned to
upgrade the ore by screening and washing, which will result in the production of
two  iron ore products - a premium grade lump ore with 67% Fe (iron) content and
a sinter ore with a 63% Fe content.

The  company expects to increase the initial production rate to 3 to  5  million
tonnes per year after three years, with a potential mine life of about 20 years.
Forty  eight of the mining claims are held by Energold Minerals Inc,  a  company
controlled  by  John Kearney, chairman of Anglesey, and Energold has  negotiated
the rights to the other 44 mining claims from the underlying third party owners.
John  Kearney  was responsible for staking the claims and securing the  project;
Energold will hold a 10 percent interest in the joint venture.

The  agreement, and the exercise of the option, will be subject  to  receipt  by
Anglesey  of  all necessary approvals and consents. Anglesey may  terminate  the
option at its sole discretion at any time without any liability.

The Iron Ore Market

Over  the  past two years global iron ore prices have more than doubled  due  to
increased  demand principally from China. A robust iron ore market  with  strong
demand  from the steel industry for lump products, fuelled by continued  Chinese
growth,  supports the investment case. Anglesey's Labrador Iron Mountain project
will supply high quality lump and sinter iron ore products for delivery to niche
markets among the European, Chinese or Japanese steelmakers.

Background

The  Iron  Ore  Company  of Canada was formed in 1947 by Hollinger,  M.A.  Hanna
Company and six major US steel companies to develop the iron ore reserves of the
Labrador Trough, one of the largest iron ore resources in the world that lies on
the boundary between the province of Quebec and the province of Newfoundland and
Labrador.  IOCC  outlined  about  400  mt of  direct-shipping  grade  ore  (DSO)
averaging 55% iron, built a 350 mile (560 km) railway between Schefferville  and
Sept-Isles,  a  deep  water port at Sept-Isles on the St. Lawrence  seaway,  two
hydroelectric generating plants, an airport and the town of Schefferville.

Based on these deposits IOCC (and its subsidiary Labrador Mining and Exploration
Company), grew into the largest iron ore company in Canada [www.ironore.ca]: its
mines  at  Labrador City are today operated by RTZ. Between 1954 and  1982  IOCC
mined  more  than 152m tons of direct shipping iron ore, containing 56%-58%  Fe,
which  were  sold  from Schefferville to steel mills in the  United  States  and
Europe.  Declining prices in the 1980s coupled with the discovery of  major  new
higher grade deposits in Brazil and Australia and the development by IOCC of its
Carol Lake, Labrador City deposits, led to a decision by IOCC to shut down their
Schefferville operations in 1982. Much of the extensive infrastructure from  the
former operations remains intact.

For further information please contact:

John F. Kearney, chairman                                   + (1) 416 362 6686
Ian Cuthbertson, finance director                           + (44) 1248 361333
Cathy Malins / Annabel Leather, Parkgreen Communications    + (44) 20  7493 3713