Trading Statement - Labrador Iron financing fo...

Anglesey Mining plc    LSE:AYM

5 March 2010

Labrador Iron announces C$25 million bought deal financing

Anglesey grants underwriters an option to purchase 546,000 shares of Labrador
Iron for C$3 million

Anglesey Mining plc is pleased to report that its 50% owned associate company
Labrador Iron Mines Holdings Limited (TSX:LIM) announced today that it has
entered into an agreement with Canaccord Financial Ltd. and a syndicate of
underwriters (collectively, the "Underwriters"), which has agreed to purchase,
on a bought deal basis, 3,640,000 common shares from LIM's treasury (the
"Treasury Common Shares") and 760,000 "tax flow-through" common shares from
LIM's treasury (the "FT Shares" and together with the Treasury Common Shares,
the "Underwritten Shares") at a price of C$5.55 per Treasury Common Share and
C$6.65 per FT Share, for aggregate gross proceeds of C$25,256,000 (collectively
the "Underwritten Offering").

In addition, Anglesey Mining plc has granted the Underwriters an option to
purchase from Anglesey up to 546,000 previously issued common shares of LIM (the
"Secondary Common Shares" and together with the Underwritten Shares, the
"Offered Securities"), at a price of C$5.55 per LIM common share, for the
purpose of covering the Underwriters' over-allocation position, for gross
proceeds of up to C$3,030,300 in cash, (approximately £2 million). This Over-
Allotment Option represents up to 15% of the amount to be raised by LIM pursuant
to the sale of LIM's Treasury Common Shares, on the same terms and conditions.

The Offering is being made by LIM pursuant to a Short Form Prospectus to be
filed in the Canadian provinces of British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and
Newfoundland and Labrador. The Offered Securities will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements.

The LIM Underwritten Offering is expected to close on or about 25 March 2010.
The Over-Allotment Option is exercisable by the Underwriters at any time, in
whole or in part, up to 30 days after the date of the closing of LIM's
Underwritten Offering.

Anglesey currently holds 18,600,000 common shares of LIM and the Over-Allotment
Option represents approximately 2.9% of Anglesey's shareholding in LIM.  If the
Over-Allotment Option is exercised by the Underwriters the proceeds from the
sale of the Secondary Common Shares, of up to C$3,030,300 (before commission and
expenses), will be used by Anglesey for general corporate costs and working
capital purposes.

The net proceeds from the Underwritten Offering will be used by LIM for
exploration and development of LIM's mineral projects, and for general corporate
and working capital purposes. LIM has 37,148,451 common shares outstanding,
prior to the Underwritten Offering.

About Labrador Iron Mines Holdings Limited (LIM)

LIM Schefferville area project involves the exploration and development of direct
shipping iron ore deposits in Western Labrador and north eastern Quebec near
Schefferville. LIM's properties are part of the historic Schefferville area iron
ore district where mining of adjacent deposits was previously carried out by the
Iron OreCompany of Canada from 1954 to 1982. LIM plans to mine its deposits in
varying stages, the first stage comprising the James and Redmond deposits, located
in Labrador, in close proximity to existing infrastructure.  Subject to timely
receipt of all permits and licences, LIM plans to commence iron ore production in
the summer of 2010.

Effect of the transaction

Should the proposed Over-Allotment Option proceed in full, Anglesey will receive
C$3,030,300 (approximately £2 million before commission and expenses) in cash in
respect of the disposal of part of its shareholding in LIM.  After the LIM
financing this Over-Allotment Option will reduce the Company's holding in LIM by
1.3%.

LIM is accounted for in the group financial statements as an associated company
and this treatment is not expected to change.


About Anglesey Mining

Anglesey Mining plc is a UK based company listed on the London Stock Exchange
which currently holds 18,600,000 shares in Labrador Iron Mines Holdings Limited.
The Company also holds the Parys Mountain base metals project in Anglesey, Wales, UK,
with a historical mineral resource of 7.7 million tonnes at 9.3% combined copper,
lead and zinc.

This press release does not constitute an offer of securities for sale in the
United States. The securities being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be offered
or sold within the United States absent U.S. registration or an applicable exemption
from U.S. registration requirements.

For further information:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director + (44) 1248 361333