Trading Statement - Labrador Iron receives Gov...

16 February 2010                      LSE:AYM

Labrador Iron receives Government environmental approval
and project release for DSO iron ore operations

Anglesey Mining plc is pleased to report that its 50% owned associate company Labrador
Iron Mines Holdings Limited (TSX: LIM) announces that it has received final
environmental approval and project release from the Government of Newfoundland and
Labrador for its Schefferville Area direct shipping iron ore project in Western Labrador.

On 12 February 2010 the Minister of Environment and Conservation informed LIM that,
under authority of Section 67(3)(a) of the Environmental Protection Act, the Lieutenant-
Governor in Council has released the Schefferville Area Iron Ore Mine from further
environmental assessment, subject to a number of terms and conditions.

LIM Chairman and Chief Executive Officer John Kearney commented, "Receiving
project release from the Government of Newfoundland and Labrador represents another
major step in the Company's development and start-up plans and has come at a time
when iron ore demand and pricing have regained their upward momentum.  We would
like to acknowledge the encouragement and support we have received for this project
from the Province of Newfoundland and Labrador."

The release may be inspected on the Environmental Assessment Bulletin on the website
of the Department of Environment and Conservation at http://www.gov.nl.ca/env.

This project release will allow LIM to complete the permit and license application
process and regulatory approvals required for the construction of mine infrastructure and
production facilities to facilitate the commencement of iron ore production at the James
and Redmond deposits planned for summer of this year.  The lump and fines that LIM
plans to produce will be the first direct shipping iron ore ("DSO") mined in Canada in
almost three decades.

The Project will result in considerable socio-economic benefits accruing to the Province
of Newfoundland and Labrador, creating employment and business opportunities and
contributing substantially to the economy.  LIM has entered into an Impact Benefit
Agreement with the Innu Nation of Labrador and it is expected that approximately 25%
of total employees on the project will be from Aboriginal First Nations.


Milestones Achieved

Over the last quarter, LIM announced several key developments that have significantly
advanced the Project towards the goal of production start-up in the summer of 2010.

Independent Metallurgical Tests by SGA of James lump ore and sinter fines confirmed
grade, quality and suitability for steel markets. Metallurgical testing of James South lump
ore and sinter fines by SGA research centre in Germany indicated the iron content of the
lump ore at 66.98% and the fines at 67.23%, with other elements favourably low in both
cases.  SGA concluded that James South represents high quality lump ore and fines
which will be well accepted in the European market.

Resource Estimates for James and Redmond deposits
showed significant increase over historical resources

The NI 43-101 compliant resource estimates for the James, Redmond 2B and Redmond 5
deposits comprising the first stage of targeted production now total 11.0 million tonnes of
Indicated resource at a grade of 57.4% iron compared to 5.2 million tonnes of historical
(non NI 43-101) resource.   The new estimates prepared by SGS Geostat Ltd. reflect
results of drilling and trenching undertaken by LIM in the 2006, 2008 and 2009 field
seasons and show a significant increase in tonnage over the historical resources (not NI
43-101 compliant), estimated by the Iron Ore Company of Canada ("IOC") prior to 1982.
The significance of the increase is highlighted by the potential to extend the expected life
of stage 1 production.

EIS accepted, Provincial environmental assessment process completed

The Department of Environment and Conservation completed its review of  LIM's EIS,
confirmed that it complies with the Environmental Protection Act and requires no further
work under the Provincial environmental assessment process.

Rail Co-operation Agreement facilitated infrastructure progress

LIM signed a Rail Co-operation Agreement with New Millennium Capital Corp.
("NML") regarding the reconstruction of the "Timmins Extension" rail spur line.  The
line will run from the Tshiuetin Rail Transportation Inc. ("TSH") Railway main rail line
near Schefferville, a distance of approximately 2.5 miles to LIM's planned processing
centre at Silver Yards, and on a further approximately 13 miles to NML's planned
processing centre at the Timmins mining area. The parties also agreed to collaborate to
determine the most expedient means to refurbish the TSH Railway main line to standards
required to transport the minerals extracted from the DSO deposits.

Mineral property exchange consolidated LIM's ownership

LIM entered into an agreement with NML to exchange certain mineral licences in
Labrador. The exchange eliminates the fragmentation of ownership of certain mining
rights in the Schefferville area and enables both companies to separately mine and
optimize their respective DSO deposits.  The exchange gave LIM sole ownership of all
DSO deposits in its Stage 1 area in proximity to LIM's planned processing facilities at
Silver Yard.

LIM Acquired an additional 50 million tons of DSO iron ore in Quebec

In a series of five transactions completed in December 2009, LIM acquired control over
an additional 50 million tons of historical (non NI 43-101) DSO resource in the Province
of Quebec, together with a large package of mineral claims in the Schefferville area
considered prospective for exploration for iron ore and which also host a number of small
high grade manganese deposits.  The acquisition represents a very significant increase in
LIM's resource base and complements LIM's planned DSO operations in Labrador, as
well as providing an excellent portfolio of additional properties prospective for iron ore
in the Province of Quebec.

The historical resources referred to in this document are based on work completed and
estimates prepared by the Iron Ore Company of Canada prior to 1983 and were not
prepared in accordance with National Instrument 43-101.  The historical resource
estimate is still considered relevant and reliable.  LIM is not treating the historical
resource estimate as a defined current resource verified by a Qualified Person.

Qualified Person
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.


About Anglesey Mining
Anglesey Mining plc is a UK based company listed on the London Stock Exchange
with a 50% interest in a 150 million ton iron ore project in Labrador and Quebec,
Canada, which is under active development towards mining production in 2010. The
company also holds the Parys Mountain base metals project with a historical resource of
7.7 million tonnes at 9.3% combined copper, lead and zinc in Anglesey, UK.

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