Enhanced Offer

Rio Tinto PLC
29 March 2001



           Unitholders of the Labrador Iron Ore Royalty Income Fund           
               to receive C$14.50 from enhanced Rio Tinto offer               
 
Rio Tinto announced on 28 March 2001 that it has enhanced its offer, dated
March 8, 2001, to purchase all of the outstanding units of the Labrador Iron
Ore Royalty Income Fund (the 'Fund'). Under the enhanced offer, Rio Tinto has
increased the offer price to C$14.25 cash per unit and has amended the terms
of the offer to allow unitholders to receive a C$0.25 cash per unit
distribution previously declared by the Trustees. Thus unitholders who tender
their units to the enhanced offer will receive total cash proceeds of C$14.50
per unit.
 
The enhanced offer will be open for acceptance until 12:05 am on Tuesday,
April 10, 2001 and is subject to the initial terms and conditions including
there being 75% of the outstanding units validly deposited and not withdrawn
under the offer. A notice of variation and extension to the offer will be
mailed shortly to unitholders. The enhanced offer will also apply for the
units that have already been tendered to the original offer.
 
While considering the enhanced offer, Rio Tinto recommends that unitholders
consider the following reasons to accept the enhanced offer and tender their
units:
 
     - The enhanced offer represents a premium of 26% to the pre-announcement
price of C$11.50 on December 14, 2000 and 34% premium to the previous 12
months' average. 

     - The offer permits unitholders to realize value that would not be
available in the market absent the offer. Unitholders should note how the
market has historically valued the units and consider at what price the units
will trade if the offer is withdrawn. 

     - Proceeds realized from the enhanced offer may be re-invested in other
income trusts that have significantly higher yields. 

     - The valuation supervised by the Trustees is highly optimistic and based
on assumptions that are unrealistic in Rio Tinto's view. For example, the
valuer has assumed that iron ore prices will remain constant in real terms
for 40 years. This is inconsistent with the historical trend of prices over
the last 30 years which have declined at an average rate of 2.5% per annum in
real terms. 

     - Finally no alternative bidder or transaction has been identified by the
Trustees since Rio Tinto first announced its offer more than 15 weeks ago.

 
Rio Tinto will not increase this offer further and urges unitholders to take
advantage of this unique opportunity and tender their units.
 
 
For further information, please contact:
                                                                             
  CANADA               LONDON                     AUSTRALIA                   
  Jonathan Murrin      Media Relations            Media Relations             
  [phone]    Lisa Cullimore             Ian Head                    
                       [phone]       [phone] (office)
                       (office)                   [phone]         
                       [phone]        (mobile)                    
                       (mobile)                   Investor Relations          
                       Investor Relations         Daphne Morros               
                       Peter Jarvis               [phone] (office)
                       [phone]       [phone] (mobile)
                       (office)                   Dave Skinner                
                       [phone]        [phone] (office)
                       (mobile)                   [phone]         
                       Jonathan Murrin            (mobile)                    
                       [phone]                                   
                       (office)                                               
                       [phone]                                    
                       (mobile)                                               
 
Website: www.riotinto.com