Update on Labrador Offer

Rio Tinto PLC
2 March 2001


  
      Update on the Rio Tinto offer to purchase outstanding units of 
                  The Labrador Iron Ore Royalty Income Fund                   
                    
 
Rio Tinto announced its offer to purchase all of the outstanding units of the
Labrador Iron Ore Royalty Fund for C$13.50 per unit on December 14, 2000. The
offer represents a 17% premium to the pre-announcement closing price
 
Rio Tinto expected that the independent valuation that was required to be
prepared prior to mailing the offer to unitholders would have been completed
within four to six weeks. It has now been over eleven weeks since the
announcement of the offer and Rio Tinto has yet to receive the valuation from
the Fund. This is despite the fact that the valuer, CIBC World Markets, told
Rio Tinto representatives last week that they had substantially completed the
valuation and that the Fund investor phone line has been advising unitholders
that the valuation would be completed by the week of February 26, 2001.
 
Rio Tinto considers the delay as unacceptable and that unitholders should be
allowed to consider Rio Tinto's offer without further delay.
 
Rio Tinto will be applying to securities regulators to allow Rio Tinto to
mail its offer to unitholders on Tuesday March 6, 2001 or as soon as possible
thereafter.
 
For further information, please contact:
 
LONDON 
 
Media Relations                     Investor Relations 
Lisa Cullimore                      Peter Jarvis
+ 44 (0) 20 7753 2305               + 44 (0) 20 7753 2401
 
                                    Jonathan Murrin
                                    + 44 (0) 20 7753 2326
AUSTRALIA 
 
Media Relations                     Investor Relations 
Ian Head                            Daphne Morros
[phone]                 [phone]
                              
Website: www.riotinto.com