LIM’s Mine Construction Nearing Completion

21 December 2010    Anglesey Mining plc    LSE:AYM

LIM's Mine Construction Nearing Completion

Plans for 2011 in preparation

Anglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to provide an update year-end report on progress at its
wholly-owned direct shipping (DSO) iron ore Project in western Labrador, near
the town of Schefferville.

Development activities at the mine have progressed substantially since early
September and construction is nearing completion. Site operations have now been
largely suspended for the Christmas holiday period and will resume in early
January 2011.

James Mine ---Site Development

Considerable progress has been made at the James mine site. Most of the James
North pit area has been stripped of overburden and cleared. The various ore and
waste rock stockpile areas have been prepared, as have the temporary and
permanent ore storage pads. The James mine settling ponds have been constructed
to enable pit dewatering. The ore haul road from the James Mine to the Silver
Yards processing site has now been finished.

The mining contractor will return to site in mid January to continue with mine
development. During the first quarter of 2011, the first mining bench will be
developed in the north end of the James pit to prepare a mining face in the
higher grade blue ore, which will be the first ore to be processed. Ore mined
from this development, together with the stockpiles of ore from previous bulk
sampling programs, will be delivered to the plant ahead of the primary crusher
ready for processing. Site clearing and grubbing at the James South pit will
also be completed during the winter months. Two additional dewatering wells
will be drilled, to supplement the wells drilled in 2009, with pump and piping
installation and dewatering of the James pit to commence in the spring.

Mining production operations, using a contractor, are planned to commence in
April 2011 and will continue for eight months until November, at an anticipated
mining rate starting at 6,000 tonnes of ore per day, increasing to 10,000
tonnes of ore per day, using conventional open-pit mining methods and
eventually employing standard drilling and blasting operations.

Plant construction substantially completed

The entire beneficiation and processing plant is now all constructed and
erected in place, including the primary and secondary crushers, screens,
scrubbers, stackers and conveyers. Other buildings include maintenance and
warehouse facilities and site offices. All the civil and concrete work has been
finished and the plant piping is substantially complete. The mega-dome roof
structure has been delivered to site and erection has been postponed until
January to enable the easier installation of some large pieces of equipment.
Installation of the electrical cabling will be completed during the first
quarter of 2011.

LIM's beneficiation plant has a design capacity to process 10,000 tonnes of ore
per day, with a planned initial processing rate of 6,000 tonnes per day,
increasing to 10,000 tonnes per day once commissioning is confirmed. The
planned annual seasonal processing schedule will cover a period of seven to
eight months, approximately 212 to 240 days per year, from April to November,
depending on weather conditions.

Transportation and Marketing

Negotiations with the various rail transport companies and port operators have
continued but commercial and tariff agreements have not yet been signed. This
will be a priority activity in early 2011.

Marketing discussions have continued with potential customers, both in Europe
and in Asia, and have indicated an encouraging level of interest in LIM's iron
ore. Chinese consumers are showing a growing interest in seeking iron ore from
Canada, driven by continued strong demand and a desire to diversify from their
traditional sources of supply.

LIM is continuously reviewing a number of options for marketing its planned
iron ore production and is evaluating the optimum route to achieve these sales,
while still maintaining maximum flexibility and independence. LIM expects to
finalize its marketing arrangements early in 2011 to permit sales of the
initial ore production to be completed in a timely fashion.

Positive Relations with First Nations

On December 17, 2010, LIM signed an Agreement in Principle with the Innu of
Uashat and Mani-Utenam which stipulates the principal terms to be included in a
Final Agreement regarding the impacts and benefits of LIM's mining projects to
be concluded prior to March 1, 2011.

In September 2010 LIM entered into an Impact Benefits Agreement with the
Naskapi Nation of Kawawachikamach with respect to the development and operation
of that part of the Schefferville Project in Labrador.

LIM has previously in 2008 entered into an Impact and Benefit Agreement with
the Innu Nation of Labrador.

In early September 2010 an agreement was reached with the Innu Matimekush-Lac
John to remove the barriers that had been erected in June 2010 and which had
restricted normal access from the town of Schefferville to LIM's properties in
Western Labrador. LIM is continuing its negotiations with the Innu
Matimekush-Lac John towards signing an Impact and Benefits Agreement, and hopes
to be able to conclude this IBA early in 2011.

Outlook for 2011

LIM believes that it is on track to commence mining and processing activities
in April 2011. Subject to detailed mine planning, LIM currently expects to mine
in excess of 2 million tonnes of ore in 2011 which, assuming satisfactory plant
commissioning and smooth start-up, and based on projected recoveries of between
70% and 80%, is expected to yield shipments of between 1.5 to 2 million tonnes
of iron ore, prior to the seasonal shutdown of operations at the end of
November 2011.

About Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville Area project involves the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. 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 Ore Company of Canada from 1954 to 1982.

Labrador Iron Mines contemplates mining in four stages, the first phase of
Stage 1 comprising the James and Redmond deposits, which are located in close
proximity to existing infrastructure, and for which all operating permits have
been issued and construction is being completed.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41%
interest in LIM. In addition to any new projects that may be brought forward
the company owns 100% of Parys Mountain in North Wales with an historical
resource in excess of 7 million tonnes at over 9% combined copper, lead and
zinc.

For further information, please view LIM's website at www.labradorironmines.ca
or contact:

Bill Hooley, Chief Executive [phone]

Ian Cuthbertson, Finance Director [phone]

Emily Fenton / Charlie Geller,
Conduit PR [phone] / [phone]