LIM signs Agreement with Uashaunnuat Innu

20 December 2010

LIM signs Agreement with Uashaunnuat Innu

Anglesey's 41% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM)
is pleased to announce that it has entered into an Agreement in Principle with
the INNU of UASHAT and MANI-UTENAM ( the Uashaunnuat ) with regard to LIM's
direct shipping iron ore mining Projects in the Province of Newfoundland and
Labrador and in the Province of Quebec, near the town of Schefferville.

The Agreement in Principle, which has been approved by the INNU TAKUAIKAN
UASHAT MAK MANI-UTENAM Band Council ("ITUM"), stipulates the principal terms to
be included in a Final Agreement regarding the impacts and benefits of LIM's
Projects and ensures that the Uashaunnuat will receive fair and equitable
socio-economic and financial benefits from the Projects.

Under the Agreement in Principle, the Uashuannuat have agreed to give their
consent to the continuation of the Projects and have agreed to discontinue the
legal proceedings issued against the Government of Newfoundland and Labrador
challenging the permits issued to LIM.

LIM has agreed to take measures to mitigate the impact of the Projects on the
Uashaunnuat, the Uashaunnuat families, and their traditional activities, and
has agreed to take certain social and environmental protection measures
relating to the Projects.

LIM has also agreed to make annual contributions to an Aboriginal Traditional
Activities Fund to be created for the benefit of the traditional activities of
the Uashaunnuat and other Innu, including the Uashaunnuat families and
particularly the families most directly affected by the Projects. The Fund may
also be used for the benefit of the traditional activities of members of other
First Nations in the vicinity of Schefferville.

It is intended that the Fund shall be used for the purposes of traditional,
cultural and subsistence activities and the protection and preservation of
aboriginal values and shall contribute to the aim of protecting the rights and
interests of the Uashaunnuat, their lifestyle, their relationship with the land
and their traditional activities.

LIM and ITUM have agreed to negotiate diligently and in good faith with a view
to reaching a Final Agreement on or before March 1, 2011, for ratification by
the Uashaunnuat on or before March 31, 2011. The Final Agreement will provide
for equitable participation of the Uashaunnuat in LIM's Projects through
employment, training and contract opportunities and financial benefits.

"LIM is very pleased to have reached an agreement in principle with the
Uashaunnuat Innu", said LIM`s Chairman, John Kearney. "This is a very positive
and important step for the development of our iron ore projects. In signing
this agreement, we believe we have established a co-operative and mutually
beneficial relationship with the Uashaunnuat, based on mutual respect, and we
look forward to working with the Uashaunnuat and building on that relationship
as our mining projects move forward in the future."

Innu Chief, Georges-Ernest Grégoire, said he was "satisfied that such an
agreement has been reached at this time and that harmonious relations have been
established with the Company, Labrador Iron Mines, as well as with the
Government of Newfoundland and Labrador, paving the way for a project that will
benefit both the region and the Innu."

"The Government of Newfoundland and Labrador played an important role in
helping achieve the resolution of certain issues reflected in the Agreement"
added Mr. Kearney.

About the Uashaunnuat Innu

The Uashaunnuat are a distinct society of the Innu Nation (Quebec and Labrador)
and comprise the two communities of Uashat and Mani-Utenam and constitute the
INNU TAKUAIKAN UASHAT MAK MANI-UTENAM Band No. 80, a band within the meaning of
the Indian Act. ITUM is the band council of such band. The Uashaunnuat assert
Indian title, aboriginal rights and treaty rights to certain lands located in
Quebec and Labrador, including in the area of LIM's Projects, and affirm that
the Projects require their consent.

LIM and the ITUM have been in discussions for some time with a view to
reconciling the rights and interests of the Uashaunnuat with the rights and
interests of LIM in connection with LIM's planned iron ore mining Projects, and
wish to reach a Final Agreement to reconcile their respective rights and
interests, facilitate the Projects and allow LIM to go forward with the
Projects. The Uashaunnuat are part of the Innu Strategic Alliance which in June
2010 erected barriers blocking access from the town of Schefferville to LIM's
projects in Labrador to seek recognition of their rights in Labrador. From the
signing of the Agreement in Principle, the Uashaunnuat agreed that they shall
not do anything that would delay, block or in any way hinder the development of
LIM's Projects.

LIM and ITUM have also been in discussions with the Government of Newfoundland
and Labrador and the Government has agreed a Consultation Protocol with regard
to LIM's Projects and has committed to consult with ITUM on future phases of
LIM's Projects.

The Agreement in Principle with the Uashaunnuat is without prejudice to the
rights asserted by any other aboriginal group relating to the area of the
Projects. LIM has previously entered into agreements with the Innu Nation of
Labrador and with the Naskapi Nation of Kawawachikamach, and may enter into
agreements with other aboriginal groups some or all of which assert aboriginal
or other rights relating to the area of LIM's Projects. The Uashaunnuat
families, and particularly the families most directly affected by the Projects,
have consented to the Agreement in Principle.

LIM is continuing its negotiations with the Innu Matimekush-Lac John (MLJ),
Schefferville, towards signing an Impact and Benefits Agreement, building on
the agreement reached with MLJ on September 1, 2010 to remove the barriers, and
the Memorandum of Understanding previously signed between LIM and
Matimekush-Lac John in 2008, and hopes to be able to conclude this IBA early in
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 plant construction and mine development is nearing completion.

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]