LIM Signs Rail Transportation Agreement

10 March 2010 LSE:AYM

LIM Signs Rail Transportation Agreement with QNS&L

Anglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to announce that it has entered into a life of mine
Confidential Rail Transportation Contract with Quebec North Shore and Labrador
Railway Company Inc. ("QNS&L"), a wholly owned subsidiary of the Iron Ore
Company of Canada, for the transportation of iron ore from LIM's DSO iron ore
projects near Schefferville.

The Contract provides that QNS&L will carry LIM's iron ore from Emeril
Junction, Newfoundland and Labrador, to Sept-ÈŠles Junction, Quebec, on the QNS&
L Railway. The QNS&L Railway already carries iron ore for each of the Iron Ore
Company of Canada; Wabush Mines and Consolidated Thompson (Cliffs Resources)
Bloom Lake Mine. The Port of Sept-ÈŠles is the largest iron ore export port in
Canada and in 2010 about 30 million tonnes of iron ore were shipped to
customers all over the world.

The Confidential Rail Transportation Contract provides for a confidential
tariff, with various capacity and volume commitments on the part of each of QNS
&L and LIM. The iron ore will be delivered from LIM's Silver Yards Plant, near
Schefferville, to Emeril Junction by Tshiuetin Rail Transportation Inc. ("TSH")
(see LIM Press Release dated February 24, 2011).

The haulage railcars will be provided by LIM and the locomotives supplied and
operated by QNS&L. LIM has agreed to make advance payments to QNS&L to secure
the locomotive equipment and infrastructure capacity to meet LIM's service
needs under the Contract. LIM will advance $5 million to QNS&L upon
commencement of the Contract, with a further $5 million advance payable in
October 2011 and a final advance payment of $15 million in June 2012 to secure
the locomotives required to haul LIM's anticipated increases in production and
shipment volumes.

These advance payments will be repaid by QNS&L to LIM by means of a special
credit of $3.50 per tonne against all tonnes hauled, commencing July 2012,
until all advance payments have been repaid in full.

John Kearney, Chairman and Chief Executive of Labrador Iron Mines Holdings
Limited said: "We are very pleased to have signed a life of mine rail
transportation contract with QNS&L which, together with our recent agreement
with TSH Rail, will ensure transportation for LIM's iron ore to the Port of
Sept Iles."

"Signing of this rail transportation agreement is a significant milestone in
the development of our Schefferville Area iron ore projects in western Labrador
and northeastern Quebec and we look forward to a long term business
relationship with QNS&L, the major rail transport operator of most of the iron
ore in the Labrador Trough," added Mr. Kearney.

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. The Company'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 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.

For further information, please view www.labradorironmines.ca

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 
41% interest in Labrador Iron Mines (TSX: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 contact:
Bill Hooley, Chief Executive [phone]
Ian Cuthbertson, Finance Director [phone]
Emily Fenton / Charlie Geller,
Tavistock Communications [phone] / [phone]