Trading Statement - Labrador Q1 results and update

16 August 2010         Anglesey Mining plc            LSE:AYM

LIM reports first quarter 2010 financial results and
               update at its Schefferville iron ore projects

Anglesey Mining plc's 41% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) has reported its first quarter financial results for the period
ended 30 June 2010 and provided an update on developments at its wholly-owned
Schefferville iron ore projects located in the western central part of the
Labrador Trough.

This press release should be read in conjunction with the LIM's unaudited
financial statements and related management's discussion and analysis for the
quarter ended 30 June 2010 which is available on the LIM website.

LIM reported a loss for the quarter of $0.6 million ($0.01 per share), compared
to a loss of $0.3 million ($0.01 per share), for the same period in the prior
year. During the quarter LIM invested over $6.8 million in property, plant and
equipment compared to $0.1 million during the same period last year, the
increase attributed to the significant investment in processing equipment and
rail spur line construction materials in preparation for the commencement of
construction.

With over $41 million in cash and cash equivalents and no debt as at 30 June
2010, LIM is in sound financial condition and believes that it has sufficient
funding to complete the commissioning of the first phase of its iron ore mining
projects and to commence shipments of iron ore to begin generating operating
cash flows.

Progress on the Schefferville Projects

Environmental and Permitting

During the quarter ended 30 June 30 and subsequently to date, LIM has made
significant progress in advancing its permitting activities with the Government
of Newfoundland and Labrador.

In June 2010, LIM received numerous permits and authorizations from the
Government of Newfoundland and Labrador, including the mining leases for the
first stage James and Redmond deposits and surface use leases over the Silver
Yards beneficiation area, the accommodation camp, Redmond roads and pipeline.
Final approvals were received from the Department of Fisheries and Oceans, the
Department of Environment and Conservation's real time water monitoring
program, and programs encompassing surface water quality sampling have been
authorized and completed.

in addition, the environmental protection plan for mine construction and
operation, which was a final condition of the environmental assessment release,
was approved by the Minister of Environment and Conservation and LIM's
development plan for the Schefferville area iron ore mine (Western Labrador)
was approved pursuant to Section 6.(1) of the Mining Act by the Department of
Natural Resources.

Subsequent to the quarter, in July 2010, LIM received certificates of approval
for the construction of its James and Redmond Mines and associated mining
facilities. LIM has also received approval of its rehabilitation and closure
plan from the Department of Natural Resources. These approvals provide for the
construction of open pit mining and treatment facilities at the James North,
James South, Redmond 2B and Redmond 5 deposits, and include the beneficiation
facility, ore, waste rock and overburden stockpiles, settling ponds, access
roads, accommodation camp and other associated works. The approvals also
include authorization for the installation and operation of power generators at
the James deposit, the Silver Yards beneficiation area and the accommodation
camp.

LIM has not yet received the permits for the operation of the rail spur and
operation of the mine as of the date hereof. The Government of Newfoundland and
Labrador has engaged in consultation with potentially affected First Nations
with regard to LIM's various permits and this consultation process is
continuing. The receipt of permits has taken longer than anticipated, which has
resulted in a delay in LIM's originally planned construction and production
timeline. However, LIM expects the remaining permits and approvals to be issued
in the near future.

Project Construction

All major items of the beneficiation plant and other infrastructure have now
been procured and have been assembled at rail heads in Labrador City and
Sept-Iles awaiting transport to site. Some preassembly work has taken place at
Labrador City to reduce the construction time.

A contract was signed in June 2010 for the installation of camp accommodation
facilities. The new accommodation camp, which has been built offsite, will be
brought to site and assembled.

A contract has been signed with a Labrador City based contractor for the mining
and beneficiation activities. Once the mine operating permit has been issued,
the mining contractor will be mobilized to site to commence mining activities,
including stockpiling of iron ore ahead of the crusher pad. Water use approvals
for the process water system have been approved by the Department of
Environment and Conservation.

Rail and Port - Transportation Infrastructure

LIM received the construction permit for laying the new rail spur track at the
beginning of May 2010 and construction of the rail spur was completed in early
June. The new rail spur line will be used to move to site the main components
of the processing plant and the accommodation camp and subsequently will be
used to move iron ore from the Silver Yards to the Tshiuetin Rail
Transportation Inc. ("TSH") main line for onward transport to the Port of
Sept-Iles.

Most recently, LIM has negotiated arrangements with TSH regarding inward
transport of the beneficiation plant, accommodation camp and construction
materials to Schefferville and Silver Yards and has negotiated freight rate
terms for the transport of any ore produced in calendar 2010.

A new railway loading ramp was constructed at Emeril Junction on the TSH main
rail line in early August 2010 and will be used to load freight and materials
delivered from Labrador City.

Discussions with First Nations and Government

Negotiations are continuing with the Quebec Innu towards the completion of
impact benefit agreements although agreements have not yet been reached. To
date and pending the issue of permits, LIM has respected the barrier set up by
the Innu Strategic Alliance on 11 June 2010 restricting normal access from the
town of Schefferville to mining properties in Labrador as part of their
campaign to protect their rights and other political issues. The Government of
Newfoundland and Labrador has engaged in consultation with potentially affected
First Nations with regard to LIM's various permits and this consultation
process is continuing. In addition, discussions are continuing with the
Government of Quebec and with the Federal Government. Restriction of normal
access to LIM's properties has impacted the development of LIM's projects. LIM
hopes that the ongoing discussions with both the Quebec Innu and with
Governments will result in satisfactory agreements whereby the barrier will be
removed and LIM's projects can be operated in a positive way for the benefit of
all.

OUTLOOK

LIM expects the remaining permits and approvals to be issued in the near
future, and, assuming normal access to the properties can be achieved, LIM
plans to undertake site construction of the mine and beneficiation facilities
as soon as possible and hopes to achieve plant start-up before the seasonal
shut down of operations at the end of November 2010. LIM is targeting full
scale commercial production in April 2011 and plans production of 2 million
tonnes of iron ore during that calendar year.


Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville iron ore projects involve 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.

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]