LIM Completes 2012 Exploration Program

ANGLESEY MINING PLC - LIM Completes 2012 Exploration Program

PR Newswire

London, December 17

Anglesey Mining plc LSE:AYM

17 December 2012

Labrador Iron Mines Completes 2012 Exploration Program

On track to complete resource estimates and resource conversions by March 31, 2013

Anglesey Mining plc ("Anglesey") is pleased to report that its 19.7% ownedassociate Labrador Iron Mines Holdings Limited ("LIM") has announced thecompletion of its 2012 exploration field program totalling 14,000 metres ("m")of diamond and reverse circulation ("RC") drilling. This represents thelargest exploration program ever completed by LIM. LIM's field crew is nowworking on several of its Schefferville area iron ore projects in bothNewfoundland and Labrador and Québec towards the completion of geological corelogging and sampling in early 2013 and anticipates several new and updatedNational Instrument 43-101 ("NI 43-101") compliant resource estimates on itsdeposits for completion by the end of its fiscal year.

Exploration Program Highlights

- During the 2012 field season, LIM completed 14,000 m of diamond and RCdrilling, a 40% increase over the planned 10,000 m.

- LIM is on track to complete by March 31, 2013, updated resource estimatesfor two major deposits: i) the James Deposit (currently in production),including the James South Extension and, ii) the Houston deposits (currently22.9 million tonnes of Measured and Indicated mineral resources - see pressrelease dated May 31, 2012).

- LIM is also on track to complete new and initial mineral resource estimateson the Malcolm deposit (nearby Houston), the historic crushed ore stockpilesin both Québec and Labrador and its first inferred mineral resource estimateon the Elizabeth Lake Taconite.

- Drill results at Malcolm-1 returned ore-type intersections (grading >50%Iron ("Fe")) in 11 of the 14 holes. Highlights include hole RC-M026, whichintersected 21 m at 60.8% Fe and hole RC-M018, which intersected 18 m at 58.8%Fe.

- During the 2012 exploration program, LIM also acquired geologicalinformation through the use of diamond drilling, which successfully recoveredcore samples for the first time. These samples will now provide better bulkdensity, geotechnical, metallurgical and hydrogeological interpretationsrequired for detailed mine planning.

"In our 2012 drilling season, our exploration team demonstrated theirexperience and competence by successfully delivering the most ambitiousprogram in LIM's history" commented Rod Cooper, LIM's President and COO. "As aresult, we are on track to complete several new and updated resource estimatesby the end of our fiscal year. Equally as important, the field informationcollected this year will not only contribute to the development anddelineation of our resource base, but will also provide valuable technicalinformation for strategic mine planning. Preparation work has now commencedfor another ambitious exploration program in fiscal 2014, scheduled tocommence in April 2013."

2012 Exploration Work Program Details

LIM used two exploration drill contractors during the 2012 field season: CaboDrilling Corp. carried out the RC drilling and Major Drilling GroupInternational Inc. carried out the diamond drill work. In previous seasons,LIM used RC drilling exclusively. The 2012 exploration program was successfulin generating core samples through the use of traditional diamond drilling, asignificant technical achievement. LIM obtained a high level (85%+) of corerecovery with the use of highly-skilled personnel and special drillingadditives and more than 8,300 m of HQ3 core (61.1 mm diameter) were recoveredby the end of the program in mid-November. Logging and core splitting isongoing on site and the exploration team is expected to complete its samplingin early 2013 to allow the inclusion of all new data and assay results in thenext series of mineral resource estimates.

LIM is anticipating new mineral resource estimations on the James Deposit(including the James South Extension), Malcolm-1, Houston 1, 2 and 3 and onthe historic crushed ore stockpiles. An initial mineral resource estimationwill also be provided on the Elizabeth Lake Taconite.

The 2012 exploration program also successfully tested a system for geophysicaldown-hole bulk density determinations in the James and Houston orebodies,which promises to yield a valuable contribution to the resource estimationefforts in the future.

Malcolm-1 Drill Results

The Malcolm-1 area lies approximately 3 kilometres northwest from the Houstonorebodies. Initial work on this property was carried out by LIM in 2011 andreturned ore-type intersections in 14 of 18 holes drilled (see to pressrelease dated May 31, 2012). In 2012, RC drilling on the Malcolm-1 propertyconsisted of 14 holes totalling 1,600 m and 11 of the 14 holes returnedore-type intersections. Figure 1 outlines the hole locations from the 2011 and2012 drill programs, as well as the historical resource previously identifiedby the Iron Ore Company of Canada ("IOC"). The historical (non NI 43-101compliant) mineral resource is 2.9 million tonnes grading 56.2@ Fe. Amanganese resource was also identified by IOC, totalling 422,000 tonnes at agrade of 51.4% Fe. LIM expects to report a new NI 43-101 compliant mineralresource for the Malcolm-1 deposit by the end of its fiscal year.

Table 1 below summarizes the intercepts from the 2012 drill program. Truethickness (ETT) is estimated using an average bedding dip of 45 degrees andvertical drilling dips for every RC hole.

Table 1: 2012 Malcolm-1 Drill Hole Intercepts

Other Exploration Work Program Details

LIM was also able to increase the capacity of the mine site sample preparationfacilities to allow a better turnaround time in the receipt of assays fromoff-site laboratories. Actlabs remained as independent managers of the sitepreparation laboratory and all reduced and pulverized exploration samples wereairfreighted to its analytical laboratory in Ancaster, Ontario formulti-element X-ray fluorescent (XRF) assays including Actlabs internalQuality Assurance / Quality Control (QA/QC) procedures.

Ground Geophysical Surveys: Geosig Inc., a Quebec-based geophysical consultingfirm carried out a series of ground magnetometer and gravity surveys overseveral main targets including the Gagnon and Elizabeth taconites and over theJames, the Houston, the Malcolm-1 and the Howse direct shipping (DSO) iron oredeposits. The gravity survey covered 48 line-kilometres (line-km) and 1,130gravity stations were collected. The magnetic survey covered 31.4 line-km and40,326 measurements were recovered. These surveys have confirmed the validityof airborne gravity anomalies, located the extensions of known ore bodies andsuggested the presence of new exploration targets.

Table 2: 2012 Total Metres Drilled

A summary table for the 2012 exploration drill program is shown below:

The exploration program has been carried out by LIM's experienced geologicalteam led by Chief Project Geologist Howard Vatcher, supported by SeniorResource Geologist Erick Chavez, Senior Field Geologist Tara Schrama, SeniorProject Geologist Adewara Odewande, Project Geologist Shawn Duquet, all underexecutive supervision of Michel Cormier, Vice President, Exploration.

For further details of figures 1: Compilation surface plan of Malcolm-1property and 2: Location Map for 2012 Exploration Program please visitLIM's website at www.labradorironmines.ca

About Anglesey Mining plc

Anglesey holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited(TSX:LIM) which is producing high grade hematite from its James pit, one ofLIM's twenty direct shipping iron ore deposits in western Labrador andnorth-eastern Quebec. Production is targeted to grow from 1.7mt in 2012 to 2mtin 2013.

Anglesey is also carrying out exploration and development work at its 100%owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORCCode-compliant resource of 2.1mt at 6.9% combined base metals in the indicatedcategory and 4.1mt at 5.0% combined in the inferred category was published inNovember 2012.