Anglesey Mining Regulatory News (AYM)

ANGLESEY MINING PLC - LIM arrangement with Tata Steel Minerals Canada

PR Newswire

London, March 12

Anglesey Mining plc

12 March 2013

Labrador Iron Mines Announces Strategic Relationship with Tata Steel MineralsCanada

Anglesey Mining's associate Labrador Iron Mines Holdings Limited (TSX:LIM)reports that it has entered into a framework arrangement with Tata SteelMinerals Canada ("Tata"), a subsidiary of Tata Steel Limited, to establish astrategic relationship between LIM and Tata whereby the two companies haveagreed to co-operate with each other in various aspects of their iron oreoperations in the Labrador Trough and enter into definitive agreements toformali se this arrangement in due course.

The key points of this arrangement are:

LIM and Tata operate adjacent DSO iron ore projects in the Province ofNewfoundland and Labrador and in the Province of Quebec, and intend to utilizethe same rail and port infrastructure.

The strategic relationship will include multi-part co-operation agreements inareas of logistics , property rationali sation , ancillary support andpotential off-take arrangements. As part of the logistics agreements, thecompanies will formali se arrangements for development of the rebuilt rail linethat will pass through LIM's Silver Yards facilities from Tata's new TimminsArea processing plant to the TSH main rail line.

The companies also plan to continue to co-operate on the upgrade of the TSHrail line that connects Silver Yards/Timmins spur line to the QNS&L line and onother areas of future logistics operations such as camp accommodations, thesharing of ore cars, flat bed freight cars and rail car repair facilities.

The co-operation agreement will also include participation in developinginfrastructure at the Port of Sept-Îles with the objective of establishingaccess and terminal facilities for both companies to the Port's new deep seamulti-user dock.

As part of the strategic relationship, LIM and Tata have agreed to enter into atransaction for the development of LIM's Howse deposit and Tata's Timmins 4deposit. LIM will sell a 51% interest in its Howse deposit to Tata. The Howsedeposit, located about 25 kilometres north of LIM's James Mine and Silver Yardsprocessing plant, has a historical resource of 28 million tonnes and is part ofLIM's proposed Stage 3 project, currently expected to be developed about 2020.It is expected that significant cost savings and synergies can be achieved byprocessing Howse ore through Tata's adjacent Timmins Area plant.

As part of the proposed cooperation arrangements, and fulfillment of certainconditions precedent, LIM will receive a cash injection of $30 million. LIM mayalso acquire up to 100% interest in Tata's "Timmins 4" deposit, located about 2kilometres from Howse, at a consideration of $3 million payable from sales ofTimmins 4 ore at $2 per tonne. In future, Tata has an option to inject up to$25 million into the Howse project to further increase its interest in theHowse deposit to 70%.

In a separate release Mr H.M. Nerurkar, MD of Tata Steel Limited noted "Theproposed arrangement with LIM is expected to enhance the raw material securityfor the group and streamline the logistics of the DSO Project"

LIM's Chairman and Chief Executive Officer John Kearney said "This is atransformational arrangement for LIM that has the potential to providesignificant cost synergies, position LIM to address key logistics andinfrastructure issues and expedite the development of LIM's Howse deposit. The$30 million in cash proceeds from the proposed arrangements will be used by LIMto fund its working capital, capital expenditure and exploration requirementsfor the 2013 operating season".

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM'soutstanding share capital. Toronto-listed Labrador Iron Mines Holdings Limitedis producing high grade hematite from its James pit, one of LIM's twenty directshipping iron ore deposits in western Labrador and north-eastern Quebec.

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.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0)1492 541981;

Ian Cuthbertson, Finance Director +44 (0)1248 361333;

Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155