Liberty Mines Files NI 43-101 Technical Report for the Preliminary Economic Assessment on its Hart Nickel Project

TSX:  LBE

TORONTO, Oct. 4, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) ("Liberty" or the "Company") today announced that it has filed on SEDAR a National Instrument 43-101 compliant technical report on the results of the Preliminary Economic Assessment (PEA) completed for its Hart Project, a nickel deposit located in Timmins Ontario, and approximately five kilometers from the Company's Redstone mill.  The PEA was prepared by Stantec Inc.

Highlights of the Hart Project Preliminary Economic Assessment:
As previously disclosed by Liberty Mine on August 23, 2012, highlights of the PEA include:

• Estimated pre-tax Net Present Value (NPV) of $35.8 million using an 8% discount rate and a $10 per pound of nickel price.
• Estimated pre-tax NPV of $81.5 million using an 8% discount rate and a $12 per pound nickel price.
• Life of mine is 8 years.
• Total life of mine production of 38,497,588 payable nickel pounds.
• Total gross revenue is estimated at $429.3 million using a $10 per pound nickel price. The gross revenue includes fees generated from the production of copper and cobalt by-products.
• Estimated total capital costs (CAPEX) for the project is estimated at $105 million.
• Estimated mining operating costs (OPEX) of $109.6 million, or an average of $64.43 per tonne.
• Estimated Internal Rate of Return (IRR) of approximately 23%.
• Cut-off grade of 0.46% Nickel.

Hart Project Description
The Hart Project will be a stand-alone underground mine used for the extraction of nickel ore, and will share synergies with Liberty's existing assets and facilities.  Underground production will be done primarily via long-hole mining and transported to surface using diesel trucks.  The Hart Mine is expected to produce an average of 750 tonnes of nickel ore per day throughout its 8 year life of mine. The PEA assumes that construction of the mine will begin in 2013 and will reach a steady rate of production by 2017.

Cautionary Note concerning Resource Estimates used in this PEA
Liberty cautions that the PEA referred to in this announcement is preliminary in nature and includes inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.  Mineral resources that are not reserves do not have demonstrated economic viability.  Due to the inclusion of inferred resources in the PEA, the Company also cautions there is no certainty that the PEA will be realized.

Qualified Persons
Qualified Persons for the Hart resource estimates consist of Mr. Glen Cole, P. Geo., and Mr. Andrew MacKenzie, P. Eng., who prepared the resource estimate contained in the Hart technical report filed March 4, 2010 referenced herein.  Each of Mr. Cole and Mr. MacKenzie are Qualified Persons under NI43-101 and are independent of the Corporation.  Qualified Person for the Hart Preliminary Economic Assessment, the main subject of this disclosure, is Mr. Mark Hatton, P.Eng from Stantec.

In addition to the Qualified Persons responsible for the preparation of the above referenced technical reports, Ms. Heather Miree, P. Geo., V.P. Exploration for Liberty Mines Inc. has acted as Qualified Person, as defined by NI43-101, concerning the exploration portion of this disclosure and Mr. Keyvan Salehi, P. Eng., V.P. Technical Services and Business Development for the Corporation, has acted as Qualified Person regarding the engineering and economic portions of this disclosure.  Both Ms. Miree and Mr. Salehi are employees of the Corporation, thus are not independent of it.

About Liberty Mines Inc.
Liberty Mines Inc. is a mid-tier producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada. It owns and operates the only nickel concentrator in the Shaw Dome, a prospective nickel belt region near Timmins, Ontario.  With a new management team in place, Liberty is focused on growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.

CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward looking statements". All statements other than statements of historical fact included in this release, without limitation, statements regarding future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are: exploration risks; commodity prices; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

SOURCE: Liberty Mines Inc.

For further information:

Chris Stewart, President & CEO
Liberty Mines
[phone] ext 203
[e-mail]

Joe Racanelli
TMX Equicom
416 815 0700 ext 243
[e-mail]