Baffinland announces closing of $30 million common and flow-through private placement



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES./

    TSX SYMBOL: BIM

    TORONTO, Sept. 27 /CNW/ - Baffinland Iron Mines Corporation ("Baffinland"
or the "Company") announced today that it has closed its previously announced
brokered common and flow-through share private placement.
    The brokered private placement, through a syndicate of underwriters led
by Raymond James Ltd. and including BMO Capital Markets, GMP Securities L.P.,
National Bank Financial Inc. and Loewen, Ondaatje, McCutcheon Limited,
resulted in the issuance of 3,125,000 common shares at a price of $3.20 per
share and 5,128,204 shares on a "flow-through" basis at a price of $3.90 per
flow-through share for gross proceeds of approximately $30 million. The
proceeds of the private placement will be used to fund exploration at the
Company's wholly-owned Mary River project and for general corporate purposes.

    Baffinland is a Canadian publicly-traded junior mining company that is
focused on its wholly-owned Mary River iron ore deposits located on Baffin
Island, Nunavut Territory, Canada. Baffinland's shares trade on the Toronto
Stock Exchange under the trading symbol BIM.

    This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, expected mineral resources, iron ore prices and
the feasibility of constructing and operating a direct-shipping iron ore mine
at the Company's Mary River project. While the Company considers these
assumptions to be reasonable based on information currently available to it,
they may prove to be incorrect. Forward looking-information is subject to
certain factors, including risks and uncertainties that could cause actual
results to differ materially from what is currently expected. These factors
include risks relating to exploration and development risks, risks relating to
the worldwide price of, demand for and supply of iron ore and risks relating
to the construction and operation of a mine at the Company's Mary River
project. You should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. While the
Company may elect to, the Company is under no obligation and does not
undertake to update this information at any particular time.

    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or any applicable exemption from the registration
requirements. This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful.





For further information:

For further information: Please visit Baffinland's website at
www.baffinland.com, email info@baffinland.com or contact: Gordon A. McCreary,
President and Chief Executive Officer, (416) 814-3163; Andreas Curkovic, The
Equicom Group, (416) 815-0700 ext. 262

Organization Profile

BAFFINLAND IRON MINES CORPORATION

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