Baffinland Iron Mines Corporation Announces Closing of Additional Investment by Mitsubishi Corporation



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

    TORONTO, March 26 /CNW/ - Baffinland Iron Mines Corporation ("Baffinland"
or the "Company") (TSX:BIM) is pleased to announce that it has closed its
previously announced private placement offering of 1,054,875 units (the
"Units") at a price of $2.75 per Unit for aggregate gross proceeds of
$2,900,906.25 with Mitsubishi Corporation ("Mitsubishi"). Each Unit is
comprised of one common share (each a "Common Share") of the Company and
one-half of one Common Share purchase warrant (each whole Common Share
purchase Warrant, a "Warrant"). Each whole Warrant entitles the holder thereof
to acquire one additional Common Share of the Company at a price of $5.50 per
Common Share until January 31, 2012, subject to adjustment in certain events.
    "We are very pleased that Mitsubishi, one of the largest diversified
trading and investment companies in the world, has demonstrated its continued
interest and confidence in Baffinland and the Mary River Project through its
additional investment the Company", stated Gordon McCreary, President and CEO
of Baffinland.
    The Company intends to use the net proceeds of the subscription by
Mitsubishi to finance exploration and potential development activities at the
Company's 100% owned Mary River project, a high grade, potential direct
shipping iron ore operation located in Nunavut Territory, Canada, and for
general corporate purposes.
    Baffinland is a mining exploration and development company focused on
exploring and developing the iron ore deposits location on the Mary River Iron
Ore Project in Northern Baffin Island, Nunavut.

    This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws. In some
cases, forward-looking information can be identified by the use of terms such
as "may", "will", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. Particularly,
information about the potential for a direct shipping iron ore operation is
forward-looking information.
    Forward-looking information is based on certain factors and assumptions
regarding, among other things, market conditions and 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 regulatory risks, as well as
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, except as required by law.

    The securities offered as described herein 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 an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall 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: visit the Baffinland website at
www.baffinland.com, e-mail info@baffinland.com; or contact: Gordon A.
McCreary: President and CEO, Baffinland Iron Mines Corporation, (416)
814-3163; Investor Relations: Andreas Curkovic, The Equicom Group, (416)
815-0700 x 262

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BAFFINLAND IRON MINES CORPORATION

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