Labrador Iron Mines Holdings Limited Closing of Initial Public Offering; $46 Million Financing; Shares and warrants Listed on Toronto Stock Exchange



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US
    WIRE SERVICES/

    TORONTO, Dec. 3 /CNW/ - Labrador Iron Mines Holdings Limited (TSX:LIR) is
pleased to announce that it has completed its Initial Public Offering for
total gross proceeds of $45,892,000.
    The offering consisted of 11,473,000 units at a price of $4.00 per unit.
Each unit consists of one common share and one-half of one common share
purchase warrant, each whole warrant exercisable to purchase one additional
common share at a price of $5.00 per share at any time prior to 24 months from
the closing of the offering.
    The common shares and warrants of Labrador Iron Mines Holdings Limited
began trading today on the Toronto Stock Exchange under the symbols "LIR" and
"LIR.WT", respectively.
    Canaccord Capital Corporation acted as sole agent in the offering. The
Company has granted Canaccord an over-allotment option, exercisable for a
period of 30 days following the closing of the offering, to purchase up to an
additional 15% of the number of units issued pursuant to the offering at a
price of $4.00 per unit.

    About Labrador Iron Mines Holdings Limited

    The Company was established with the primary business objective of
exploring for and developing direct shipping iron ore deposits on properties
in which it holds interests located in the Labrador Trough, in the province of
Newfoundland and Labrador, near Schefferville, Québec.
    Following completion of the Offering, the Company has 35,473,001 common
shares, 5,736,500 share purchase warrants, 745,745 broker warrants and
2,950,000 director and employee stock options outstanding.

    Cautionary Notes:

    The securities described herein have not been and will not be registered
under the United States Securities Act of 1933, as amended, or the securities
laws of any state and may not be offered or sold in the United States absent
an exemption from registration.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

    This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation.






For further information:

For further information: Company Contacts: John F. Kearney, Chairman and
CEO, T: (416) 362-6686; Bill Hooley, President and COO, T: (011) 44 778 557
2517; Terence McKillen, Vice President, T: (416) 362-8243

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Labrador Iron Mines Holdings Limited

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