Resource Capital Fund IV L.P. Acquires Securities Convertible into Common Shares of Baffinland Iron Mines Corporation



    DENVER, CO, Sept. 2 /CNW/ - Resource Capital Fund IV L.P. ("RCF IV")
reports that, pursuant to a US$13 million convertible environmental guarantee
support facility (the "Facility") between RCF IV and Baffinland Iron Mines
Corporation ("Baffinland"), RCF IV may, on or after August 16, 2010, convert
any outstanding principal amount owing under the Facility into a maximum of
32,500,000 common shares of Baffinland representing approximately 12.7% of
Baffinland's outstanding shares. If RCF IV elects to receive all of the
interest over the full term as common shares of Baffinland at the conversion
price of $0.46 per share, for example, using a fixed conversion rate of
US$1.00=C$1.15 (the Facility calls for interest payments to be converted at a
price based on the weighted average of the preceding 20 trading days at the
end of the relevant quarter), RCF IV may acquire an additional 12,417,548
common shares of Baffinland representing approximately 4.9% of the common
shares of Baffinland. In connection with the Facility, RCF IV was paid (i) an
establishment fee that may, at RCF IV's option, be satisfied on October 10,
2009 by the issuance of 487,500 common shares of Baffinland representing
approximately 0.19% of Baffinland's outstanding common shares and (ii) a
commitment fee that accrues until August 16, 2010 and may, at RCF IV's option,
be satisfied by the issuance of up to 155,377 common shares of Baffinland
representing approximately 0.06% of Baffinland's outstanding shares.
    Immediately prior to the acquisition, RCF IV, together with Resource
Capital Fund III L.P. ("RCF III"), controlled, directly or indirectly,
57,358,270 common shares of Baffinland representing approximately 22.5% of
Baffinland's outstanding shares. In addition, RCF IV and RCF III also
controlled, directly or indirectly, options and warrants exercisable into
1,818,182 common shares of Baffinland representing approximately 0.7% of
Baffinland's outstanding shares.
    The securities were acquired for investment purposes. RCF IV will
evaluate its investment in Baffinland from time to time and may, based on such
evaluation of market conditions and other circumstances, increase or decrease
shareholdings in Baffinland as circumstances require.
    For further information and to obtain a copy of the early warning report
filed under applicable Canadian securities laws in connection with the
transactions hereunder, please see Baffinland's profile on the SEDAR website
www.sedar.com.





For further information:

For further information: Resource Capital Fund IV L.P., 1400 Sixteenth
Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444


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