Baffinland announces Mitsubishi's participation right expires


    TORONTO, Oct. 19 /CNW/ - Baffinland Iron Mines Corporation ("Baffinland"
or the "Company") announced today the expiration of Mitsubishi Corporation's
("Mitsubishi") participation right under its agreement with Mitsubishi dated
December 22, 2005 (the "Agreement").
    Under the terms of the Agreement, in order to have maintained its
participation right, Mitsubishi was required to participate in the Company's
most recent securities offering of flow-through and non-flow through shares,
such that after giving effect to its participation, Mitsubishi would have held
5% or more of the outstanding shares.
    "With the completion of Baffinland's definitive feasibility study (the
"DFS") anticipated in December 2007, and Mitsubishi's interest in further
investment upon receipt of the DFS, Mitsubishi elected to not participate in
our most recent private placement", said Gordon A. McCreary, President and
Chief Executive Officer of Baffinland. "Mitsubishi's investment perspective is
of a long-term nature and we are looking forward to discussing its long-term
investment objectives following the release of our DFS."
    "Despite losing the Participation Right, Mitsubishi's supportive position
as Baffinland's strategic investor will not change and we will remain strongly
interested in our further involvement in Baffinland in the future. We will be
looking forward to discussing the next opportunity of equity financing upon
receiving the definitive feasibility study in the near future", said Mr. Iwao
Toide, General Manager, Iron Ore Business Unit of Mitsubishi.

    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, the completion of a definitive feasibility
study including the timing of completion and related statements thereto,
obtaining additional investment from current strategic investors including the
timing of receipt and related statements thereto, 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 financing risk,
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.

For further information:

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

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