Labrador Iron Mines Holdings Limited Innu Nation of Labrador - Impact Benefit Agreement signed with Innu Nation of Labrador

    TORONTO, July 24 /CNW/ - Labrador Iron Mines Holdings Limited (TSX: LIR)
and Innu Nation of Labrador are pleased to announce that they have signed an
Impact Benefit Agreement (IBA) committing to an ongoing relationship between
the Innu Nation and Labrador Iron Mines Limited with respect to the
development of Labrador Iron Mine's direct shipping hematite iron ore project
located in northwestern Labrador, near Schefferville, Quebec.
    The Agreement was signed in Quebec City by Innu Nation Grand Chief Mark
Nui and Labrador Iron Mines Chairman, John F. Kearney and follows the earlier
execution of a Memorandum of Understanding between the parties. The Innu
Nation represents the Sheshatshiu Innu First Nation and the Mushuau Innu First
Nation, living in the communities of Sheshatshiu and Natuashish, Labrador.
    The IBA is a life of mine agreement that establishes the processes and
sharing of benefits that will ensure an ongoing positive relationship between
Labrador Iron Mines and the Innu Nation. In return for their consent and
support of the Labrador Iron Mines project, the Innu Nation and their members
will benefit through training, employment, business opportunities and
financial participation in the project.
    "This agreement demonstrates that the Innu Nation continues to work in a
positive and creative way with companies pursuing developments in our
traditional territory in a manner that achieves our respective objectives."
said Grand Chief Mark Nui. "This agreement provides assurances that the
project will be implemented in a manner that protects the environment and our
lands while at the same time providing tangible benefits to our people and to
the company's shareholders."
    The Chairman and CEO of Labrador Iron Mines, John F. Kearney agreed: "We
look forward to working together with the Innu Nation as well as the other
Aboriginal partners who will be part of this project. We see this IBA as a
continuation of a positive working relationship with the Innu Nation. We
believe that our future together will be mutually beneficial."
    Both Labrador Iron Mines and the Innu Nation confirmed that other
adjacent First Nations will also be invited to participate and benefit from
the project. "It is important to the Company, that all Aboriginal and other
adjacent communities have the opportunity to benefit from the project." stated
Kearney. "We are committed to the principle of maximizing local participation
and benefits."
    Peter Penashue, Deputy Grand Chief of the Innu Nation noted that "Our
agreement has been structured to ensure that the majority of the employment
and financial benefits will go to the adjacent First Nations, given their
proximity to the project and the fact that the iron ore will be shipped
through their traditional territory"


    Innu Nation

    The Innu Nation is a political organization which represents Innu of
Labrador and their communities, the Mushuau Innu First Nation and the
Sheshatshiu Innu First Nation in their collective dealings with all levels of
governments and with industry. The Innu Nation works to ensure effective
participation by Innu in the political, social and economic development of
    Innu Nation provides a collective political voice for the Innu people of
Labrador on issues of significant economic, social, political and
environmental importance to the Innu. It seeks to conclude agreements with
public and private institutions to provide opportunities for Innu. The
beneficiaries of the ongoing work of the Innu Nation are specifically the Innu
people of Labrador. By creating opportunities for Innu to improve their lives
and the lives of their children, the Innu are working toward building a
sustainable future for their members.
    Innu Nation partners in this work include the communities of Natuashish
and Sheshatshiu, Innu Development Limited Partnership, Innu Business
Development Center, Mushuau Innu First Nation and the Sheshatshiu Innu First
Nation. As well, the Innu Nation works closely with the Innu service delivery
organizations in the communities, on issues that impact their programs.

    Labrador Iron Mines

    Labrador Iron Mines holds interests in mineral claims and mineral
licenses in northwestern Labrador that was formerly part of the iron ore
reserves and resources established by the Iron Ore Company of Canada prior to
the closure of its direct shipping operations in the Schefferville area in
1982. The project is located in Labrador adjacent to Schefferville, Quebec on
lands to which the Innu Nation asserts traditional Aboriginal rights. Labrador
Iron Mines plans to initially ship 1 to 2 million tonnes a year of lump and
sinter fine iron ores in the planned first phase of development growing to
3 million tonnes per annum in the second phase, and possibly increasing to
5 million tonnes a year as additional deposits are developed.
    Labrador Iron Mines has submitted a Project Registration Application for
the first phase of development of the Project to the Department of Environment
and Conservation in the Province of Newfoundland and Labrador and to the
Canadian Environmental Assessment Agency (CEAA). The Project Registration
Documentation addresses production from the James North, James South and
Redmond properties.
    Labrador Iron Mines Holdings Limited was established to explore and
develop "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, Quebec. The Company was listed on the TSX in
December 2007, following a successful IPO in which it raised over $52 million.
    The Company's properties in Labrador are part of the historic
Schefferville iron ore district from which over 150 million tons of direct
shipping iron ore was previously mined by the Iron Ore Company of Canada from
1954 to 1982. Subject to receipt of permits Labrador Iron Mines is targeting
to commence production and sale of both lump and sinter fine iron ore in 2009.
    The common shares and warrants of Labrador Iron Mines Holdings Limited
are listed on the Toronto Stock Exchange under the symbols "LIR" and "LIR.WT",

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, Executive Vice President, T: (416) 362-8243; Joseph
Lanzon, Government & Corporate Affairs, T: (613) 796-5957; Labrador Iron Mines
Limited, 220 Bay Street, Suite 700, Toronto, Ontario, Canada, M5J 2W4, Tel:
(416) 362-6686, Fax: (416) 368-5344, E-mail:,
Website:; Innu Nation Contacts: Peter Penashue,
Deputy Grand Chief, Innu Nation, T: (709) 897-4019, P.O. Box 119, Sheshatshiu,
Labrador, NL, A0P 1M0, Website:

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