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LABRADOR IRON MINES LTD AND INNU TAKUAIKAN UASHAT MAK MANI-UTENAM (ITUM)
REACH AN AGREEMENT-IN-PRINCIPLE
FOR THE DEVELOPMENT OF MINING PROJECTS IN SCHEFFERVILLE


News provided by

Innu Takuaikan Uashat Mak Mani-Utenam (ITUM)

Dec 20, 2010, 11:51 ET

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UASHAT, QC, Dec. 20 /CNW Telbec/ - Representatives of Innu Takuaikan Uashat Mak Mani-Utenam (ITUM) and the Labrador Iron Mines (TSX: LIM) reached an Agreement-in-Principle (AIP) concerning the development of LIM's iron ore mining projects located in Schefferville.

The two sides signed the AIP to provide the principal terms and framework for fast track discussions towards establishing an Impact Benefits Agreement (IBA) for LIM's mining projects.

"LIM is very pleased to have reached an agreement in principle with the Uashaunnuat Innu, said LIM's Chairman, John Kearney.  "This is a very positive and important step for the development of our iron ore projects. In signing this agreement, we believe we have established a co-operative and mutually beneficial relationship with the Uashaunnuat, based on mutual respect, and we look forward to working with the Uashaunnuat and building on that relationship as our mining projects move forward in the future."

For ITUM this Agreement-in-Principle is in line with the on-going process of the full recognition of the rights of the Uashaunnuat to their lands, their resources and their traditional territory located in Labrador. "Following our discussions and negotiations with both the Government of Newfoundland and Labrador and with Labrador Iron Mines, we are confident that our message is now increasingly clear to all stakeholders whether they hold an economic or political perspective: the development of our natural resources cannot be done without the consent of the Uashaunnuat. The Agreement reached between ITUM and LIM reflects this fundamental principle." said Innu Chief Georges-Ernest Grégoire.

ITUM's agreement with LIM does not bind other indigenous groups who have claims or other demands on this territory.

Under this Agreement, representatives of Innu Takuaikan Uashat Mak Mani-Utenam (ITUM) agreed to discontinue all legal proceedings against Labrador Iron Mines.

Here and elsewhere, Indigenous Peoples are engaged in the same struggle against the exploitation of their traditional lands and in the background with the same themes and the same challenges: protecting their traditional territories, identifying their environmental concerns, taking into consideration areas for traditional food production versus their right to development, including the creation of jobs and wealth in their favor.

With this Agreement, ITUM ensures that the interests and the rights of the Uashaunnuat will be accommodated as appropriate measures will be taken to mitigate the adverse environmental, economic, social and cultural impacts of LIM projects while also ensuring the respect of the fundamental principal of the free, prior and informed consent of the Uashaunnuat before any mining development happens on their territory.

ITUM underlines that the Government of Newfoundland and Labrador played an important role in helping achieve the resolution of certain issues reflected in the Agreement, in particular by a commitment to consult with ITUM on future phases of LIM's Projects. "I am satisfied that such an agreement is reached at this time and that harmonious relations are established with the Company Labrador Iron Mines, as well as with the Government of Newfoundland and Labrador, paving the way for a project that will benefit both the region and the Innu." concluded Innu Chief Georges-Ernest Grégoire.

For further information:

Kateri-C. Jourdain Tel: 418-961-8586

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Innu Takuaikan Uashat Mak Mani-Utenam (ITUM)

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