Labrador Iron Ore Royalty Income Fund

    TORONTO, March 12 /CNW/ - The Iron Ore Company of Canada (IOC) announced
(see attached press release) that the United Steel Workers of America at its
Labrador city operations commenced a strike on March 9th.
    The strike at IOC will adversely affect the revenue of the Labrador Iron
Ore Royalty Income Fund (the "Fund") as the Fund's income is entirely
dependent on the sale of iron ore products by IOC.

    Iron Ore Company of Canada

    For immediate release


    (Canada) Montreal, Sept-Iles, Labrador City, March 11, 2007 -  The Iron
Ore Company of Canada is disappointed that employees at their Labrador City
operations voted to commence a legal strike on Friday March 9th, 2007.
    Terence Bowles, President and CEO of IOC said : "We are concerned that
our employees rejected the recent contract offer particularly given that major
issues previously raised by the Union and our employees were all addressed in
this offer. Along with wage and benefit increases of almost 10% over three
years and a $4000 signing bonus, the Hydro subsidy was maintained as well as
the status quo on contracting out. Our negotiating team worked very hard to
find common ground, ultimately agreeing to many of the Union's requests during
the marathon negotiations sessions of this past week. We were disappointed
that our employees did not take at least a day to consider the contract
proposal before making such an important decision. As we all know strikes cost
everyone and that will certainly be true in this case. We are hopeful that a
way forward can be found before this strike has major impact on all of our

    About IOC

    IOC is the largest manufacturer of iron ore pellets in Canada and its
customer base covers North American, European and Asian steel producers. The
Company operates a mine, concentrator and a pelletizing plant in Labrador
City, Newfoundland and Labrador, as well as port facilities located in
Sept-Iles (Quebec). It also operates a 418 kilometer railroad that links the
mine to the port. IOC has approximately 1800 employees and its major
shareholder and operator is the international mining group Rio Tinto, which
has activities in more than 40 countries throughout the world.

                                            IOC is certified : ISO 9001:2000.
                              IOC is certified : ISO 14001-2004 (Environment)
    %SEDAR: 00002722E

For further information:

For further information: Bruce C. Bone, Chairman & Chief Executive
Officer, (416) 863-7133

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