New Mineralized Extension at LIM’s Houston Deposits

Increase of Houston Resource to 20 Million Tonnes

Anglesey Mining’s 41% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report a new resource estimate for its 100% owned Houston deposits located in western Labrador following the 2010 exploration drilling program.  The new resource estimate of 19,499,000 tonnes of measured and indicated resources represents a significant increase over previous estimates.

Commenting on the increased resource estimate at the Houston deposits, John F. Kearney, Chairman and CEO of Labrador Iron Mines said, “As a result of the exploration success and this significant increase, the Houston deposits are now of sufficient tonnage to merit evaluation of a stand-alone operation.  We are now assessing the development of a new separate “South Central Zone”, with its own dedicated processing plant, which, subject to environmental assessment, permitting and detailed engineering, could be brought into production in 2013 at a of 2 to 3 million tonnes per year.  This would be in addition to LIM’s existing processing plant at Silver Yards scheduled to start up in April and which with planned expansions will have a similar design capacity.”

The Houston 1, 2 and 3 deposits comprise 12 mineral rights licenses representing 112 mineral claim units that cover approximately 2,800 hectares, situated 15 km south-east of LIM’s James Mine and Silver Yards processing area and approximately  20 km from the town of Schefferville, Quebec.  The Houston deposits form part of the Stage 1 planned production at LIM’s Schefferville area direct shipping iron ore projects.

The new estimate, prepared in accordance with NI 43-101, represents an increase in tonnage of over 25% from the previous NI 43-101 estimate announced in April 2010 and more than double the historical resource (not NI 43-101 compliant) previously estimated by the Iron Ore Company of Canada (IOC) prior to 1982.  The new resource also includes about one million tonnes of manganiferous ore (Mn) grading about 54.4% Fe and 5% manganese.

The Houston Deposits –Resource Summary – February 2011
(See attached table for details)

43-101 (February 2011)

43-101 (April 2010)

Historical 1982

Class

Tonnes

Fe

Mn

SiO2

Tonnes

Fe

Mn

SiO2

Tonnes

Fe

Mn

SiO2

x 1000

%

%

%

T x 1000

%

%

%

x 1000

%

%

%

Fe
Ore

M+IND

18,582

58.7

0.7

12.2

14,684

59.3

0.6

11.3

9,114

57.4

7.1

INF

1,014

56.3

1.0

15.9

1,498

57.0

0.8

14.7

Mn
Ore

M+IND

917

54.4

5.4

9.2

831

54.3

5.5

9.1

INF

10

53.2

4.5

11.5

47

54.0

4.6

10.3

TOTAL

M+IND

19,499

58.3

0.9

12.3

15,515

59.0

0.9

11.2

9,114

57.4

7.1

INF

1,024

55.8

1.0

16.5

1,545

56.9

0.9

14.5

Technical Report filed on Sedar on May 25 2010.

The updated resource estimates for the Houston deposits are based on an additional 1,804 metres of drilling in 26 holes and 625 samples carried out by LIM in 2010.  The majority of the additional resource has resulted from the drilling of a new mineralized zone located between the Houston 1 and 2 deposits, as well as in-fill drilling within the deposit outlines during 2010.  The Houston deposits remain open along strike particularly to the southeast and further drilling is planned on Houston 3 during 2011.

The classification of resources was completed using the results of drilling and trenching carried out by LIM during the 2006 to 2010 field seasons, which comprised twinning, in-fill and step-out drilling and trenching, as well as drill and trench data previously obtained by IOC.

Block Modelling

LIM used Gemcom GEMS 6.4.2.1 software for the resource estimation. The ordinary kriging interpolation method was used to estimate the resources by block modelling with block sizes of 5x5x5 metres and block rotation of 45.6° which matches with the general strike of the deposit. LIM used the geological and ore models interpreted in plane and in sections. LIM used different search ellipses derived from 3D semi-variogram analyses for the classification of the resources.

Analyses

Analyses for all of the samples from the 2006 to 2010 drilling and trenching programs were carried out by SGS-Lakefield Laboratory and Activation Laboratories. The analytical method used was borate fusion whole rock X-Ray Fluorescence.

Qualified Person

The resource estimates and information of a scientific or technical nature contained in this release has been prepared by or under the supervision of Terence McKillen, P.Geo., Executive Vice President of the Corporation and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators. A Technical Report will be filed on Sedar within the required time frame.

About Labrador Iron Mines Holdings Limited (LIM)

LIM’s Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. The Company’s properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982.

Labrador Iron Mines contemplates mining in stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure, where construction is being completed and mine start-up is planned to commence in Spring 2011.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981

Ian Cuthbertson, Finance Director +44 (0) 1248 361333

Emily Fenton / Charlie Geller,
Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035

Table Attached to LIM Press Release Feb 11, 2011
Houston Deposits – NI 43-101 Compliant Direct Shipping Resources – Feb 2011

Measured and Indicated
Area Ore Type Tonnes

(x 1000)

Fe% Mn% SiO2%
Houston 1 LNB-NB 4,970.6 61.1 0.7 8.8
HiSiO2 1,277.7 52.8 0.6 21.1
LMN-HMN 510.8 54.8 5.4 8.8
Total 6,759.1 59.0 1.0 11.1
Houston 2N LNB-NB 55.2 60.2 0.6 11.6
HiSiO2 116.9 52.4 0.6 22.8
LMN-HMN 9.0 44.8 10.7 13.4
Total 181.1 54.4 1.1 18.9
Houston 2S LNB-NB 5,989.0 60.3 0.7 10.1
HiSiO2 2,565.5 52.6 0.8 21.5
LMN-HMN 144.2 56.0 4.8 9.5
Total 8,698.7 58.0 0.8 13.4
Houston 3 LNB-NB 3,013.6 59.4 0.9 10.0
HiSiO2 593.8 52.6 0.7 20.9
LMN-HMN 253.0 52.6 5.3 10.2
Total 3,860.4 57.9 1.2 11.7
Total 19,499.3 58.3 0.9 12.3

Inferred

Houston 1 LNB-NB 80.7 58.2 0.6 13.0
HiSiO2 86.9 52.4 0.5 20.4
LMN-HMN 4.2 54.7 4.2 10.6
Total 171.9 55.2 0.7 16.7
Houston 2N LNB-NB
HiSiO2 0.4 50.8 0.8 24.3
LMN-HMN
Total 0.4 50.8 0.8 24.3
Houston 2S LNB-NB 335.9 59.4 1.0 12.0
HiSiO2 298.1 52.5 1.3 21.2
LMN-HMN
Total 634.0 56.2 1.1 16.3
Houston 3 LNB-NB 107.6 58.3 1.0 12.4
HiSiO2 104.3 52.6 0.6 21.6
LMN-HMN 5.3 50.6 4.3 12.8
Total 217.2 55.3 0.9 16.8
Total 1,023.5 55.8 1.0 16.5

Ore Types Ore Colours T_Fe% T_Mn% SiO2% Al2O3%
NB (Non-bessemer) Blue, Red, Yellow >=55 <3.5 <10 <5
LNB (Lean non-bessemer) Blue, Red, Yellow >=50 <3.5 <18 <5
HiSiO2 (High Silica) Blue >=50 <3.5 18-30 <5
HMN (High Manganiferous) Blue, Red, Yellow (Fe+Mn) >=50 >=6 <18 <5
LMN (Low Manganiferous) Blue, Red, Yellow (Fe+Mn) >=50 3.5-6 <18 <5

LIM resource definitions includes Hi-SiO2 ores (>=50% Fe <=30% SiO2 dry basis)

The original IOC ore definition was: >=50% Fe, <=18% SiO2 dry basis.

A variable specific gravity (density) was used for the modeled ore blocks using the following equation previously calculated by LIM based upon 229 specific gravity tests: SG = (2.3388 + Fe x 0.0258) x 0.9

Blue ores, which are composed mainly of the minerals hematite and martite, are generally coarse grained and friable. They are usually found in the middle section of the iron formation.

Yellow ores, which are made up of the minerals limonite and goethite, are located in the lower section of the iron formation in a unit referred to as the “silicate carbonate iron formation” or SCIF.

Red ore is predominantly a red earthy hematite. It forms the basal layer that underlies the lower section of the iron formation. Red ore is characterized by its clay and slate-like texture.

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