Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

November 29, 2007 09:00 ET

Baffinland Announces Plans to Expand Definitive Feasibility Study to 18 Million Tonnes Per Year for the Mary River Project

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2007) - Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") today announced revised plans for completion of the Definitive Feasibility Study (the "DFS") for Deposit No. 1 of its 100%-owned Mary River Project, located in Nunavut Territory, Canada. As previously announced, the Company had initially targeted completion of a DFS for December of 2007 with an initial production rate of 12.6 million tonnes per year. Due to, among other things, the cumulative exploration success at Mary River and the continuing strength in the global iron ore market, the Company has now determined to expand its initial targeted production rate to 18 million tonnes per year. As a result, the Company now expects the DFS to be completed in February 2008. In light of the planned increase in the targeted production rate, as well as the decision to make Steensby Inlet on the south coast of Baffin Island our preferred port site and the general increase in costs since the original May 2006 Scoping Study, the Company now expects the initial capital costs for the Mary River Project to be significantly higher than the estimate for the 10 million tonnes per year scenario set out in the May 2006 Scoping Study.

Gordon McCreary, President and CEO of Baffinland stated that, "In the current increasing capital cost environment, we are fortunate to have the high quality and quantity of iron ore that allows our proposed direct-shipping operation to be scaled up to larger production levels thereby capturing certain economies of scale."

The DFS is being managed by Aker Kvaerner E&C ("Aker Kvaerner"), a division of Aker Kvaerner Canada Inc. Concurrently with the release of the results of the DFS, Baffinland also intends to release its year-end 2007 reserve and resource statement.

In addition to successful infill drilling of Deposit No. 1, exploration drilling in 2007 has also established continuity between Deposit Nos. 3 and 3A over a strike length of approximately 2.2 kilometres. The second and final tranche of exploration results for 2007 are expected to be released prior to the end of 2007. Aker Kvaerner has also been asked to expand the previously announced "Blue Sky Study" from 25 million tonnes per year to 30 million tonnes per year based on the potential exploitation of Deposit Nos. 1, 2, and 3. This conceptual study, scheduled to be completed late in the first quarter of 2008, will support long term strategic planning, and is anticipated to demonstrate the further scalability of the Mary River Project.

Following the release of the DFS, the Company plans to submit a detailed Project Description to the regulators in order to initiate the regulatory review process. As announced in September 2007, the target date for initiation of construction remains mid-2010 with mining expected to commence in 2013 and initial shipping of lump and fines to markets, primarily in Europe, scheduled for 2014.

Additional Disclosure

Geologic analysis is provided by Dr. Lynn Moxham, P. Geo. and geological modeling is performed by George Wahl, P. Geo., while open pit mine modeling is performed by Rene Gharapetian, P. Eng. All three of these independent technical professionals are Qualified Persons as defined by NI 43-101 and they performed their resource analysis and open pit modeling under the guidance of Aker Kvaerner E&C for inclusion in the Scoping Study, DFS and "Blue Sky Study".

Assaying and analytical work are performed by SGS Lakefield Research Limited ("Lakefield") under a strict protocol designed for testing lump iron ores. Samples are then sent from Lakefield to Studien Gesellschaft fur Eisenerz-Aufbereitung ("SGA") in Germany, where samples are composited for detailed metallurgical testing to ISO standards for iron ore. The testwork is specific for lump ores. Additional test-work is also completed on fine material for sintering.

Drill hole metallurgical data were interpreted by Michael T. Zurowski, P. Eng., Executive VP and a Qualified Person as defined by NI 43-101. As VP Operations and COO, Rodney Cooper, P. Eng., a Qualified Person as defined by NI 43-101, has had oversight responsibility regarding resource estimation, engineering studies and environmental permitting.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may attach to indicated mineral resources, there is no assurance that mineral resources will be upgraded to proven and probable ore reserves. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

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. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "believe", "plan", "scheduled", "intend", "estimate", "forecast", "predict", "potential", "continue", "anticipate" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about the Company's plans to complete the Definitive Feasibility Study, to release its year-end 2007 reserves and resources statement, to release the 2007 exploration results prior to the end of 2007, to complete a Blue Sky Study by the first quarter of 2008, to complete a detailed project description and to initiate the regulatory review process, including the scheduled timing thereof and other related statements, statements about the timing of the commencement of construction and statements about the timing of the first mining and commercial delivery, are forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices, the timing and amount of future exploration expenditures, the estimation of additional capital requirements and initial capital costs, the availability of necessary financing and materials, the receipt of necessary regulatory approvals, the feasibility of constructing and operating a direct-shipping iron ore mine at the Company's Mary River Project and assumptions with respect to environmental risks, title disputes or claims, weather conditions and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Without limitation, in stating that the Company has scheduled the completion of the Definitive Feasibility Study in February of 2008, the release of the 2007 exploration results prior to the end of 2007 and completion of a Blue Sky Study by the first quarter of 2008 and plans to initiate construction in mid-2010, to undertake its first commercial mining in 2013 followed by commercial deliveries in 2014, and related statements, the Company has assumed among other things, that iron ore prices, operating costs and capital costs will not change materially from those used in its current financial forecasts and that it will obtain the financing and regulatory approval and other authorizations required to enable the exploration, development and mining activities required in order to complete such activities. In stating that the Company anticipates initiating the regulatory review process and the completion of a detailed Project Description, and related statements, the Company has assumed among other things, that it will successfully negotiate and complete an environmental assessment process through the Nunavut Impact Review Board and that it will successfully negotiate and execute an Inuit Impact Benefits Agreement.

Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. These factors include risks inherent in the exploration for and development of mineral deposits, risks relating to changes in iron ore prices and changes in the worldwide demand for, and supply of, iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River property including access and supply risks, reliance on key personnel, construction and operational risks inherent in the conduct of mining activities, including the risk of changes in capital and operation costs, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all, environmental risks and insurance risks.

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.

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