New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

October 22, 2009 15:45 ET

New Millennium Capital Corp. Announces Signing of an Asset Exchange and Rail Co-Operation Agreement With Labrador Iron Mines Ltd.

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2009) -

New Millennium Capital Corp. ("NML" or"the Corporation") (TSX VENTURE:NML) announced that NML and Labrador Iron Mines Ltd. (LIM) have signed an Asset Exchange Agreement ("AEA") to exchange certain direct shipping iron ore mineral properties located in the Provinces of Newfoundland & Labrador ("NL") and Quebec ("QC"). In addition, the two companies have also signed a Rail Co-operation Agreement ("RCA") regarding the reconstruction and permitting of the "Timmins Extension" rail tracks from TSH Railroad main line near Schefferville to the Timmins mining areas (Attached map Figure 1). NML also provides an update on the progress of its DSO Feasibility Study.

Robert Martin, President and CEO of New Millennium, said, "These agreements represent another key step in moving our DSO Project toward production. By rationalizing fragmented ownership of certain DSO deposits NML will increase the efficiency of our operations and minable tonnage In addition, the RCA enables both companies to rebuild the necessary rail infrastructure in their respective operating areas and allows the construction of passing tracks and sidings in common areas. I am very pleased that we have arrived at mutually beneficial agreements with Labrador Iron Mines. A large scale project like the DSO requires agreements with several third parties and we regard these positive agreements with LIM as showing the value that accrues to all parties through cooperation and recognition of common interests."

The Agreements:

AEA

Prior to the AEA, NML and LIM had partial ownership of 12 DSO deposits out of NML's 31 DSO deposits. The exchanged deposits are located in 3 (three) different areas (Attached map Figure 2). NML shared with LIM certain deposits in Areas 1, 3 & 4. NML has exchanged certain mineral properties in Areas 1 & 3 with LIM and has acquired the ownership of additional resources in Area 4 where the Company plans to concentrate its mining activities. These exchanges were based on historical estimates of gross quantities (non NI 43-101 compliant) of ore contained in the DSO deposits and involve equal exchanges of about 13 million tonnes. This new distribution will enable both NML and LIM to optimize their operations based on concentration of mining in their respective areas.

The historical estimates contained in this news release of quantities of direct shipping quality ore are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, NML is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term "ore" in this release is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability.

RCA

The RCA provides the framework in which both NML and LIM have agreed to co-operate in the development of their respective projects. Some of the key components of the RCA are:

  1. To facilitate iron ore mining, processing and transportation activities by allowing each party to apply for all required rights of way and/or surface rights.
  2. To apply to government authorities to grant the right to each party on a specific portion of the Timmins Extension, along with rights of access to, construction on and use of such specific portion as are mutually granted by one party to the other party.
  3. To negotiate and enter into an Operating agreement to determine terms of access to, use of the Timmins Extension and tariff to be paid by each party with respect to its use of the portion of rail line for which the other party holds the rights of way.
  4. To collaborate in order to determine the most expedient means to refurbish the TSH Railway to standards required to carry out the transportation of minerals extracted from the DSO deposits.

    DSO Feasibility Study Update:

    New Millennium has made considerable progress regarding the Feasibility Study; but, the Company needs further clarity regarding ongoing negotiations with third parties. Conclusion of these negotiations is essential in order to finalize the Feasibility Study with a sufficient degree of confidence in the results. Updates will be provided as negotiations are completed. A pre-feasibility study has been completed and results were published in the news release 09-05 on March 4, 2009.

    Dean Journeaux, eng. and Bish Chanda, eng. are the Qualified Persons as defined in NI 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release on behalf of NML.

    About New Millennium

    New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's eighth largest steel corporation, owns 19.9% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata has an exclusive option to participate in the DSO Project, a commitment to take the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13, July 5 2006 and 07-11, July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01, January 15, 2009).

    The Corporation's DSO project contains 52.5 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.9% Fe, 3.5 million tonnes of measured and indicated Mineral Resources at an average grade of 59.0% Fe, 5.8 million tonnes of Inferred Resources at an average grade of 55.8% Fe and about 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 10, 2009 and news release 09-05, March 4, 2009). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

    The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

    Forward-Looking Statements

    This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements.

    Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

    Accordingly, readers should not place undue reliance on forward looking statements.

    To view an image of Figure 1 - Timmins Extension, please click on the following link: http://media3.marketwire.com/docs/1022nml%204.pdf

    To view an image of Figure 2 - Asset Exchange Agreement Deposits, please click on the following link: http://media3.marketwire.com/docs/1022nml%205.pdf

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