Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

April 01, 2009 17:15 ET

Baffinland Announces Closing of Private Placement Offerings

TORONTO, ONTARIO--(Marketwire - April 1, 2009) - Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) announced today that Baffinland has received $4,213,547.16 that was held in escrow in connection with a private placement of common shares and subscription receipts to Resource Capital Fund IV L.P. ("Resource LP") that closed on December 11, 2008. The funds were held in escrow in respect of 22,176,564 subscription receipts (the "Subscription Receipts") issued to Resource LP, which entitled Resource LP to acquire one common share of the Company for no additional consideration at any time prior to June 1, 2009 on notice being given that the Company and its shareholders have approved certain amendments to its shareholder rights plan and any other escrow release conditions having been met. The shareholders of Baffinland approved an amended and restated shareholders rights plan agreement (the "Rights Plan") at an annual and special meeting of shareholders held on March 24, 2009. On April 1, 2009 Baffinland and Resource LP jointly waived a condition of the subscription agreement between the parties requiring that 61 days have elapsed since the date of the approval of the Rights Plan, and Resource LP exchanged the Subscription Receipts for 22,176,564 common shares of the Company.

The proceeds released from escrow will be used to continue exploration activities at the Mary River project and for general corporate purposes.

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.

Please visit Baffinland's website at, email

This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. 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 use of proceeds of the funds released from escrow, is 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, 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.

Forward looking-information is subject to certain factors, including risks and uncertainties that 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, regulatory risks, including risks relating to the acquisition of necessary licenses 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, except as required by law.

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