SOURCE: Liberty Mines Inc.

June 13, 2006 09:00 ET

Liberty Adds 104 Units Adjacent to the Redstone Property

TIMMINS, ON -- (MARKET WIRE) -- June 13, 2006 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty") is pleased to announce that it has entered into option agreements to acquire a 100% interest in a 104-unit group of claims contiguous to the west boundary of the Redstone leases. These claims, together with the Redstone leases and 589 units presently owned by Liberty, give the company 12,090 hectares (29,875 acres) of contiguous properties to explore around the Shaw Dome. The claims involve 5 townships and cover most of the prospective parts of the komatiite flow around the Shaw Dome, and are the largest land package held by any company active in the exploration of nickel in the area. Previous geophysics conducted on the claims indicates attractive drill targets exist within 2 km of the Redstone mine.

The komatiite flow around the Shaw Dome is similar to that of the Kambalda district in Australia, where 50 mines containing 37 million tons of nickel sulfide ore have been discovered over the last 39 years. In contrast, the Shaw Dome properties have been under-explored to date with only 3 former producers in the area. Past production included 1.245 million tons of ore from the Langmuir #1 and #2 mines, and 276,000 tons from the Redstone mine. The Redstone mine was recently brought back into production by Liberty and its McWatters deposit, 10 km east, is in the permitting stage for an open pit mine to be brought into production by mid 2007. The extensive land claims owned by Liberty provide an excellent opportunity for the company to discover more Kambalda-like deposits typically called nickel pods.

The claims pursuant to the option agreements consist of one block of 11 units and another block of 93 units. Under the terms of the option agreements, Liberty can earn a 100% interest in both blocks of claims by paying a total of $268,000 and issuing a total of 225,000 shares of Liberty to the vendors over a 5-year period. A work commitment by Liberty of $50,000 per year for each of the 5 years is also required for each block of claims. The agreement is subject to a 3% NSR (Net Smelter Royalty) in favor of the vendors of which half of the NSR (1.5%) may be purchased by Liberty upon payment of $1,500,000 for each block of claims. The transaction is also subject to usual conditions including due diligence and approval of the TSX Venture Exchange.

About Liberty Mines Inc.

Liberty Mines Inc. is a mineral exploration and development company with a focus on the development and production of nickel, cobalt and platinum group metals from its properties in Ontario.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

Contact Information

  • For further information please contact:
    Dr. Gary Nash, PhD (Physics)
    President & CEO
    Liberty Mines Inc.
    Phone (416) 238-9736
    Fax 780-437-7898
    e-mail: Email Contact