SOURCE: Liberty Mines Inc.

August 22, 2005 09:00 ET

Operations Commence at the Redstone Mine

TIMMINS, ON -- (MARKET WIRE) -- August 22, 2005 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty") is pleased to announce the receipt of a Permit to Take Water at the Redstone mine issued by the Ontario Ministry of the Environment. This permit, together with the existing Closure Plan and the Certificate of Approval, allows Liberty to begin dewatering the mine and to start production immediately thereafter. Dewatering the mine will begin in the first week of September and is projected to take 60 days. The Permit to Take Water requires dewatering to be completed by December 16, 2005 and is valid until August 21, 2015 for taking water while the mine is in production.

The 14 km power line to the mine is now being cleared of trees and overgrowth. The lines are also being inspected and repaired as necessary to allow power to be restored to the Redstone property. Land use permits are in place for the power line and a generating plant. Step down transformers and all other electrical equipment necessary for dewatering and production are being assembled.

Production at the mine is slated to begin in November after it is carefully inspected and any necessary rehabilitation measures are completed. The production rate is projected to be 400 tonnes per day in accordance with the Closure Plan. Financing for the dewatering and rehabilitation of the mine, as well as the construction of mine and mill infrastructure, has been arranged and will be announced when completed.

Mr. Derek Sutherland of Sutherland Communications Inc. has been engaged to facilitate the awareness of corporate developments at Liberty with the financial community. This will be accomplished by direct contact with brokers and fund managers as well as appropriate use of the media.

"Barring any unforeseen events, cash flow from the Redstone mine is now only a few months away," said Liberty's President Gary Nash. "With ongoing cash flow, two other properties slated for production, tremendous exploration potential and a committed management team, Liberty is finally in a position to achieve solid corporate growth."

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