SOURCE: Liberty Mines Inc.

April 18, 2006 12:26 ET

Receipt of $4,000,000 US for the Redstone Mill

TIMMINS, ON -- (MARKET WIRE) -- April 18, 2006 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty") is pleased to announce the receipt of a $4,000,000 US prepayment for nickel in concentrate from Jilin Jien Nickel Industry Co. Ltd. ("JJNICL") of China. The money will be used for the construction of a new 1500 tonne per day nickel concentrator ("Mill") at the Redstone mine site. This confirms JJNICL's commitment to Liberty as its strategic working partner to assist Liberty to build or procure facilities with which to provide JJNICL nickel in concentrate.

The Redstone Mill will initially process up to 600 tonnes per day but will be scaleable up to 1500 tonnes per day with the addition, and not the replacement, of processing equipment in the grinding and flotation circuits. The crushing circuit will be designed to handle the full production load of 1500 tonnes per day of ore. Permitting for the mill is going well and a full update of the activities at the mine and mill will be announced soon.

"The receipt of these funds from our working partner as a prepayment is a great benefit to Liberty shareholders as it avoids a considerable amount of dilution in the stock of the company," said Liberty's President, Gary Nash. "With money to substantially build our new mill and imminent cash flow from the Redstone mine, the need for and amount of equity financing is greatly reduced."

Details of a production decision to mine 200 tonnes of ore per day at the Redstone mine will be announced shortly.

Management is also pleased to announce the appointment of Mr. Gerry Feldman C.A. as a director of the company effective April 13, 2006. Mr. Feldman is the Managing Partner of Feldman & Associates, LLP, Chartered Accountants. The firm provides a full range of professional services including but not limited to auditing and accounting, corporate and personal tax planning, management advisory services and business investigations. The firm specializes in audits of brokerage houses, public companies, Investment Councilor and Limited Market Dealers, Mutual Fund Dealers and Mutual Funds. He will head the audit committee of Liberty and will be an excellent resource to guide the company forward as the next nickel producer in Canada.

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