LIM signs new two year iron ore sales agreement with Iron Ore Company of Canada

LIM signs new two year iron ore sales agreement with Iron Ore Company of Canada 
US$35 million off-take financing with RB Metalloyd 
TORONTO, May 14, 2013 /CNW/ - Labrador Iron Mines Holdings Limited ("LIM" or 
the "Company") (TSX: LIM) is pleased to report that it has entered into a new 
iron ore sales agreement with the Iron Ore Company of Canada ("IOC") for the 
sale of all of LIM's iron ore production for the next two calendar years 2013 
and 2014. 
At the same time, LIM is also pleased to announce that it has entered into an 
off-take financing agreement with RB Metalloyd Limited ("RBM"), a leading 
international commodity trading house, under which LIM will receive an advance 
payment of US$35 million to be credited against future sales of a minimum of 
3.5 million tonnes of iron ore during 2013 and 2014. 
LIM commenced its third year of direct shipping iron ore production from its 
Schefferville area iron ore mines in Western Labrador in April 2013 and is 
targeting production of 1.75 to 2.0million tonnes of sinter fines and lump 
in 2013. The first Capesize shipment of 2013 is expected to be loaded around 
the end of May. 
Two Year Iron Ore Sales Agreement with IOC 
Over the past two years, LIM has sold 13 Capesize shipments of iron ore to 
IOC, for a total of approximately 2million tonnes, all of which was resold 
in China, with the price calculated based on the daily China spot price, 
subject to varying selling discounts, and where the sale of LIM's iron ore 
experienced unpredictable variations based on prevailing market conditions. 
Under LIM's new sales agreement, IOC will pay for the iron ore progressively, 
as the ore is resold, with the price calculation based on the monthly average 
of the market index, which should decrease LIM's exposure to market volatility 
experienced in the past two years. IOC payments will be later reconciled 
based on IOC's net actual aggregate resale price, adjusted for any product 
quality specification premiums or penalties, after ocean freight and IOC's 
price participation. 
"We are very pleased to be able to continue our working relationship with IOC 
as we head into our third year of production from our Schefferville area iron 
ore mines" said John Kearney, LIM's Chairman and Chief Executive Officer. "In 
addition, extending the contract for the next two years and fixing the price 
to be calculated based on the monthly average of the market index are two 
important improvements over previous years." 
US$35 Million Off-take Financing 
Under the terms of the financing agreement with RB Metalloyd, RBM has advanced 
a pre-payment of US$35million to LIM, which will repaid over a period of two 
years, credited against the proceeds of LIM's sales of iron ore shipments 
between July 2013 and December 2014. 
RBM has entered into an iron ore off-take agreement with IOC under which RBM 
has agreed to buy the LIM iron ore from IOC on an FOB Sept-Îles basis. 
"This advance payment financing of $35 million from RBM provides LIM with 
important working capital and increased liquidity and will enable us to ramp 
up our 2013 production of iron ore and complete our planned capital investment 
and improvements on our Silver Yards processing plants", added John Kearney. 
"We look forward to working with RB Metalloyd, who brings LIM experience and 
expertise in the marketing and sale of iron ore as well as extensive knowledge 
of the iron ore and steel markets worldwide." 
About the Iron Ore Company of Canada (IOC)
IOC is Canada's largest iron ore producer from its mines located in Western 
Labrador and is a leading global supplier of iron ore pellets and 
concentrates. IOC's major shareholder and operator is the international mining 
group Rio Tinto which has activities in more than 40 countries throughout the 
world. IOC owns 100% of the Quebec North Shore and Labrador ("QNS&L") railway 
and, at the port of Sept-Îles, owns established storage and ore handling 
facilities, including its ship dock capable of taking ocean going vessels up 
to 240,000 (dwt) tonnes. 
In 2011, LIM entered into a life of mine, rail transportation contract with 
QNS&L for the rail transportation of LIM's products on the QNS&L railway. This 
contract provides for a confidential tariff, with capacity and volume 
commitments on the part of each party. 
About RB Metalloyd (RBM)
RBM is a leading international commodity trading house with specific expertise 
within the steel making raw materials sectors. RBM is a subsidiary of RB 
Resources, an investment company for all natural resources investments held by 
the Reuben Brothers Group, one of the world's largest privately held 
investment companies. 
About Labrador Iron Mines Holdings Limited (LIM) 
Labrador Iron Mines (LIM) is Canada's newest iron ore producer with a 
portfolio of direct shipping (DSO) iron ore operations and projects located in 
the prolific Labrador Trough. Initial production commenced at the James Mine 
in June 2011. LIM's iron ore sales increased fourfold in 2012, with the sale 
of ten shipments totalling approximately 1.6million dry tonnes of iron ore. 
LIM has commenced its third year of operations and is targeting 1.75 to 2.0 
million tonnes of saleable iron ore production in 2013. 
The James Mine is connected by a direct rail link to the Port of Sept-Îles, 
Québec. The operation also benefits from established infrastructure including 
the town, airport, hydro power and railway service. Starting with the James 
Mine and leading to the development of the expanding Houston flagship project, 
LIM's objective is to provide shareholders with long-term value with a plan to 
increase production towards 5 million tonnes per year from its iron ore 
deposits in Labrador and Quebec, all within 50 kilometres of the town of 
LIM is currently the only independently-owned Canadian iron ore producer 
listed on the Toronto Stock Exchange and trades under the symbol LIM. 
Forward Looking Statement:
Some of the statements contained in this Press Release may be forward-looking 
statements which involve known and unknown risks and uncertainties relating 
to, but not limited to, the Company's expectations, intentions, plans and 
beliefs. Forward-looking information can often be identified by 
forward-looking words such as "anticipate", "believe", "expect", "goal", 
"plan", "intend", "estimate", "may" and "will" or similar words suggesting 
future outcomes, or other expectations, beliefs, plans, objectives, 
assumptions, intentions or statements about future events or performance. 
Forward-looking information may include reserve and resource estimates, 
estimates of future production, unit costs, costs of capital projects and 
timing of commencement of operations, and is based on current expectations 
that involve a number of business risks and uncertainties. Factors that could 
cause actual results to differ materially from any forward-looking statement 
include, but are not limited to, failure to establish estimated resources and 
reserves, the grade and recovery of ore which is mined varying from estimates, 
capital and operating costs varying significantly from estimates, delays in 
obtaining or failures to obtain required governmental, environmental or other 
project approvals, delays in the development of projects, changes in exchange 
rates, fluctuations in commodity prices, inflation and other factors. 
Forward-looking statements are subject to risks, uncertainties and other 
factors that could cause actual results to differ materially from expected 
results. There can be no assurance that the Company will be successful in 
maintaining any agreement with any First Nations groups who may assert 
aboriginal rights or may have a claim which affects the Company's properties 
or may be impacted by the Schefferville Projects. Shareholders and 
prospective investors should be aware that these statements are subject to 
known and unknown risks, uncertainties and other factors that could cause 
actual results to differ materially from those suggested by the 
forward-looking statements. Shareholders and prospective investors are 
cautioned not to place undue reliance on forward-looking information. By its 
nature, forward-looking information involves numerous assumptions, inherent 
risks and uncertainties, both general and specific, that contribute to the 
possibility that the predictions, forecasts, projections and various future 
events will not occur. The Company undertakes no obligation to update publicly 
or otherwise revise any forward-looking information whether as a result of new 
information, future events or other such factors which affect this 
information, except as required by law. 
please visit LIM's website or contact:  John F. 
Kearney Chairman and Chief Executive Officer Tel: (647) 728-4105  Rodney 
Cooper President and Chief Operating Officer Tel: (647) 729-1287  Keren Yun 
Vice President, Investor Relations and Communications Tel: (647) 725-0795   
SOURCE: Labrador Iron Mines Holdings Limited 
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CO: Labrador Iron Mines Holdings Limited
ST: Ontario
-0- May/14/2013 10:00 GMT
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