Labrador Iron Mines reports March 2013 year-end results and provides operational update

Labrador Iron Mines reports March 2013 year-end results and provides 
operational update 
Notice: Conference Call and Webcast held today at 11:00 am ET. Dial-in: +1 
(647) 427-7450 or +1 (888) 231-8191 
TORONTO, July 3, 2013 /CNW/ - Labrador Iron Mines Holdings Limited ("LIM" or 
the "Company") (TSX: LIM) today reports its operating and audited financial 
results for the fiscal year ended March 31, 2013. 
LIM is also pleased to provide an update on its 2013 operating season, as the 
second shipment of iron ore departed the Port of Sept-Îles on June 27, 2013. 
Recent Operating Highlights 
LIM commenced its third season of operations in April 2013 with the re-start 
of full-scale mining activities. The Company is targeting 1.75 million to 2.0 
million tonnes of saleable iron ore production in 2013. Recent operating 
highlights include: 

    --  The first shipment for 2013 sailed from the Port of Sept-Îles
        in early June carrying approximately 174,000 wet metric tonnes
        ("wmt") of iron ore. This was followed by LIM's second shipment
        carrying approximately 177,500 wmt on June 27, 2013.
    --  The Silver Yards Phase 3 upgrade and expansion for the wet
        plant was commissioned in June and has been operating in
        conjunction with the dry plant, which has been processing ore
        since April.
    --  Railway operations recommenced in early April. For the 2013
        operating season, LIM is using newly-built, rotary dumper
        compatible iron ore gondolas, comprising longer, 164-car train
        sets, allowing for improved productivity and potential cost
    --  New, independent National Instrument 43-101 ("NI 43-101")
        year-end resource estimates showed a 33% net increase in LIM's
        year-end mineral resource to 59.5 million tonnes grading 56.7%
        Fe, including an increase in the combined Houston and Malcolm
        resource to 40.6 million tonnes grading 57.6% Fe. In addition,
        a new indicated and inferred resource was also estimated on
        historic stockpiles, providing supplementary plant feed for
        Silver Yards in future years.
    --  LIM announced its first independent NI 43-101 inferred mineral
        resource estimate on the Elizabeth Taconite Project of 640
        million tonnes grading 31.8% Fe.

"We are pleased with the solid start to our third operating season, 
highlighted by two shipments sold in June," commented Rod Cooper, President 
and Chief Operating Officer. "Our operating crews have worked hard in 
addressing the challenging weather conditions experienced in April and May and 
activities at site have progressed well as we head into the important summer 
months. The ramp up of the Silver Yards processing facility and connection to 
the power grid are two positive accomplishments, and with a number of other 
enhancements made in the areas of the mine, process plants and rail, we look 
forward to meeting our production targets for the year."

Addressing Important Requirements for the 2013 Operating Season

"In preparation for the 2013 operating season, we have executed many important 
initiatives in securing our working capital requirements, increasing liquidity 
and addressing volatility in the iron ore markets." commented JohnKearney, 
Chairman and Chief Executive Officer. "We believe this has allowed us to 
mitigate some of the challenges we experienced in 2012, which overshadowed our 
operational achievements during the year.
    --  In May 2013, LIM signed a new, two-year iron ore sales
        agreement with the Iron Ore Company of Canada ("IOC") for the
        sale of LIM's iron ore production for calendar years 2013 and
        2014, with the price calculation based on the monthly average
        of the market index.
    --  At the same time in May 2013, LIM entered into an off-take
        financing arrangement with RB Metalloyd Limited ("RBM"), under
        which RBM advanced a pre-payment of US$35 million to LIM, to be
        credited against the proceeds of LIM's committed sales of
        3,500,000 tonnes of iron ore during 2013 and 2014.
    --  LIM has put in place a limited price protection program to
        address potential iron ore market volatility, purchasing put
        options on 825,000 tonnes of iron ore over the period August to
        October 2013, exercisable at a CFR China price of US$105 per
    --  In order to mitigate the risk of significant ocean freight cost
        escalation, LIM has agreed to fixed freight costs to northern
        China on seven vessels during 2013.
    --  In March 2013, LIM established a strategic relationship with
        Tata Steel Minerals Canada ("TSMC"), a subsidiary of Tata Steel
        Limited, which includes multi-part cooperation agreements in
        various aspects of the companies' respective iron ore
        operations in the Labrador Trough. Subject to completion of
        formal agreements, TSMC will pay $30.0 million to LIM for the
        sale of a 51% interest in LIM's Howse deposit, which will be
        used to fund various expenditures for the 2013 operating

John Kearney added, "For 2013, our operational priorities are to minimize 
costs, maximize production and sales and to ensure that sales revenue is 
generated as early as possible. We have implemented cost reduction and cash 
conservation measures across all aspects of our operations."

Update on 2013 Operating Season

James Mine and Silver Yards

In line with the Company's seasonal mine plan, LIM commenced full-scale 
operations at the James Mine in April 2013. A waste stripping program was 
carried out in March and a total of approximately 88,000 tonnes of waste was 
removed from the James pit.

The Silver Yards processing facility restarted for the 2013 season in April, 
as the dry screen commenced processing ore from the James Mine. A new dry 
screening unit was delivered to site during the fall of 2012, which has been 
installed for use during the 2013 operating season.

Construction of the Phase 3 expansion of the Silver Yards wet plant was 
completed and commissioned in June and is now operating in conjunction with 
the dry plant. Phase 3 has been designed to increase the wet plant's 
production capacity and to recover ultra-fine material. A new, experienced 
plant operations contractor has been selected to operate the wet plant in 2013.

LIM has now substantially completed the establishment of grid power at Silver 
Yards, with final completion expected to be achieved in July 2013. Upon 
completion, the power supply for the Silver Yards processing facility and 
LIM's Bean Lake mine camp will be substantially converted from diesel fuel to 
electric power during the operating season.

Rail Operations and Iron Ore Sales

Rail operations re-commenced in April, starting with one, longer train set 
comprising 164 cars, with two additional train sets of 164cars added in May 
and at the end of June, respectively. For the 2013 operating season, LIM is 
using newly-built, rotary dumper compatible iron ore gondolas, allowing for 
improved productivity and potential cost savings. The iron ore gondolas are 
leased from TSMC as part of LIM's cooperation with TSMC on various rail 
logistics. It is planned that a fourth train set may possibly be introduced 
later in the operating season.

LIM's first shipment for 2013 sailed from the Port of Sept-Îles in early 
June, carrying approximately 174,000 wmt of iron ore at a planned averaged 
grade of about 58% Fe. On June 27, 2013, LIM's second shipment of 
approximately 177,500 wmt, comprising 77,500 wmt of about 58% Fe and 100,000 
wmt of about 62% Fe, departed from the Port.

Subsequent shipments during 2013, expected at a rate of two shipments per 
month from July to November, will consist of sinter fines and lump ore at a 
planned average grade of 62% Fe.

Under the new, two-year iron ore sales agreement signed with IOC in May 2013, 
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.

LIM also entered into a financing agreement with RBM in May 2013, pursuant to 
which RBM advanced a pre-payment of US$35 million to LIM, which will repaid 
over a period of two years, credited against the proceeds of LIM's committed 
sales of 3,500,000 tonnes of iron ore shipments between July 2013 and December 

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.

The advance payment financing of US$35 million from RBM provides LIM with 
important working capital. In addition, RBM 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.

In order to protect against volatility in the iron ore market, LIM has put in 
place a limited price protection program with a major international bank to 
protect against a drop in the price of iron ore below US$105 per tonne down to 
US$90 per tonne during the months of August through October 2013. LIM has 
purchased put options on a total of 825,000 tonnes of iron ore over the period 
August to October 2013, exercisable at a CFR China price of US$105 per tonne. 
LIM has also sold matching put options exercisable at US$90 per tonne on the 
same number of tonnes over the same period.

In addition, in order to mitigate the risk of significant ocean freight cost 
escalation, LIM has agreed to fixed freight costs to northern China on seven 
vessels during 2013, through a contract of affreightment ("COA") with RBM.

LIM is currently targeting 1.75 million to 2million tonnes of saleable iron 
ore production in 2013. Cash operating costs in 2013, consisting of mining, 
processing, rail and transportation and general and administrative costs, 
unloaded at the Port, are expected to be in the range of $65 to $70 per tonne 
of product sold.

Strategic Relationship Established with Tata Steel Minerals Canada

In March 2013, LIM entered into a framework arrangement with TSMC, which 
includes multi-part cooperation agreements in areas of logistics, property 
rationalization and various ancillary mutual support and potential off-take 
arrangements. As part of the strategic relationship, LIM and TSMC have agreed 
to enter into a transaction for the joint development of the Howse deposit, 
whereby LIM will sell a 51% interest in Howse to TSMC. In the future, TSMC may 
increase its interest to 70%. It is anticipated that the agreement with TSMC 
will expedite the development of the Howse deposit and it is expected that 
significant cost savings and synergies can be achieved by processing Howse ore 
through TSMC's adjacent Timmins Area plant.

March 2013 Year-End Review

Financial Results

For the fiscal year ended March 31, 2013, LIM recognized revenue from mining 
operations of $95.7 million (FOB Port of Sept-Îles) on sales of 1.56 million 
dry tonnes of iron ore in ten shipments completed during the year. This 
revenue is recognized on an FOB Port of Sept-Îles basis and is net of 
deduction of ocean freight and IOC's participation.

Revenue for the 2013 fiscal year was negatively impacted by low realized iron 
ore prices (CFR China spot price less value-in-use adjustments and before 
ocean freight and IOC participation), particularly in the period from August 
to October 2012, when the spot price of iron ore suffered a sharp decline of 

For the fiscal year ended March 31, 2013, LIM reported a loss of $129.7 
million or $1.56 per share, resulting primarily from an operating loss (before 
depletion and depreciation) of $28.9million, a depletion and depreciation 
charge of $29.7million and write-downs totalling $61.2 million comprising a 
write-down of mineral property interests of $58.1million and a $3.1 million 
provision against certain doubtful receivables.

The depletion and depreciation charge of $29.7 million represents a period 
charge, primarily on a units-of-production basis, of the cost of the James 
Mine (including capitalized stripping and dewatering), Silver Yards processing 
plant, transportation equipment, and infrastructure and site properties 
associated with the operational activities of the James Mine.

At March 31, 2013, in accordance with its accounting policies, the Company 
completed an assessment of the carrying amount of its mineral property 
interests based on a combination of factors including net present value 
estimates and arms-length transaction value methodologies. Having regard 
particularly to the reduction in the resources in the James Mine, as at March 
31, 2013, as a result of depletion during 2012 and adjustments following a 
reconciliation of the dry bulk density calculations to account for greater 
porosity than originally anticipated, which resulted in a shorter than 
anticipated mine-life, the carrying amount of the Stage 1 mineral property 
interests relating primarily to the James Mine, which included an amount of 
$22.5 million relating to previously capitalized stripping and dewatering 
costs prior to the commencement of commercial production, were written down by 
an aggregate non-cash amount of $58.1 million. At March 31, 2013, the carrying 
amount of LIM's mineral property interests was $105.9 million and the net book 
value of property, plant and equipment was $108.9 million. The net present 
value estimates were made using a number of assumptions including a long-term 
iron ore price of US$115per tonne (CFR China 62% Fe sinter fine) and a 
discount rate of 10%. Net present value estimates are highly sensitive to 
changes in the inherent inputs and assumptions.

During fiscal 2013, LIM invested approximately $39.9 million in property, 
plant and equipment, consisting mainly of investments in Phase 3 of the Silver 
Yards wet plant, grid connection infrastructure and expansion of LIM's mine 
accommodation camp.

Also during fiscal 2013, LIM advanced a total of $5 million to the TSH railway 
as non-repayable contributions to the TSH railway's capital upgrade program, 
and also advanced $0.75 million to TSH railway as a refundable capacity 
reservation deposit. LIM also advanced $5 million to the QNS&L railway as an 
installment towards its advance payments required to secure locomotive and 
infrastructure capacity to meet the anticipated long-term haulage volumes on 
the QNS&L railway. A preliminary installment of $6.4 million was also paid to 
the Port of Sept-Îles to secure ship loading capacity of 5 million tonnes per 
year in a new multi-user deep water dock in the Port of Sept-Îles dedicated 
exclusively to iron ore shipments. LIM also guaranteed a final buy-in payment 
installment of an additional $6.4 million payable in July 2013.

As at March 31, 2013, LIM had current assets of $41.2 million, including 
inventories with a carrying value of $11.0million and accounts receivable 
and prepaid expenses of $12.6 million. Cash and cash equivalents totalled 
$16.2million at March 31, 2013, with an additional $7.7 million in 
restricted cash. The Company's cash and cash equivalents are invested in an 
investment grade short-term money market fund and deposits with a major 
Canadian bank.

Current liabilities, consisting of accounts payable and accrued liabilities, 
the current portion of finance lease obligations and rehabilitation provision, 
were in aggregate $28.8 million at March 31, 2013.

Operational Results - Fiscal Year ended March 31, 2013

LIM accomplished many operational achievements in its first full season of 
commercial production in 2012 (fiscal 2013), in which the Company demonstrated 
its operational ability to mine, process, rail, ship and sell its iron ore. 
LIM met its revised production target of 1.7 million wet tonnes and sold 1.56 
million dry tonnes of iron ore in 10ships during the year, which represents 
a substantial increase in sales over the 2011 operating season. Rail volumes 
also increased substantially year-over-year, totalling 1.6 million wet tonnes 
delivered to the Port of Sept-Îles.

LIM also completed a very successful exploration season during fiscal 2013, 
which included 14,000 metres ("m") of drilling on the Houston, Malcolm and 
James Deposits, as well as bulk sampling of historic stockpiles to provide 
plant feed to Silver Yards in the coming years. LIM also completed very 
promising exploration work on the Elizabeth Taconite Project located near the 
currently producing James Mine. LIM's exploration efforts have resulted in new 
and updated resource estimates as outlined in the "2013 Resource Updates" 
section below.

Despite the many operational achievements, the year ended March 31, 2013 was 
adversely impacted by the rapid and severe drop in spot iron ore prices, which 
occurred in August 2012 and continued through to October, when iron ore spot 
prices and transaction volumes suffered a sharp decline. LIM responded 
decisively with revised strategies in the mine, process plant and rail 
transport to optimize production at the lowest possible cost. Other cost 
reductions and deferral of capital expenditures were also carried out to 
ensure the 2012 and future operating seasons continue to operate in a 
sustainable position.

Production and Operating Costs

Operating costs in fiscal 2013, consisting of mining, processing, rail, 
transportation and site and camp operating costs, including winter costs and 
March 2013 waste stripping activities, totaled approximately $121 million, or 
approximately $77.50 per tonne of product sold, unloaded at the Port of 
Sept-Îles. Transportation costs include all charges for train loading and 
unloading, locomotive and rail car leasing and maintenance costs and tariffs 
and for the fiscal year included charges totaling $7 million ($4.50 per tonne 
of product sold during the fiscal year), relating to rail and train unloading 
take-or-pay volume penalties and a one-off charge related to the Pointe aux 
Basque port facility. Royalties during fiscal 2013 and 2012 were equal to 
US$1.50 per tonne of product sold.

LIM's operating results for the fiscal year ended March 31, 2013 and 2012, are 
outlined in the following table:

|                       |   Fiscal Year Ended  |   Fiscal Year Ended  |
|                       |     March 31, 2013   |     March 31, 2012   |
|(all tonnes are dry    |   Tonnes|Grade (% Fe)|   Tonnes|Grade (% Fe)|
|metric tonnes)         |         |            |         |            |
|Total Ore Mined        |1,828,398|       61.3%|1,205,609|       60.7%|
|Waste Mined            |3,215,985|          --|3,004,355|          --|
|Ore Processed and      |  954,813|       58.2%|  572,052|       58.4%|
|Screened               |         |            |         |            |
|      Lump Ore Produced|   98,693|       61.2%|   79,407|       63.6%|
|      Sinter Fines     |  693,173|       61.4%|  152,735|       65.0%|
|Produced               |         |            |         |            |
|Total Product Railed   |1,492,960|       62.3%|  563,569|       64.9%|
|Tonnes Product Sold    |1,559,620|       62.5%|  385,898|       64.9%|
|Port Product Inventory |  111,009|       60.9%|  177,669|       64.9%|
|Site Product Inventory |    3,551|       58.4%|   69,983|       65.3%|
|Site Run-of-Mine Ore   |  446,975|       56.2%|  195,117|       59.0%|
|inventory              |         |            |         |            |

2013 Resource Updates

Following on the successful 2012 exploration field program, comprising 14,000 
m of diamond and reverse circulation drilling, LIM reported a 33% net increase 
in its total measured and indicated mineral resource of 59.5million tonnes 
grading 56.7% Fe as at March 31, 2013.

Resources at the Houston 1, 2 and 3 Deposits continued to expand, increasing 
to 31.3 million measured and indicated tonnes grading 57.5% Fe, a 37% increase 
over the previous year. In addition, LIM identified a new measured and 
indicated mineral resource estimate for its Malcolm 1 deposit of 9.2 million 
tonnes grading 57.8% Fe, which has more than tripled the previous historical 
resource estimate. The Malcolm 1 deposit is located approximately four 
kilometres ("km") from Houston and is considered to be the northwest 
extension. Together, the Houston and Malcolm deposits are estimated to contain 
40.6 million tonnes grading 57.6% Fe and currently comprise LIM's planned 
Stage 2 DSO operations.

A mineral resource definition and bulk sampling program on two of seven 
historical stockpiles was initiated during the 2012 exploration field program 
with a view to providing supplemental plant feed. These previously-mined 
stockpiles are located within 15 km of the Silver Yards processing facility 
and form part of LIM's Stage 1 deposits. An initial mineral resource was 
estimated for the two stockpiles, totalling 3.5million tonnes of indicated 
resource grading 49.1% Fe and 2.9 million tonnes of inferred resource grading 
48.8% Fe.

LIM's exploration efforts have also identified a large iron orebody located 
within the Elizabeth Taconite Project, resulting in its first independent 
inferred mineral resource estimate of 620 million tonnes at 31.8% Fe and 
exploration potential of 350 million to 500 million tonnes at 31.9% Fe.(1)

The Elizabeth Project is located approximately four km from the James Mine, 
alongside existing infrastructure including roads, rail bed and power line 
corridor. There is significant potential for resource expansion, as the 
deposit remains open along strike to the northwest and southeast (refer to the 
press release dated June 24,2013).

NI 43-101 Technical Reports containing LIM's year-end mineral resource 
estimates as at March 31, 2013 and LIM's first independent mineral resource 
estimate of the Elizabeth Taconite Project as at June 15, 2013 have been filed 
on SEDAR, available at

(1) The potential tonnage and grade in Elizabeth No. 2 is conceptual in 
nature; there has been insufficient exploration to define a mineral resource 
and it is uncertain if further exploration will result in the target being 
delineated as a mineral resource. The range of tonnage has been outlined based 
on the lateral extent of ground and airborne magnetic and gravity anomalies, 
surface mapping and two drill holes intercepts, which define the width and 
estimated grade at the southeast extent of Elizabeth No. 2. It is uncertain if 
further exploration will result in such potential being delineated, in whole 
or in part, as a mineral resource. Taconites require further upgrading through 
a concentrator involving a major capital investment to produce a saleable iron 
ore product.

Stage 2 Houston Development

The Houston deposits (Stage 2 South Central Zone) are situated in Labrador, 
about 15 km southeast of the James Mine and Silver Yards processing facility. 
The Malcolm Deposit is located approximately 4 km from Houston and is 
considered to be the northwest extension.

In February 2013, LIM filed registration documents with the Government of 
Newfoundland and Labrador and with the Federal Canadian Environmental 
Assessment Agency ("CEAA") for the second phase of development of the Houston 
1 and 2 deposits, which includes the construction of a wet process plant 
incorporating crushing, screening, washing and magnetic separation. This plant 
will be capable of upgrading lower grade ore (50% to 59% Fe) into saleable 
sinter and lump products.

In April 2013, CEAA notified LIM that a Federal Environmental Assessment was 
not required and in May, the Newfoundland and Labrador Minister of Environment 
and Conservation released this second phase of the Houston Project from the 
provincial environmental assessment process, subject to conditions. This 
environmental release will allow LIM to complete the applications for permits 
and regulatory approvals required for the construction of the wet processing 
plant for the Houston Project.

The environmental release of the first phase of the Houston Project, including 
the haulage road, was released from further environmental assessment in March 
2012. LIM has subsequently received surface and mining leases, and a 
construction permit for the haulage road and rail siding and has also selected 
a civil contractor for the road and bridge construction. It is expected that 
initial mine development at the Houston deposit will include construction of 
the haulage road and railway siding, mine infrastructure and related 
facilities, with initial production of Houston ore coming from in-pit dry 
crushing and screening.

Commencement of construction activities for the Houston Project is subject to 
the availability of financing and the receipt of remaining permits. 
Development costs for the first phase are estimated to be approximately $37 
million on haulage road and rail siding access, with an additional $20 million 
of mine development costs, which would enable initial production from Houston 
utilizing in-pit dry crushing and screening. This does not include the capital 
cost of a new wet processing plant, which will be required in about the third 
year of Houston operations.

LIM is evaluating various potential strategic options, off-take arrangements 
and/or credit facilities and other financing alternatives to fund the planned 
Houston development and related transportation and port infrastructure 

When in full production, the Houston Project is expected to produce about 2.5 
million tonnes of iron ore annually.

Iron Ore Market Conditions

Robust steel production and iron ore demand from emerging economies and 
particularly from China have underpinned the rise in iron ore prices over the 
past seven years. In addition, supply constraints, such as falling ore grades 
at major mines and increasing capital expenditures to build new capacity, have 
resulted in iron ore production consistently falling short of market 

Growth in iron ore demand has been dominated by China, whose steel production 
and consumption (rate of steel usage per capita) has been steadily increasing 
over the past decade. The country's rapidly increasing steel intensity (steel 
usage per capita) has been driven by rapid economic growth and continued 
urbanization, leading to significant increases in the rate of residential 
construction, durable goods production and public infrastructure development.

There has been significant price volatility in iron ore prices over the past 
year due to apparent changes in Chinese stock levels and there may be further 
short term volatility in the future. Nevertheless the Company is of the view 
that the long term iron prices will remain firm due to the following factors:
    --  strong steel and iron ore demand growth from China, which will
        continue to be supported by Chinese Government stimulus
        spending as well as structural factors, such as the
        urbanization of China's population;
    --  strong demand growth in the medium to long-term from the United
        States and emerging markets including Brazil, India, Russia,
        CIS countries, southeast Asia and the Middle East;
    --  efforts to increase the average grade of steel production,
        which necessitates the use of high-grade iron ore, will
        increase China's demand for higher grade iron ore imports;
    --  long-term supply constraints, as many of the new projects and
        production expansions previously planned by major companies are
        experiencing increased costs and delays or have been postponed,
        which is expected to delay or reduce the long-term growth of
        iron ore supply; and
    --  supply growth will continue to fall significantly short of
        market expectations.

Iron ore supply growth has consistently fallen below market expectations due 
to a number of factors including:
    --  the increase in capital costs by over 400% over the last
    --  the substantial increase in operating costs;
    --  new projects have increasingly required high-cost greenfield
        infrastructure development;
    --  governments have demanded higher ownership stakes and taxes;
    --  labour supply has been severely limited; and
    --  governments have focused increasingly on environmental

The largest three iron ore producers (Rio Tinto, BHP Billiton and Vale) 
continue to face significant capital and operating cost inflation which has 
resulted in the deferral of many new projects and mine expansions. In 
addition, a significant portion of the forecasted increase in industry 
capacity is expected to come from higher risk jurisdictions such as Africa 
where higher geopolitical risk requires higher returns to warrant capital 

In the longer-term, the cost curve plays an integral role in establishing an 
effective 'floor' for iron ore prices. Higher marginal cost Chinese capacity 
is expected to be needed to meet growing iron ore demand in the medium term. 
The average marginal cost of Chinese iron ore production is approximately 
US$120/tonne, which provides a strong support level for future iron ore prices 
(China import 62% Fe fines).

* * * * * *

This press release should be read in conjunction with LIM's Management's 
Discussion and Analysis (MD&A) and audited financial statements for the fourth 
quarter and year ended March 31, 2013, available on the company's website at, under the "Financials" section, or on SEDAR 

LIM has also filed its Annual Information Form (AIF) and NI 43-101 Technical 
Reports, which include the resource estimates disclosed in this press release, 
all of which are available on SEDAR (

Unless otherwise noted, all references to 'years' in this press release are 
'calendar years', all dollar amounts are stated in Canadian dollars and all 
tonnes are stated in dry metric tonnes.

* * * * * *

Conference Call and Webcast: Fourth Quarter and Year-End Results

Members of the senior management team will host a conference call and webcast 
today at 11:00 am (ET). You may participate in our conference call by calling 
647-427-7450 (local and international) or 1-888-231-8191 (Canada and US 
toll-free). To ensure your participation, please call five minutes prior to 
the scheduled start of the call.

A live audio webcast will be available on LIM's homepage at and archived for 180 days.

For those who are unable to participate in the live conference call, a replay 
will be available until the end of day on July17, 2013 by calling 
416-849-0833 (local and international) or 1-855-859-2059 (Canada and US 
toll-free) and entering the passcode 920 025 96# when prompted.

* * * * * *

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, and through 2012, iron ore sales have totalled 2.0 million dry 
tonnes in 13 shipments into the Chinese spot market.

Now in its third year of operations, LIM sold its first and second shipments 
of iron ore in June and is targeting 1.75to 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.

Cautionary Statements:
Mineral resources that are not mineral reserves do not have demonstrated 
economic viability. Inferred mineral resources are considered too 
speculative geologically to have economic considerations applied to them that 
would enable them to be categorized as mineral reserves. There is no 
certainty that mineral resources will be converted into mineral reserves.

The potential tonnage and grade referred to in this press release is 
conceptual in nature; there has been insufficient exploration to define a 
mineral resource and it is uncertain if further exploration will result in the 
target being delineated as a mineral resource.

The terms "iron ore" and "ore" in this document are used in a descriptive 
sense and should not be considered as representing current economic viability.

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.

For further information, 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- Jul/03/2013 10:05 GMT

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