Labrador Iron Mines

Holdings Limited

TSX: LIM

Our Commitment

Partnering with Local Communities

At Labrador Iron Mines, we believe that success can only be achieved through the building of relationships of trust and mutual benefit with all stakeholders, especially the communities in which we work. Adopting open and transparent communications with local communities and governments is paramount to establishing this kind of relationship. Learning from one another, having mutual respect and working together will result in shared success.

The peoples of the Quebec-Labrador Peninsula are represented by several dynamic cultures and traditions. The main Aboriginal peoples in the area are the Innu who have inhabited this part of Labrador and Quebec for almost 9,000 years. Their history is part of the land, their values tied to preserving it for future generations.

There are five Aboriginal communities: the Innu of Matimekush-Lac John, the Naskapi of Kawawachikamach, the Sheshatshiu Innu First Nation, the Mushuau Innu First Nation and the Innu of Uashat mak Mani-Utenam. Non-aboriginal Canadians share the land with the Innu in the communities of Schefferville, Labrador City, Wabush and Goose Bay.

A major component of LIM's commitment is to ensure that an equitable proportion of jobs and services are sourced from the major communities within the Province and particularly from within Labrador.

In July, 2008 LIM signed an Impact Benefits Agreement with the Innu Nation of Labrador representing the Sheshatshiu Innu First Nation and the Mushuau Innu First Nation, living in the communities of Sheshatshiu and Natuashish, committing to an ongoing relationship between the Innu Nation and Labrador Iron Mines with respect to the development of the Company's Project. The IBA is a life of mine agreement that establishes the processes and sharing of benefits that will ensure an ongoing positive relationship between Labrador Iron Mines and the Innu Nation. In return for their consent and support of the project, the Innu Nation and their members will benefit through training, employment, business opportunities and financial participation in the project.

LIM has also entered into memoranda of understanding with the Innu Nation of Matimekush-Lac John and the Naskapi Nation of Kawawachikamach, and is in discussion with the Innu Nation of Takuaikan Uashat Mak Mani-Utenam respecting a similar memorandum of understanding. These memoranda relate to the development of an ongoing positive relationship between LIM and each First Nation relating to the development and operation of the Project.

To help maintain open lines of communications, we have established an office in Schefferville and in Goose Bay and will open an office in Labrador City/Wabush to act as a portal between LIM and the communities. Our community relations personnel and other staff at these locations endeavour to meet regularly with community and government leaders, community groups, and individuals to answer questions and address concerns. We encourage participation and enquiry through our website.