Labrador Iron Mines

Holdings Limited

TSX: LIM

Schefferville Area Properties

Houston Deposit

The Houston deposit is located about 16km southeast of Schefferville. The access to the property is by way of a 4km all-season road from the Schefferville airport and 16km of seasonal gravel road.

The Houston deposit comprises three ore bodies: Houston 1, 2S and 3. Iron ore of potential direct shipping quality extends NW-SE for 5km by 150m in its wider zone. Houston purple (and James South blue) ore samples have been found to contain the highest Fe grades among the first phase deposits of >65% lump ore and sinter feed with simple crushing and screening. A very low amount of contaminant elements is present.

Exploration

At the Houston 1 deposit, 39 holes and 2,058m of RC core have been drilled, including 8 trenches up to October 2008. LIM has submitted a total of 782 samples for analysis. Mineralized structures containing mainly hematite and blue ore have been encountered.

At the Houston 2 deposit, 28 holes and 1,580m of RC core have been drilled to October 2008. LIM has submitted a total of 482 samples for analysis. Mineralized structures containing mainly hematite and blue ore have been encountered.

Drilling by LIM carried out during the summer 2008 program indicates that the majority of ore in the Houston deposits occur within the upper iron formation (UIF) and middle iron formation (MIF) with lesser amounts in the SCIF (silicate carbonate iron formation). The amount of red ore associated with the Ruth Formation appears to be minimal if not absent. Ore in several holes is noted to terminate in a red chert, believed to be the Upper Red Chert member that occurs at the boundary of the MIF and SCIF.

Geology

The Houston deposit is stratigraphically and structurally controlled, consisting of hard and friable banded blue and red hematite that locally becomes massive. The texture of the high grade mineralization varies from massive compact to fragmental/broken layers of steel grey to red ochre color. The unconsolidated layers can become very friable to sandy in texture, a feature commonly found throughout the Houston deposit.

Previous airmag data suggests that the iron ore is concentrated along the west flank of a modest to strong magnetic feature, which trends approximately N330 degrees. Houston 1 and Houston 2S are not coincident with the strong magnetic feature.