Labrador Iron Mines

Holdings Limited

TSX: LIM

Schefferville Area Properties

Knob Lake Deposit

The Knob Lake 1 deposit is located about 3 km south-southeast of Schefferville between the north shore of Lejeune Lake, and the southwest shore of Knob Lake. It is accessible by road from Schefferville. The existing railway that provides services between Schefferville and Sept-Iles goes through the property from southeast to northwest.

Exploration At the Knob Lake 1 deposit, a total of 35 drill holes in 1,680m and trenching have been collectively completed to October 2008. The rock encountered is predominantly of the red ore type.

Geology

The Knob Lake 1 deposit is a northeast dipping ellipsoidal iron deposit with a direction of N330 degrees in its main axis, and it appears to be structurally and stratigraphically controlled. Despite the proximity of the Knob Lake deposit to the James deposit, the mineralization in Knob Lake is different. The ore body at Knob Lake is capped by a medium grade very hard siliceous hematite mineralization dipping 35 - 45 degrees to the northeast. The high grade iron ore is concentrated at the end of a hill restricted between Knob and Lejuene Lakes, which consists of thin banded hematite intercalated with layers of cherty silica <10cms thick. The overall texture of the underlying mineralization is softer and moderately unconsolidated, similar to that in the Houston deposit.