Labrador Iron Mines

Holdings Limited

TSX: LIM

Schefferville Area Properties

Redmond Deposits

The Redmond property is located about 15 km by road south of the James deposit. The area is easily accessible by truck via an all season gravel road from Schefferville and comprises two discrete deposits - Redmond 5 and Redmond 2B.

The existing power line that supplies electricity to Schefferville and Kawawachikamach from the Menihek power plant runs by the middle of the property from south to north.

Exploration

As a result of the 2009 summer exploration program, new NI 43-101 compliant resource estimates were prepared on the Redmond property comprising the Redmond 5 and Redmond 2B. The resource estimates of these properties were calculated using the inverse distance squared method.

Redmond 5

Redmond 2B

The new resource was based on 1,100 metres of reverse circulation drilling in 21 holes and 663 metres of trenching carried out by LIM. The SGS Geostat resource estimate for the Redmond 2B deposit, of 0.85 million tonnes at a grade of 59.8% iron in the Indicated category, represents an increase of 45% in mineral resources over the historical resource of 580,000 tonnes.

In 2008, a total of 15 drill holes and 3 trenches were completed by LIM at the Redmond 2B deposit. As a result, LIM submitted 402 samples for analysis. The ore encountered was mainly red and yellow ore.

Geology

The Redmond deposits are developed along a northwest trending syncline that extends south to the Redmond 1 deposit and north to the Wishart mine.

The Redmond 2B deposit occurs in a northwest trending synclinal feature. A northwest trending reverse fault that runs through the centre of the deposit appears to have thrust older rocks of the Wishart Formation over the younger Sokoman Formation. Smaller faults and folds occur on the limbs of the syncline.

The ore occurs predominantly within the lower half of the Sokoman Iron Formation (including the Ruth Formation). Ore is mainly red with lesser yellow. The red ore occurs in the Ruth Formation. The yellow ore occurs in the SCIF (silicate carbonate iron formation). Some blue ore does occur and is possibly part of the MIF (middle iron formation) or a blue component of the SCIF/Ruth Formation.

The Redmond 5 deposit is separated into three blocks by two major reverse faults striking in a north westerly direction. The deposit occurs in the central block and consists of two second order synclines separated by an anticline. Three northeast dipping normal faults occur along the southwestern side of the deposit. A normal sequence from Wishart Quartzite, Ruth Formation, SCIF (silicate carbonate iron formation), MIF (Middle Iron Formation) to UIF (Upper Iron Formation) occur in the deposit. Ore occurs predominantly in the lower part of the MIF, the SCIF and some in the Ruth Formation.