IRON ORE EXPLORATION: New Millennium, Labrador Iron trade assets, plan railway

QUEBEC and LABRADOR — New Millennium Capital Corp. of Calgary and Labrador Iron Mines Holdings of Toronto have signed an agreement to rationalize their direct shipping ore deposit holdings in Quebec and Labrador near Schefferville, QC. They have exchanged certain properties to eliminate the fragmentation of ownership.

New Millennium has agreed to transfer to Labrador Iron 10 mineral licences in Labrador and six adjacent claim blocks in Quebec. These claims adjoin or form part of Labrador Iron's Phase One James, Houston, Redmond and Knob Lake deposits, and a small portion of its Phase Three Howse deposit.

Labrador Iron has agreed to transfer to New Millennium two mineral licences in Labrador comprising part of Labrador Iron's Phase three Kivivic 2 and Kivivic 1 deposits that adjoin New Millennium's Are 4 Kivivic and Goodwood deposits.

The exchanged licences contain approximately 13 million tonnes attributable to each company.

The two companies have also signed a co-operation agreement covering rail transportation from their properties to the railhead near Schefferville. They will jointly determine a preferred route and how the costs of refurbishing the line and using it will be shared.

Details concerning the direct shipping iron ore projects of each company may be found on their websites, www.NMLResources.com and www.LabradorIronMines.ca.