TAKEOVER: Nunavut Iron Ore makes offer for Baffinland

TORONTO - Nunavut Iron Ore Acquisition has made an all-cash offer to acquire Baffinland Iron Mines, offering US$0.80 per common share. The price is twice the volume-weighted average shares price on the TSX over the 20 trading days ended Aug. 26, 2010. It is also 42.9% over the closing price on Sept. 21.

Baffinland's major asset is its Mary River iron ore deposit on Baffin Island. The project is at the advanced exploration stage. The plan is to develop a 18-million-t/y high-grade mine. The property has proven and probable reserves of 365 million tonnes grading more than 64% Fe.

Nunavut Iron Ore is a wholly owned subsidiary of Iron Ore Holdings, a company incorporated in Delaware for the purpose of making the offer. Baffinland shareholders have until Oct. 28, 2010, to accept the offer. Details are posted at www.BaffinlandOffer.com.