Liberty Reports Third Quarter Production Results

12.10.2010  |  Business Wire

Liberty Mines Inc. ('Liberty or the Company?) is pleased to report the
third quarter of 2010 ('Q3') production results from its mining
operations at the Redstone and McWatters nickel mines near Timmins
Ontario. The Redstone nickel concentrator ('Mill') processed 95,587
tonnes during the third quarter of 2010 ('Q3'); an increase of 69% over
the 56,520 tonnes processed during the second quarter of 2010. As the
McWatters open pit provided 49.5% of the ore milled during Q3, the
average processed grade was 0.63% nickel ('Ni'), down 20% from the
average grade of 0.79% Ni processed during Q2. However, the underground
ore at McWatters graded 0.94% Ni, up 21% from the 0.78% reported in Q2;
with a 3.5% increase in milled tonnes in Q3 over Q2. Mine production
statistics during Q3 were as follows:

Redstone Mine

The upper zone at Redstone is scheduled to be mined out by the end of
2010. Deteriorating ground conditions in certain stopes became evident
during the third quarter, which decreased production from the mine.
Going forward, only the stopes that can be easily and safely mined will
be exploited.

McWatters Mine

Once the mining of panel 2 on the 140m level is finished and a slot is
completed from the 140L to pit bottom, sublevel caving of the main ore
body can commence later this month.

The cut-and-fill panels at the 155m to 120m levels have now been 73%
mined yielding 67,596 tonnes grading 1.15% Ni with 36,200 tonnes at
1.14% Ni remaining to be mined. The ore body in these panels was more
blocky and discontinuous than expected. As a result, the grade was
significantly lower than the 1.94% Ni over 92,041 tonnes estimated by
SRK Consulting in the feasibility study dated December 2009. This has
negatively impacted the expected revenue to be generated during 2010 to
date from those panels.

Hart Mine

The Closure Plan for the mine is expected to be submitted to the
Ministry of Northern Development of Mines and Forestry shortly upon the
completion of a background environmental study. Construction of the mine
has now been scheduled for April 2011.

Redstone Nickel Concentrator

Overall metallurgical recovery was 82.1% with that of the McWatters
underground ore being 87.5% and the open pit ore 76.7%. Tonnes processed
in Q3 were as follows:

About Liberty Mines Inc.

Liberty Mines Inc. is a producer of nickel and is focused on the
exploration, development and production of nickel, copper, cobalt and
platinum group metals from its properties in Ontario, Canada. It owns
and operates the Redstone nickel concentrator near Timmins Ontario.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This News
Release includes certain 'forward looking statements?. All statements
other than statements of historical fact included in this release,
without limitation, statements regarding future plans and objectives of
Liberty, are forward looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from Liberty′s
expectations are: exploration risks; commodity prices; regulatory
approvals; receipt of mining permits and leases; and assumed startup and
operating costs detailed herein and from time to time in the filings
made by Liberty with securities regulators. Forward-looking statements
speak only as of the date on which they are made. The Company undertakes
no obligation to publicly update any such statement or reflect new
information or the occurrence of future events or circumstances, except
where required by securities regulations. Accordingly, readers should
not place undue reliance on forward-looking statements.