October 07, 2008

Baffinland announces expiry of Mitsubishi rights

Baffinland Iron Mines Corporation has announced the expiration of Mitsubishi Corporation's participation right under its agreement with Mitsubishi dated December 22nd 2005.

Under the terms of the Agreement, in order to have maintained its participation right, Mitsubishi was required to participate in the Baffinland's most recent securities offering of flow through and non flow through shares, such that after giving effect to its participation, Mitsubishi would have held 5% or more of the outstanding shares.

Mr Gordon A McCreary president & CEO of Baffinland said that "With the completion of Baffinland's definitive feasibility study anticipated in December 2007 and Mitsubishi's interest in further investment upon receipt of the DFS, Mitsubishi elected to not participate in our most recent private placement. Mitsubishi's investment perspective is of a long term nature and we are looking forward to discussing its long term investment objectives following the release of our DFS."

Mr Iwao Toide GM of Iron Ore Business Unit of Mitsubishi said that "Despite losing the Participation Right, Mitsubishi's supportive position as Baffinland's strategic investor will not change and we will remain strongly interested in our further involvement in Baffinland in the future. We will be looking forward to discussing the next opportunity of equity financing upon receiving the definitive feasibility study in the near future."

Baffinland is a Canadian publicly traded junior mining company that is focused on its wholly owned Mary River iron ore deposits located on Baffin Island at Nunavut Territory in Canada.