Liberty Mines Inc is pleased to announce that it has arranged a CAD 4,500,000 credit facility with Jilin Jien Nickel Industry Co Limited of China to complete the development of the McWatters nickel mine near Timmins in Ontario. The credit facility will be advanced in three tranches, the first tranche of CAD 1,000,000 was released already and the second and third tranches will be funded on or about August 31st 2009 and September 30th 2009, respectively.

The principal advanced will bear interest at 8% on the unpaid balance and will be payable in full with interest by July 30th 2010. Liberty may, at its option, prepay at any time all or any portion of the principal amount outstanding or any interest owing without notice or penalty provided that any such prepayment shall be applied firstly to interest and then to the payment of principal.

Mr Gary Nash president & CEO of Liberty said that "As our largest shareholder, JJNICL understands the potential for growth of the Company and continues to support our goals to bring our projects into full production."