Annual Meeting of Shareholders Chairman's Update Voting Results at AGM

Toronto, Ontario--(Newsfile Corp. - October 20, 2021) - Labrador Iron Mines Holdings Limited (OTC Pink: LBRMF) ("LIMH" or the "Company") held its Annual Meeting of Shareholders today in Toronto, Canada.

CHAIRMAN'S UPDATE

At the Annual Meeting, John F. Kearney, Chairman and Chief Executive Officer, provided the following update.

"The Company's current focus is advancing the Houston Project, which is our flagship property.

The Houston Project is an open pit direct shipping iron ore project, on which an updated, independent Preliminary Economic Assessment was completed in February 2021, and demonstrated production of 2 million tonnes of iron ore per year, with an initial 12-year mine life, for total production of 23.4 million tonnes over the life of the mine.

The PEA estimates initial direct capital costs of $51.3 million, and along with indirect costs, total initial capital expenditures of $86.8 million.

The Company is advancing development of the Houston Project through a number of initiatives, including the following:

• discussing an off-take agreement, including construction financing and product sale components with a potential off-take partner;
  
  
• advancing commercial negotiations with construction contractors, equipment vendors, rail, port and logistics counterparties; and
  
  
• planning metallurgical test work of drill core collected from the Houston Project in a 2013 bulk sample. Results of the test work will be used to refine the product specifications and process flowsheet. This analysis will yield important product characterization information which will be helpful in marketing the iron ore product.

In pursuing potential off-take and financing arrangements, the Company has been in discussion with an iron ore trader which have advanced to the stage of a draft Memorandum of Understanding, which contemplates due diligence collaboration, an off-take option, and potential pre-pay financing in order to move the Houston Project forward.

In order to fund these initiatives, the Company is exploring various near term working capital financing alternatives, including a potential private placement of equity of approximately $2.5 to $5 million.

Various future construction financing alternatives being considered for 2022 include:

• an advance payment component of an off-take agreement;
  
  
• equipment leasing arrangements;
  
  
• potential project partners;
  
  
• potential government development agencies participation; and
  
  
• potential debt and equity financing.

Meanwhile, LIM continues to conduct the expenditures required to maintain its various mineral claims in good standing. The former James Mine and the Silver Yards processing facility have been in progressive reclamation since the termination of mining at the James Mine at the end of 2013.

A final rehabilitation program, primarily involving some repeat seeding and re-vegetation and removal of discharge piping, was completed during the summer of 2021.

LIM has now completed all its environmental regulatory requirements relating to rehabilitation of the former James Mine, Redmond Mine and the Silver Yards processing site and related infrastructure.

The price of iron ore surged to an all-time record US$235 per tonne in May, before retrenching to the current US$125 per tonne range. It was to be expected that the price increase over the past year would see contraction. It is notable that the current iron ore price, after the recent retraction, is still some US$35 above the assumed long term price used in the economic assumptions in the PEA of the Houston Project.

Iron ore demand in China has proven to be extremely strong, as stimulus programs have been driving a robust economic recovery and continued strength in Chinese steel production. Covid relief programs and infrastructure investment worldwide are expected to create continued demand for steel. Economic developments in China will continue to be a major factor in the price of iron ore over the longer term. Notwithstanding a mid-summer slowdown, and negativity surrounding property developer Evergrande, Chinese demand for iron ore is expected to remain strong."

LABRADOR IRON MINES HOLDINGS LIMITED AGM

Election of Directors

All nominees for election as directors: Messrs. John F. Kearney, William Hooley, Matthew Coon Come, Eric Cunningham, Gerald Gauthier, Brendan Lynch and Danesh Varma, were unanimously re-elected as directors, to serve until the next annual general meeting of shareholders or until their successors are elected or appointed.

The detailed results of the proxies submitted on the vote on the election of directors are as follows:

Appointment of Auditors-Appointment of Auditors

McGovern Hurley LLP Chartered Professional Accountants were re-appointed as the Company's Auditors for the current year and the directors were authorized to fix the remuneration of the Auditors.

Approval of Restricted Share Unit Plan

The adoption of a Restricted Share Unit Plan was approved.

ABOUT LABRADOR IRON MINES HOLDINGS LIMITED

Labrador Iron Mines Holdings Limited, through its majority owned subsidiaries Labrador Iron Mines Limited ("LIM") and Schefferville Mines Inc. ("SMI"), owns extensive iron ore resources in the central part of the Labrador Trough region, one of the major iron ore producing regions in the world, centered near the town of Schefferville, Quebec.

In the three-year period of 2011, 2012 and 2013 LIM produced a total of 3.6 million dry metric tonnes of iron ore, all of which was sold in 23 cape-size shipments into the China spot market.

LIM's current focus is on planning activities related to the development of its Houston Project and, subject to securing development financing, LIM is positioned to resume project development and production of direct shipping iron ore from the Houston deposits at the earliest opportunity.

For further information, please visit LIM's website at www.LabradorIronMines.ca or contact:

John F. Kearney
Chairman and Chief Executive Officer
Tel: (647) 728-4105

Richard Pinkerton
Chief Financial Officer
Tel: (647) 728-4104

Cautionary Statements:

The terms "iron ore" and "ore" in this document are used in a descriptive sense and should not be considered as representing current economic viability. A Feasibility Study has not been conducted on any of the Company's Schefferville Projects.

Forward-Looking Statement:

Some of the statements contained in this News Release may be forward-looking statements which involve known and unknown risks and uncertainties relating to, but not limited to, LIM's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "intend", "estimate", "may" and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties and assumptions regarding financing. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, delays in obtaining or failures to obtain required financing, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in the development of projects, changes in exchange rates, fluctuations in commodity prices, inflation and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. There can be no assurance that LIM will be successful in maintaining any agreement with any First Nations groups who may assert aboriginal rights or may have a claim which affects LIM's properties or may be impacted by the Schefferville Projects. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders and prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. LIM undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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