Progress reports - Labrador and Parys Mountain

    Anglesey Mining plc           LSE:AYM                                                                     

3 July 2008


Encouraging progress reports from Labrador and Parys Mountain

Anglesey Mining plc (the company) is pleased to report today on excellent
operational progress in Labrador and also in respect of the Parys Mountain sale
announced on 10 April 2008.

The Schefferville report which follows has been extracted from an announcement
made in Toronto on 2 July 2008 which also dealt with the approval and
publication of the Labrador annual financial statements, which are available on
SEDAR at http://www.sedar.com. The company has a 50% ownership interest in the
Labrador operations.

Schefferville Project Moving Forward

Labrador Iron Mines (LIM) is focused on the development of direct shipping iron
ore in the Labrador Trough, in the Province of Newfoundland and Labrador, near
Schefferville, Quebec (the "Schefferville Project").

Following the IPO, LIM commenced plans to complete a program of verification
drilling and bulk sampling on certain of the properties and the calculation of a
compliant mineral resource, leading to the undertaking of a detailed engineering
study of mining these hematite deposits to produce "direct shipping" lump and
sinter fine ore, which will require minimal processing, for sale to European and
Far Eastern steelmakers.

During the ensuing months, LIM expanded its management and operating team with a
number of senior appointments, initiated further activities to advance the
development stages of the Project and awarded various contracts, including
environmental baseline studies, detailed exploration drilling, bulk sampling,
resource estimation, metallurgical process testing, rail and port studies and
engineering design, all directed to move the Schefferville Project forward
towards initial production targeted for 2009.

SNC-Lavalin, in conjunction with Geostat and with participation by the Labrador
Innu Development Limited Partnership, has been awarded a contract for a Resource
and Engineering Study, including detailed engineering design and specifications
for major items of plant and infrastructure. This will include metallurgical
test-work aimed at the design of a process circuit required to meet market
specifications for the particular types of iron ore.

A major reverse circulation drilling contract has been let to Cabo Drilling
Corp. to provide data for a compliant resource estimate on the various deposits,
including a reserve estimate on the Phase One Properties, and to assist with
both short term mine planning and with longer term operational planning. It is
expected that this program will start in July 2008 and will be supplemented by
an exploration trenching program.

RSM Mining Services Inc. from Labrador City has commenced a summer program to
excavate an 8,000 tonnes ore bulk sample from the Phase One deposits closest to
Schefferville and to treat this material by crushing, screening and washing to
replicate the expected final product. Some of this material will be used in the
metallurgical testing program and the remainder will be available for bulk
samples and market testing by potential iron ore buyers.

LIM has submitted the Project Registration Application for the first phase of
development of the Schefferville Project to the Department of Environment and
Conservation in the Province of Newfoundland and Labrador and to the Canadian
Environmental Assessment Agency (CEAA). The Project Registration Documentation
addresses production from the first phase of the Schefferville Project, being
the James North, James South and Redmond properties. The development plan calls
for the initial production of about 500,000 tonnes of iron ore in 2009 and
building up to three million tonnes in 2011.

LIM has entered into a Memorandum of Understanding with the Labrador Innu
Association, representing the Sheshatshiu Innu First Nation and the Mushuau Innu
First Nation, respectively, living in the communities of Sheshatshiu and
Natuashish, Labrador reflecting the agreement of the parties with respect to
community support for the development of the Schefferville Project and their
joint commitment to negotiate and enter into a more detailed impact and benefits
agreement.

LIM plans the commencement of commercial production of iron ore from the
deposits located on the Schefferville Property at the earliest opportunity and,
subject to receipt of permits, is working to bring Phase One of the Project into
production in 2009.

Parys Mountain sale negotiations

The signature of a term sheet between the company and Western Metals Limited of
Perth, Western Australia was announced on 10 April 2008. Since then significant
progress has been made in documenting a comprehensive and binding Sale and
Purchase Agreement. Similar progress is reported by Western Metals in respect of
the due diligence exercise which they are conducting. The company expects to be
able to notify a date for the EGM which will be required to gain shareholder
approval for the transaction in the near future.

     Bill Hooley, Anglesey's Chief Executive, commented: "Progress on both
     these fronts is very encouraging and in line with our stated plans. We
     have been able to recruit an excellent team in Canada for the
     Schefferville project and this team is engaging efficiently with the
     development of the production facilities. We are looking forward to a
     very active few months on site at those iron ore deposits which are
     scheduled for early production.
     We are also very encouraged by progress made by Western Metals and by
     ourselves and our advisors in moving the sale of Parys Mountain
     forward.  We continue to believe that this route offers the best
     opportunity for the company to realise value from Parys Mountain in an
     acceptable time frame.
     At today's market and currency values, Anglesey's shareholding in
     Labrador Iron Mines Holdings Limited, the Toronto listed company which
     operates the Schefferville Project, is worth 23.5 pence per Anglesey
     share.  This is in addition to the  company's other assets, and we
     believe that that the market price of LIM should increase
     significantly as it moves closer to production."


For further information:
Bill Hooley, Chief Executive                 +(44) 1492 541981
Ian Cuthbertson, Finance Director            +(44) 1248 361333

mail@angleseymining.co.uk
www.angleseymining.co.uk
Anglesey Mining (LSE:AYM)
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