Iqaluit, Nunavut and Toronto, ON ‐ Baffinland Iron Mines (BIM) and the Qikiqtani Inuit Association (QIA) are pleased to announce that they collectively have reached a significant milestone in the negotiation of the Inuit Impact Benefit Agreement (IIBA) as it relates to the Mary River Iron Ore Project. QIA and BIM are making public that work on the draft IIBA has reached a consensus on many primary areas regarding education, training, business opportunities, and finance, and will continue working towards concluding an agreement.

The IIBA is a requirement developed under Article 26 of the Nunavut Land Claim Agreement (NCLA). Proponents of major projects, such as Mary River, are required to negotiate an IIBA with Regional Inuit Associations for the purpose of insuring
benefits from the project are realized by Inuit affected by the Mary River project. Benefits will include training, employment, business development opportunities, and financial benefits based on the success of the project. In addition to these material benefits, the IIBA will be designed to ensure social, cultural, and community activities
are supported by the Company through the development of the Mary River Project.

Due to the scale of the Mary River and the logistical requirements for preparing for the project, significant training and employment opportunities will be required. It was the goal of Baffinland and QIA to take advantage of this opportunity and utilize those areas agreed to in the IIBA under the MOU announced in 2009 at the earliest stage possible.

Commenting on this achievement, Okalik Eegeesiak, the President of the QIA stated, “Our progress on the IIBA demonstrates commitment on behalf of QIA and Baffinland to negotiate an agreement that will promote and sustain benefits for Inuit. QIA’s goal remains to develop the best possible project for Inuit and I am happy to announce with Baffinland we are continuing along that path”.

Representing the Company, Tom Paddon, President and CEO stated, “This is an achievement for Baffinland and for the Qikiqtani Inuit Association and is an important step in building our relationship, which will become the cornerstone for the successful development of the Mary River Project. I have seen first hand, the growth and prosperity that can be reached by aboriginal organizations through these types of agreements”.

Over the course of the coming months the Mary River Project will be progressing through the NIRB’s environmental assessment process, during which the Company will seek to address any concerns regarding proposed plans that have been expressed by Inuit during the process. If this process is successfully completed, a Project Certificate will be issued by NIRB, as which time the IIBA can be formally executed.

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Contact information:

David Joanasie
Media Relations Advisor
Qikiqtani Inuit Association
867‐222‐5549

Greg Missal
Vice President, Corporate Affairs
Baffinland Iron Mines
416‐814‐3164