Labrador Iron Mines Holdings Limited announced the results of an independent Preliminary Economic Assessment ("PEA") on its Houston Project prepared by Roscoe Postle Associates Inc. ("RPA"), now part of SLR Consulting Ltd. The Houston Project is an open pit, direct shipping, iron ore project located in the Labrador Trough region in eastern Canada, near the town of Schefferville, Quebec, consisting of the Houston 1, 2 and 3 deposits in Newfoundland and Labrador, and the Malcolm deposit in Quebec. The Houston Project is owned 100% by Labrador Iron Mines Limited ("LIM") and its wholly-owned subsidiary Schefferville Mines Inc. ("SMI"). LIMH owns 52% of LIM. Houston Project Description: The Houston Project consists of the Houston 1, Houston 2 and Houston 3 deposits located in Labrador and the adjacent Malcolm deposit located just over the provincial border in Quebec. The Houston 1 and Houston 2 deposits have been permitted and are considered ready for construction. The Houston 3 deposit and Malcolm deposit are planned to come on stream in the second half of the 12-year projected mine life, following permitting. The Houston Project is planned as an initial 12-year mine life with production of 2 million ("m") dry metric tonnes ("dmt") of direct shipping iron ore ("DSO") per year for total production of 23.4m dmt of product at 62.2% Fe over the life of the mine. This production profile of 23.4m dmt is based on an updated, current NI 43-101 Mineral Resource estimate of 20.5 mt (62.7% Fe) in the Measured and Indicated categories and 14.3 mt (59.4% Fe) in the Inferred category. Planned production for the Houston 1 and 2 deposits is based primarily on Measured and Indicated resources. Subject to further drilling and analysis, excellent additional exploration potential exists along strike and between the Houston and Malcolm deposit, which could possibly expand the project's resource base and extend the mine life. Mining is planned year-round at approximately 5,500 tpd mineralized material while train loading is planned between May and November at approximately 10,000 tpd. Dilution of 5% at grade, a 100% process mass-yield and a low strip ratio of 2.2 waste to mineralized material are expected. Operations will involve conventional open pit truck and shovel activities and simple dry crushing and screening for processing. Mine development consists mainly of construction of an 8 km gravel road and a 2 km rail siding and installation of site infrastructure including dry crushing and screening facilities and water management equipment. The required major mining equipment will be leased and an existing locally owned accommodation camp will be rented. Site operations will rely on diesel power with fuel sourced from a local distributor. The project is expected to employ 297 people in total at its peak, with about 20% of the labour force sourced from local communities. Pre-production capital expenditures of $86.8m, including an 18% contingency, and sustaining capital of $67.7 million are estimated. Reclamation and closure costs are estimated to be $8.4m, including 3 years of post-closure monitoring. With impact and benefit agreements, which include financial participation arrangements, in place with five First Nations communities, and five years prior local operating experience, LIM has established a strong social license and government support to develop and operate the Houston Project.