NORTHERN SUN MINING CORP LBEFF

News In

[finnboy]

Liberty Reports Third Quarter Production Results

EDMONTON, Alberta, Oct 12, 2010 (BUSINESS WIRE) --

LibertyMines Inc. ("Liberty or the Company") is pleased to report thethird quarter of 2010 ("Q3") production results from its miningoperations at the Redstone and McWatters nickel mines near TimminsOntario. The Redstone nickel concentrator ("Mill") processed 95,587tonnes during the third quarter of 2010 ("Q3"); an increase of 69%over the 56,520 tonnes processed during the second quarter of2010. As the McWatters open pit provided 49.5% of the ore milledduring Q3, the average processed grade was 0.63% nickel ("Ni"),down 20% from the average grade of 0.79% Ni processed during Q2.However, the underground ore at McWatters graded 0.94% Ni, up 21%from the 0.78% reported in Q2; with a 3.5% increase in milledtonnes in Q3 over Q2. Mine production statistics during Q3 wereas follows:

Mine Tonnes Produced Grade Ni %
--------------------- --------------- ----------
Redstone 8,221 0.75
--------------------- --------------- ----------
McWatters underground 41,712 0.94
--------------------- --------------- ----------
McWatters open pit 101,845 0.34
--------------------- --------------- ----------

Redstone Mine

Theupper zone at Redstone is scheduled to be mined out by the end of2010. Deteriorating ground conditions in certain stopes became evidentduring the third quarter, which decreased production from themine. Going forward, only the stopes that can be easily andsafely mined will be exploited.

McWatters Mine

Oncethe mining of panel 2 on the 140m level is finished and a slot iscompleted from the 140L to pit bottom, sublevel caving of the main orebody can commence later this month.

The cut-and-fillpanels at the 155m to 120m levels have now been 73% minedyielding 67,596 tonnes grading 1.15% Ni with 36,200 tonnes at1.14% Ni remaining to be mined. The ore body in these panels was moreblocky and discontinuous than expected. As a result, the grade wassignificantly lower than the 1.94% Ni over 92,041 tonnesestimated by SRK Consulting in the feasibility study datedDecember 2009. This has negatively impacted the expected revenueto be generated during 2010 to date from those panels.

Hart Mine

TheClosure Plan for the mine is expected to be submitted to theMinistry of Northern Development of Mines and Forestry shortly upon thecompletion of a background environmental study. Construction ofthe mine has now been scheduled for April 2011.

Redstone Nickel Concentrator

Overallmetallurgical recovery was 82.1% with that of the McWattersunderground ore being 87.5% and the open pit ore 76.7%. Tonnes processedin Q3 were as follows:

Mine Wet Tonnes Milled Grade Ni % Dry Tonnes Milled
--------------------- ----------------- ---------- -----------------
Redstone 5,803 0.75 5,715
--------------------- ----------------- ---------- -----------------
McWatters Underground 42,427 0.94 41,916
--------------------- ----------------- ---------- -----------------
McWatters Open Pit 47,357 0.34 46,705
--------------------- ----------------- ---------- -----------------

About Liberty Mines Inc.

LibertyMines Inc. is a producer of nickel and is focused on theexploration, development and production of nickel, copper, cobalt andplatinum group metals from its properties in Ontario, Canada. Itowns and operates the Redstone nickel concentrator near TimminsOntario.

CAUTIONARY STATEMENT

No stock exchange,securities commission or other regulatory authority has approvedor disapproved the information contained herein. This NewsRelease includes certain "forward looking statements". All statementsother than statements of historical fact included in this release,without limitation, statements regarding future plans andobjectives of Liberty, are forward looking statements thatinvolve various risks and uncertainties. There can be noassurance that such statements will prove to be accurate andactual results and future events could differ materially fromthose anticipated in such statements. Important factors thatcould cause actual results to differ materially from Liberty'sexpectations are: exploration risks; commodity prices; regulatoryapprovals; receipt of mining permits and leases; and assumed startupand operating costs detailed herein and from time to time in thefilings made by Liberty with securities regulators.Forward-looking statements speak only as of the date on whichthey are made. The Company undertakes no obligation to publiclyupdate any such statement or reflect new information or theoccurrence of future events or circumstances, except whererequired by securities regulations. Accordingly, readers shouldnot place undue reliance on forward-looking statements.

SOURCE: Liberty Mines Inc.

Liberty Mines Inc. Dr. Gary Nash, PhD (Physics), 416-238-9736 President & CEO Fax: [phone] [e-mail]

Copyright Business Wire 2010

[NiceGuyEddie]

more disappointment coming from LBE camp, big surprise.  I'm surprised the stock hasn't dropped to 15 cents.SRK experts, good one...

[Nickel77]

NiceGuyEddie, When you were posting negatives about LBE in early August, the stock was at about .14 cents.  In Mid September when you were posting more negatives about LBE, the stock had moved up to about .17 cents.  Today you post more negatives, and where do we see the stock roughly sitting.  About.24 cents! Keep up the good work!Best Nickel  

[NiceGuyEddie]

hopefully you will have sold before it hits 5 cents.  what goes up will come down.  it's just a question of time.

[victor2009]

Nickel77,NiceGuyEddie, along with doingthejob, Bruce McT and his stable of aliases, will consider the News Release as bad news - Bad for them. They don't like reports showing ramped up production, indicating LBE is continuing to progress on its business plan. I don't know what NiceGuyEddie's agenda is, he's maybe just angry over being made a fool by calling for doom as the price

[NiceGuyEddie]

missing the original production numbers and again missing the revised production numbers (which were already revised 50% downwards), yes i do consider this bad newsremember what i told you about so called "experts" previously.  SRK missing on the grade by more than 50%, yes i do consider that bad newsdo you see a pattern developing?

[victor2009]

Since the report on the Q3 production results, the usual suspects have swooped in, unable to disguise their glee, pouncing on the fact that there was reference to an unexpected situation at Redstone, and that certain grades were lower than estimated in the SRK NI43-101 report. As I mentioned in response to ExSudburyGuy, those familiar with mining would realize these are occurrences that are

[NiceGuyEddie]

victorino,  your never say die attitude is commendable.  as you know, i don't subscribe to your point of view.  ultimately, i think you will see things my way.  a few more colossal blunders and i believe you will be swept away by the winds of changei hope i'm wrong and you're right, stranger things have happened.... 

[NiceGuyEddie]

nickel, it's not at 24 cents anymore is it?when lbe shows that they can't pay debt even in these more promising conditions, i.e. increased nickel price, increased production rates, they will get clobbered againi accept your apology and you can thank me later

[Nickel77]

Eddie, If I had concerns about LBE, I would have been out of the stock long ago.  I am well aware of the risk I take, or reward I could make with my investment; I am also well aware of how long it takes to get a mine and mill up to full production.  Until the time arrives where LBE can run full production for several quarters; there is no doubt LBE will have ups and downs along the

[victor2009]

Nickel77,Well said. There's a group of posters here who can't wait to pounce on anything they view as a negative event for LBE. There is nothing they enjoy more than reporting the negatives, and they would have been ecstatic if LBE had not survived the financial meltdown. They dream about LBE failing in the future, but some have finally realized that Jilin Jien is not going to allow this

[NiceGuyEddie]

unfortunately, lbe doesn't have the better part of one year to make good on this deal.  if they haven't paid down at least 30 million of that debt by the end of march 31, me you and every non-jj shareholder can use our stock certificates to line the bottom of our bird cages.  not sure nash is the answer, hopefully the board will hand over this assignment to someone more capable.&

[victor2009]

NiceGuyEddie,Again, you come out with a wild claim that if $30 million isn't paid down by March 31, LBE shares are worthless. You give no reason for making this statement, and there is one major flaw in what you say. You say that worthless shares will only apply to minority shareholders. Do you realize that if minority shareholder's shares are worthless, the same applies to

[NiceGuyEddie]

victorino - re lbe, i think we understand each other's points of view, let's agree to disagree.  let me sum up lbe like this, after all was said and done more was said than done.  even if they manage to pay down 60 million of debt (which i think is impossible, there will always be some obstacle that will surface, count on it), they will have a remaining mine life of 4 years. 

[victor2009]

NiceGuyEddie,You say we understand each other's points of view - I don't know how you come to that conclusion, so we will have to agree to disagree. You don't think LBE can pay down it's debt, I feel they have an excellent chance of paying it down earlier than I expected if recent Ni prices hold. Sure there will be obstacles as they go along, but that's not some astounding

[NiceGuyEddie]

adios my friends, i'll be back on this board in october 2011, if you still remember me then, we'll chat again