Baffinland Reaffirms its Recommendation That Shareholders Reject Offer

Baffinland Iron Mines Corporation announced today that it received notice by wamachinery for extracting gold from rocky of press release of an amended offer (the "Amended Nunavut Offer") being made to its shareholders by Nunavut Iron Ore Acquisition Inc. ("Nunavut"), a corporation wholly-owned by Iron Ore Holdings, LP, to acquire 49.7% of Baffinland's outstanding common shares (calculated on a fully-diluted basis) excluding the 10.3% of the common shares owned by Nunavut, at a price of $1.45 in cash per common share which can be taken up pursuant to the Amended Nunavut Offer.

The board of directors of Baffinland has reviewed the Amended Nunavut Offer with its financial and legal advisors and has determined that the offer by ArcelorMittal being made for 100% of Baffinland's Common Shares for $1.40 in cash per share and 100% of Baffinland's 2007 Warrants for $0.10 in cash per 2007 Warrant (the "ArcelorMittal Offer") remains in the best interests of Baffinland, its Shareholders and 2007 Warrantholders.

Accordingly, the Board of Directors reaffirms its recommendation that Baffinland's securityholders ACCEPT the ArcelorMittal Offer and TENDER their Common Shares and 2007 Warrants to the ArcelorMittal Offer and REJECT the Amended Nunavut Offer and NOT TENDER their Common Shares to the Amended Nunavut Offer.