Baffinland Announces Submission of the Draft Environmental Impact Statement for the Mary River Project

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TORONTO, ONTARIO -- (Marketwire - Jan. 21, 2011) - Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") is pleased to announce the submission of the Draft Environmental Impact Statement ("DEIS") for the Mary River Project (the "Project") to the Nunavut Impact Review Board ("NIRB"). The DEIS represents the culmination of over five years of scientific studies and Inuit Qaujimajatuqangit (traditional knowledge) contributions from community members of Pond Inlet, Igloolik, Hall Beach, Arctic Bay, Clyde River, Cape Dorset and Kimmirut.

The DEIS has been prepared in concordance with the NIRB Guidelines for the Preparation of a DEIS for the Mary River Project dated November 16, 2009 and the NIRB Addendum to the Guidelines for the Preparation of a DEIS for the Mary River Project dated November 3, 2010.

The DEIS presents scientific and community based knowledge that led to the identification of key aspects of the natural and socio-economic environments. Project interactions were identified, residual effects assessed and proposed mitigation and monitoring plans developed for the construction, operation and closure of the Project.

The DEIS considers a cumulative 21 million tonne per annum iron ore mine located at Mary River on North Baffin Island, consisting of a preferred 18 million tonne per annum railway and year-round port alternative that would entail shipping iron ore from the proposed Steensby Inlet port, south of the Mary River Property, and a road haulage option alternative of 3 million tonnes per annum that entails shipping in the open water season from port facilities at Milne Inlet, northwest of the Mary River Property.

"Submission of the Draft Environmental Impact Statement marks yet another important milestone in the development of the Mary River Property. The DEIS confirms that the Project will bring substantial and sustainable benefits to Nunavumiut of the Qikiqtani Region in Nunavut, without significant adverse effects. We look forward to engaging our Inuit partners, various levels of government and other stakeholders as we continue to advance the environmental assessment process" stated Daniella Dimitrov, Baffinland's Vice Chair.

The Company expects completion of the full environmental assessment process, including receiving all required permits and authorizations, towards the end of 2012 or early in 2013.

Copies of the DEIS will be filed to the relevant regulatory authorities, Inuit groups, communities and other interested parties starting next week.

Baffinland is a Canadian publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada. Baffinland's shares trade on the Toronto Stock Exchange under the trading symbol BIM.


This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about the Company's interpretation of its completed DEIS, including related statements about substantial and sustainable benefits to Nunavumiut of the Qikiqtani Region, Nunavut, as well as the rest of Canada and the consideration of a 21 million tonne iron ore mine and the consideration of a preferred railway and year- round port shipping ore from Steensby Inlet alternative and a road operation alternative involving open water shipping from Milne Inlet.

Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices, the timing and amount of future exploration expenditures, the estimation of additional capital requirements, the availability of necessary financing and materials, the receipt of necessary regulatory approvals, the feasibility of constructing and operating a direct-shipping iron ore mine at the Company's Mary River project and assumptions with respect to environmental risks, title disputes or claims, weather conditions and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks inherent in the exploration for and development of mineral deposits, risks relating to changes in iron ore prices and changes in the worldwide demand for and supply of iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River Property including access and supply risks, reliance on key personnel, construction and operational risks inherent in the conduct of mining activities, regulatory risks, including risks relating to the acquisition of necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all, environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.



Contact Information

Baffinland Iron Mines Corporation
Daniella Dimitrov, Director and Vice Chair
416-814-3172
or
Baffinland Iron Mines Corporation
Michael T. Zurowski, Executive Vice President
416-814-3161
info@baffinland.com
www.baffinland.com