LABRADOR IRON ORE ROYALTY CORPORATION - CASH DISTRIBUTION FOR THE THIRD
QUARTER OF 2010 - $0.50 PER STAPLED UNIT AND SPECIAL DIVIDEND - $0.50 PER
STAPLED UNIT

TORONTO, Sept. 16 /CNW/ - The Directors of Labrador Iron Ore Royalty Corporation declared today a regular quarterly cash distribution of $0.50 per Stapled Unit, comprising a $0.234 interest payment on subordinated notes and a $0.266 common share dividend. The Directors also declared a special dividend of $0.50 per common share for a total distribution of $1.00 per Stapled Unit. All amounts are payable to holders of record at the close of business on September 30, 2010 and to be paid on October 25, 2010.

%SEDAR: 00030172E

For further information: Bruce C. Bone, President & Chief Executive Officer, [phone]