Nunavut Iron 's Superior $1.35 per share Offer Can Proceed With OSC Order
Cease Trading Baffinland Shareholder Rights Plan

TORONTO, Dec. 22 /CNW/ - Nunavut Iron Ore Acquisition Inc. ("Nunavut Iron") announced today that the Ontario Securities Commission has granted an order to cease trade the second shareholder rights plan instituted by Baffinland Iron Mines Corporation ("Baffinland"). The order of the Commission will be effective at 5:00 pm on December 29, 2010 unless the application of the rights plan to Nunavut Iron's Offer is waived by the board of directors of Baffinland prior to that time. 

Representatives of ArcelorMittal S.A. have advised Nunavut Iron that it will request that Baffinland waive the application of the shareholder rights plan and representatives of Baffinland have advised Nunavut Iron that it is their intention to do so.

"This order removes an obstacle put in place by the Baffinland board of directors to deny its shareholders the opportunity to tender to Nunavut Iron's superior Offer," said Bruce Walter, Chairman of Nunavut Iron. "We are pleased that Baffinland shareholders can tender to our Offer which delivers significantly more value to them than the ArcelorMittal bid."

Baffinland announced it was implementing a second shareholder rights plan on December 18, after the Commission cease traded its first plan on November 19. 

Nunavut Iron has offered to acquire, at $1.35 pre share, that number of common shares of Baffinland which, taken together with the common shares owned by Nunavut Iron and its affiliates, constitutes 50.1% of the common shares outstanding on an in-the-money fully diluted basis. 

Nunavut Iron's Offer is scheduled to expire at 7:00 p.m. on December 30, 2010.

ABOUT NUNAVUT IRON AND IRON ORE HOLDINGS, LP

Nunavut Iron was incorporated under the laws of Canada on August 27, 2010 and has not carried on any material business other than in connection with matters directly related to the Offer. Nunavut Iron is wholly owned by Iron Ore Holdings.

Iron Ore Holdings is a limited partnership formed under the laws of Delaware for the purpose of making the Offer.  Iron Ore Holdings is owned by Bruce Walter, the Chairman of Nunavut Iron, Jowdat Waheed, the President and Chief Executive Officer of Nunavut Iron, and funds managed by The Energy & Minerals Group, which is providing the majority of the equity financing for the Offer.  The Energy & Minerals Group is a private investment firm with a family of funds with over US$2 billion under management that invest in the energy and minerals sectors. 

For further information:

SHAREHOLDERS OF BAFFINLAND IRON MINES CORPORATION

Kingsdale Shareholder Services Inc.
Toll Free 1-888-518-1562 (English or French)
Outside North America, Bankers and Brokers Call Collect 416-867-2272
Facsimile: 416-867-2271, Toll Free Facsimile 1-866-545-5580
Email: [email protected]

or visit www.baffinlandoffer.com

MEDIA

John Lute
Lute & Company
416-929-5883
Email:[email protected]