Resource Capital Fund IV L.P. Acquires Additional Shares of Baffinland
Pursuant to the Exercise of Warrants

DENVER, CO, Dec. 20 /CNW/ - Resource Capital Fund IV L.P. ("RCF IV") reports that it has acquired direct ownership of 9,963,284 common shares in the capital of Baffinland Iron Mines Corporation (the "Issuer") upon the exercise of previously owned warrants of the Issuer, representing a securityholding percentage of approximately 2.7% of the common shares of the Issuer.  The warrants were exercised at a price of $0.70 per warrant.  After the completion of the exercise of warrants, on a non-diluted basis, RCF IV and Resource Capital Fund III L.P. (affiliated entities by way of a common management company, RCF Management LLC) own 88,724,963 common shares in the capital of the Issuer, representing a securityholding percentage of approximately 24.3% of the common shares of the Issuer.

RCF IV exercised the warrants for investment purposes.  RCF IV will evaluate its investment in Baffinland from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in Baffinland as circumstances require.

For further information and to obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Baffinland's profile on the SEDAR website www.sedar.com.

For further information:

Resource Capital Fund IV L.P.,
1400 Sixteenth Street, Suite 200,
Denver, CO, 80202,
Telephone: [phone]