Update - The latest news concerning the impact of heavy rains on QNS&L
Railway activities

SEPT-ÎLES, LABRADOR CITY, MONTREAL and ST. JOHN'S, Dec. 22 /CNW Telbec/ - Since Wednesday, December 15th, teams from QNS&L Railway, supported by employees from Iran Ore Company of Canada (IOC), have been working safely non-stop to repair damages to more than 40 kilometres of its railway. These damages have been caused by the heavy rains of last week in the North Shore region. As a resuit of these efforts, and aided by favourable weather over the past week, IOC is today in a position to announce that QNS&L should be in a position to progressively restore its railway service between Sept-îles and Labrador City on or around December 25th.

This estimate may be subject to change as it depends to some extent on weather conditions or other unforeseen events that could arise as this work progresses. Upon completion of the repair work, the priority will be to restore the railway service in a gradual manner to ensure that safety on the railway will be maintained.

lOC's operational activities in Labrador City have continued since the events of last week but at lower rates of production pending full restoration of QNS&L railway services. Ship loading operations in Sept-lles have also continued with available finished product. Potential disruption of lOC's customers' shipments resulting from the interruption of QNS&L railway services are being dealt with each customer directly.

The IOC Executive Team would like to take this opportunity to thank ail employees and contractors who have been working day and night to restore the railway service. Being this close to the holiday period, the Executive Team recognizes and appreciates the extent of their effort and dedication. Repairs have been performed so far without safety incident and the focus on safety must continue to be maintained.

Lastly, IOC will continue to report as the situation evolves.

About IOC

IOC is the largest manufacturer of iron ore pellets in Canada and its customer base covers North American, European and Asian steel producers. The Company operates a mine, concentrator and pelletizing plant in Labrador City, Newfoundland and Labrador, as well as port facilities located in Sept-îles, Quebec. It also operates a 418-kilometre railroad that links the mine to the port. IOC has approximately 2,200 employees. Its shareholders are Mitsubishi Corporation (26.18%), Labrador Iron Ore Royalty Corporation (15.10%) and the international mining group Rio Tinto, majority shareholder (58.72%) and operator, which has activities in more than 40 countries throughout the world.

For further information:

Arlène Beaudin,
Advisor, External Relations
Téléphone: 1.418.968.7400 ext. 7792