Toronto, September 4, 2008
Iron Ore Company of Canada (IOC) announced today a $300 million expansion program to increase annual production to 22.8 million tonnes including $75 million towards the feasibility study to increase production to 26 million tonnes (see attached IOC press release). This is in addition to the $500 million expansion program announced in March. When completed this will result in a substantial increase in the royalty revenue received by Labrador Iron Ore Royalty Income Fund from IOC, subject to future prices and exchange rates.

For further information, please contact:

Bruce C. Bone
Chairman and Chief Executive Officer
(416) 863-7133