Toronto, May 6, 2010
Iron Ore Company of Canada (IOC) announced today that it has resumed Phase 1 of its expansion program, which was approved in March 2008 and suspended later that year due to the impact of the global financial crisis on worldwide markets. This will increase annual production to 22 million tonnes(see attached IOC press release). When completed this will result in a substantial increase in 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