Liberty Mines Inc.: Liberty Signs Off-Take Agreement for Cobalt Deposit

3/19/2007

Timmins, Ontario CANADA, Mar 19, 2007 (M2 PRESSWIRE via COMTEX News Network) --

Liberty Mines Inc. (LBE - TSX Venture), ("Liberty" or the "Corporation") is pleased to announce the signing of an off-take agreement for the McAra Lake cobalt deposit located about 200 km south of Timmins Ontario with Jilin Jien Nickel Industry Company Ltd ("JJNICL") of China. The agreement also includes the construction of a hydrometallurgical facility either in China or Canada to process a cobalt-nickel concentrate from a mill to be built by Liberty at a site near the deposit. JJNICL will provide some financial backing to Liberty according to the scale and scope of the project.

"This agreement potentially accelerates Liberty's desire to be a primary producer of both nickel and cobalt," said President Gary Nash. "JJNICL has proven to be an excellent strategic partner and we are honored by their continued commitment to support our projects, "he added.

As reported in previous press releases in 2004 and 2006, the cobalt deposit at McAra Lake consists of rich veins of cobaltite typically grading up to 11% cobalt over 1m-1.5m with intersections of 19.46m averaging 1.1% cobalt. It also contains significant copper with intersections of chalcopyrite containing 11.9% copper over 3.1m as well as varying credits of nickel up to 1%. An extensive drill program for the McAra deposit and the adjacent Ray Township surface trenches will begin when the properties can be accessed in the late spring. The goal for 2007 will be to perform enough drilling to allow an NI 43-101 resource to be calculated for these deposits.

Because cobaltite is a cobalt arsenic sulphide, the arsenic must be removed by either a smelter or a hydrometallurgical facility to produce a finished product. A hydrometallurgical process is much more environmentally friendly. The arsenic residue along with the gangue material of the ore is mixed with cement and backfilled in the mine to produce a concrete like material which is buried and environmentally safe.

From Letter to Shareholders 2005 Annual Statement

Seven mining claims were staked or optioned at McAra Lake to encompass the rich cobalt discovery. The claims covered the prospective geology in the region thus ensuring full access and ownership to Liberty for additional possible discoveries.

Cobalt properties with several surface showings contiguous to the McAra Lake claims were acquired in Ray Township to give Liberty a 7,000 hectare exploration base of cobalt claims.

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From the 2006 Annual Report

Limited drilling this year extended the known zones of both the cobalt and copper mineralization. As stated inthe May 31st news release, borehole M06-19 hit 4.81 m of 1.8% Cu in the upper chalocopyrite zone and 1.11m of 1.5% Cu in the lower zone; M06-20 found 4.13m of 1.4% Cu and M06-21 yielded an upper zone with 3.57m of 1.27% Cu and a lower chalcopyrite vein of 1.08m with 1.92% Cu. These three holes were drilled approx 65m east of EDS 04-5. Borehole M06-22 hit a lower zone of 9.84m of 1.23% Co, 13m below the rich Co vein in EDS 04-07. Borehole M06-27, approx 71m from M06-19, returned a significant 19.46m intersection of 1.10% Co and 0.77% Cu including zones of 9.62% Co and 6.26% Cu (July 31 pressrelease).

Ray Township Claims

The adjacent Ray Township cobalt claims have several surface showings of approx 0.3% Cobalt and 0.3% nickel. This extensive property contiguous to the McAra cobalt discovery will be actively explored over the next two years and could provide feed for the McAra mill.

-With respect to the Company’s cobalt properties, two mining claims were purchased at McAra Lake adjacent and south of the main cobalt deposit for an initial payment of $40,000 plus payments of $40,000 a year for the next two years. ...An extensive drill program will begin at the McAra Lake deposit and the adjacent Ray Township surface trenches in the spring of 2007 to elucidate the structures.

Financial note 4.a

The McAra Lake Property was acquired on 31 Dec 03 and is located in Dufferin Township, south of Shining Tree, On. ... The property is subject to a 3% net smelter return. During 2005, an additional 64 claims surrounding the originan McAra property were optioned for an initial payment of $40,000. One of the additional claims is subject to a 1.5% NSR.

2007 Annual Report

A drill program will begin at the McAra Lake deposit and the adjacent Ray Township surface trenches in the summer of 2008 to elucidate the structures.

A camp was set up at the McAra Lake cobalt project in May 2007 and some drilling was attempted.

Press Release 14-05 26 Sep 05

. The McAra project now consists of 11 adjacent claims centered on the known

vein system and covers an area of approximately 4.5kmx5km. The land positions cover

the zone between two structural faults which are thought to govern the mineralization in

the veins, according to Mr. Douglass Robinson P.Eng., Liberty’s geologist and qualified

person who specializes in Cobalt deposits. The vein systems at McAra Lake average 4%

Cobalt from surface to 90m depth; approximately 8 times as rich as most economic

deposits in the world which run about 0.5% Cobalt.

Liberty also staked two additional contiguous claims to this claim group to link a block

of 18 contiguous claims in Ray township that the company has also staked. The Ray

claim block extends north into Leith township and covers an area approximately

4kmx12km. There are several surface showings of Cobalt mineralization on the new

claims. One pit was sampled and returned 0.215%-0.418% Cobalt and 0.189%-0.369%

Nickel over 5 samples with an average grade of 0.288% Cobalt and 0.205% Nickel.

Exploration on this very prospective property will begin in early 2006 with the goal to

Press Release 2-06 27 Jan 06

At McAra Lake, an application to bring the cobalt claims to lease has been submitted. The existing

drill data has been studied by Liberty’s geologist, Mr. Douglas Robinson P.Eng., who has

recommended extending previously drilled holes 04-5 and 03-3 to attempt to hit the cobalt/copper

structures at depth. Furthermore, it is apparent that previous operators had located mineralization

that was never reported, so the purported holes will be re-drilled. Additional step out drilling will

also be a part of the exploration plan, which will be ongoing throughout 2006 with the goal to prove

up additional resources. Construction of a 5 km road into the deposit is planned for the spring of

2006.

Hydrometallurgical and petrological studies of the McAra cobalt ore are also in progress. Successful

results will elucidate the most feasible way to concentrate or refine the ore. It may be possible to

refine the ore directly without concentration because of its unusually high cobalt content which runover 10% in the intersected veins as reported in previous news releases. The anticipated results will

also allow an off-take agreement for the ore to be completed. Upon receipt of necessary permitting,

a substantial bulk sample is planned as a lucrative source of cash for further mine development and

related investments.