Liberty Provides Update on Financing and Operations

EDMONTON, ALBERTA--(Marketwire - Oct. 27, 2008) - Liberty Mines Inc. (TSX:LBE) ("Liberty or the Corporation") announces that it is in discussions with various lenders for financing alternatives to the secured note financing announced September 29, 2008. A subsequent press release will be presented shortly with further details.

To respond to the poor nickel market conditions, Liberty will focus in the short term on areas underground which can be mined quickly and processed at the Redstone mill. All development work has been curtailed underground. A number of employee's and contractors have been affected by this move which management views as necessary to maximize cash flow at this time. . The nickel market conditions will continue to be monitored and more operational changes may be necessary pending further changes in the market or the Corporations cash flow position.

About Liberty Mines Inc.

Liberty Mines Inc. is a producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada.

CAUTIONARY STATEMENT

This News Release includes certain "forward looking statements". All statements other than statements of historical fact in this release, including without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.