- Completes Internal Pre-Feasibility Study on Hart Project -

TSX: LBE

TORONTO, Jan. 3, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) ("Liberty" or the "Company") today announced that it has executed its right to purchase half of the two percent Hart net smelter royalty (NSR) from Canadian Arrow Mines (CAM) for a lump sum payment of CDN $1 million.

"Restructuring our Hart NSR represents a strategic decision to minimize royalty payments as we unlock the property's full potential," said Chris Stewart, President and CEO of Liberty Mines. "As our confidence in the Hart Project increases, we want to ensure we are taking all appropriate steps to ensure we are maximizing the project's full value for all of our stakeholders."

In 2006, Liberty Mines entered into an Option and Joint Venture Agreement with CAM. Under the terms of this agreement, Liberty optioned 100% ownership of the Hart Claims from CAM in exchange for various payments as well as a two percent NSR.

Also in accordance with the agreement, Liberty Mines was given the right to purchase the first one percent of the NSR for a lump sum payment of CDN $1.0 million. The remaining NSR will require negotiations between both parties to arrive at a mutually acceptable purchase price.

Internal Pre-Feasibility Study
Liberty also announced that it has completed an internal pre-feasibility study on the Hart Project. Based on the results of this study, Liberty is moving ahead with a feasibility study on the Hart Project. The results from this detailed study are expected by mid-2012.

"We are very encouraged by the preliminary results of our internal pre-feasibility study," added Mr. Stewart. "The results support our efforts to expand our life of mine through strategic exploration activities on our properties in Timmins."

About Liberty Mines Inc.
Liberty Mines Inc. is a mid-tier 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. It owns and operates the only nickel concentrator in the Shaw Dome, a prospective nickel belt region near Timmins, Ontario. With a new management team in place, Liberty is focused on growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.

CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward looking statements". All statements other than statements of historical fact included in this release, without limitation, statements regarding 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; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.