May 25, 2009 (Filing Services Canada) -- Liberty Mines Inc. (LBE - TSX), is pleased to announce that it has completed the CDN$30,000,000 transaction ("Transaction") with Jilin Jien Nickel Industry Co., Ltd. ("JJNICL") of Panshi City in China announced on April 14, 2009. JJNICL is now the largest shareholder of Liberty with a 51% ownership of the common shares of the Corporation. It also holds 186,994,510 convertible and redeemable preferred shares fully described in recent press releases.

As part of the Transaction, JJNICL paid a negotiated amount to purchase the notes and warrants from the lenders of a loan made to Liberty on April 29, 2008. The warrants were cancelled as one of the conditions to close the Transaction. JJNICL has a first charge on the Redstone and McWatters mining leases as security for the funds advanced to the Corporation from May 2008 to August 2008 for prepayments ("collectively the Prepayment") of nickel in concentrate. The Prepayment is to be repaid to JJNICL by May 25, 2011 and bears interest at 9.71% annually on the unpaid balance. Any balance due on the Prepayment after that date can be converted, at the sole discretion of JJNICL, to common shares of the Corporation at 11 cents per share.

Liberty is now preparing to start operations later this year and fully intends to have the Prepayment paid to JJNICL before the due date; thus avoiding significant dilution to the outstanding common shares at that time.

In accordance with the Transaction, JJNICL has appointed three distinguished individuals to the board of directors of the Corporation; a fourth independent director will be appointed by JJNICL in the near future. The new directors appointed are: Mr.Xu Guangping, a director of JJNICL and Chairman of Jilin Haorong Nonferrous Metal Group Co.,Ltd., the parent company to JJNICL; Mr. Wu Shu, a director of JJNICL and President Jilin Haorong Nonferrous Metal Group Co.,Ltd.; and Mr. Wang Xingrui, Vice-President Jilin Jien Nickel Industry Co., Ltd.

Gary Nash, President and CEO of Liberty, commented: "Having JJNICL as a major shareholder and a strategic partner is an exciting development for Liberty which firmly puts it on the path to become a mid-tier producer of nickel. We welcome the new members to the Liberty board of directors who are very knowledgeable in the mining and metal processing industries."
Mr. Wang Xingrui, Vice-President of JJNICL commented: "Liberty has good quality assets and lots of potential for growth. We are honoured to be working with Liberty".

To allow the new directors to be added to the Board of Directors, Mr. Steve Anderson and Mr. Don Schurman have resigned. Both directors have been with the Corporation since the change of management in March 2005. Mr. Anderson has contributed to the assemblage of Liberty's mining claim groups in the Shaw Dome nickel belt, McAra Lake-Ray cobalt properties, and the Groves nickel copper PGM project. Mr. Schurman has been the Chairman of the Board for the past four years and has provided strong independent guidance to help transform Liberty from an exploration company into a producer of nickel. The Board of Directors wish to thank them for their services and contributions to the development of the Corporation and wish them well in their future endeavours.


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. It owns and operates the Redstone nickel concentrator near Timmins Ontario.


About Jilin Jien Nickel Industry Co., Ltd.

Jilin Jien Nickel Industry Co., Ltd. (Jilin) is one of the largest holding subsidiaries of Jilin Haorong Nonferrous Metal Group Co., Ltd. (former is Jilin Nickel Industry Group), which was founded in 1960, located at the foot of beautiful Jilin Changbai Mountain.

Jien possesses four nickel mines, one molybdenum mine, one silver mine and one coal mine, two smelters, seven refineries, two chemical plants and one electric power plant, with total assets of RMB 1.6 billion. Jien professionally provides all kinds of nickel, copper, cobalt salts and nonferrous metal products for plating, chemical plating, battery materials and metallurgy.

Jien is one of the biggest producers of nickel sulfate in the world, with annual output of 25000 tons of nickel sulfate. Its design, production and service processes have passed the certifications of ISO9001:2000 quality system and ISO14001:1996 environment system

In September 2003, Jilin Jien Nickel Industry Co., Ltd. was listed in the A-share market of the Shanghai Stock Exchange with stock code of 600432 being the first listed company in China's nickel industry. The "Jien" brand is known as "the first brand" in nickel stocks.


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.

For further information please contact:
Dr. Gary Nash, PhD (Physics), President & CEO
Phone (416) 238-9736 Fax 780-437-7898
e-mail: gnash@libertymines.com


Source: Liberty Mines Inc. (TSX: LBE) http:// www.libertymines.com
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