Baffinland Appoints AMEC for EPCM Services, Completes DFS Expansion Study and Provides an Operations Update

TORONTO, ONTARIO, Jun 19 (MARKET WIRE) --
Baffinland Iron Mines Corporation ("Baffinland") (TSX: BIM) is pleased to
announce the appointment of AMEC to provide engineering, procurement and
construction management services ("EPCM") for the Mary River Project (the
"Project").

The assignment includes basic and detailed engineering services,
logistics planning, procurement support and construction management
services over the next six years.

AMEC is a global organization with extensive corporate resources, a
worldwide staff of over 20,000 people, a proven track record and more
northern experience than any other engineering/construction company, with
over $30 billion of successful EPCM Northern Canadian projects completed
or in progress.

Simon Naylor, President of AMEC Natural Resources Americas, stated "We
are thrilled with the award of the Mary River Project. It fits perfectly
with an AMEC core competency, project delivery in the Canadian North, and
provides an exciting opportunity for us to work with Baffinland in the
delivery of a world-class project."

Bob Stanlake, President of AMEC's Mining, Minerals and Metals business,
added "AMEC has a long track record of delivering Arctic solutions, this
contract demonstrates our tier one position in this market and our world
class project management capability."

Rod Cooper, Chief Operating Officer for Baffinland, stated, "The
appointment of AMEC as our engineering, procurement and construction
management firm marks a significant milestone in advancing the Mary River
Project through construction and into commercial operations. AMEC brings
significant Arctic expertise with the construction of large-scale mining
projects, and we look forward to working with them in the development of
this world-class asset."

Gord McCreary, President and CEO, Baffinland, added, "On behalf of
Baffinland, I would like to express our sincere appreciation to the
various firms involved in the pursuit of our EPCM contract. The level of
interest in our Mary River Project confirms management's long held
opinion of the extraordinary quality of our iron ore assets and we look
forward to AMEC joining the Baffinland team to assist in our relentless
march to production as we strive to make our Project the best it can be."

DFS Expansion Study Update

Aker Solutions has completed a study for the potential expansion of the
Mary River Project to a production rate of 30 million tonnes per annum,
based on the development of a second open pit mine encompassing Deposits
No. 2 and No. 3, located approximately 3 kilometres from Deposit No. 1.
The study assumes the additional production, beyond the 18 million tonnes
per annum planned in the Definitive Feasibility Study, would come on-line
in the fourth year of production. The study is completed to a
scoping-level of detail, with an estimating confidence of +/- 20 percent.

Results from the study are consistent with management's expectations and
the study will contribute to strategic planning for the project. As the
majority of the resources included in the Deposit No. 2 and No. 3 open
pit are classified as "inferred", Canadian National Instrument 43-101
rules governing disclosure of economic results prevent our release of
this information to the public. Baffinland is currently discussing this
matter with the Canadian regulators.

Additional information relating to significant components of an expansion
of the Mary River Project will be posted on the Company's website at
www.baffinland.com in the near future.

Operations Update - Bulk Sample, Field Season Programs

Drilling, blasting and crushing results associated with the bulk sample
continue to be favorable and are meeting expectations for fragmentation
and crushing, providing additional confidence with respect to the
important lump-to-fines ratio associated with the final product.

The early advent of spring-time melting throughout the project area has
necessitated extensive work along the full length of the 100-kilometer
Milne Inlet to Mary River road. Haulage of the bulk sample to Milne Inlet
has therefore been interrupted over the past month, as all contractor
resources have been diverted to road construction and maintenance.
Blasted ore currently totals 166,956 tonnes, with 108,316 tonnes hauled
to the crusher and 98,400 tonnes crushed. A total of 39,048 tonnes of ore
has been hauled to Milne Inlet. Haulage will resume when road maintenance
and repair is completed.

Progress continues with the 2008 field season programs, including
geotechnical drilling, exploration drilling and environmental baseline
studies.

The geotechnical program has commenced and is ahead of schedule with
respect to the drilling associated with basic engineering design for the
railway and port facilities. The sea-ice drilling program at the port was
completed on schedule in early June. A total of five diamond drills have
been engaged this season and have drilled in excess of 170 holes
year-to-date, a continuous improvement over results achieved during 2007.
Because drilling is ahead of schedule, three drills have been placed on
temporary standby to allow the archeological investigations to advance
ahead of the drill program.

The exploration field season is scheduled to commence during July and
will include infill and geomechanical drilling on Deposit No. 1, as well
as drilling in the vicinity of Deposit No. 1 that is required to support
the basic engineering design and location of the mine infrastructure.

The environmental baseline studies, a continuation of efforts undertaken
over the past three years, will continue throughout the year and will
contribute to the regulatory review and approval process that was
initiated in March 2008 with the submission of a Development Proposal and
associated applications.

There are presently approximately 300 employees, contractors and
consultants fully engaged in the execution of the 2008 programs at Mary
River. So far this year, Inuit employment has ranged from 25% to 40%.
Site programs are supported from three camp locations: one at Milne
Inlet, the second previously announced expanded camp facility at Mary
River and the third, a newly constructed field camp located at Steensby
Inlet. A fourth field camp, located at the midway point between Mary
River and Steensby Inlet, is scheduled to be established later this
summer.

Baffinland is a Canadian publicly-traded junior mining company that is
focused on its wholly-owned Mary River iron ore deposits located on
Baffin Island, Nunavut Territory, Canada.

This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to management's future outlook and
anticipated events or results, and may include statements or information
regarding the future plans or prospects of the Company. Without
limitation, statements made about the construction, operation, closure
and reclamation of a conventional 18 mtpa open pit mine at Deposit No. 1,
the DFS Expansion Study for a 30 mtpa operation, statements about the
appointment of the engineering, procurement and construction management
firm and the duration of their assignment, statements concerning
progress, execution, completion and planning developments associated with
the bulk sample, environmental baseline work, geotechnical drilling work
and exploration drilling work are forward-looking information.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, expected mineral resources, iron ore
prices, the timing and amount of future exploration expenditures, the
estimation of additional capital requirements and initial capital costs,
the availability of necessary financing and materials, the receipt of
necessary regulatory approvals, the feasibility of constructing and
operating a direct-shipping iron ore mine at Baffinland's Mary River
project and assumptions with respect to environmental risks, title
disputes or claims, weather conditions and other similar matters. While
the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Without limitation, in stating that the exploration field season is
scheduled to commence during July and will include infill and
geomechanical drilling on Deposit No.1, the Company has assumed that it
will have the necessary resources to carry out its exploration
activities. In stating that the additional production beyond 18 mtpa will
come online in the fourth year of production, the Company has assumed
that it will have the necessary resources, financing, permits and
approvals to construct and operate the open pit mine and the railway and
to secure the appropriate ore carriers.

Forward-looking information is subject to certain factors, including
risks and uncertainties that could cause actual results to differ
materially from what is currently expected. These factors include risks
inherent in the exploration and development of mineral deposits, risks
relating to changes in iron ore prices and the worldwide demand for and
supply of iron ore, uncertainties inherent in the estimation of mineral
reserves and resources, risks relating to the remoteness of the Mary
River property including access and supply risks, reliance on key
personnel, construction and operational risks inherent in the conduct of
mining activities, including the risk of changes in capital and operation
costs, regulatory risks, including risks relating to the acquisition of
the necessary licences and permits, financing, capitalization and
liquidity risks, including the risk that the financing required to fund
all currently planned exploration and related activities may not be
available on satisfactory terms, or at all, environmental risks and
insurance risks. You should not place undue importance on forward-looking
information and should not rely upon this information as of any other
date. While the Company may elect to, it is under no obligation and does
not undertake to update this information at any particular time.

Contacts:
Baffinland Iron Mines Corporation
Gordon A. McCreary
President and CEO
(416) 814-3163

Baffinland Iron Mines Corporation
Rodney A. Cooper
Vice President Operations and COO
(416) 814-3158
Email: info@baffinland.com
Website: www.baffinland.com

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