Updates on the Construction Progress of its DSO Project

ccnm


CALGARY, ALBERTA--(Marketwire - Nov. 22, 2011) -




NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES



New Millennium Iron Corp. ("NML" or the "Corporation") (TSX VENYURE:NML) announced today that Tata Steel Minerals Canada Ltd. ("TSMC"), the company that operates the NML and Tata Steel joint venture for the direct shipping iron ore ("DSO") project, has awarded a General Construction Contract to Innu Municipal LP (IML) of Labrador City, Labrador. IML will mobilize immediately and start with foundation excavation. IML will be responsible for the general construction at the Timmins area, where the processing plant, offices, warehouse, maintenance shops and related infrastructure are to be installed under a 106 meters wide x 182 meters long dome with an apex height of 42 meters.


Dean Journeaux, NML's President and CEO, said: "This important step brings us closer to achieve our goal of commencing shipments during the fourth quarter of 2012. The installation of the whole processing complex under a dome will provide controlled and efficient working conditions inside the building on a year round basis when completed."



Construction progress:



The permit application for site excavation, the construction of the processing plant and related infrastructure has been approved by the Government of Newfoundland and Labrador ("GNL"), subject to customary conditions. TSMC is proceeding to satisfy these conditions. The order for the supply of the building structure has been placed with Big Span Structures based in Hernando, Florida, USA. The space frame system will cover under one roof the entire processing complex as well as other installations such as offices, warehouse, laboratory, repair and maintenance shops. A year round climate controlled environment during operations will facilitate achieving a high plant operating efficiency and enhance productivity.


IML will commence the work of foundation installations and progressive erection of the dome so that the civil work related to the processing plant and ancillary facilities can continue during the winter. The dome is in fabrication with deliveries starting in December. TSMC has also started the procurement of long delivery process equipment in order to meet the schedule for production start up. The camp construction is nearing completion.



About New Millennium



The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing its DSO Project to near term production. Tata Steel Limited, one of the largest steel producers in the world, owns approximately 27% of New Millennium and is the Corporation's largest shareholder and strategic partner.


Tata Steel has exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). Tata Steel also has exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 11-09 dated March 6, 2011).


The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5 2006 and news release 07-11 dated July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009).


NML's DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009 and news release 10-12 dated July 8, 2010). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.


The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit >www.tatasteel.com and http://www.tatasteeleurope.com/">www.tatasteeleurope.com.


Dean Journeaux, Eng. is the Qualified Person as defined in National Instrument 43-101 who has reviewed and verified the scientific and technical disclosure contained in this news release.