Liberty Announces Closing of Restructuring Transactions

Toronto, Ontario CANADA, July 06, 2011 /FSC/ - Liberty Mines Inc. (LBE - TSX),  wishes to announce today the new five member board will be made up of returning Directors Mr. Wu Shu, Mr. John Pinsent and Dr. Tao Li as well as newly elected Directors Mr. Kim Oishi and Dr. Zhang Shu.  Mr. Gil Bertrand did not stand for re-election.  As a result of the restructuring of the board, Mr. Gil Bertrand, Mr. Xu Guangping and Mr. Wang Xingrui have resigned as Directors of Liberty.  The Company wishes to thank all of them for their contributions and dedication to Liberty during their tenure on the board.

Mr. Oishi has seventeen years of experience in capital markets and investor relations for public companies, serving as an officer or director of a number of TSX and TSXV listed companies.  Since 2004, he has focused on companies with investors and operations in China.   Mr. Oishi, will strengthen the board's ability to assist management to access capital markets and establish a best practices investor relations program.

A total of 2,315,000 incentive share purchase options have been granted to Officers, Directors and employees of Liberty to acquire shares at [$0.105] per share for a period of three years with vesting periods varying from immediate to three years.

Production at Liberty Mines' Timmins operations has been stopped since early February of this year due to concerns with the tailings pond facility (TPF).  Since that time a number of deficiencies have been addressed including the construction of a new emergency spillway.  Currently a borehole drilling program is being conducted on the tailings dam itself to investigate the lithology of the dam walls.  Engineering consultants Klohn Crippen Berger (KCB) are overseeing all of the work currently happening within the TPF and we are working closely with the regulatory agencies to ensure all of their concerns are addressed.

Chris Stewart, President & CEO of Liberty Mines, commented: "Since starting with Liberty on May 14th of this year, the majority of my time has been spent in Timmins working with our management team to review our current situation in order to develop a strategy for moving Liberty back into production as quickly as possible.  At the same time, ongoing efforts are also being made to add resources to the company through exploration of our own properties as well as potential acquisitions or other opportunities as we look to grow Liberty beyond the Timmins camp."

"The main focus of our efforts at site has been on our tailings pond facility to first and foremost ensure that there are no potential safety concerns that could impact the environment. Once those concerns have been addressed we will be working on what needs to be done to the existing TPF in order to provide tailings storage capacity to support our operating strategy for the next 2-3 years."  

The Redstone Mine and McWatters Mine are currently in care and maintenance mode awaiting the restart of the Redstone Mill.  Given the current halt in production, the Company is utilizing this opportunity to refurbish the main components of the mill including the jaw crusher, cone crusher and ball mills so that when production restarts, the mill will be in top operating condition.

Work on the Hart deposit is ongoing.  The pre-feasibility study for the Hart Mine was awarded to Stantec on June 28th, 2011 and will be handled out of their Sudbury and North Bay offices.  This study is expected to be complete by October 2011.

Chris Stewart added: "We expect to be in a position to provide a more detailed update with respect to our tailings pond facility and our path back into production by the end of July.  We understand that our shareholders want to know what is happening but there is still much work to be done to determine what corrective measures must be taken and this will take some time for us to complete."  

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.

JJNICL is one of the largest holding subsidiaries of Jilin Horoc Nonferrous Metal Group Co., Ltd., which was founded in 1960. Horoc and JJNICL own four nickel mines, one molybdenum mine, one silver mine, two smelters, seven refineries, and two chemical plants with total assets over RMB 3.0 billion. The company professionally provides all kinds of nickel, copper, cobalt salts and nonferrous metal products for plating, chemical plating, battery materials and metallurgy. JJNICL is one of the biggest producers of nickel sulfate in the world, with annual output of 25,000 tons. In September 2003 JJNICL was listed on the A-share market of the Shanghai Stock Exchange with stock code 600432.

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; equipment failures and shortage of supplies; 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.

For further information please contact:
Chris Stewart, President & CEO
Phone (780) 485-2299 Fax 780-485-2253
cstewart@libertymines.com

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