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. Around the south and east boundaries of the Shaw Dome, which is centered about 25 km southeast of Timmins Ontario, Liberty owns a 100% interest in over 12,000 contiguous mining claims and leases as indicated in the geophysical magnetic survey below. Pre-production began at the Redstone nickel mine mid May 2006. The ore was custom milled in Cobalt Ontario until April 2007 and then stockpiled at the mine site to be processed at the newly completed Redstone Mill. Commercial production at the Redstone Mine was declared as of July 1 2007 at a production rate of 200 tonnes per day.

The 1500 tonne per day Redstone Mill was commissioned in July 2007. It will initially operate at approximately 450 tonnes per day until the McWatters nickel mine ramps up to full production in mid 2008. The mill contains a sophisticated flotation circuit to effectively separate nickel sulphides from the high magnesium hydroxide (talc) component typical of altered komatiite nickel ores in the Shaw Dome Nickel Belt.

Underground drilling was completed in April at the Redstone Mine from the 213m level drill drift to enable a National Instrument 43-101 resource calculation to be done. A measured and indicated resource of 418,931 tonnes grading 2.32% nickel ("Ni") to and above the 508m level of the mine was released on July 11, 2007. Deep drilling is complete to bring the mineralization below 508m to the 1200m level of the mine into the inferred resource category. Drilling from within the mine from a drill drift at the 366m level is ongoing to enable the inferred resource above the 670m level to be brought into the measured and indicated categories. An updated 43-101 report is expected to be completed in the second quarter of 2008.

Borehole R06-01 was successfully extended and intercepted 3.45m of 3.9% Ni at the 675m level. Eight boreholes have been completed from 789m to 1155m below the surface of the mine. Results produced significant intersections including 4.65m of 3.62% Ni and 8.5m of 2.40% Ni which confirmed the "Inco anomaly" (see Redstone Project) is certainly a nickel bearing orebody. A decision to build a shaft at the mine was made in May 2007 and construction began in August 2007. The shaft will allow an increase in the production rate at a lower mining cost and enable the inferred resource in the lower sections of the mine to be brought into a reserve category by definition drilling from within the mine.

Construction began in mid November 2007 at the McWatters nickel mine, located approximately 9 km to the east of the Redstone Mine. Pre-production from the upper zone sill development is scheduled for Q2 of 2008. It was decided to mine the deposit as an underground operation to be able to exploit the rich lower zone one year sooner than what could be achieved from an open pit operation. The upper zone will allow 300-500 tonnes of ore per day to be mined from the sills as they are developed on each level.The mine plan is designed for a 1200 tonne per day operation once the ramp to the bottom level at 130m is complete. Definition drilling was completed in November 2007 to enable an updated 43-101 resource/reserve report to be released in Q1 2008.

Drilling commenced in March 2007 at the Hart nickel project which is located about 6 km east of the Redstone Mine. Results of the first boreholes have confirmed the historical ore grades of about 1% Ni over a 300m strike length to approximately 205m deep. Recently reported drill results of 27.4m of 1.17% Ni and 15.55m of 2.15% Ni near the 300m level have confirmed a significant ore body which is open at depth. A second drill rig is now at the property to continue to define the channel laterally and at depth. This will enable a 43-101 resource report for this deposit to be completed in Q2 2008. A few boreholes below 500m are also planned for early 2008. The Hart deposit is a very prospective candidate for Liberty's third nickel mine.

The geology of Liberty's properties at the Shaw Dome Nickel Belt is similar to the Kambalda Nickel Belt in Australia where several pods of rich ore have been mined since the mid 1960's. There is a good probability of finding more pods like the Redstone, McWatters and Hart deposits on those claims.

The Groves nickel copper PGM (Platinum Group Metals) deposit, located 15 km southeast of Gogama Ontario, was recently assembled by staking around the main historical ore zone owned 100% by Liberty. The contiguous claim block now covers an anomaly 12 km long and appoxiamtely 2 km wide (see Groves Project).

The company has some high grade cobalt properties near Shining Tree, approximately 120 km south of Timmins. Rich veins in the system fed a deposit averaging approximately 2% cobalt which is more than 4 times richer than most sources of cobalt in the world (cobalt normally occurs in deposits as a .02% by-product of nickel ores or as a deposit with copper or nickel ores with a .5% cobalt grade).

A rich copper zone was also discovered grading 11.9% copper over 3.1m. The McAra deposit is a very prospective exploration project that can be brought into production.

The adjacent Ray claim block to the east could also add additonal tonnage to a cobalt-nickel-copper resource. There are several surface pits on the property which typically yield 0.3% Ni and 0.3% cobalt.

Liberty also owns 752 ha of prospective gold claims in Whitney and Cody Townships near Timmins Ontario. Although the company is focused on its base metal properties, an exploration program for these claims will be planned for mid 2008.