Trading symbol LBE on the Toronto Stock Exchange

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Company Overview

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. Liberty has four major assemblies of contiguous mining claims and leases in northern Ontario including:

• A 100% interest in 12,000 ha in the Shaw Dome Nickel Belt located 25 km southeast of Timmins containing three mines: the Redstone nickel mine in commercial production; the McWatters nickel mine located 9.5 km east of the Redstone Mine soon to be in pre-production; and the Hart nickel mine in the permitting stage. The 2000 tonne/day Redstone nickel concentrator is located at the Redstone Mine site;
• A 100% interest in 6,400 ha in the Groves nickel copper platinum group metals (“PGM”) project 20 km southeast of Gogama;
• An option to earn a 100% interest in 6,600 ha in the Sothman nickel deposit 75 km south of Timmins; and
• A 100% interest 6,300 ha in the McAra Lake-Ray cobalt nickel copper project about 120 km south east of Timmins.

Redstone Mine

Liberty declared the Redstone nickel mine to be in commercial production on July 1, 2007 at a target rate of 200 tonnes per day. Underground drilling was completed in April 2007 to the 508m level to enable a National Instrument 43-101 resource calculation to be done. A measured (274,085 tonnes) and indicated (144,846 tonnes) resource of 418,931 tonnes grading 2.32% nickel ("Ni") to and above the 508m level of the mine was released on December 18, 2008. An updated 43-101 technical report is scheduled to be released in 2009. Construction of the shaft surface infrastructure is complete. Once the shaft is sunk to the 1150m level, the deeper mineralization can be mined at a reduced cost and increased tonnage.

Eleven boreholes drilled in 2007 from the 789m to 1155m levels have confirmed a large section of the “Inco Anomaly” tested within the Redstone channel (see Redstone Project) is a nickel bearing orebody. More drilling is required to test the entire extent of the geophysical anomaly below 1150m and further to the west at depth. Some highlights of the deep drilling include:

• 3.45m of 3.9% Ni at the 675m level;
• 8.5m of 2.4% Ni at 789m below the surface; and
• 4.65m of 3.62% Ni encountered 1064m below the surface.

The 2000 tonne per day Redstone nickel concentrator 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 the fourth quarter of 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 mineralization in the Shaw Dome Nickel Belt. It is fully automated including an online analyzer which can isolate both light and heavy elements. It also contains a gravity circuit to enhance the payable amounts for platinum, palladium and gold.

Liberty ships its nickel in concentrate to Jilin Jien Nickel Industry Company Ltd. of China and to Xstrata Nickel’s smelter in Sudbury, Ontario.

McWatters Mine

Construction began in mid November 2007 at the McWatters nickel mine, located approximately 9 km to the east of the Redstone Mine. A 43-101 technical report was released December 18, 2008 which stated an indicated resource of 665,308 tonnes of ore grading 0.72% Ni in the upper zone and 49,562 tonnes grading 3.93% Ni in the lower zone with an inferred resource of 13,829 tonnes grading 3.39% Ni in the lower zone. An updated technical report is scheduled to be released in the spring of 2009.

Hart Mine

Permitting is underway for Liberty’s third nickel mine at the Hart project, located 7 km east of the Redstone site. A NI 43-101 resource calculation released on October 20, 2008 stated an indicated resource of 1,390,000 tonnes grading 1.50% Ni and 0.1% Cu and an inferred resource of 286,000 tonnes grading 1.36% Ni and 0.09% Cu. These tonnages represent the largest NI 43-101 compliant resource in the Shaw Dome identified to date with an average grade of 1.5% Ni. The resource calculation included drilling only to the 460m level. Mineralization is also known to exist down to the 550m level, so additional deep drilling will attempt to extend the resource at depth.

A geophysical survey to further elucidate drill targets for the entire Shaw Dome was completed in Q1 2008. Many targets have been elucidated and drilling will be ongoing for the next several years. Management is excited about the prospects of making new discoveries on its prospective mining claims in the Shaw Dome Nickel Belt.

Groves Nickel Copper PGM Project

An airborne VTEM survey was complete in Q1 2008. In addition to the historically known resource (see Groves Project), three outstanding targets have been located and an extensive drill program will begin in late 2008. Some historical drill cores reported 5 g/t of iridium, which indicates the potential of the deposit as a source of this rare element.

Investment Highlights

• Liberty currently has three nickel mines to feed its 2000 tonne per day nickel concentrator: one in commercial production, a second to be declared in commercial production in the fall of 2008 and a third to be brought into pre-production in 2009.
• The Company has four major exploration areas consisting of contiguous mining claims and leases with known mineralization and excellent potential for additional discoveries.
• Liberty's NI 43-101 nickel resource base is quickly growing.
• Liberty has the potential to be a mid tier producer of nickel with significant copper and PGM credits and to develop a primary resource of cobalt.
• Liberty Mines Inc. will soon be acknowledged in the financial community for its substantial fast paced achievements and development of positive cash flow.
• Cash flow will increase substantially in 2009 as Liberty becomes a mid tier producer of nickel.

Market Data

Trading symbol LBE on the Toronto Stock Exchange
Shares Outstanding as of 07/25/08        82,370,694
Warrants from Financings                     12,197,322
Stock Options                                       4,743,639
Fully diluted                                        99,311,655

Analyst Coverage

Pat Donnelly     Salman Partners       $1.05   Buy

Property Locations in Ontario, Canada

Liberty’s Mining Claims in the Shaw Dome Nickel Belt

Floatation of Nickel in Concentrate at the Redstone Mill

Sothman Nickel Project

The Sothman nickel copper deposit, located approximately 75 km south of Timmins Ontario, was optioned from Xstrata. The deposit contains an historical resource as reported by Falconbridge Nickel 1971 (see Sothman Project). Exploration at the property began in June 2008.

McAra Lake Cobalt Project

The cobalt deposit at McAra Lake consists of rich veins of cobaltite typically grading up to 11% cobalt over 1m-1.5m with intersections of 19.46m averaging 1.1% cobalt. It also contains significant copper with intersections of chalcopyrite containing 11.9% copper over 3.1m as well as varying credits of nickel up to 1%.

The McAra Lake cobalt deposit offers Liberty the potential to develop a primary resource of cobalt. The adjacent Ray Township properties have many surface pits that may also develop similarly. A drill program is scheduled to commence in 2008 to further develop these two contiguous properties.

Management

Dr. Gary Nash BSc PhD (Physics), President and CEO
Will Randall BSc MSc (Geology) VP Exploration
Bob Bresee Mine Manager
Jason Cyr Mill Manager
Mike Pommer IT/IS Manager

Directors

Dr. Gary Nash BSc PhD (Physics)
Don Schurman BCom MHSA
John Pinsent BCom CA
Gerry Feldman BCom (Hons) CA
Steve Anderson Geophysics Consultant
Gil Bertrand Mine Health and Safety Consultant