Liberty's Nickel Concentrator Operating at Full Permitted Capacity

EDMONTON, Alberta, July 16 -- Liberty Mines Inc. ("Liberty or the Company") is pleased to announce that the Redstone nickel concentrator ("Mill") located near Timmins Ontario is operating at its permitted capacity of 1500 tonnes per day. The Mill has demonstrated the ability to run at its design capacity of 2000 tonnes per day and an amendment to the Certificate of Industrial Sewage Works is being submitted to the Ministry of Environment to increase the permitted capacity of the Mill to 2000 tonnes per day.

During the month of June 2010, the McWatters open pit produced 32,500 tonnes of ore grading 0.42% nickel and the McWatters underground operations produced 16,278 tonnes grading 1.17% nickel from development and stoping. Sublevel caving is scheduled for mid August 2010 after the open pit is exploited to approximately the 1270 level. Long hole blasting from the 140L is scheduled to commence shortly providing high grade ore for processing.

Gary Nash, Liberty's President & CEO, commented: "We now have ample ore to run our concentrator at its full permitted capacity. This is a milestone for the Company which enables us to run our mining and milling operations efficiently. The extra capacity of the Mill provides us the opportunity to further enhance those efficiencies."

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.