Liberty to Re-Start the Redstone Nickel Mine and Corporate Update

Aug. 17, 2009 (Filing Services Canada) -- Liberty Mines Inc. (LBE - TSX), ("Liberty or the Company") is pleased to announce that it plans to re-commence production from the Redstone nickel mine near Timmins Ontario by August 24, 2009. The mine has been on care and maintenance since October 31, 2008. A Notice of Project Status to commence development and production was recently filed with the Ministry of Northern Development Mines and Forestry.

Development to the 488m level was completed in August 2008 enabling access to the resource above that level. The mineralization was previously mined by shrinkage stoping at a reported production rate of 208 tonnes per day in 2008. Management is investigating other mining methods to safely increase the production rate and lower the cost of production. Crews will work in conjunction with the McWatters mine so as to optimize the manpower as needed at both mines. The continuity of the operations at the Redstone mine is sensitive to the price of nickel so the short term goal will be to provide sufficient mineralization for start-up of the Redstone nickel concentrator by September 15, 2009.

Ramp development at McWatters is progressing and mine planning has been completed. It has been determined that sublevel caving is the mining method of choice to maximize safety and minimize costs. Removal of the crown pillar maximizes tonnage and can be achieved with either sublevel caving from below or from above, with a small open pit to approximately 45m below surface. The feasibility study scheduled to be released in late September will provide the mining details and economics of the deposit. Applications to amend the Closure Plan and obtain a new Permit to Take Water are in progress to allow for the taking of the crown pillar. Production from underground mining is on schedule for November 2009 and the surface pit is scheduled for the same time frame, subject to the receipt of approved permits as noted.

Corporate Developments

Jilin Jien Nickel Industry Co.,Ltd. ("JJNICL"), Liberty's strategic partner and major shareholder, has agreed to allow all concentrate from the Redstone mill to be shipped to Xstrata Nickel in Sudbury to maximize payment for metal credits from copper, cobalt and platinum group metals. Once Liberty can pay JJNICL for the preferred shares outstanding; the balance owing for the prepayment of concentrate that was not shipped to JJNICL; and the recent credit facility, Liberty will ship concentrate to either JJNICL or Xstrata as per the existing off-take agreements between the parties.

Gary Nash, President and CEO of Liberty commented: "As our strategic partner, JJNICL continues to show its commitment to develop a long-term cooperation with Liberty. Together, our short term goal is get production from Liberty's mines to produce the cash required to redeem the preferred shares and re-pay the concentrate prepayment and credit facility. With the modifications of the mine plan to maximize tonnage at McWatters; the Redstone mine operating; and continued stronger nickel prices, that goal can be substantially achieved by the end of 2010. In the long term, we want to expand our operations with JJNICL and continue to grow the company".

Mr. Wang Xingrui, Vice President of JJNICL commented: "We are confident Liberty will achieve our short term goals and our long term cooperation will provide steady growth for Liberty".

Liberty would also like to announce that Dr. Ulrich Kretschmar PhD (Geology) P.Geo joined the Company August 4, 2009 as Vice President Exploration. He replaces Mr. William Randall who recently left the Company to pursue other endeavors. The Company wishes to thank Mr. Randall for his contributions to the exploration success at Liberty during the last three years.

Dr. Kretschmar has been a mineral exploration geologist for Cominco Ltd., Texas Gulf Sulphur Ltd. and Falconbridge Nickel Ltd. and has had a geological consulting practice since 1978. He was involved in Cominco Ltd.'s regional nickel exploration programs in the Abitibi belt in Ontario & Quebec and developed exploration techniques utilizing detailed descriptions and sulfur geochemistry of komatiites. His exploration experience and insight into the formation of nickel deposits will be invaluable to the successful development of Liberty's resources.

Incentive stock options were granted to directors, officers, employees and consultants of the company to purchase up to an aggregate of 1,500,000 common shares exercisable at $0.205 per share for a period of five years. The options were granted pursuant to a meeting of the directors on August 12, 2009, in accordance with the stock option plan approved by shareholders on July 21, 2009.

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.

Jilin Jien Nickel Industry Co., Ltd. (JJNICL) is an integrated nonferrous metals enterprise, located in Panshi City, Jilin Province, China. JJNICL possesses four nickel mines, one molybdenum mine, one silver mine, one coal mine, two smelters, seven refineries, two chemical plants and one electric power plant; with total assets of RMB 1.6 billion. JJNICL professionally provides all kinds of nickel, copper, cobalt salts and nonferrous metal products for plating, chemical plating, battery materials and metallurgy. Jien is one of the biggest producers of nickel sulphate in the world, with annual output of 25000 tonnes. Its design, production and service processes have passed the certifications of ISO9001:2000 quality system and ISO14001:1996 environment system

In September 2003, JJNICL was listed in the A-share market of the Shanghai Stock Exchange with stock code of 600432 being the first listed company in China's nickel industry.


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; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

For further information please contact:
Dr. Gary Nash, PhD (Physics), President & CEO
Phone (416) 238-9736 Fax 780-437-7898
e-mail: gnash@libertymines.com

Press Release 13-09



Source: Liberty Mines Inc. (TSX: LBE) http:// www.libertymines.com
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Source: Filing Services Canada (August 17, 2009 - 8:01 AM EDT)

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