TSX: LBE For Immediate Release

Press Release 18-09 December 22, 2009

Liberty Updates Feasibility Study for the McWatters Nickel Mine

EDMONTON, Alberta. Liberty Mines Inc. (“Liberty or the Company”) is pleased to announce the results of an updated feasibility study completed for its McWatters nickel mine based on an independent National Instrument 43-101 compliant mineral reserve model completed by SRK Consulting (Canada) Inc. (“SRK”). The McWatters Probable Mineral Reserves was estimated by SRK at 872,000 tonnes with an average grade of 0.70% nickel ("Ni") using a nickel price of US$15,430 per tonne (US$7.00 per pound) and an exchange rate of $1.00 CDN = $0.90 US. All revenue and costs are expressed in Canadian dollars unless otherwise indicated.

The estimate was based on partially mining a small open pit and caving the balance of the remaining ore in the open pit with the underground sublevel cave mining operation. Due to time constraints, this report does not optimize the "caved pit design" with the underground operation. Conceptual level calculations indicate a potential for decreasing waste stripping and overburden removal. Various models show pre-tax cost savings in the range of $2 million to $4 million. The resulting pre-tax cash flow would be in the range of $15.2 million to $17.2 million. The authors are confident in these findings and strongly recommend mining and geotechnical engineering be allocated to complete optimization.

The life of mine ("LoM") for the McWatters project is two years at an average production rate of 1800 tonnes per day. Approximately 28% of the ore will be mined from the open pit with the 72% balance exploited by sub level caving (87%) and cut & fill (13%) mining methods.

The open pit and the underground mine assessed individually and together in the combined production schedule are economically viable at the study Ni price of US$7.00 per pound. The project economics include:

LoM net revenue based on plant feed of 872,000 tonnes at 0.70% Ni is estimated at $62 million;

Open pit mine unit operating costs are estimated at $4.56 per tonne mined;

Underground mine unit operating costs are estimated at $35 per tonne mined for sublevel caving and $45 per tonne mined for cut and fill;

The estimated unit cost for processing at 1,500 tonnes per day is $16.19;

The LoM average general and administration operating cost is estimated at $3.25 per tonne milled;

The average surface ore haulage cost to the Redstone mill is estimated at $2.26 per tonne;

LoM operating costs are estimated at $45 million;

Total project capital requirements are estimated at $3.5 million;

Undiscounted pre-tax LoM cash flow is estimated at $13.2 million;

The estimated project NPV at a 8% discount rate is $11.54 Million;

The project IRR is estimated at 460% excluding sunk costs.

The resource and reserve estimates for the McWatters mine are presented in the following tables, respectively: