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Press release from Marketwire

New Millennium Announces Positive Results from the Dso Gravity Anomalies Survey That Supports Potential for Expansion of DSO Resources

Monday, May 07, 2012

New Millennium Announces Positive Results from the Dso Gravity Anomalies Survey That Supports Potential for Expansion of DSO Resources06:00 EDT Monday, May 07, 2012CALGARY, ALBERTA--(Marketwire - May 7, 2012) -NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATESNew Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML) announced today the results of the ground gravity survey conducted near the vicinity of the Timmins DSO concentrator plant area by Tata Steel Minerals Canada ("TSMC"), a joint venture between NML and Tata Steel. These anomalies are part of 50 strong gravity anomalies with coinciding weak magnetic anomalies outlined by the 2010 Airborne Magnetometer and Gravity survey (Refer to NR 11-03). The ground gravity survey carried out in the fall of 2011, by Géosig Ltée of Québec, was done to validate the locations of the airborne gravity anomalies on the ground and select targets for further exploration.Dean Journeaux, President and CEO of NML, said: "We are very pleased by these results as they establish the possibility of discovering additional DSO resources. TSMC has identified high priority targets that will be further investigated in 2012 and will then determine which of these targets could be mined. TSMC is concentrating the work in the vicinity of the plant location because any new discoveries there will enable us to reduce the project's operating costs." (Figure 1)Results of 2011 Program:The 2010 Airborne Magnetometer and Gravity survey outlined 13 strong gravity anomalies with coinciding weak magnetic anomalies in a radius of 5 km around the plant site in the provinces of Quebec and of Newfoundland and Labrador (Refer to NR 11-03). These surveys are conducted to indicate the presence and location of potential DSO type deposits.The ground gravity survey carried out in the fall of 2011, by Géosig Ltée of Québec, was to validate the locations of the airborne gravity anomalies on the ground. Eleven (11) of the 13 airborne gravity anomaly areas were checked with ground gravity survey (Figure 2) and were found to coincide with the airborne gravity targets. The survey covered 39 lines over a length of 35.4 line kilometers. The following Table 1 shows the survey details.Table 1Location ProvinceNumber of LinesLength KmNumber of StationsQuebec2120.6433Newfoundland & Labrador1814.8296Total3935.4729The ground survey results were interpreted by Jean M. Hubert, P.Eng, consulting geophysicist for TSMC. Some of the anomaly areas surveyed cover the known DSO deposits and serve to validate the selection of targets for further investigation. The intensity of the gravity anomaly (mgals values) over the deposits varies between 1.0 and 2.68. Comparable gravity values (mgals) seem to occur in many of the surveyed areas indicating the potential for discovering additional DSO deposits closer to the Timmins processing plant. The ground gravity values are higher because of the proximity of the Gravity Meter to the surface compared to the airborne instrumentation. J. M. Hubert interpreted and evaluated all the survey data and recommended follow up surface exploration work with test pitting, trenching and test drilling of 10 anomalies. Selected priority targets and comparison with known DSO deposits are shown in Table 2 below. All areas except the known deposit areas will be field checked. For further details regarding the survey results, please refer to the Table in Appendix 1 attached. Table 2AnomalyGround GravityAirborne GravityCommentsAreaResiduals (mgals)Residuals (mgals)100_11.660.89Target# 1200_11.340.68Timmins 7 deposit200_21.690.95Target# 2300_21.580.82Target# 3400_11.690.35Target# 4400_51.720.14Target# 5500_11.00.65Target# 6500_11.650.31Timmins 4 deposit600_11.680.86Target# 71600_21.550.82Target# 8 .1700_11.20.24Sawmill 1 deposit1900_12.040.39Timmins 3 deposit1900_22.680.93Fleming 7 deposit1900_31.140.32Target# 91900_42.230.78Target# 102012 Summer Exploration ProgramAll the recommended Targets are planned for test pitting and trenching - by using backhoes or short holes. If DSO type of material is encountered, the area will be further trenched, mapped, sampled and the mineralized area will be delineated. In areas of deep overburden, test drilling will be carried out in a grid pattern to outline the leached and enriched zones. Detailed drilling is planned in areas outlined by initial exploration test pitting and trenching. About New MillenniumThe Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited, one of the largest steel producers in the world, are advancing a DSO Project to near term production. Tata Steel Limited owns approximately 27% of New Millennium and is the Corporation's largest shareholder and strategic partner.Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by TSMC, which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009 and news release 10-12 dated July 8, 2010). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon. The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).The Millennium Iron Range now hosts another taconite deposit, Lac Ritchie located at its north end. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe and 1.437 billion tonnes of Inferred Resources at 30.9% Fe (see news release NR 12-11, dated April 02, 2012) The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.NMLiron.com, www.tatasteel.com and www.tatasteeleurope.com. Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.Forward-Looking Statements This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. APPENDIX 1.Table AnomalyGround GravityAirborne GravityCoordinates UTMComments/ PriorityAreaResiduals (mgals)Residuals (mgals)EastingNorthing100_11.660.896221426083552Good Gravity anomaly (1)200_11.340.686236886084833Good Gravity anomaly. Timmins 7 deposit200_21.690.956240006085155Good Gravity anomaly on the side ofmoderate magnetic anomaly (1)300_11.380.846245206086440Good gravity anomaly on the side of a strong magnetic anomaly300_21.580.826246566086861Good gravity anomaly (1)400_11.690.356220546084636Good Gravity anomaly in the extension of Timmins 1 Mine (1)400_21.380.486225036085366Strong anomaly corresponding to 2 weak magnetic anomalies. SW area between Timmins 2 and Timmins 6400_30.71-0.146229556085832Weak gravity anomaly400_40.91-0.086231616086048Weak gravity anomaly corresponding to a weak magnetic anomaly400_51.720.146237816086631Good gravity anomaly northeast of a weak magnetic anomaly (1)500_11.00.656211246085528Strong anomaly, non-magnetic, partly explained by the Timmins 4 deposit (1)1.650.316204106086212Strong anomaly, non-magnetic, partly explained by the Timmins 4 deposit600_11.680.866209456087121Moderate gravity anomaly near a weak magnetic anomaly (1)1600_11.40.136265826081824On strike with Fleming 7. Correspond with high magnetic formation1600_21.550.826276576081947Retty Mine extension. Slightly magnetic (1)1600_30.660.296277516082424Weak gravity anomaly1700_11.20.246270816084883Moderate gravity anomaly. Sawmill 1 deposit1800_12.080.556252516085181Strong gravity anomaly corresponding with a magnetic anomaly1800_21.770.766251636085448Good gravity anomaly corresponding with a magnetic anomaly1900_12.040.396247656083453Strong anomaly explained by Timmins 3 deposit1900_22.680.936253346083447Strong anomaly partly explained by Fleming 7 deposit1900_31.140.326253666084311Moderate gravity anomaly near a weak magnetic anomaly (1)1900_42.230.786259586083770Strong gravity anomaly corresponding with a moderate magnetic anomaly (1)(1)Priority targetsTo view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/507nml1.pdf FOR FURTHER INFORMATION PLEASE CONTACT: Dean JourneauxNew Millennium Iron Corp.President & CEO(514) 935-3204ORAndreas CurkovicNew Millennium Iron Corp.Investor Relations(416) 577-9927www.NMLiron.com