Baffinland Provides Iron Ore Exploration Update.

TORONTO -- Baffinland Iron Mines Corporation (TSX-V:BIM) ("Baffinland" or the "Company") is pleased to provide the following up-date regarding the Company's 2004 drill program on its wholly-owned Mary River iron ore deposits, located 160 kilometres south of Pond Inlet, Baffin Island, Nunavut Territory, Canada. Drilling commenced on June 27th with two diamond drills and continued until September 27th when cold weather restricted the availability of water for drilling. A total of 2,813 metres were drilled in 15 holes in 2004 bringing the total diamond drilling on the Mary River deposits to 6,132 metres in 45 holes. Difficult weather is nothing new in the Arctic but the unusual amount of rain, low cloud cover and at times the high winds constrained drilling due to the totally air-supported nature of the program in 2004. Although we did not drill as many holes or metres as we had planned in 2004, the results are highly encouraging due firstly to the expanded thicknesses of hematite in Deposit No. 1 as the drill program stepped out significantly down dip from the previous drilling. The previous drilling had been restricted to a maximum vertical depth of only about 160 metres from the surface outcrop on the ridge line while this year's drilling, at times, probed Deposit No. 1 at depths more than twice that of previous drilling. This season's program has also more than doubled the strike extent of the previous drilling on Deposit No. 1 from approximately 1.2 kilometres to about 2.8 kilometres. In addition, we drilled the first hole ever drilled on any of the other four deposits in the Mary River camp. A 122 metre hole that ended in mineralization with a 106 metre intercept of specular hematite was drilled in Deposit No. 2, located about two kilometres east of Deposit No. 1.

The first shipment of drill samples from the 2004 program, consisting of approximately six tonnes of material, was shipped on the back-haul of this year's Arctic sealift, and has recently arrived at SGS Lakefield Research Limited. Lakefield will perform basic assays under a strict protocol designed for testing lump iron ores. Representative samples will be sent from Lakefield to Studien Gesellschaft fur Eisenerz-Aufbereitung (SGA) in Germany for detailed metallurgical testing to ISO standards for iron ore. The second batch of drill samples, consisting of about two tonnes of material, will be air-freighted from Pond Inlet to southern Canada in mid October. Consequently, Baffinland expects to press release several batches of assay and metallurgical data over the next two months starting in late October. In addition, as this data becomes available we will update the appropriate section of the Baffinland website at www.baffinland.com with appropriate drawings such as cross-sections, to assist in the interpretation of the data.

In reviewing the logs for the 15 holes drilled in 2004, the most encouraging fact is the drill confirmation of a new zone of dominantly hematite mineralization in the upper portion of certain holes, with intercepts of 155 metres and 140 metres in holes number 44 and 45, respectively. Estimated true thicknesses of these intercepts are about 80% of the interval. These intercepts are in addition to the down dip extensions of the previously drilled hematite and magnetite zone that was the source of previous resource estimates. Hole number 44 was completed to a total depth of 401 metres with the combined hematite and magnetite intercepts in this hole totaling 280 metres. Hole number 45 ended in mineralization at a depth of 320 metres due to insufficient water for drilling in late September. It is the intent to complete this hole to a depth of approximately 420 metres when the 2005 program begins in the spring.

As indicated in the Baffinland press release of May 26, 2004 the objective of the 2004 and 2005 drill programs is to delineate a substantial resource to support a direct-shipping iron ore operation focused on European markets with a production rate of approximately 10 million tonnes per year. Justification for such an operation would require an approximate doubling of the tonnage of the resources delineated in the 1960's and the encouraging visual results of the 2004 drill program suggest that Baffinland is on track to more than accomplish this objective with an anticipated 10,000 metre drill program in 2005. Most of the heavy supplies for the 2005 program, such as drill salt, fuel and additional drilling equipment, were delivered to Pond Inlet by the sealift in early September. These supplies and additional supplies from southern Canada are to be airlifted by Hercules aircraft directly to the upgraded Mary River airstrip in April 2005. Subject to financing, Baffinland anticipates drilling will commence in the spring of 2005 with four diamond drills.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities and Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Baffinland Iron Mines Corporation, 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 statement. Important factors that could cause actual results to differ material from Baffinland's expectations are disclosed under the heading "Risk Factors" and elsewhere in Baffinland's documents filed from time to time with the TSX Venture Exchange Inc. and other regulatory authorities.

THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.

Baffinland Iron Mines Corporation (TSX VENTURE:BIM)