Baffinland Releases Additional High Grade Iron Assays.

TORONTO -- Baffinland Iron Mines Corporation (TSX VENTURE:BIM) ("Baffinland" or the "Company") is pleased to report the following assays from the final six holes from 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. The attached table summarizes the assay data for the final six holes from the 2004 program and the attached plan view map shows the location of the holes drilled in Deposit No. 1. Plan views showing the location of all of the 2004 drill holes and preliminary cross-sections to assist in interpretation of the data are available at the Baffinland website at www.baffinland.com.

Newly Discovered Upper Zone within Deposit No. 1

Holes MR1-04-34, 44 and 45 successfully identified not only extensions of the original Lower Zone down dip and/or along strike, but also, each hole was collared in hematite after penetrating the overburden and recorded significant intercepts of hematite in the newly identified Upper Zone. Hole MR1-04-34, the first hole in the 2004 program to record an intercept in the new Upper Zone, intersected 7.6 metres of hematite grading 61.5% iron in the Upper Zone and went on to record an intercept in the original Lower Zone of 106.0 metres of dominantly hematite with an average grade of 65.4% iron. Hole MR1-04-34 was drilled approximately 200 metres south east and about 100 metres down dip of hole S-2 drilled in the 1960's and as such represented a significant step out from previous drilling. An attempt to step back to the east on the same section as hole MR1-04-34 was unsuccessful in penetrating an area of deep overburden in hole MR1-04-35 before the hole was abandoned.

Hole MR1-04-44, located along the axis of the fold between the north and south limbs of Deposit No. 1, was a 401 metre hole drilled about 100 metres down dip of hole S-2 in the south limb of Deposit No. 1. This hole was collared in hematite when it penetrated the overburden and was successful in penetrating the footwall of the Lower Zone over 350 metres down the hole. Hole MR1-04-44 intersected five intervals totaling 140.5 metres of dominantly hematite grading 66.0% iron in the new Upper Zone and in the Lower Zone intersected 91.0 metres of dominantly hematite grading 63.7% iron. As the hole approached the footwall, the mineralization transitioned from dominantly hematite to magnetite. Within hole MR1-04-44 there was a broad band of over 30 metres of banded iron formation that was not sampled because it was expected to be too low grade for consideration as a direct shipping iron ore and several intervals totaling over 20 metres that were sampled but graded less than 60% iron and as such were excluded. Excluding these intervals of over 50 metres of lower grade iron, hole MR1-04-44 recorded seven intersections of hematite-dominant mineralization totaling 231.5 metres at an average grade of 65.1% iron.

Hole MR1-04-45 was drilled from the same setup as hole MR1-04-44 but angled to intersect the north limb of Deposit No. 1 approximately 200 metres down dip of a fence of three holes drilled in the 1960's. Hole MR1-04-45 intersected 101.1 metres of dominantly hematite grading 63.4% iron in the new Upper Zone. Although the hole went on to record 67.9 metres grading 68.7% iron of dominantly hematite in the original Lower Zone, this hole ended in mineralization due to the loss of drill water due to cold temperatures in late September. It is the intent to extend this hole by approximately 100 metres to approximately 420 metres in 2005. In total, hole MR1-04-45 recorded six intersections of primarily hematite mineralization totaling 169.0 metres at an average grade of 65.5% iron and was collared and ended in high grade hematite.

North and South Limb Extensions

Three of the holes being reported in this press release were focused on strike extensions to mineralization on the north and south limbs of Deposit No. 1. Hole MR1-04-38 was drilled in the north limb and recorded an interval of dominantly magnetite that graded 63.4% iron over 94.0 metres. Hole MR1-04-31 was the most southerly hole drilled in 2004 and represented a step out of more than 700 metres from the drilling in the 1960's. This hole intersected 32.2 metres of dominantly magnetite grading 60.4% iron. Hole MR1-04-32 drilled approximately 150 metres north of MR1-04-31 intersected 10.9 metres of dominantly magnetite grading 68.1% iron.

Conclusions

Almost half of the 2,814 metres drilled in 2004 was in hematite, magnetite or specular hematite and was estimated at the time of drilling to be of potential interest as a direct shipping ore. Further reinforcing the remarkable high grade nature of the Mary River iron deposits is the fact that the average grade of the 1,215.8 metres of the assayed drill core reported in 2004 was 65.6% iron, comprised of 107.5 metres grading 63.5% iron in Deposit No. 2 and 1,108.3 metres at a grade of 65.8% in Deposit No. 1. This is quite comparable to the average grade of the total 1960's resource in Deposit No. 1 of 143.6 million tonnes grading 67.3% iron and suggests that the grade of a Mary River direct shipping ore operation would be at the top end of the 62% to 66% iron for current global lump and fines producers.

Another important attribute of the iron deposits drilled to date at Mary River is that core recovery in the various zones approached 100%. This is an encouraging indicator for a high lump to fines ratio during potential low strip ratio, open pit mining operations. This is important due to the premium price received for high quality lump that is charged directly into the blast furnace versus fines that require sintering. Metallurgical tests to be performed by Studien Gesellschaft fur Eisenerz-Aufbereitung ("SGA") in Germany will provide additional guidance as to an expected lump to fines ratio based on reducibility and other characteristics of the hematite, magnetite, mixed hematite/magnetite and specular hematite. Historic metallurgical test work on Mary River iron ores indicate that the hematite and mixed hematite-magnetite are suited as a premium priced lump ore while the lower reducibility of the magnetite makes it a poorer lump ore but it is an excellent sinter feed.

Deposit No. 1 is dominantly hematite at its thickest area within about 500 metres of either side of the axis of the fold between the north and south limbs. Beyond this area, the hematite generally transitions to magnetite and/or specular hematite in the north limb and to magnetite in the south limb.

Deposit No. 2 is a 700 metre surface exposure of dominantly specular hematite where the one hole drilled on the deposit intersected over 100 metres of surprisingly competent specular hematite and ended in mineralization. Specular hematite can be platy and/or friable and consequently has less potential as a source of lump ore; however, the competent nature of the drill core in Deposit No. 2 resulting in 100% core recovery is encouraging from the perspective of lump to fines ratio.

The high grade nature of the Mary River deposits results in low levels of gauge material and low levels of deleterious elements. Generally speaking, sulphur levels are very low but on occasion discrete areas do have sulphur assays of up to several percent. In any mining operation it is envisioned that these areas will be able to be segregated and if appropriate blended or stockpiled. Analytical work to determine phosphorus levels is still in process and complete results are not expected until the first quarter of 2005. The method being employed for phosphorus is time consuming and designed to provide accurate analytical results for low levels of phosphorus. The phosphorus levels of the resource calculated from the drilling in the 1960's on Deposit No. 1 was 0.03% while the trenching results on Deposit No. 2 indicated approximately 0.01% phosphorus. Another item that is important regarding iron ores is moisture content because pricing is based on dry iron units. Internal moisture content was calculated for the samples taken in the 2004 exploration program and as expected, moisture content is not an issue since the average internal moisture content was less than 1%.

As indicated in previous Baffinland press releases, 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 at a comparable grade and these results of the 2004 drill program, together with those released on November 29, 2004, suggest that Baffinland is on track to more than accomplish this objective with an anticipated 10,000 metre drill program in 2005.

The discovery of the new Upper Zone has added substantially to the thickness of Deposit No. 1 in the dominantly hematite area within 500 metres of the axis of the fold. This not only adds to the obvious hematite tonnage potential of Deposit No. 1 due to the added thickness but also should have positive implications relative to strip ratios allowing open pit shells to be pushed deeper on Deposit No. 1. The fact that all of the holes intersecting the new Upper Zone were collared in hematite suggests the zone is open to further step outs to the east in addition to being open along strike to the north and south and also remains open down dip.

Assaying for the 2004 exploration program was performed by SGS Lakefield Research Limited ("Lakefield") under a strict sampling protocol designed for testing lump iron ores. Representative samples are also being sent from Lakefield to SGA in Germany for detailed metallurgical testing to ISO standards for iron ore. Baffinland's management looks forward to receiving and publicly releasing the detailed metallurgical results from SGA when the data becomes available, currently expected to be in the first quarter of 2005.

The press release has been prepared under the supervision of Michael T. Zurowski, P. Eng., a Qualified Person as defined by National Instrument 43-101. The resource figure quoted in the text of this press release is a historical resource estimate, by Watts Griffis and McOuat Limited in the 1960's, containing approximately 116.7 million tonnes grading 68.3% Fe, 0.8% SiO2, 0.03% S and 0.03% P and a high sulphur resource containing 26.9 million tonnes grading 62.8% Fe, 3.8% SiO2, and 0.43% S and 0.03% P. Management believes that the historical estimate is relevant and conforms to an indicated resource under NI 43-101. Current drill results are not included in this historic resource estimate and as part of its advanced exploration program, management will be seeking to generate a new resource estimate based upon the new results as soon as possible.

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 materially 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.

Summary of Drill Hole Assays

(True width is approximately 75-80% of core length)

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Drill              TD     From    To   Interval SiO2 Al2O3  Fe    S
Hole              (m)     (m)     (m)    (m)     %     %    %     %
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MR1-04-31        167.0    78.6   110.8  32.2    3.7   1.2  60.4  0.57
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MR1-04-32        194.0   158.8   169.7  10.9    4.0   0.3  68.1  0.20
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MR1-04-34        194.0    10.5    18.1   7.6    7.0   0.8  61.5  0.03
(hole collared
 in
 mineralization)          29.0   135.0 106.0    1.1   0.9  65.4  0.35
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MR1-04-38        203.4    41.8   135.8  94.0    2.1   0.8  63.4  0.19
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MR1-04-44        401.0    54.5    64.5  10.0    3.0   1.2  64.7  Less
(hole                                                            Than
 collared in                                                     0.01
 mineralization)          66.4   103.1  36.7    1.8   0.6  66.2  Less
                                                                 Than
                                                                 0.01
                         111.0   115.8   4.8    2.0   0.8  66.9  0.03
                         120.4   125.6   5.2    1.4   0.7  66.9  0.01
                         128.1   211.9  83.8    5.5   0.9  64.3  0.09
                         263.0   342.0  79.0    1.1   0.9  64.0  0.87
                         344.5   356.5  12.0    1.7   0.5  62.1  1.00
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MR1-04-45       320.0     26.0    27.5   1.5    7.0   0.2  64.5  0.13
(hole
 collared and             41.4    50.9   9.5   2.7   1.2   65.4  0.01
 ended in
 mineralization)          52.5    61.2   8.7   4.3   1.8   62.8  Less
                                                                 Than
                                                                 0.01
                          83.9   121.8  37.9   3.0   0.7   62.8  0.01
                         123.9   164.0  40.1   5.2   0.5   64.6  0.14
                         252.1   320.0  67.9   0.7   0.5   68.7  0.05
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NOTE: There is a Map available on CCNMatthews website at: http://www2.cdn-news.com/database/fax/2000/baffin1208.pdf

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

Baffinland Iron Mines Corporation (TSX VENTURE:BIM)