Mitsubishi to Invest C$5.5 Million in Baffinland.

TORONTO -- Baffinland Iron Mines Corporation (TSX-V: BIM) ("Baffinland" or the "Company") is pleased to announce the signing of a Memorandum of Understanding ("MOU") with Mitsubishi Corporation  ("Mitsubishi") that provides the framework for the participation of Mitsubishi in a private placement of 2,750,000 Baffinland common shares, at a price of C$2.00 per share, for gross proceeds to Baffinland of C$5.5 million. Upon closing of the proposed transaction, scheduled by December 31, 2005, Mitsubishi would own approximately 7.2% of the Baffinland shares outstanding. The MOU contemplates that Mitsubishi shall be granted certain Asian marketing rights for a portion of future Baffinland iron ore production.

"We are very pleased to welcome Mitsubishi, one of the largest diversified trading and investment companies in the world, as our first strategic investor in Baffinland" stated Gordon McCreary, President and CEO of Baffinland. He went on to say, "We believe that Baffinland's Mary River iron ore deposits are truly world class and it is appropriate to have a world class investor such as Mitsubishi to participate in the advancement of this project. With the assistance of Mitsubishi Baffinland plans on consistently developing sales opportunities in Asia with a portion of expected production to establish long term relationships for future growth opportunities. I commend the iron ore specialists within Mitsubishi for their early recognition of the importance of our Mary River Project and we look forward to a long, growing and mutually beneficial relationship with Mitsubishi."

Mitsubishi is Japan's largest diversified trading & investment company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Mitsubishi is engaged in business with customers around the world in virtually every industry, including metals, energy, machinery, chemicals, food and general merchandise. In the iron ore sector, Mitsubishi's investments include 26.2% ownership of Iron Ore Company of Canada (IOC), Canada's largest iron ore producer, and 49% ownership of its sales division IOC Ores Sales Company, and 50% of Compania Minera Huasco S.A. in Chile, in addition to a global trading presence.

During the past two years Baffinland has spent over Cdn$25 million on the advancement of its 100%-owned Mary River Project, a high grade, potential direct-shipping iron ore operation located in Nunavut Territory, Canada. Recently Baffinland press released the available assay data from a portion of the 2005 drilling program and over the next several months Baffinland expects to release additional assay and metallurgical data, complete a new resource calculation and complete a Scoping Study under the direction of Aker Kvaerner E&C.

This private placement is subject to receipt of all required regulatory approvals and receipt of appropriate internal approvals of Mitsubishi and Baffinland, all expected to be received by December 21, 2005 and to be followed by a closing as soon as possible thereafter, but in any event no later than December 31, 2005.

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.

For further information visit the Baffinland website at www.baffinland.com, e-mail [e-mail].

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

Baffinland Iron Mines Corporation (TSX VENTURE:BIM)