TORONTO, ONTARIO – June 5, 2007 – Baffinland Iron Mines Corporation ("Baffinland" or the "Company") announced today that it has closed its previously announced brokered flow-through private placement.

The brokered private placement, through a syndicate of agents led by Raymond James Ltd. and including BMO Capital Markets, GMP Securities L.P., National Bank Financial Inc. and Loewen, Ondaatje, McCutcheon Limited, resulted in the issuance of 15,973,505 common shares on a "flow-through" basis at a price of $3.10 per flow-through share for gross proceeds of approximately $49.5 million. The gross proceeds of the private placement will be used to fund exploration at the Company’s 100% owned Mary River project, a high grade, potential direct-shipping iron ore operation located in Nunavut Territory, Canada.

The Company also announced today the extension of participation rights of Mitsubishi Corporation ("Mitsubishi") under its agreement with Mitsubishi dated December 22, 2005 (the "Agreement"). Under the terms of the Agreement, in order to maintain its participation rights, Mitsubishi will be required to participate in the Company’s next securities offering, subject to certain exceptions, such that after giving effect to its participation, Mitsubishi will hold 5% or more of the outstanding shares.

Baffinland is a Canadian publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada. Baffinland’s shares trade on the Toronto Stock Exchange under the trading symbol BIM.

This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices and the feasibility of constructing and operating a direct-shipping iron ore mine at the Company’s Mary River project. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks relating to exploration and development risks, risks relating to the worldwide price of, demand for and supply of iron ore and risks relating to the construction and operation of a mine at the Company’s Mary River project. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.