TSX SYMBOL: BIM

TORONTO, Aug. 30, 2007 - Baffinland Iron Mines Corporation ("Baffinland" or the "Company") announced today that it has received full repayment of its $6,987,400 investment in the Lafayette Structured Credit Trust which matured on August 16, 2007.

The funds received from repayment have reduced the Company's credit facility, which was recently provided by the Bank of Nova Scotia, from $21 million to $14 million.

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, financing and liquidity risks 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.

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