TSX: LBE

TORONTO , Aug. 23, 2012 /CNW/ - Liberty Mines Inc. (LBE.TO) ("Liberty" or the "Company") today announced that a positive preliminary economic assessment has been completed for its Hart Project, a nickel deposit located in Timmins Ontario, and approximately five kilometers from the Company's Redstone mill. The preliminary economic assessment was prepared by Stantec Consulting. All dollar amounts are in Canadian currency. A final version of the Preliminary Economic Assessment will be filed on SEDAR within 45 days as required.

Preliminary Economic Assessment Study Highlights

"We are very encouraged by the positive results of the Preliminary Economic Assessment and our prospects for the Hart Project," said Chris Stewart , President and CEO of Liberty Mines Inc. "The PEA suggests that the Hart Project has the potential to become economically viable, generate positive cash flow, and take advantage of the available capacity at our Redstone Mill. Recent drill results, although preliminary at this time, also suggest that the deposit has the potential for mineralization expansion at depth and stronger economics."

Mr. Stewart added, "With the only operating mill in the Shaw Dome Region, a large land package that includes the Hart East Deposit whose initial drill results demonstrated the potential for a significant mineralized zone, as well as the opportunity for property consolidation in the region, we believe that Liberty's prospects are extremely strong over the long term, particularly as the price of nickel recovers."

Hart Project Description The Hart Project will be a stand-alone underground mine used for the extraction of nickel ore, and will share synergies with Liberty's existing assets and facilities. Underground production will be done primarily via long-hole mining and transported to surface using diesel trucks. The Hart Mine is expected to produce an average of 750 tonnes of nickel ore per day throughout its 8 year life of mine.

The Preliminary Economic Assessment assumes that construction of the mine will begin in 2013 and will reach a steady rate of production by 2017.

To see an image of the Hart & Hart East projects, click the following link: http://files.newswire.ca/1063/Hart_Hart_East.pdf

Summary of the Hart Project Mineral Resource Estimate The Preliminary Economic Assessment was based on resource estimates prepared by SRK Consulting ( Canada ) Inc. according to NI43-101 standards and filed as a technical report on the property on March 4, 2010 summarized as follows:

Table 1: Hart 2010 Resource Estimate Summary:

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Liberty Mines Announces Positive Preliminary Economic Assessment on its Hart Nickel Project