TSX: LBE

For Immediate Release

Press Release 31-08

November 12, 2008

Liberty Reports Third Quarter 2008 Financial Results

EDMONTON, Alberta. Liberty Mines Inc. (Liberty or the Company) continued production at the Redstone mine
through the third quarter of 2008 producing 559,395 accountable pounds of nickel at an average cost of US$6.46
per pound which includes mining, milling, smelting, refining, price participation and marketing costs but excludes
mine depletion and operating asset amortization charges. On September 15, 2008 the Company commenced preproduction at the McWatters mine and 5,284 tonnes of ore were broken and 3,894 of the broken tones were shipped
to the Redstone mill for metallurgical testing and processing. The metallurgical recovery of ore grading 0.59%0.61% nickel from the disseminated upper zone of the 65m level of the mine varied from 87.1% to 88%, which was
3%-4% higher than predicted.
Recent changes to several key economic variables including the downturn in commodities prices and the overall
economic slow-down have had a significant impact on the Company. As a result of the change in these economic
variables, subsequent to the end of the quarter, the Company commenced a care and maintenance program at the
Redstone mine and mill and McWatters mine on October 31, 2008.
Based on the current economic conditions and downturn in commodities prices, the Companys management also
conducted a review of the operating performance and estimated future cash flows of the Companys Redstone mine
at September 30, 2008. Based on this review, an asset impairment charge of $20,298,048 was recognized during
the nine months ended September 30, 2008 which was applied against the carrying value of the exploration and
development expenditures and pre-production operating costs associated with the Redstone mine.
The following table summarizes the Companys consolidated financial results for the three and nine month periods
ended September 30, 2008.

Revenue
Mining and processing costs
Amortization depletion of operating assets
Operating loss

Three months ended September 30

2008
2007
$ 3,838,317
$ 3,712,715
3,760,866
2,439,035
3,270,300
1,477,592
(3,192,849)
(203,912)

General and administrative expenses

Impact benefit agreement
Stock based compensation
Amortization and accretion other assets
Interest and bank charges
Interest on long-term debt
Accretion interest expense
Foreign exchange loss (gain)
Asset impairment charge
Loss on sale property plant and equip
Loss before income taxes

1,216,092
454,328
299,867
37,715
896,036
508,927
1,122,033
20,298,048
362,410
(28,688,305)

434,288
400,769
107,408
33,871
13,951
(1,194,199)

4,177,886
1,033,958
1,621,281
783,073
188,375
1,340,505
817,020
1,043,985
20,298,048
362,410
(36,305,744)

888,205
1,294,489
221,248
(22,124)
(57,691)
(2,528,039)

4,471,592
$ (31,834,152)

1,224,413
$ (1,303,626)

Future income taxes

Loss for the period

2,595,000
$(26,093,305)

561,137
(633,062)

Loss per share basic and diluted

(0.01)

Working capital deficiency

Total assets

(0.32)

Nine months ended September 30

2008
2007
$ 16,153,233
$ 3,712,715
11,426,310
2,439,035
9,066,126
1,477,592
(4,339,203)
(203,912)

(0.39)

September 30, 2008

$ (24,289,495)
$
88,251,662

(0.02)

December 31, 2007

$(2,102,096)
$86,839,787

Shareholders equity

38,330,330

$72,458,763

The Company generated revenue for the three and nine month periods ended September 30, 2008 of $3,838,317
and $16,153,233 respectively. The third quarter revenue was significantly impacted by the continued decline in
nickel prices which averaged 25% lower than the previous quarter of 2008.
Mining and processing costs for the three and nine month periods ended September 30, 2008 totaled $3,760,866
and $11,426,310. The mining cost per tonne for the three and nine month periods ended September 30, 2008 was
$108.22 and $102.85, as compared to $111.54 for the fourth quarter of 2007. The increase in the mining cost per
tonne quarter over quarter was a result of lower levels of development work being completed at the Redstone mine
in the third quarter and a resulting increase in wages charged to operations.
Processing costs for the Redstone mill averaged $53.72 and $48.26 per tonne for the three and nine month periods
ended September 30, 2008 compared to $34.27 per tonne for the fourth quarter of 2007. The increase in the mill
processing cost per tonne is a result of additional operating salaries and wages as capital projects slowed in the third
quarter.
The Companys net loss for the three and nine month periods ended September 30, 2008 were $26,093,305 ($0.32
per common share diluted) and $31,834,152 ($0.39 per common share diluted) respectively compared to
$633,062 ($0.01 per common share diluted) and $1,303,626 ($0.02 per common share diluted) for the comparable
periods of 2007.
The Companys net loss in the third quarter of 2008 was significantly impacted by the $20,298,048 asset impairment
charge on the Redstone mine, as discussed above. In addition, with the term loans and JJNICL credit facility
secured in the second quarter of 2008, interest on long term debt and accretion interest expense of $1,404,963 for
the three months and $2,157,525 for the nine months ended September 30, 2008 impacted the Companys net loss
compared to the previous period.
In the third quarter of 2008, the Company sold the drum hoist located at the Redstone mine site for net proceeds of
$1,400,000 and realized a loss of $362,410 on the sale. The net proceeds from this transaction were applied
against outstanding accounts payable obligations with the Company who acquired the equipment.
Cash flow from operations for the three months ended September 30, 2008 were $2,087,685 compared to $483,953
in the previous quarter. The Companys cash flow from operations was negatively impacted in the third quarter of
2008 by the continuing decline in nickel prices. These fluctuations in commodity prices were offset by changes in
non-cash working capital items which resulted in decreased accounts receivable balances quarter over quarter and
increased accounts payable and accrued liabilities balances.
The Company will require additional financing in the fourth quarter of fiscal 2008 and the strengthening of
commodities prices for operations at the Redstone and McWatters mines and the Redstone nickel concentrator to
recommence. The Company has engaged Desjardins Securities to act as an advisor to perform a financial and
strategic review of the Company and its assets with a view to provide advice in connection with any potential
transaction that may arise from this review. In the interim, the Company did not make payments under capital lease
and finance contracts subsequent to the end of the quarter. Although two leaseholders have retrieved their property,
the remaining leaseholders and finance contract lenders are continuing to negotiate mutually agreeable
arrangements with the Company, as the Company works toward the completion of financing and business
combination transactions.
"The dramatic drop in the price of nickel has severely affected our operations as outlined in recent press releases.
We are diligently working on creative financings and all other avenues to maximize shareholder value going forward",
said Liberty's President and CEO, Gary Nash.
This press release contains non-GAAP measures like operating cost per tonne, cost per pound of nickel, etc. Please
see the Corporation's MD&A on SEDAR for discussion of non-GAAP performance measures.
Complete results are also available on SEDAR and on the Company's website www.libertymines.com.
About Liberty Mines Inc.
Liberty Mines Inc. is a producer of nickel and is focused on the exploration, development and production of nickel,
copper, cobalt and platinum group metals from its properties in Ontario, Canada.

CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein. This News Release includes certain forward looking statements. All statements other than
statements of historical fact included in this release, without limitation, statements regarding potential mineralization
and reserves, exploration results, metallurgical recoveries, mining and processing costs and future plans and
objectives of Liberty, 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 statements. Important factors that could cause actual results to differ materially from
Libertys expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein
and from time to time in the filings made by Liberty with securities regulators.
For further information please contact:
Dr. Gary Nash, PhD (Physics), President & CEO
Liberty Mines Inc.
Phone (416) 238-9736 Fax 780-437-7898
e-mail: gnash@libertymines.com