News & Events

News Release

Ontario Securities
Commission


20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario
FOR IMMEDIATE RELEASE

January 6, 2011


OSC Staff Withdraw Application After Nunavut Iron Ore Acquisition Inc.
Meets OSC Disclosure Concerns


TORONTO – OSC Staff brought an application, on an urgent basis, to cease trade Nunavut Iron Ore Acquisition Inc.’s take-over bid to prevent Nunavut from acquiring on January 10, 2011 Baffinland shares tendered to its bid. Staff was concerned Baffinland shareholders did not have sufficient disclosure to make a decision to tender into the Nunavut bid. Staff reached an agreement with Nunavut as set out in Nunavut’s press release dated January 5, 2011.

Nunavut agreed that it will not take-up any Baffinland shares on January 10, 2011. Thereafter, in order for Nunavut to take up common shares under its offer, it must either:

(1) Amend its bid to provide warrant consideration for Baffinland shares as currently disclosed in its December 29, 2010 press release, and extend its bid for a minimum of 10 days; or

(2) Amend its bid to clarify that it is withdrawing its proposal for the warrant consideration, and extend for a minimum of 10 days.

The result of this agreement is to provide Baffinland shareholders sufficient disclosure and time to consider the Nunavut bid and any amendments to the bid.

Consequently, Staff appeared before the Commission on January 6, 2011 to explain this agreement and withdraw its application.


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