Attention Business/Financial Editors: Labrador Iron Ore Royalty Corporation - Cash Distribution for the Third Quarter of 2010 - $0.50 per Stapled Unit and Special Dividend - $0.50 per Stapled Unit

News release via Canada NewsWire, Toronto 416-863-9350

Attention Business/Financial Editors:

LABRADOR IRON ORE ROYALTY CORPORATION - CASH DISTRIBUTION FOR THE THIRD QUARTER OF 2010 - $0.50 PER STAPLED UNIT AND SPECIAL DIVIDEND - $0.50 PER STAPLED UNIT

TORONTO, Sept. 16 /CNW/ - The Directors of Labrador Iron Ore Royalty Corporation declared today a regular quarterly cash distribution of $0.50 per Stapled Unit, comprising a $0.234 interest payment on subordinated notes and a $0.266 common share dividend. The Directors also declared a special dividend of $0.50 per common share for a total distribution of $1.00 per Stapled Unit.

All amounts are payable to holders of record at the close of business on September 30, 2010 and to be paid on October 25, 2010.

%SEDAR: 00030172E

/For further information: Bruce C. Bone, President & Chief Executive Officer, (416) 863-7133/ (LIF.UN.)

CO: Labrador Iron Ore Royalty Corporation

CNW 16:21e 16-SEP-10