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Labrador Iron Ore Royalty Corporation - Results for the Second Quarter Ended

Financials

Labrador Iron Ore Royalty Corporation - Results for the Second Quarter Ended June 30, 2017

TORONTO

,

Aug. 2, 2017

/CNW/ - Labrador Iron Ore Royalty Corporation ("LIORC", TSX: LIF) announced today its operation and cash flow results for the second

quarter ended

June 30, 2017

.

Royalty revenue for the second quarter of 2017 amounted to

$33.8 million

as compared to

$25.3 million

for the second quarter of 2016. The shareholders' cash

flow from operations for the second quarter was

$45.6 million

or

$0.71

per share as compared to

$7.6 million

or

$0.12

per share for the same period in 2016.

LIORC received a dividend from Iron Ore Company of

Canada

("IOC") in the second quarter of 2017 in the amount of

$15.3 million

or

$0.24

per share. Equity

earnings/(losses) from IOC amounted to

$14.3 million

or

$0.22

per share as compared to

($0.5) million

or

($0.01)

per share in 2016. Net income was

$32.3 million

or

$0.50

per share compared to

$8.3 million

or

$0.13

per share for the same period in 2016.

The cash flow from operations, equity earnings and net income for the second quarter of 2017 were higher than the second quarter of 2016, mainly due to

improved prices for concentrate and pellets. As reported by Bloomberg, the benchmark iron ore price of 62% Fe CFR China averaged

US$63

per tonne in the

second quarter of 2017 and reached a high of

US$82

in April. The comparable average price in the second quarter of 2016 was

US$55

per tonne. Total sales

tonnage of concentrate for sale ("CFS") was 26% lower in the second quarter of 2017 compared to the same period in 2016. In the second quarter of 2017

concentrate was preferentially directed to the pellet plant due to the strong pellet demand and premiums. Pellet sales tonnages were consistent in the second

quarter of 2017 compared to the same period in 2016.

LIORC's results for the three months and six months ended

June 30

are summarized below:

(in millions except per share information)

3 Months

Ended

June 30,

2017

3 Months

Ended

June 30,

2016

6 Months

Ended

June 30,

2017

6 Months

Ended

June 30,

2016

(Unaudited)

Revenue

$34.2

$25.8

$77.6

$48.1

Cash flow from operations

$45.6

$7.6

$73.8

$20.1

Operating cash flow per share

$0.71

$0.12

$1.15

$0.31

Net income

$32.3

$8.3

$75.2

$19.3

Net income per share

$0.50

$0.13

$1.17

$0.30

Iron Ore Company of Canada Operations

Production

Total concentrate production in the second quarter of 2017 of 4.9 million tonnes was 4% higher than the second quarter of 2016 and was 2% higher than the first

quarter of 2017. Concentrate production in April and

May 2017

was lower than planned due to availability of the ore delivery system, ore hardness and ball mill

maintenance in the concentrator, offset somewhat by better weight yield than planned. Concentrate production in

June 2017

set a new record for the month.

Pellet production in the second quarter of 2017 was 1% higher than the second quarter of 2016 and 6% lower than the first quarter of 2017. All six pellet lines

operated in the first quarter of 2017 as planned. In the second quarter of 2017, the No. 2 pellet line was down for the scheduled refurbishment of the induration

machine. With the refurbishment of the No. 2 pellet line, CFS production was 8% higher in the second quarter of 2017 than in the second quarter of 2016 and 17%

higher than the first quarter of 2017.

Sales

Second quarter 2017 total iron ore tonnage sold by IOC (CFS plus pellets) was 9% below the total sales tonnage in the second quarter 2016. Sales were affected

by the concentrate production issues in April and

May 2017

referred to above. In the second quarter of 2017, the pellet sales tonnage was 5% higher and CFS

sales tonnage was 21% lower than the first quarter of 2017. The lower CFS sales were largely due to timing, since CFS production was strong in the second

quarter of 2017.

CFS sales are expected to catch up in the third quarter. Strong pellet demand and premiums supported maximizing pellet production and sales.

The benchmark price for 62% Fe CFR China was 14% higher in the second quarter of 2017 as compared to the second quarter of 2016 and pellet premiums were

also much improved. The Canadian dollar was 4% weaker in the second quarter of 2017 as compared to the second quarter of 2016. As a result of the stronger

CFR prices and pellet premiums, and the weaker Canadian dollar, the royalty revenue for LIORC in the second quarter of 2017 was 33% higher than the revenue in

last year's second quarter.

A summary of IOC's sales for calculating the royalty to LIORC in millions of tonnes is as follows:

3 Months

Ended

June 30,

2017

3 Months

Ended

June 30,

2016

6 Months

Ended

June 30,

2017

6 Months

Ended

June 30,

2016

Year

Ended

Dec. 31,

2016

Pellets

2.44

2.43

4.92

4.54

10.06

Concentrates

(1)

1.60

2.15

3.79

4.20

8.17

Total

4.04

4.58

8.71

8.74

18.23

(1)

Excludes third party ore sales

Outlook

IOC is expecting good production and sales tonnages in the third and fourth quarters of 2017. The induration machine for the No. 5 pellet line is scheduled to be

refurbished starting in late

September 2017

for approximately nine weeks.

Rio Tinto has maintained the IOC production guidance for 2017 of 11.4 to 12.4 million tonnes of iron ore pellets and concentrates for their 58.72% interest in IOC,

which is total saleable production of 19.4 to 21.1 million tonnes on a 100% basis. Achieving the low end of the guidance would be a 6% improvement over the

saleable production in 2016 of 18.2 million tonnes.

The 62% Fe CFR China benchmark iron ore price continued to fall in the second quarter of 2017, averaging

US$63

per tonne. However, in mid-June, the decline

down to

US$53

per tonne reversed and the price has improved recently to above

US$70

per tonne, supported by improved margins for Chinese steel mills. Many

iron ore price forecasts for the seaborne market expect the benchmark price to average below

US$60

per tonne for the year 2017, largely driven by the potential

increased supply, notably from

Brazil

. Reduced prices will likely reduce the domestic Chinese supply, which increased with the higher prices achieved in the last

few months of 2016 and into

March 2017

.

In recent weeks the Canadian dollar has strengthened, reflecting weakness in the U.S. dollar, and iron ore prices have also strengthened. These factors are

offsetting but could affect LIORC's results.

The IOC employees and management continue their efforts to increase production and reduce unit operating costs. We are encouraged by their progress with the

strong first quarter and

June 2017

production performance.

The LIORC cash balance at

June 30, 2017

stood at

$49.7 million

with LIORC dividends payable on

July 25, 2017

of

$38.4 million

. The net royalty from IOC was

paid on the same date, maintaining the Corporation's cash balance at more than

$30 million

. With a strong cash balance, iron ore prices at about

US$60

per

tonne, the exchange rate at present, and the expected increased production at IOC, LIORC is in a good position to maintain the regular dividend.

Respectfully submitted on behalf of the Directors of Labrador Iron Ore Royalty Corporation,

William H. McNeil

President and Chief Executive Officer

August 2, 2017

Management's Discussion and Analysis

The following discussion and analysis should be read in conjunction with the Management's Discussion and Analysis section of the Corporation's 2016 Annual

Report and the financial statements and notes contained therein. The Corporation's revenues are entirely dependent on the operations of IOC as its principal

assets relate to the operations of IOC and its principal source of revenue is the 7% royalty it receives on all sales of iron ore products by IOC. In addition to the

volume of iron ore sold, the Corporation's royalty revenue is affected by the price of iron ore and the Canadian – U.S. dollar exchange rate.

The first quarter sales of IOC are traditionally adversely affected by the closing of the St. Lawrence Seaway and general winter operating conditions and are

usually 15% – 20% of the annual volume, with the balance spread fairly evenly throughout the other three quarters. Because of the size of individual shipments,

some quarters may be affected by the timing of the loading of ships that can be delayed from one quarter to the next.

Royalty revenue for the second quarter of 2017 amounted to

$33.8 million

as compared to

$25.3 million

for the second quarter of 2016. The shareholders' cash

flow from operations for the second quarter was

$45.6 million

or

$0.71

per share as compared to

$7.6 million

or

$0.12

per share for the same period in 2016.

LIORC received a dividend from IOC in the second quarter of 2017 in the amount of

$15.3 million

or

$0.24

per share. Equity earnings/(losses) from IOC amounted

to

$14.3 million

or

$0.22

per share as compared to

($0.5) million

or

($0.01)

per share in 2016. Net income was

$32.3 million

or

$0.50

per share compared to

$8.3

million

or

$0.13

per share for the same period in 2016.

The cash flow from operations, equity earnings and net income for the second quarter of 2017 were higher than the second quarter of 2016, mainly due to

improved prices for concentrate and pellets. As reported by Bloomberg, the benchmark iron ore price of 62% Fe CFR China averaged

US$63

per tonne in the

second quarter of 2017 and reached a high of

US$82

in April. The comparable average price in the second quarter of 2016 was

US$55

per tonne. Total sales

tonnage of CFS was 26% lower in the second quarter of 2017 compared to the same period in 2016. In the second quarter of 2017 concentrate was preferentially

directed to the pellet plant due to the strong pellet demand and premiums. Pellet sales tonnages were consistent in the second quarter of 2017 compared to the

same period in 2016.

Total concentrate production in the second quarter of 2017 of 4.9 million tonnes was 4% higher than the second quarter of 2016 and was 2% higher than the first

quarter of 2017. Concentrate production in April and

May 2017

was lower than planned due to availability of the ore delivery system, ore hardness and ball mill

maintenance in the concentrator, offset somewhat by better weight yield than planned. Concentrate production in

June 2017

set a new record for the month.

Pellet production in the second quarter of 2017 was 1% higher than the second quarter of 2016 and 6% lower than the first quarter of 2017. All six pellet lines

operated in the first quarter of 2017 as planned. In the second quarter of 2017, the No. 2 pellet line was down for the scheduled refurbishment of the induration

machine. With the refurbishment of the No. 2 pellet line, CFS production was 8% higher in the second quarter of 2017 than in the second quarter of 2016 and

17% higher than in the first quarter of 2017.

Second quarter 2017 total iron ore tonnage sold by IOC (CFS plus pellets) was 9% below the total sales tonnage in the second quarter 2016. Sales were affected

by the concentrate production issues in April and

May 2017

referred to above. In the second quarter of 2017, the pellet sales tonnage was 5% higher and CFS

sales tonnage was 21% lower than the first quarter of 2017. The lower CFS sales were largely due to timing, since CFS production was strong in the second

quarter of 2017. CFS sales are expected to catch up in the third quarter. Strong pellet demand and premiums supported maximizing pellet production and sales.

The benchmark price for 62% Fe CFR China was 14% higher in the second quarter of 2017 as compared to the second quarter of 2016 and pellet premiums were

also much improved. The Canadian dollar was 4% weaker in the second quarter of 2017 as compared to the second quarter of 2016. As a result of the stronger

CFR prices and pellet premiums, and the weaker Canadian dollar, the royalty revenue for LIORC in the second quarter of 2017 was 33% higher than the revenue in

last year's second quarter.

Results for the six months were affected by the same factors as affected the three month period. Administrative expenses for the six months include a non-cash

foreign exchange loss of

$0.3 million

on the conversion of the dividend received from IOC in

December 2016

and the 2016 bonuses awarded by the Compensation

Committee to the executive officers totaling

$0.1 million

. Royalty and commission interests amortization expense increased

$0.6 million

for the six months due to

an increased amortization rate reflecting lower estimated total mineral resources over the prior year.

The following table sets out quarterly revenue, net income and cash flow data for 2017, 2016 and 2015.

Revenue

Net

Income

Net

Income

per Share

Cash Flow

Cash Flow

from

Operations

per Share

Adjusted

Cash Flow

per Share

(1)

Dividends

Declared per

Share

(in millions except per share information)

2017

First Quarter

$43.4

$42.9

$0.67

$28.2

(2)

$0.44

(2)

$0.53

(2)

$0.50

Second Quarter

$34.2

$32.3

$0.50

$45.6

(3)

$0.71

(3)

$0.53

(3)

$0.60

2016

First Quarter

$22.3

$11.0

$0.17

$12.5

$0.19

$0.19

$0.25

Second Quarter

$25.8

$8.3

$0.13

$7.6

$0.12

$0.22

$0.25

Third Quarter

$28.4

$21.2

$0.33

$15.2

$0.24

$0.24

$0.25

Fourth Quarter

$38.6

$37.7

$0.59

$28.3

(4)

$0.44

(4)

$0.57

(4)

$0.25

2015

First Quarter

$23.7

$10.0

$0.16

$15.2

$0.24

$0.20

$0.25

Second Quarter

$24.0

$15.4

$0.24

$12.5

$0.20

$0.21

$0.25

Third Quarter

$32.0

$19.0

$0.30

$12.2

$0.19

$0.28

$0.25

Fourth Quarter

$22.0

$10.3

$0.15

$20.0

$0.31

$0.19

$0.25

(1)

"Adjusted cash flow" (see below)

(2)

Includes $10.0 million IOC dividend.

(3)

Includes $15.3 million IOC dividend.

(4)

Includes $15.1 million IOC dividend.

Standardized Cash Flow and Adjusted Cash Flow

For the Corporation, standardized cash flow is the same as cash flow from operating activities as recorded in the Corporation's cash flow statements as the

Corporation does not incur capital expenditures or have any restrictions on dividends. Standardized cash flow per share was

$0.71

for the quarter (2016 -

$0.12

).

Cumulative standardized cash flow from inception of the Corporation is

$23.69

per share and total cash distributions since inception is

$23.04

per share, for a

payout ratio of 97%.

The Corporation also reports "Adjusted cash flow" which is defined as cash flow from operating activities after adjustments for changes in amounts receivable,

accounts payable and income taxes recoverable and payable. It is not a recognized measure under International Financial Reporting Standards ('IFRS"). The

Directors believe that adjusted cash flow is a useful analytical measure as it better reflects cash available for dividends to shareholders.

The following reconciles standardized cash flow from operating activities to adjusted cash flow (in '000's).

3 Months

Ended

June 30, 2017

3 Months

Ended

June 30, 2016

6 Months

Ended

June 30, 2017

6 Months

Ended

June 30, 2016

Standardized cash flow from operating activities

$45,576

$7,562

$73,758

$20,052

Excluding: changes in amounts receivable,

accounts payable and income taxes payable

(11,515)

6,328

(6,074)

6,101

Adjusted cash flow

$34,061

$13,890

$67,684

$26,153

Adjusted cash flow per share

$0.53

$0.22

$1.06

$0.41

Liquidity and Capital Resources

The Corporation had

$49.7 million

in cash as at

June 30, 2017

(

December 31, 2016

-

$23.9 million

) with total current assets of

$84.3 million

(

December 31, 2016

-

$62.9 million

). The Corporation had working capital of

$36.1 million

as at

June 30, 2017

(

December 31, 2016

-

$38.8 million

). The Corporation's operating cash flow

for the quarter was

$45.6 million

and the dividend paid during the quarter was

$32.0 million

, resulting in cash balances increasing

$13.6 million

during the second

quarter of 2017.

Cash balances consist of deposits in Canadian dollars with Canadian chartered banks. Amounts receivable primarily consist of royalty payments from IOC.

Royalty payments are received in U.S. dollars and converted to Canadian dollars on receipt, usually 25 days after the quarter end. The Corporation does not

normally attempt to hedge this short-term foreign currency exposure.

Operating cash flow of the Corporation is sourced entirely from IOC through the Corporation's 7% royalty,

10 cents

commission per tonne and dividends from its

15.10% equity interest in IOC. The Corporation intends to pay cash dividends of the net income derived from IOC to the maximum extent possible, subject to the

maintenance of appropriate levels of working capital.

The Corporation has a

$50 million

revolving credit facility with a term ending

September 18, 2019

with provision for annual one-year extensions. No amount is

currently drawn under this facility (2016 – nil) leaving

$50.0 million

available to provide for any capital required by IOC or requirements of the Corporation.

Outlook

IOC is expecting good production and sales tonnages in the third and fourth quarters of 2017. The induration machine for the No. 5 pellet line is scheduled to be

refurbished starting in late

September 2017

for approximately nine weeks.

Rio Tinto has maintained the IOC production guidance for 2017 of 11.4 to 12.4 million tonnes of iron ore pellets and concentrates for their 58.72% interest in IOC,

which is total saleable production of 21.1 to 19.4 million tonnes on a 100% basis. Achieving the low end of the guidance would be a 6% improvement over the

saleable production in 2016 of 18.2 million tonnes.

The 62% Fe CFR China benchmark iron ore price continued to fall in the second quarter of 2017, averaging

US$63

per tonne. However, in mid-June, the decline

down to

US$53

per tonne reversed and the price has improved recently to above

US$70

per tonne, supported by improved margins for Chinese steel mills. Many

iron ore price forecasts for the seaborne market expect the benchmark price to average below

US$60

per tonne for the year 2017, largely driven by the potential

increased supply, notably from

Brazil

. Reduced prices will likely reduce the domestic Chinese supply, which increased with the higher prices achieved in the last

few months of 2016 and into

March 2017

.

In recent weeks the Canadian dollar has strengthened, reflecting weakness in the U.S. dollar, and iron ore prices have also strengthened. These factors are

offsetting but could affect LIORC's results.

The IOC employees and management continue their efforts to increase production and reduce unit operating costs. We are encouraged by their progress with the

strong first quarter and

June 2017

production performance.

The LIORC cash balance at

June 30, 2017

stood at

$49.7 million

with LIORC dividends payable on

July 25, 2017

of

$38.4 million

. The net royalty from IOC was

paid on the same date, maintaining the Corporation's cash balance at more than

$30 million

. With a strong cash balance, iron ore prices at about

US$60

per

tonne, the exchange rate at present, and the expected increased production at IOC, LIORC is in a good position to maintain the regular dividend.

William H. McNeil

President and Chief Executive Officer

Toronto, Ontario

August 2, 2017

Forward-Looking Statements

This report may contain "forward-looking" statements that involve risks, uncertainties and other factors that may cause the actual results, performance or

achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Words

such as "may", "will", "expect", "believe", "plan", "intend", "should", "would", "anticipate" and other similar terminology are intended to identify forward-looking

statements. These statements reflect current assumptions and expectations regarding future events and operating performance as of the date of this report.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily

be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly, including iron ore price

and volume volatility, exchange rates, the performance of IOC, market conditions in the steel industry, mining risks and insurance, relationships with aboriginal

groups, changes affecting IOC's customers, competition from other iron ore producers, estimates of reserves and resources and government regulation and

taxation. A discussion of these factors is contained in LIORC's annual information form dated

March 2, 2017

under the heading, "Risk Factors". Although the

forward-looking statements contained in this report are based upon what management of LIORC believes are reasonable assumptions, LIORC cannot assure

investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this report and

LIORC assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances. This report should be

viewed in conjunction with LIORC's other publicly available filings, copies of which can be obtained electronically on SEDAR at

www.sedar.com

.

Notice:

The following unaudited interim condensed consolidated financial statements of the Corporation have been prepared by and are the responsibility of the

Corporation's management. The Corporation's independent auditor has not reviewed these interim financial statements.

LABRADOR IRON ORE ROYALTY CORPORATION

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

As at

June 30,

December 31,

(in thousands of Canadian dollars)

2017

2016

(Unaudited)

Assets

Current Assets

Cash

$

49,695

$

23,937

Amounts receivable

34,563

38,487

Income taxes recoverable

-

490

Total Current Assets

84,258

62,914

Non-Current Assets

Iron Ore Company of Canada ("IOC"),

royalty and commission interests

262,413

265,384

Investment in IOC

419,744

408,680

Total Non-Current Assets

682,157

674,064

Total Assets

$

766,415

$

736,978

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable

$

7,083

$

8,073

Dividend payable

38,400

16,000

Taxes Payable

2,650

-

Total Current Liabilities

48,133

24,073

Non-Current Liabilities

Deferred income taxes

129,860

129,060

Total Liabilities

177,993

153,133

Shareholders' Equity

Share capital

317,708

317,708

Retained earnings

281,357

276,588

Accumulated other comprehensive loss

(10,643)

(10,451)

588,422

583,845

Total Liabilities and Shareholders' Equity

$

766,415

$

736,978

Approved by the Directors,

William H. McNeil

Patricia M. Volker

Director

Director

LABRADOR IRON ORE ROYALTY CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended

June 30,

(in thousands of Canadian dollars)

2017

2016

(Unaudited)

Revenue

IOC royalties

$

33,753

$

25,292

IOC commissions

397

450

Interest and other income

83

33

34,233

25,775

Expenses

Newfoundland royalty taxes

6,751

5,058

Amortization of royalty and commission interests

1,428

1,220

Administrative expenses

646

660

8,824

6,938

Income before equity earnings and income taxes

25,409

18,836

Equity earnings (losses) in IOC

14,326

(513)

Income before income taxes

39,736

18,323

Provision for income taxes

Current

8,034

6,165

Deferred

(553)

3,900

7,481

10,065

Net income for the period

32,255

8,258

Other comprehensive loss

Share of other comprehensive loss of IOC that will not be

reclassified subsequently to profit or loss

(net of income taxes of 2017 - $17; 2016 - $120)

(96)

(240)

Comprehensive income for the period

$

32,159

$

8,018

Net income per share

$

0.50

$

0.13

LABRADOR IRON ORE ROYALTY CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Six Months Ended

June 30,

(in thousands of Canadian dollars)

2017

2016

(Unaudited)

Revenue

IOC royalties

$

76,590

$

47,128

IOC commissions

857

860

Interest and other income

142

80

77,589

48,068

Expenses

Newfoundland royalty taxes

15,318

9,426

Amortization of royalty and commission interests

2,971

2,409

Administrative expenses

1,694

1,336

19,983

13,171

Income before equity earnings and income taxes

57,606

34,897

Equity earnings (losses) in IOC

36,563

(977)

Income before income taxes

94,169

33,920

Provision for income taxes

Current

18,166

11,154

Deferred

834

3,512

19,000

14,666

Net income for the period

75,169

19,254

Other comprehensive loss

Share of other comprehensive loss of IOC that will not be

reclassified subsequently to profit or loss (net of income taxes

of 2017 - $34; 2016 - $152)

(192)

(428)

Comprehensive income for the period

$

74,977

$

18,826

Net income per share

$

1.17

$

0.30

LABRADOR IRON ORE ROYALTY CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended

June 30,

(in thousands of Canadian dollars)

2017

2016

(Unaudited)

Net inflow (outflow) of cash related

to the following activities

Operating

Net income for the period

$

75,169

$

19,255

Items not affecting cash:

Equity (earnings) losses in IOC

(36,563)

976

Current income taxes

18,166

11,154

Deferred income taxes

834

3,512

Amortization of royalty and commission interests

2,971

2,409

Common share dividend from IOC

25,273

-

Change in amounts receivable

3,924

(8,538)

Change in accounts payable

(990)

1,555

Income taxes paid

(15,026)

(10,271)

Cash flow from operating activities

73,758

20,052

Financing

Dividends paid to shareholders

(48,000)

(32,000)

Cash flow used in financing activities

(48,000)

(32,000)

Increase (decrease) in cash, during the period

25,758

(11,948)

Cash, beginning of period

23,937

24,464

Cash, end of period

$

49,695

$

12,516

LABRADOR IRON ORE ROYALTY CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Accumulated

other

Share

Retained

comprehensive

(in thousands of Canadian dollars)

capital

earnings

loss

Total

Balance as at December 31, 2015

$

317,708

$

262,416

$

(11,150)

$

568,974

Net income for the period

-

19,255

-

19,255

Dividends declared to shareholders

-

(32,000)

-

(32,000)

Share of other comprehensive loss from

investment in IOC (net of taxes)

-

-

(428)

(428)

Balance as at June 30, 2016

$

317,708

$

249,671

$

(11,578)

$

555,801

Balance as at December 31, 2016

$

317,708

$

276,588

$

(10,451)

$

583,845

Net income for the period

-

75,169

-

75,169

Dividends declared to shareholders

-

(70,400)

-

(70,400)

Share of other comprehensive loss from

investment in IOC (net of taxes)

-

-

(192)

(192)

Balance as at June 30, 2017

$

317,708

$

281,357

$

(10,643)

$

588,422

The complete consolidated financial statements for the second quarter ended

June 30, 2017

, including the notes thereto, are posted on

sedar.com

and

labradorironore.com

.

SOURCE

Labrador Iron Ore Royalty Corporation

View original content: http://www.newswire.ca/en/releases/archive/August2017/02/c7353.html

%SEDAR: 00030172E

For further information:

William H. McNeil, President & Chief Executive Officer, (416) 863-7133

CO: Labrador Iron Ore Royalty Corporation

CNW 17:33e 02-AUG-17