NML New Millennium Iron Corp.

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Capital Corp. (TSX VENTURE:NML) ("NML" or the "Corporation")
announced today that it has signed a binding heads of agreement (the "Binding
HOA") with Tata Steel Global Minerals Holdings Pte Ltd ("Tata Steel") to develop
the LabMag and KeMag iron ore deposits, known collectively as the Taconite
Project. The remainder of the Millennium Iron Range will be retained by NML. 


Under the Binding HOA, Tata Steel shall participate in the development of a
feasibility study of the Taconite Project (the "Feasibility Study") and
contribute towards 64% of the costs related thereto. The parties would enter
into a binding joint venture agreement upon the successful completion of the
Feasibility Study and Tata Steel electing to develop one or both of the
deposits. After formation of the joint venture, NML is expected to hold a 36%
equity interest in the Taconite Project, including a 20% free carry equity
interest. In addition, NML will have a 4% right of first refusal on future
equity sales by Tata Steel to increase its equity interest to a maximum of 40%.


Tata Steel will arrange the required equity portion of the financing (excluding
NML's optional equity interest) based on a maximum capital expenditure of up to
$4.85 billion if both deposits are developed and up to $4.68 billion and up to
$3.76 billion respectively, if only the KeMag or LabMag deposits are developed.
Arranging debt financing for the project shall be the responsibility of Tata
Steel. All dollar amounts in this news release are expressed in Canadian dollars
unless otherwise specified.


A conference call to discuss the Binding HOA is scheduled for 11:00 a.m. ET on
Monday, March 7, 2011. Details follow at the end of this news release. 


Taconite Project - A Company Builder

"With the agreement we are announcing today, the Taconite Project becomes a
company builder for New Millennium," said Robert A. Martin, President and Chief
Executive Officer. "The binding heads of agreement with Tata Steel provides the
framework to take the project through to development and ultimately to the
production stage. This project has the potential to create substantial wealth
for our shareholders and for Canadians. It will generate long-term jobs, taxes
and infrastructure for the First Nations and other surrounding communities." 


The Taconite Project consists of two world-class magnetite iron ore deposits on
the emerging Millennium Iron Range, which stretches 210 kilometres from western
Labrador through eastern Quebec. The LabMag deposit is located in the Labrador
portion of the range and the KeMag deposit is located in the Quebec portion.
Together, the two deposits hold over 9 billion tonnes of reserves and resources
that will potentially produce 22 million tonnes per year of concentrate, with a
potential mine life of over 100 years.


Based on the previously disclosed KeMag pre-feasibility study (see the
Corporation's news release 0901 dated January 16, 2009), it is estimated that
pre-tax cash flow from the Taconite Project will be in excess of US$1.1 billion
per year at an assumed pellet price of US$90 per tonne. The current price for
pellets is approximately US$200 per tonne.


Highlights of the Binding HOA

Under the Binding HOA:



--  NML and Tata Steel will jointly oversee and supervise the preparation of
    the Feasibility Study for the Taconite Project. Tata Steel and NML will
    fund 64% and 36% respectively of the cost of the Feasibility Study,
    which is estimated at $ 50 million. 
--  The Feasibility Study will be compliant with the standards of disclosure
    of mineral projects as stated in National Instrument 43-101 and is
    expected to be completed within 21 months of its initiation. The
    Feasibility Study would serve as the basis to secure financing for the
    Taconite Project. 
--  Upon conclusion of the Feasibility Study, Tata Steel will have a maximum
    of four months to make an investment decision. A positive investment
    decision could involve the development of either one or both of the
    deposits. NML will transfer such deposit(s) along with the property and
    other related rights to such deposit(s) to the JVE (defined below). If
    Tata Steel elects to develop only one of the two deposits, NML will
    retain the property and related rights in respect of the remaining
    deposit. 


The Binding HOA further provides that following a positive investment 
decision:

--  Tata Steel will reimburse NML 64% of the estimated $30 million in
    expenses that were incurred by NML on the Taconite Project up to the
    execution of the Binding HOA. The $600,000 facilitation fee that Tata
    Steel has paid to NML in exchange for the Taconite Project exclusivity
    extension from December 31, 2010 to February 28, 2011, will be credited
    to the payment. 
--  Tata Steel and NML will form a joint venture enterprise ("JVE") to hold
    the Taconite Project, where Tata Steel and NML would hold shares in the
    ratio of 80% and 20% respectively, the latter being the free carry
    interest of NML. 
--  Tata Steel will arrange the required equity portion of the financing
    (excluding NML's optional equity interest) based on a maximum capital
    expenditure of up to $4.85 billion if both deposits are developed and up
    to $4.68 billion and up to $3.76 billion respectively, if only the KeMag
    or LabMag deposits are developed. 
--  Within 60 days of Tata Steel's positive investment decision, NML would
    also have an option to acquire up to an additional 16% paid equity,
    thereby bringing its total equity in the JVE from 20% to up to 36%. This
    additional 16% equity shall obligate NML to contribute proportionate
    equity funding to the JVE.  
--  Arranging debt financing for the project shall be the responsibility of
    Tata Steel. 
--  Should Tata Steel exercise its right to invite third-party investors
    into the project, NML will have the right of first refusal to acquire an
    additional 4% of paid equity, thereby increasing its ownership in the
    project to a maximum of 40%. 
--  The parties have an offtake right on the production in proportion to
    their ownership interest in the JVE. 



Tata Steel - The Right Partner

"Tata Steel is a highly credible partner. They are among the top ten steel
companies in the world, and they have the financial strength, operating
expertise and motivation to carry this project through to production. NML could
not have found a better partner," continued Mr. Martin.


"By virtue of this Binding HOA, Tata Steel commits its resources to actively
participate in the Feasibility Study for the Taconite Project. A successful
completion of the Feasibility Study would enable Tata Steel to consider a viable
option for attaining self-sufficiency in iron ore for Tata Steel's operations in
Europe," said Mr. H.M. Nerurkar, Managing Director of Tata Steel. "We are happy
to strengthen our relationship with New Millennium by advancing the Taconite
Project". 


Board Approval 

Based in part upon the recommendations of its financial advisors Jennings
Capital Inc. and CITIC Securities Ltd. and a special committee of independent
directors that supervised the negotiations of the terms of the Binding HOA on
behalf of NML, the Board of Directors of NML has approved the execution and
performance of the Binding HOA. 


Tata Steel is a "control person" of the Corporation as it currently owns
approximately 27.2% of the common shares of the Corporation. The transaction
with Tata Steel is therefore a "related party transaction" pursuant to
Multilateral Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The transaction is exempt from the formal
valuation and minority approval requirements of MI 61-101 pursuant to the
exemptions found in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that
neither the fair market value of the subject matter of the transaction nor the
consideration paid by Tata Steel, will exceed 25% of NML's market
capitalization. 


Further Approvals

Completion of the transactions contemplated by the Binding HOA is subject to all
applicable regulatory approvals, including the approval of the TSX Venture
Exchange, and approval of the limited partners of LabMag Limited Partnership,
being NML and the Naskapi/LabMag Trust. The directors of LabMag GP Inc., the
general partner of LabMag Limited Partnership, have unanimously approved, and
recommended for approval by the limited partners, the Binding HOA. 


Conference call for investors and analysts

This release will be followed by a conference call held on Monday, March 7,
2011, at 

 11:00 a.m. ET. The highlights of the Binding HOA will be presented by Mr.
Robert A. Martin, President and Chief Executive Officer of NML. Mr. Martin's
presentation will be followed by a question and answer period. 


The call is intended for NML investors and financial analysts. They are invited
to access the conference call by dialling 1-800-738-1032. Media and the public
may access this conference call on a listen-only mode. A replay will be
available approximately one hour after the call at 416-626-4100 or
1-800-558-5253 (passcode 21514152) until April 6, 2011 at 11:59 p.m. ET.


About New Millennium

The Corporation controls the emerging Millennium Iron Range, located in the
Province of Newfoundland and Labrador and in the Province of Quebec, which holds
the world's largest undeveloped magnetic iron ore deposits. In the same area,
the Corporation is also advancing its Direct Shipping Ore ("DSO") Project to
near term production. Tata Steel, one of the top 10 steel producers of the
world, owns approximately 27.2% of New Millennium and is the Corporation's
largest shareholder and strategic partner. 


Tata Steel has exercised its exclusive option to participate in the DSO Project
and has a commitment to take the resulting production (see news release 10-16
dated September 14, 2010).


The Millennium Iron Range currently hosts two advanced projects: LabMag contains
3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus
1.0 billion tonnes of Measured and Indicated resources at an average grade of
29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of
29.3% Fe (see news release 06-13 dated July 5 2006 and news release 07-11 dated
July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable
reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and
Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of
Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated
January 16, 2009). 


NML's DSO project contains 64.1 million tonnes of Proven and Probable Mineral
Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of Measured and
Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes
of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0
million tonnes of historical resources that are not currently in compliance with
NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05
dated March 4, 2009, news release 09-16 dated December 9, 2009 and news release
10-12 dated July 8, 2010). A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources and the historical
estimate should not be relied upon.


The Corporation's mission is to add shareholder value through the responsible
and expeditious development of the Millennium Iron Range and other mineral
projects to create a new large source of raw materials for the world's iron and
steel industries. For further information, please visit www.nmlresources.com,
www.tatasteel.com and www.tatasteeleurope.com. 


Forward-Looking Statements 

This document may contain "forward-looking statements" within the meaning of
Canadian securities legislation and the United States Private Securities
Litigation Reform Act of 1995 These forward-looking statements are made as of
the date of this document and the Corporation does not intend, and does not
assume any obligation, to update these forward-looking statements. 


Forward-looking statements relate to future events or future performance and
reflect management of the Corporation's expectations or beliefs regarding future
events and include, but are not limited to, statements with respect to the
estimation of mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or variations
of such words and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or
the negative of these terms or comparable terminology. By their very nature
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Corporation to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of current
exploration activities; changes in project parameters as plans continue to be
refined; future prices of resources; possible variations in ore reserves, grade
or recovery rates; accidents, labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; as well as those factors
detailed from time to time in the Corporation's interim and annual financial
statements and management's discussion and analysis of those statements, all of
which are filed and available for review on SEDAR at www.sedar.com. Although the
Corporation has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance on
forward looking statements. 


TO ACCESS ADDITIONAL INFORMATION ON NEW MILLENNIUM AND THE TACONITE PROJECT: 

ftp://ftp.national.ca/medias/New_Millennium/

Username: presse

Password: media

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