May 30, 2011 (Canada NewsWire Group) --

In c8690 transmitted at 11:02e today, an error occurred in the second sentence of the release. The special dividend of $0.50 per share should have read $0.25. Corrected copy follows:

LABRADOR IRON ORE ROYALTY CORPORATION - CASH DISTRIBUTION FOR THE SECOND QUARTER OF 2011 - $0.50 PER STAPLED UNIT AND SPECIAL DIVIDEND - $0.25 PER STAPLED UNIT

TORONTO, May 30, 2011 /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 $0.25 per common share for a total distribution of $0.75 per Stapled Unit. All amounts are payable to holders of record at the close of business on June 30, 2011 and to be paid on July 25, 2011.

Bruce C. Bone
President & Chief Executive Officer
(416) 863-7133
E-mail- investor.relations@labradorironore.com