Cash Distribution for the Second Quarter of 2006 - Regular Distribution of $0.35 per Trust Unit plus Special Distribution of $0.30 per Trust Unit

June 21, 2006

TORONTO, June 21 /CNW/ - The Trustees of The Labrador Iron Ore Royalty
Income Fund declared today a regular cash distribution for the second quarter
of 2006 of $0.35 per Trust Unit and a special distribution $0.30 payable to
holders of record at the close of business on June 30, 2006 and to be paid on
July 25, 2006.
For tax purposes, the income from the cash distribution of $0.65 per
Trust Unit will be considered to be:

- Interest income of $0.25
- Dividend income of $0.40

%SEDAR: 00002722E

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