VOISEY'S BAY (*DISCOVERY*) - INCO

International Royalty Corporation, as General Partner of the Labrador Nickel Royalty Limited Partnership (“LNRLP”), announced today that LNRLP has filed a claim in the Supreme Court of Newfoundland & Labrador against Vale Inco Limited (“Vale Inco”) and its wholly owned subsidiaries, Vale Inco Atlantic Sales Limited (“VIASL”) and Vale Inco Newfoundland and Labrador Limited (“VINL”), related to the calculation of the Net Smelter Return (“NSR”) on the sale of nickel concentrates from VINL’s Voisey’s Bay Mine to Vale Inco. The NSR is the basis for payment of the 3.0% royalty due to LNRLP, which is 90% owned by IRC. The claim requests specific damages for underpayment of past royalties and an order in respect of the correct calculation of future payments.

Vale S.A. reported that the unionized employees at its operations in Voisey’s Bay, province of Newfoundland and Labrador, Canada, went on strike on Saturday, August 1, 2009, after rejecting the company’s settlement offer for a new three-year collective bargaining agreement. The strike affects 120 employees at our mining operations in Voisey’s Bay. In 2008, finished nickel output utilizing nickel ore produced by the Ovoid mine at the Voisey’s Bay operations reached 77,500 metric tons, 28% of our total production. This site also produced 55,000 metric tons of copper in concentrate and 1,695 metric tons of cobalt, 18% and 60% of Vale’s total output, respectively, last year. As previously disclosed, the Voisey’s Bay operations began a one-month shutdown period on July 1, 2009, and were scheduled to resume operations on August 1, 2009.

Vale S.A. report finished nickel production from Voisey’s Bay feed was 15,700 t in 2Q09, against 17,500 t in 1Q09 and 18,200 t in 2Q08. The decrease was mainly due to the shutdown of Sudbury smelting and refining operations which limited the processing of Voisey’s Bay nickel concentrates. Voisey’s Bay operations, comprising the Ovoid mine and a processing mill, are shut down during the entire month of July.