Champion Provides Mineral Resource Estimate Update for East

Champion Provides Mineral Resource Estimate Update for East and West
Deposits at Consolidated Fire Lake North Project 
- Measured + Indicated Resources Total 693.5 Million tonnes grading
31.5% Total Iron  
- Inferred Resources Total 521.6 Million tonnes grading 30.1% Total
Iron 
TORONTO, ONTARIO -- (Marketwire) -- 01/09/13 -- CHAMPION IRON MINES
LIMITED (TSX:CHM)(OTCQX:CPMNF)(FRANKFURT:P02) ("Champion", or the
"Company") is pleased to announce the results from its updated
Mineral Resource Estimate (MRE) for the East and West deposits
underlying the Consolidated Fire Lake North (CFLN) Project (Table 1). 
The updated MRE doubles the combined Measured and Indicated Resources
in the East and West deposits to 693.5 Million tonnes (Mt) grading
31.5% total Iron (FeT). The Inferred Resources have increased by 10%
to 521.6 Mt grading 30.1% FeT at a 15% FeT cut-off grade. Altogether,
total resources have increased by 48% in the two deposits. 
Thomas Larsen, Champion's President and CEO commented, "Our 2012
drilling campaign was highly successful at upgrading Inferred
Resources to Measured and Indicated categories while significantly
expanding total resources. The updated resource tonnages position the
Fire Lake North deposits among the best in the Labrador Trough 
in
terms of size and grade. The increased resource is close to the
tonnage required to double the expected annual concentrate production
to 20 Mt, which will have a significant positive impact on the FLN
Project economics." Mr. Larsen added, "The new project scope and
economics will be presented in the CFLN Project Preliminary
Feasibility Study later this month. However, for the Feasibility
Study, expected July 2013, we plan additional drilling to further
enhance our resource and reserve base to support a 20-year mine plan
with 20 Mt of annual concentrate production." 


 
 Table 1: Categorized Mineral Resource Estimate at 15% Total Iron Cut-Off(1)
                                                                            
----------------------------------------------------------------------------
                           West Area         East Area           Total      
                      ------------------------------------------------------
                           Tonnes  Grade     Tonnes  Grade     Tonnes  Grade
                       (millions)   FeT% (millions)   FeT% (millions)   FeT%
----------------------------------------------------------------------------
Measured                     23.6   35.4        3.0   34.2       26.6   35.2
----------------------------------------------------------------------------
Indicated                   404.9   32.6      262.0   29.6      666.9   31.4
----------------------------------------------------------------------------
Measured + Indicated        428.5   32.7      265.0   29.6      693.5   31.5
----------------------------------------------------------------------------
Inferred                    329.2   30.9      192.4   28.7      521.6   30.1
----------------------------------------------------------------------------

 
Since the effective date of the preceding MRE, which was disseminated
in the March 2012 Preliminary Economic Assessment, eighty-nine (89)
additional drill holes totalling 33,000 metres have been completed in
the West Area (75 holes) and East Area (14 holes). Ten holes did not
have assay results available in time to be integrated into the
updated MRE. 
P&E utilized a 1:1 $CDN:$US exchange rate, a mining cost of
$1.84/Tonne, and a charge of $10.03/Tonne for the total processing,
G&A, and freight costs. The process recovery, estimated to be 82%, an
Iron ore price of $1.77/dmtu, and a 49 degrees overall pit-slope,
were used to complete the Whittle pit optimization and estimate the
portion of in-situ Mineral Resource within the pit shell. The
economic sensitivity of the resource estimates are demonstrated by
comparing the proportion of the mineral resources that may be
economically exploited within the optimized pit shell to the
categorized resource. Results of the In-Pit Optimization at a 15% FeT
cut-off grade are presented in Table 2. 


 
       Table 2: In-Pit Optimization Results at 15% Total Iron Cut-Off       
                                                                            
----------------------------------------------------------------------------
                           West Area         East Area           Total      
                      ------------------------------------------------------
                           Tonnes  Grade     Tonnes  Grade     Tonnes  Grade
                       (millions)   FeT% (millions)   FeT% (millions)   FeT%
----------------------------------------------------------------------------
Measured                     23.5   35.4        3.0   34.2       26.5   35.2
----------------------------------------------------------------------------
Indicated                   403.6   32.6      261.2   29.6      664.8   31.4
----------------------------------------------------------------------------
Measured + Indicated        427.1   32.7      264.2   29.6   
   691.3   31.5
----------------------------------------------------------------------------
Inferred                    301.1   31.2      178.7   29.0      479.8   30.4
----------------------------------------------------------------------------

 
Models and results from the current MRE have been provided to BBA
Inc. (Montreal, QC) for the open pit mine designs that will be
incorporated into the Preliminary Feasibility Study for the Project,
which is expected to be published in late January.  
The updated Measured and Indicated Resources delineated at the Fire
Lake North deposits are near sufficient to support a second
concentrator line in the development scenario. Adding a second
concentrator line would double concentrate production to an estimated
20 Mt annually and significantly enhance the economics of the
Project. With this in mind, Champion is initiating a second
additional infill drilling campaign this winter focused primarily
within the confines of the proposed East pit, to delineate sufficient
Measured and Indicated Resources from the current Inferred Resources
to support the two-line concentrator scenario for 20 years of
production. 
Champion awaits CN Rail's Feasibility Study expected in June 2013 for
a proposed new rail line that would connect the CFLN Project to Port
facilities in Pointe Noire. Their report would facilitate completion
of Champion's Feasibility Study for the Project expected in July
2013. 
In July 2012, the Fire Lake North claims were consolidated with
surrounding claims of the Bellechasse, Midway and Oil Can properties
and designated the Consolidated Fire Lake North Property. Preliminary
study suggests the deposits located within the new Property limits
might potentially be developed using common infrastructure planned
for the development of the Fire Lake North - East and West deposits. 
Table 3 provides the current Mineral Resource Estimates all at the
same 15% total Iron cut-off grade for the deposits within the
Consolidated Fire Lake North Property 


 
Table 3: Categorized Mineral Resource Estimate at 15% Total Iron Cut-Off(1)
                                                                            
----------------------------------------------------------------------------
Deposit                    Measured          Indicated         Inferred     
                      ------------------------------------------------------
                           Tonnes  Grade     Tonnes  Grade     Tonnes  Grade
                       (millions)   FeT% (millions)   FeT% (millions)   FeT%
----------------------------------------------------------------------------
FLN - West                   23.6   35.4      404.9   32.6      329.2   30.9
----------------------------------------------------------------------------
FLN - East                    3.0   34.2      262.0   29.6      192.4   28.7
----------------------------------------------------------------------------
FLN - Don Lake                0.4   21.4       52.2   26.5      188.2   25.3
----------------------------------------------------------------------------
Bellechasse                                                     215.1   28.7
----------------------------------------------------------------------------
Oil Can - Oxide                 -      -          -      -      972.0   33.2
----------------------------------------------------------------------------
Totals                       27.0   35.0      719.1   31.0    1,896.9   31.1
----------------------------------------------------------------------------

 
Tom Larsen further stated, "Champion's resource base of over 2.6
Billion tonnes within the confines of the Consolidated Fire Lake
North Project might ultimately support 30-40 Million tonnes of iron
concentrate production annually and could suffice to support an
independent rail solution if necessary. Furthermore, we have not yet
assessed potential development of the 2.4 Billion tonnes of
additional resources that have been delineated within our Fermont
Holdings." 
(1)The current Mineral Resource Estimate was calculated by P&E Mining
Consultants Ltd. ("P&E") of Brampton, Ontario using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves and Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions.
Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. The mineral resource estimate may be
materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues. In
addition, the quantity and grade of estimated Inferred Resources
reported herein are uncertain and there has been insufficient
exploration to categorize them a
s an Indicated or Measured Resource.
Furthermore, it is uncertain whether further exploration will result
in reclassification of Inferred Mineral Resources to the Indicated or
Measured resource categories. The tonnage numbers are rounded
according to NI 43-101 standards. Core samples were analyzed by ALS
Minerals using the "High Grade/Ores XRF Method" to determine total
Iron (FeT) percentages. 
About Champion Iron Mines Limited 
Champion is an iron exploration and development company with offices
in Montreal and Toronto, and is focused on developing its significant
iron resources in the provinces of Quebec and Newfoundland &
Labrador. Champion holds a 100% interest in the Fermont Iron Holdings
and a 44% interest in the Attikamagen Iron Project located in both
Quebec and Labrador. The Attikamagen Project is under option to Labec
Century Iron Ore Inc. ("Labec"), a subsidiary of Century Iron Mines
Corporation, under which Labec can earn up to a 60% interest. 
Champion's Fermont Iron Holdings, including its flagship Consolidated
Fire Lake North Project, are located in Canada's major iron ore
producing district, in close proximity to five producing iron mines,
existing transportation and power infrastructure. Consolidated Fire
Lake North is located immediately north of ArcelorMittal's operating
Fire Lake Mine and 60 km south of Cliffs Natural Resources Inc.'s
Bloom Lake Mine in northeastern Quebec. Champion's management and
advisory board includes mining and exploration professionals with the
mine development and operations experience to build, commission, and
operate the future Consolidated Fire Lake North mine. 
The technical information in this news release was prepared, revised
and approved by Mr. Bruce Mitton P. Geo., VP Exploration and Mr.
Jean-Luc Chouinard, ing. VP Project Development for Champion Iron
Mines, Mr. Antoine Yassa, P. Geo and Ms. Tracy Armstrong, P. Geo. for
P&E Mining Consultants Ltd. and Mr. Andre Allaire, ing. for BBA Inc.
who are Qualified Persons under NI 43-101 standards.  
This news release includes certain information that may constitute
"forward-looking information" under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited
to, statements about planned operations at the Company's projects,
including its Consolidated Fire Lake North Project. Forward-looking
information is necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from those
expressed or implied by such forward-looking information, including
the risks identified in Champion's annual information forms,
management discussion and analysis and other securities regulatory
filings by Champion on SEDAR (including under the heading "Risk
Factors" therein). There can be no assurance that such information
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and is
based upon the opinions and estimates of Champion's management and
information available to management as at the date hereof. Champion
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.  
This press release has been prepared by Champion Iron Mines Limited
and no regulatory authority has approved or disapproved the
information contained herein. 
Contacts:
Champion Iron Mines Limited
Thomas G. Larsen
President and CEO
(416) 866-2200 
Champion Iron Mines Limited
Jorge Estepa
Vice President
(416) 866-2200
www.championironmines.com