Champion Iron Mines Closes $3.0 Million Strategic Investment With Hong Kong Mining Investor

Champion Iron Mines Closes $3.0 Million Strategic Investment With Hong Kong 
Mining Investor 
TORONTO, ONTARIO -- (Marketwired) -- 08/01/13 -- CHAMPION IRON MINES
"Company") is pleased to announce that it has completed a private
placement financing with Baotou Chen Hua Investments Limited
("Baotou" or the "Purchaser"), a corporation, based in Hong Kong, for
the acquisition by Baotou of 15,000,000 Units (the "Units") at a
subscription price of $0.20 per Unit for aggregate proceeds of
$3,000,000 (the "Transaction"). Baotou is a Hong Kong investment
company the principal of which is a mining entrepreneur with
substantial interests in Chinese iron ore and rare earth deposits.  
Each Unit consists of one common share and one common share purchase
warrant (the "Warrant"), with each whole Warrant exercisable for one
common share at a price of $0.25 per share for a period of 24 months
from closing. All securities acquired pursuant to this Transaction
will be subject to a four (4) month hold period. Champion has agreed
to pay an 8% cash commission, in the aggregate, to an arm's length
finder. With the closing of the Transaction Champion's cash position
is approximately C$16 million. 
Baotou became interested in Champion as it has advanced its
Consolidated Fire Lake North Project into a large iron resource and
recognized the Company's success and excellent pre-feasibility study
results. From various discussions held with Baotou's representatives,
management of Champion is confident that Baotou and its principals
and affiliates have the potential to provide Champion with access to
multiple end-users of iron ore in China and to Chinese companies that
have a strong interest in participating in financing Champion's
short-term endeavours as well as providing strategic relationships
which will assist Champion in its long-term objectives. Baotou's
industrial and financial contacts within China are substantial and,
with Baotou's initial investment in Champion now completed, Baotou's
interest is aligned with that of management. Champion will be the
beneficiary of Baotou providing as much assistance to Champion as
possible with the introduction of its business network to the
Tom Larsen, P
resident and CEO of Champion said, "We are very pleased
and encouraged with this strategic investment from Baotou, whose
experience and network in China will be instrumental in Champion's
search for a project partner for our 100%-owned Consolidated Fire
Lake North Project. Baotou's investment in Champion reaffirms the
value of Consolidated Fire Lake North and the marketability of its
concentrate product and is the first step in growing Champion's
presence with Chinese investors. It also sets the stage for our
expanded discussions with Asian steel producers that are seeking
lower risk and direct sources of iron ore." 
Private Placement Highlights 

--  Baotou has subscribed for 15,000,000 Units of Champion at a price of
    $0.20 per Unit which resulted in Baotou holding approximately 11% of the
    common shares of Champion post-closing on a non-diluted basis. 
--  So long as Baotou holds at least 10% of the outstanding shares of
    Champion, Baotou will have a pre-emptive right to participate in any
    financing (a "Financing") to maintain its percentage interest in the
    outstanding common shares of Champion on a non-diluted basis. Baotou
    will also have a participation right which shall terminate 18 months
    from the closing date, which grants Baotou the right to participate as
    the initial subscriber in any Financing completed by Champion in an
    amount up to $4,000,000. 
--  So long as Baotou holds more than 10% of the outstanding shares of
    Champion, Baotou will be entitled to nominate one person to Champion's
    Board of Directors. In the event that Baotou holds more than 20% of the
    outstanding shares of Champion, Baotou will be entitled to nominate an
    additional person to Champion's Board of Directors.  
--  For a period of two years, Baotou will not vote its Champion shares
    against the election of any nominees to the Board of Directors proposed
    by Champion, against any resolutions supported by the Board of Directors
    of Champion or in favour of any resolutions not supported by the Board
    of Directors of Champion, subject to certain exceptions. 
--  Baotou will be restricted from transferring securities of Champion for a
    period of one year following the closing, subject to certain exceptions
    and procedures. For an additional year, there will be certain conditions
    and restrictions on Baotou's ability to sell or transfer the Champion
--  Baotou has undertaken to use commercial best efforts to introduce a
    strategic investor for Champion to invest in its properties and Champion
    has agreed to co-operate with Baotou on a non-exclusive basis and to
    compensate Baotou if it is successful within 18 months after closing. 

The proceeds of the transaction will be used to continue the
feasibility study and technical work in connection with the
development of the Consolidated Fire Lake North Project in the
Fermont Iron Ore District, Quebec. 
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
located in Quebec 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. Labec has requested a transfer of a further 4% to
increase Labec's holding to 60% under its option agreement with
Champion and to further increase Labec's interest and dilute
Champion's interest pursuant to ongoing exploration programs.
Champion is undertaking its due diligence investigations with respect
to the requests. 
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 Arcelor Mittal'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. 
For additional information on Champion Iron Mines Limited, please
visit our website at  
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 joint venture projects. 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 of Champion's 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 of its forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
This press release has been prepared by Champion Iron Mines Limited
and no regulatory authority has approved or disapproved the
information contained herein. 
Champion Iron Mines Limited
Thomas G. Larsen
President and CEO
(416) 866-2200 
Champion Iron Mines Limited
Jorge Estepa
Vice President
(416) 866-2200
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