Champion Moving Forward on Feasibility Study for the Consolidated Fire Lake North Project; Appoints Harry Burgess to its Board

Champion Moving Forward on Feasibility Study for the Consolidated Fire Lake 
North Project; Appoints Harry Burgess to its Board of
TORONTO, ONTARIO -- (Marketwired) -- 08/27/13 -- CHAMPION IRON MINES
"Company") is pleased to announce that it is continuing the
development of the Fire Lake North project by resuming activities to
finalize the Feasibility Study for the Consolidated Fire Lake North
(CFLN) project in 2014. The Company is also pleased to announce that
Harry Burgess, P. Eng., has joined its Board of Directors. 
Feasibility Study - Consolidated Fire Lake North 
As outlined in the Pre-Feasibility Study (PFS) for the CFLN project
that was completed earlier this year, the main variable requiring
additional study to bring it to the Feasibility Study level was the
railway component, which, at the time, was itself the subject of a
feasibility study by CN Rail. 
In February 2013, CN Rail announced its decision to suspend their
Labrador Trough railway feasibility study, and shortly thereafter
Champion curtailed most of the activities it had been directing
towards the CFLN Feasibility Study, in order to evaluate its options
for an alternative rail solution. 
Recent discussions with the Quebec government on a railway solution
for Northern Quebec and the Labrador Trough have been directed
towards the initiation and completion of a 2014 railway Feasibility
Study for a multi-user southern rail route that would link the CFLN
project to the Pointe Noire port area, on the Gulf of St. Lawrence.
To prepare for this scenario, Champion has made the decision to
resume its Feasibility Study. 
Champion's President and CEO, Tom Larsen, commented, "Despite the
very challenging market environment, senior management have been able
to find the resources necessary to continue the development of the
Consolidated Fire Lake North project. We are focused on completing
the Feasibility Study for CFLN and believe the financial metrics will
be robust." 
With the recent receipt of an advance of $11 million against the
claims for the Quebec refundable tax credit on exploration
expenditures of $13.5 million for the years ended March 31, 2011 and
2012 (see the Company's July 17, 2013 Press Release), the Company's
current cash position is approximately $15 million. Subject to the
completion of audits in progress, the Company is expecting to receive
the remaining $2.5 million of the Quebec refundable tax credit and $1
million with respect to Quebec credit on duties refundable for losses
for the year ended March 31, 2011. 
CFLN Project Development & Metrics 
Champion's PFS indicated the in-pit optimized reserve of 465 million
tonnes (MT) grading 32.4% Total Iron (FeT) could yield 9.3 MT of
annual concentrate production grading 66% FeT. The study indicated at
an 8% discount rate, a Net Present Value of $3.3 Billion, Internal
Rate of Return of 30.9% and Pay Back Period of 3.4 years on Capital
expenditures of $1.4 Billion excluding the rail component. 
Champion believes it has sufficient resources to ultimately increase
production capacity to more than 20 MT of annual concentrate
production within a few years from initial start of operations at
Fire Lake North. The additional reserves required to support the
added production capacity could come from expansions to each of the
West and East pits or development of the coarse-grained
magnetite-rich resources at the Oil Can deposits, especially the
South and East zones, which are located only a few kilometres from
the proposed FLN processing facilities. The Oil Can deposits could
yield low strip ratios as they underlie widely spaced, near-surface,
drill-hole intersections. 
Champion is proceeding with additional metallurgical testing of Oil
Can drill core samples and has laid out a drilling programme designed
to delineate sufficient reserves at Oil Can to support a second
concentrator production line at Fire Lake North. If realized, this
would bring total annual capacity to 20 MT. Champion expects to
complete a Preliminary Economic Assessment for the Oil Can deposits
that will be incorporated into the Consolidated Fire Lake North
feasibility study. 
In the event that a positive decision is taken to build the southern
rail route from Fire Lake North to Pointe Noire, Champion's studies
of the northern route linking Fire Lake North to Bloom Lake will be
integrated and form part of a multi-user railway solution that would
service mining operations and development projects in Northern Quebec
and Labrador. 
In conjunction with its Feasibility Study, Champion will revise and
complete its environmental and social impact assessment ("ESIA")
related to the first production line. The Company expects to complete
the study in early 2014 for its release to the Quebec ministry of
Sustainable Development, Environment, Fauna and Parks (MDDEFP) and to
the Canada Environmental Agency (CEA). Following the public hearing
process, the governmental decree required for project construction is
anticipated by the end of 2014. 
Appointment of Harry Burgess to the Company's Board of Directors 
The Company is pleased to welcome Mr. Harry Burgess as an independent
member of its Board of Directors. As well, Mr. Burgess has been
appointed as a member of the Company's Audit Committee. Mr. Burgess
is an accomplished professional engineer with global mining
experience and is a founder and associate of Micon International
Limited, mineral industry consultants whose clients include mining
and mineral exploration companies, financial institutions and
government agencies from around the world. 
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. 
For additional information on Champion, 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 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.
Champion Iron Mines Limited
Thomas G. Larsen
President and CEO
(416) 866-2200 
Champion Iron Mines Limited
Jorge Estepa
Vice President
(416) 866-2200
(416) 361-1333 (FAX)
Press spacebar to pause and continue. Press esc to stop.