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Champion Iron Mines Ltd
Symbol CHM
Shares Issued 119,426,465
Close 2013-02-19 C$ 0.385
Market Cap C$ 45,979,189
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Champion Iron drills 161.61 m of 34.3% FeT at CFLN

2013-02-20 07:06 ET - News Release

Mr. Thomas Larsen reports

CHAMPION PROVIDES REMAINING 2012 DRILL RESULTS FROM THE CONSOLIDATED FIRE LAKE NORTH PROJECT RECEIVED AFTER THE RECENT MINERAL RESOURCE ESTIMATE UPDATE AND PRELIMINARY FEASIBILITY STUDY

Champion Iron Mines Ltd. has provided results from the remaining 2012 drill holes completed in the West deposit area of the Consolidated Fire Lake North (CFLN) project which were not available for the recently announced mineral resource estimate (MRE) update and preliminary feasibility study (PFS) (see press releases dated Jan. 9 and Feb. 6, 2013).

Drill hole FW12-58, located west of Lac Hippocampe at the north end of the West deposit, intersected 161.6 metres of high-grade specular hematite iron formation grading 34.3 per cent total iron (FeT) at the northwestern limits of the currently defined in-pit optimized resource. The resource remains open downdip to the west and along strike to the north and will potentially add to all categories of resources while expanding the West deposit pit shell.

Champion recently announced an updated MRE with combined in-pit optimized measured and indicated resources in the West and East deposits totalling 691.3 million tonnes grading 31.5 per cent total iron (FeT) with additional inferred resources totalling 479.8 million tonnes grading 30.4 per cent FeT at an FeT cut-off grade of 15 per cent.

Champion's recently completed PFS included 464.6 million tonnes grading 32.4 per cent FeT of proven and probable reserves sufficient to produce an average of 9.3 million tonnes of iron concentrate annually for an estimated 19.6-year mine life. The PFS engineered pits recovered 67 per cent of the combined measured and indicated resources within the optimized resource pit shell and did not include any portion of the 479.8 million tonnes of inferred resource within the engineered pits excepting 45.8 million tonnes treated as waste.

The in-pit optimized resource model suggests a much larger tonnage of iron formation (IF) that is expected to be exploited if sufficient current in-pit optimized inferred resources could be converted to reserves following the planned 2013 drill program.

Tom Larsen, Champion's president and chief executive officer, stated: "The results from the remaining holes completed in our 2012 drilling program provide us with added confidence that we can delineate sufficient additional reserves at the CFLN project's West and East deposits to produce 20 million tonnes of iron concentrate annually from two concentrator lines over a minimum of 20 years, for inclusion in our feasibility study later this year. These and additional results from our trenching program that were received subsequent to the current MRE and PFS move us closer to achieving our reserve target goal."

At the cut-off date for the current MRE, assay results were not received for holes FW12-57, 58, 59 and 59B, although the logged geological units in these holes were used to assist with interpretation and modelling of the IF. Additionally, the drilling of holes FW12-60, 61, 62 and 62B had not yet been completed. The associated table provides highlights of composited assay results for the remaining drill holes completed in 2012 and not included in the current MRE and PFS.

          HIGHLIGHTS OF COMPOSITED ASSAY RESULTS              
                                           
Hole           Length     From       To  Interval  Grade
               metres   metres   metres    metres  FeT %

FW12-56           452   144.00   167.92     23.92   36.4
and                     269.70   329.96     60.26   28.9
FW12-57           435   321.00   405.00     84.00   33.6
FW12-58           720   415.94   438.61     22.67   37.3
and                     548.52   710.13    161.61   34.3
FW12-59B (i)      206   167.98   188.52     20.54   34.4
FW12-60           260    80.30    89.06      8.76   36.5
and                     101.84   118.70     16.86   34.2
and                     188.36   197.80      9.44   26.4
and                     208.00   226.65     18.65   25.1
FW12-61           255     78.1    98.09     19.99   34.2
FW12-62           150    185.1    217.5     32.40   31.3
and                      73.96    93.75     19.79   37.3
FW12-62B          263    68.97    88.53     19.56   36.2
and                     181.08      225     43.92   31.8

Note
(i) Hole FW12-59 was abandoned at 30 metres due to 
technical difficulties. The composite reported for 
hole FW12-59B is calculated from the weighted length
average of the assays for 18.68 metres of the 
20.54-metre reported interval. Assays for seven samples 
each 20 to 30 centimetres in length totalling 1.86 
metres remain pending for this interval. The seven 
samples were collected for geomechanical testing prior 
to assaying. The composite grade will be recalculated 
when the remaining assays are available but are not 
expected to significantly impact the reported composite 
grade.                                              

Hole FW12-57 intersected 84.0 metres grading 33.6 per cent FeT in the central and deeper portion of the deposit.

Drill holes FW12-59 to FW12-62B, inclusive, were drilled on 100-metre-spaced sections from a barge on the northern portion of Lac Hippocampe. The results are expected to upgrade a portion of the current inferred resources, located beneath the lake at the north end of the West deposit, to measured and indicated categories. An additional 1,000 metres of drilling will be conducted from the ice shortly over the southern portion of Lac Hippocampe to upgrade current inferred resources to measured and indicated categories.

In addition to the remaining 2012 drill results that became available after the announcement of the current MRE, Champion also completed and received results for an extensive surface trenching and channel sampling program over the East deposit. An additional 506 channel sample assays are available to potentially upgrade a portion of current shallow inferred resources in the East deposit to measured and indicated categories. Additional trenching is currently being planned for the 2013 summer field season to further define and upgrade near-surface resources underlying the northwestern limit of the East deposit planned pit.

We seek Safe Harbor.

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