Mr. Thomas Larsen reports

CHAMPION IRON MINES COMPLETES ARRANGEMENT WITH MAMBA MINERALS

Champion Iron Mines Ltd. and Mamba Minerals Ltd. have completed their previously announced business combination pursuant to which Mamba and a wholly owned subsidiary, Champion Exchange Ltd., have acquired all 137,895,609 outstanding common shares of Champion under a court-approved plan of arrangement. The company resulting from the business combination is now known as Champion Iron Ltd. (New Champion).

As of today's date, New Champion's ordinary shares are trading on the Toronto Stock Exchange and the Australian Securities Exchange under the symbol CIA, thus providing New Champion with access to both the Canadian and Australian capital markets and the shareholders of New Champion with the ability to trade their ordinary shares on either stock exchange. Champion's common shares will be delisted from the TSX.

Under the arrangement, each Champion shareholder is entitled to receive 0.7333333 ordinary share of New Champion for each Champion common share held. Certain eligible Champion shareholders elected to receive all or part of their consideration in the form of exchangeable shares of Champion Exchange. The arrangement also resulted in the issuance of New Champion replacement stock options to holders of outstanding Champion options (as adjusted by the exchange ratio).

Concurrent with the closing of the arrangement, New Champion closed a $10-million (Australian) equity financing at 50 Australian cents per New Champion ordinary share. This financing strengthens New Champion's balance sheet and provides financial flexibility for its development plans. The net proceeds provide New Champion with working capital and will be applied to finance a bankable feasibility study on its Consolidated Fire Lake North project, where additional infill drilling is continuing.

Michael O'Keeffe has been appointed as executive chairman and Thomas Larsen as the chief executive officer of New Champion.

Commenting on the arrangement, Mr. Larsen said: "The closing today of our business combination with Mamba represents the beginning of an exciting new chapter in the development of the Consolidated Fire Lake North project. Michael O'Keeffe brings significant experience and expertise in developing bulk commodity projects and iron ore projects. I look forward to working with Michael and his team to deliver significant value and potential to our combined shareholders."

Mr. O'Keeffe added: "Our combined team is committed to realizing the significant potential of New Champion's projects. We combined the business because collectively, with the strengthened balance sheet and the extended management, New Champion is in a better position to build shareholder value as we position our flagship Consolidated Fire Lake North project for production. Our main project is in close proximity to major mining and industrial groups, and the wider region is already well developed in terms of rail and port infrastructure."

We seek Safe Harbor.