Mr. Michael O'Keeffe of Champion reports

CHAMPION BUYS BACK 1.5% NET SMELTER ROYALTY ON FERMONT PROPERTY HOLDINGS AND FLAGSHIP CONSOLIDATED FIRE LAKE NORTH PROJECT

Champion Iron Ltd. is providing an update of developments on its flagship Consolidated Fire Lake North (CFLN) project located in the Fermont iron ore district of Quebec.

Champion is pleased to announce that, through its wholly owned subsidiary, Champion Iron Mines Ltd., it has repurchased from Fancamp Exploration Ltd. a 1.5-per-cent net-smelter-return royalty interest, representing half of a total 3-per-cent NSR on production from the Fermont property holdings, including Champion's flagship CFLN project. Under the terms of the original option/joint venture agreement from which Champion acquired its interest in the Fermont property holdings, a 3-per-cent NSR was payable 50 per cent to each of The Sheridan Platinum Group Ltd. and Fancamp with a provision for repurchasing 1 per cent of the total 3-per-cent NSR for $3.0-million, subsequently amended to repurchase 0.5 per cent of the total 3-per-cent NSR for $1.5-million. Fancamp recently acquired Sheridan's 50-per-cent interest in the 3-per-cent NSR (that is 1.5 per cent) with Champion waiving its right of first refusal in order to enable completion of the transaction. Subsequently, Champion closed a separate agreement with Fancamp to purchase from Fancamp the same 1.5-per-cent NSR acquired from Sheridan for total consideration of $300,000. The consideration was paid as $50,000 in cash plus the issue of a promissory note for $250,000 on closing June 25. The promissory note is due and payable four months from the closing date of the transaction.

In a further development, Champion has acquired four claims located in the centre of the original Fire Lake North claim group while also acquiring 10 additional claims in the central portion of the O'Keefe-Purdy claim group. The claims were acquired by staking when Quinto Mining (a subsidiary company of Cliffs Natural Resources Inc.) allowed the claims to expire. The four claims located within the Fire Lake North claim group will provide significant flexibility in the design of overburden, rock and tailings waste dumps by reducing transport distance from the proposed mine and/or process plant.

Champion continues to participate with the Quebec government in the advancement of a multiuser railway solution to connect mine developers and producers in the Labrador Trough, with the Port of Sept-Ile's new multiuser ship loading facilities at Pointe Noire. This remains Champion's preferred railway and port solution following evaluation and consideration of alternatives, including several independent rail options to Pointe Noire and alternatives to access Baie-Comeau.

The CFLN project hosts sufficient resources to potentially support production in excess of 20 million tonnes per annum (Mtpa) of iron concentrate. However, Champion remains focused on an initial 10 Mtpa operation for the feasibility study expected to be completed by year-end. Certain provisions might be considered in the feasibility study for potential downstream expansion of production.

We seek Safe Harbor.