Champion Iron Mines Limitedc announce the results from its updated Mineral Resource Estimate (MRE) for the East and West deposits underlying the Consolidated Fire Lake North (CFLN) Project. The updated MRE doubles the combined Measured and Indicated Resources in the East and West deposits to 693.5 Million tonnes (Mt) grading 31.5% total Iron (FeT). The Inferred Resources have increased by 10% to 521.6 Mt grading 30.1% FeT at a 15% FeT cut-off grade.

Altogether, total resources have increased by 48% in the two deposits. Since the effective date of the preceding MRE, which was disseminated in the March 2012 Preliminary Economic Assessment, eighty-nine (89) additional drill holes totalling 33,000 metres have been completed in the West Area (75 holes) and East Area (14 holes). Ten holes did not have assay results available in time to be integrated into the updated MRE.

P&E utilized a 1:1 CAD:USD exchange rate, a mining cost of $1.84/Tonne, and a charge of $10.03/Tonne for the total processing, G&A, and freight costs. The process recovery, estimated to be 82%, an Iron ore price of $1.77/dmtu, and a 49 degrees overall pit-slope, were used to complete the Whittle pit optimization and estimate the portion of in-situ Mineral Resource within the pit shell. The economic sensitivity of the resource estimates are demonstrated by comparing the proportion of the mineral resources that may be economically exploited within the optimized pit shell to the categorized resource.

Models and results from the current MRE have been provided to BBA Inc. (Montreal, QC) for the open pit mine designs that will be incorporated into the Preliminary Feasibility Study for the Project, which is expected to be published in late January. The updated Measured and Indicated Resources delineated at the Fire Lake North deposits are near sufficient to support a second concentrator line in the development scenario. Adding a second concentrator line would double concentrate production to an estimated 20 Mt annually and significantly enhance the economics of the Project.

With this in mind, Champion is initiating a second additional infill drilling campaign this winter focused primarily within the confines of the proposed East pit, to delineate sufficient Measured and Indicated Resources from the current Inferred Resources to support the two-line concentrator scenario for 20 years of production. Champion awaits CN Rail's Feasibility Study expected in June 2013 for a proposed new rail line that would connect the CFLN Project to Port facilities in Pointe Noire. Their report would facilitate completion of Champion's Feasibility Study for the Project expected in July 2013.