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Champion Iron Mines Limited: Champion responds to CN´s decision to suspend feasibility study on a proposed rail line to serve the Quebec and Labrador iron ore districts

DGAP-News: Champion Iron Mines Limited / Key word(s): Miscellaneous
Champion Iron Mines Limited: Champion responds to CN´s decision to
suspend feasibility study on a proposed rail line to serve the Quebec
and Labrador iron ore districts

14.02.2013 / 13:25

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NEWS RELEASE

Champion responds to CN´s decision to suspend feasibility study on a
proposed rail line to serve the Quebec and Labrador iron ore districts

Toronto (Canada), February 14, 2013 - Champion Iron Mines Limited (TSX:
CHM; OTCQX:CPMNF; FSE: P02) (´Champion´, or the ´Company´) announces that
further to the decision by the Canadian National Railway Company (´CN´)
released on February 12, 2013, to suspend the multi-user railway
feasibility study, Champion reports that it considered the CN proposal for
an integrated rail line and terminal handling facility to service the
entire Quebec/Labrador iron ore range to be one of its three rail transport
options.

Prior to joining the CN feasibility study process, Champion commissioned
Rail Cantech who successfully completed a feasibility study for a private
rail line from the Company´s Consolidated Fire Lake North Project to the
Pointe Noire wharf at the Port of Sept-Îles where Champion has reserved
sufficient loading and storage capacity.  Champion will now re-focus its
efforts on a proposed rail line southbound to Pointe Noire and reactivate
discussions with relevant parties that can assist the Company in the
construction, financing and operation of this more flexible and highly
economic alternative.

Tom Larsen, President and CEO of Champion commented, ´While we are
disappointed with CN´s decision not to proceed with their rail line
feasibility study at this time, we believe our Consolidated Fire Lake North
project has the unique advantage of containing large-scale, superior iron
deposits and has now progressed to the stage where it will attract major
partners to bring the project into production.´  Mr. Larsen added, ´We are
committed to advancing our Consolidated Fire Lake North Project along with
the necessary infrastructure and welcome the participation of global
investors that take a long-term view and can bring the necessary expertise
and resources to develop what we believe to be one of Quebec´s most
attractive mine projects.´

With CN´s termination of the feasibility study, CN is obligated to refund
the entire deposit Champion contributed towards the study costs and provide
any results and materials generated from the feasibility study.

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