Government of Quebec Forms a Partnership with Champion Iron and Adriana Resources to Advance Labrador Trough Rail Feasibility

MONTREAL, QUEBEC and TORONTO, ONTARIO--(Marketwired - Oct. 21, 2014) - The board of Champion Iron Limited (ASX:CIA)(TSX:CIA)("Champion" or the "Company") is pleased to advise that the Government of Québec and Lac Otelnuk Mining Ltd., a joint venture between Adriana Resources ("Adriana") and WISCO International Resources Development & Investment Limited, have formed a partnership with Champion, "La Société ferroviaire du Nord québécois, société en commandite ("SFNQ").

The SFNQ was formed recently, following the tabling by the Québec government of its 2014-2015 budget in June, as a partnership of government and industry and assigned the responsibility of managing the implementation of the Feasibility Study for a new Labrador Trough rail line.

The Québec government has set aside a maximum of C$20 million from its Plan Nord Fund to contribute to the study. For its part, Champion's contribution of sunk costs is valued up to C$6 million. Among other major economic and wide-reaching social benefits, the new rail infrastructure when developed will enhance the Québec-based mining industry's ability to service world markets with competitive long-term tariffs.

Champion's subsidiary Champion Iron Mines Limited is a founding partner of the SFNQ, which is open to all miners in the region.

Champion's Chairman and CEO Michael O'Keeffe said, "The SFNQ partnership includes the Government of Québec and fellow mining group Lac Otelnuk Mining Ltd, with an open invitation to others from within industry to join this important initiative".

SFNQ will oversee work contributing to the Feasibility Study for the development of a multi-user rail from the port of Sept-Îles to the Labrador Trough. With government and industry participation, the SFNQ is well positioned to manage the study.

"A range of partners will ensure the study considers the concerns of all potential rail link users and in doing so advocates a multi-user system favouring a final outcome encouraging joint investment. Champion is pleased to be a part of the SFNQ partnership," Mr O'Keeffe said.

In June this year, Champion welcomed the Government's decision to commit to the funding of a feasibility study to determine the optimum rail option of a new rail link for iron ore miners in the Labrador Trough.

The Company has been a strong and longstanding advocate of the multi-user rail feasibility study and remains committed to supporting the government and the industry in Québec through its participation as an industry partner in the SFNQ.