Champion is Pleased With Quebec Government's Announcement of A Pre-Feasibility Study for A Third Railway Under Their Economic Policy

TORONTO, ONTARIO--(Marketwired - Oct 7, 2013) - Champion Iron Mines Ltd. (TSX:CHM)(OTCQX:CPMNF)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to comment on today's announcement by the Quebec Government Economic Policy regarding the initiation of a pre-feasibility study for a third railway to transport iron ore from the Labrador Trough.

The announcement by the Quebec Government is as follows:

"As part of a vision for responsible development of northern infrastructures that are essential to ensuring the economic and social development of the northern territory.

The government is completing them, while ensuring the risk is shared among all the partners in question. The government will include the First Nations and Inuit in discussions concerning the North for all.

As part of Québec's Economic Policy - Putting Jobs First, the government has announced investments including the following, a Pre-Feasibility study regarding the construction of a new railway link.

The government is aware of the special issues related to the development of the Cote-Nord and to the importance of preparing Québec for the rapid growth of markets.

This is why the government will finance a pre-feasibility study on building a third railway link to transport ore from the Labrador Trough. The desired characteristics of the line will be specified to be able to invite private investors to finance the project.

Funds totalling up to $20 million have been set aside for this study within the Fonds du développement nordique, which will mobilize various stakeholders for the development of a public infrastructure or its equivalent, ensuring free access at advantageous costs to interested users."

Tom Larsen, Champion Iron Mines' President and CEO commented, "Champion is extremely pleased that the Quebec government is going forward with the pre-feasibility of a third rail link to transport iron ore from the Labrador Trough by committing up to $20 million to complete a rail pre-feasibility study. This will help to demonstrate a cost-effective solution for iron ore developers to transport ore to the Port of Sept-Îles. Not only is this decision beneficial for iron ore developers such as Champion, and others but also for the economy of Quebec, the Uashat Mak Mani-Utenam First Nation, other local communities and the Port of Sept-Îles. My belief is that this type of message will further attract foreign investment that is essential to turn the Labrador Trough into a more cost efficient iron ore centre."

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 resources in the provinces of Québec and Newfoundland & Labrador. Champion holds a 100% interest in the Fermont Iron Holdings located in Quebec.

Champion's Fermont Iron Holdings, including its flagship Consolidated Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to five producing iron mines, existing transportation and power infrastructure. Consolidated Fire Lake North is located immediately north of Arcelor Mittal's operating Fire Lake Mine and 60 km south of Cliffs Natural Resources Inc.'s Bloom Lake Mine in northeastern Québec. Champion's management and advisory board includes mining and exploration professionals with the mine development and operations experience to build, commission, and operate the future Consolidated Fire Lake North mine.

For additional information on Champion Iron Mines Ltd., please visit our website at www.championironmines.com.

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about planned operations at the Company's projects, including its joint venture projects. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Champion's annual information forms, management discussion and analysis and other securities regulatory filings by Champion on SEDAR (including under the heading "Risk Factors" therein). There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All of Champion's forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of Champion's management and information available to management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of its forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

This press release has been prepared by Champion Iron Mines Ltd. and no regulatory authority has approved or disapproved the information contained herein.