Champion Minerals Files Updated Preliminary Economic Assessment Study for its Fire Lake North Project

TORONTO, ONTARIO -- (Marketwire) -- 01/06/12 -- Champion Minerals Inc. ('Champion' or the 'Company') (TSX: CHM)(FRANKFURT: P02) is pleased to announce the filing on SEDAR of its updated National Instrument 43-101 technical report for the Preliminary Economic Assessment ('PEA') study on the Fire Lake North Project.

As reported previously by the Company on November 21, 2011, some highlights of the PEA study include the following:

--  Based on a 25 year financial analysis of one production line at the
    concentrator, the Fire Lake North Base Case has a Net Present Value of
    $4 billion at a discounted cash flow rate of 8%.

--  The Internal Rate of Return for the project is 41.5% and the payback
    period is 2.3 years.

--  For the first 5 years of production, 10 million tonnes of concentrate
    will be produced annually from 23 million tonnes of Run of Mine at a
    head grade of 34.2% total iron and a strip ratio of 2.46:1, yielding a
    weight recovery of 43.2%.

--  Average annual production of 8.7 million tonnes of iron concentrate for
    the first 25 years grading 65% total iron with 'In Pit' resources
    sufficient for a 40 year mine life.

--  The PEA study recommends investigating the option to double the
    production rate based on the 922 million tonnes of 'In Pit'
    resources(1).

A copy of the technical report will also be available on Champion's website at www.championminerals.com.

The PEA was completed by Dr. Andre Allaire, Eng., M.Eng., Ph.D., and Mr. Stephane Normandin Eng., from BBA, an international, multi-disciplinary, engineering firm with expertise in mining and metallurgy, based in Montreal, (Quebec). The PEA study has an accuracy of +/-30%, which is considered industry standard for preliminary capital and operating cost estimates.

The PEA has a higher degree of detail than normally required and will facilitate the ongoing Fire Lake North Feasibility Study that is due in 2012.

Tom Larsen, Champion's President and CEO states, 'The results from the PEA base case production scenario indicate Fire Lake North is a viable and economically robust project. Discussions are ongoing with strategic partners and stakeholders to evaluate various rail transportation options that could potentially lower the transportation costs significantly.'

The PEA study is based on a stand-alone operation at Fire Lake North and does not consider any other adjacent projects in the area (refer to the appended Figure 1 map). The ongoing resource definition drilling program is designed to convert a significant portion of the current Inferred mineral resources to the Measured and Indicated categories for the 2012 Feasibility Study.

The Fire Lake North Project

Fire Lake North is located adjacent (to the north) of ArcelorMittal's operating Fire Lake Mine and is 60 km to the south of Cliffs Natural Resources Inc.'s Bloom Lake Mine in northeastern Quebec. Fire Lake North is situated at the southern end of the Labrador Trough, known to be coarser grained due to higher grade metamorphism within the Grenville geological Province. The Fermont-Wabush-Labrador City Iron Ore District is a world renowned Iron ore mining camp, and is considered to be an optimal location to develop iron ore resource projects.

The four iron ore producers in the vicinity comprise Canada's Iron ore production currently estimated at more than 40 million tonnes of Iron concentrate and pellets per year, including production from Cliff's Resources Bloom Lake Mine which was commissioned last year by Consolidated Thompson Iron Mines Limited. It was the first mine to be built in this district since the 1970's.

About Champion Minerals Inc.

Champion Minerals is an iron ore exploration and development company with offices in Montreal and Toronto, focused on developing its significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. The Company's iron projects include: the Fermont Holdings (714 km2) in Quebec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); and the Attikamagen Iron Property (310 km2) in Quebec and Labrador.

Champion's Fermont Holdings, including the flagship Fire Lake North Project, are located in Canada's only iron ore producing district, in close proximity to four producing mine and concentrator complexes. Champion's management team and advisory board includes international mining and exploration professionals with operational expertise to effectively advance the Fire Lake North Project into feasibility, construction, commissioning, and production.

Additional resources hosted in Champion's adjacent projects (See Figure 1) could contribute further to the resource base for the Fire Lake North operation and possibly lead to additional production lines. Recent intersections announced at the Oil Can Project adjacent to the north of the Fire Lake North Project continue to define resources with potentially low strip ratios.

(1) The quoted Mineral Resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council June 30th, 2011. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The technical information in this news release was prepared, revised and approved by Dr. Andre Allaire, Eng., M.Eng., Ph.D., Mr. Stephane Normandin Eng., from BBA Inc., and Mr. Jean Luc Chouinard, P. Eng., M. Sc., Director of Projects for Champion Minerals. All individuals are Qualified Persons under National Instrument 43-101 standards. Mr. Allaire and Mr. Normandin are both independent of the issuer.

Please visit Champion's website at www.championminerals.com.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/chm_fermont105.pdf

Contacts:

Champion Minerals Inc.

Thomas G. Larsen

President and CEO

(416) 866-2200


Champion Minerals Inc.

Jorge Estepa

Vice-President

(416) 866-2200


Champion Minerals Inc.

Salisha Hosein

Director, Investor Relations

(416) 866-2200
www.championminerals.com