Champion Iron Mines Limited (TSX:CHM)(FRANKFURT:PO2) ("Champion" or the
"Company") and Mamba Minerals Limited (ASX:MAB) ("Mamba") are pleased to
announce today the completion of their previously announced business combination
pursuant to which Mamba and a wholly-owned subsidiary, Champion Exchange Limited
have acquired all 137,895,609 outstanding common shares of Champion under a
court-approved plan of arrangement (the "Arrangement"). The company resulting
from the business combination is now known as Champion Iron Limited ("New
Champion"). 


As of today's date, New Champion's ordinary shares are trading on the Toronto
Stock Exchange ("TSX") and the Australian Securities Exchange under the symbol
"CIA", thus providing New Champion with access to both the Canadian and
Australian capital markets and the shareholders of New Champion with the ability
to trade their ordinary shares on either stock exchange. Champion's common
shares will be de-listed from the TSX. 


Under the Arrangement, each Champion shareholder is entitled to receive
0.7333333 ordinary shares of New Champion for each Champion common share held
(the "Exchange Ratio"). Certain eligible Champion shareholders elected to
receive all or part of their consideration in the form of exchangeable shares of
Champion Exchange Limited. The Arrangement also resulted in the issuance of New
Champion replacement stock options to holders of outstanding Champion options
(as adjusted by the Exchange Ratio). 


Concurrent with the closing of the Arrangement, New Champion closed an A$10
million equity financing at A$0.50 per New Champion ordinary share. This
financing strengthens New Champion's balance sheet and provides financial
flexibility for its development plans. The net proceeds provide New Champion
with working capital and will be applied to fund a bankable feasibility study on
its Consolidated Fire Lake North Project, where additional infill drilling is
ongoing. 


Michael O'Keeffe has been appointed as Executive Chairman and Thomas Larsen as
the Chief Executive Officer of New Champion. 


Commenting on the Arrangement, Thomas Larsen said "The closing today of our
business combination with Mamba represents the beginning of an exciting new
chapter in the development of the Consolidated Fire Lake North Project. Michael
O'Keeffe brings significant experience and expertise in developing bulk
commodity projects and iron ore projects. I look forward to working with Michael
and his team to deliver significant value and potential to our combined
shareholders." 


Michael O'Keeffe added that "our combined team is committed to realising the
significant potential of New Champion's projects. We combined the business
because collectively, with the strengthened balance sheet and the extended
management, New Champion is in a better position to build shareholder value as
we position our flagship Consolidated Fire Lake North project for production.
Our main project is in close proximity to major mining and industrial groups and
the wider region is already well-developed in terms of rail and port
infrastructure." 


About New Champion 

New Champion is an iron exploration and development company with offices in
Montreal, Toronto and Australia, and is focused on developing its significant
iron resources in the Labrador Trough in the province of Quebec. New Champion
holds a 100% interest in the Fermont Iron Holdings, including its flagship
Consolidated Fire Lake North Project, that is located in Canada's major iron ore
producing district, in close proximity to 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 Quebec. New 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. 


New Champion also holds an option to earn into 100% of the Snelgrove Lake
Project, a highly prospective iron ore project located in the Labrador Trough in
Newfoundland and Labrador. The Snelgrove Lake Project has excellent access to
infrastructure, with potential for both a hematite and multi-billion tonne
magnetite project. 


For additional information on Champion Iron Mines Limited, 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) and the risk that the Arrangement may not be
completed or, if the Arrangement is completed, uncertainties regarding the
combination of Champion and Mamba and the ability to realize growth
opportunities. 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 Limited and no
regulatory authority has approved or disapproved the information contained
herein.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Champion Iron Mines Limited
Thomas G. Larsen
President and CEO
(416) 866-2200


Champion Iron Mines Limited
Jorge Estepa
Vice-President
(416) 866-2200
www.championironmines.com