The $100 million reactivation of St. Lawrence fluorspar mine is a step closer as
the Provincial Government finalized the details of its $17 million repayable
contribution to Canada Fluorspar Inc. (TSX VENTURE:CFI). During the two-year
construction phase, 370 full-time jobs are expected to be created while 175
full-time positions will be maintained at the facility once production begins.


The Honourable Keith Hutchings, Minister of Innovation, Business and Rural
Development, was joined by the Honourable Darin King, Minister of Fisheries and
Aquaculture and MHA for Grand Bank, and Richard Carl, Executive Chairman and
Lindsay Gorrill, President and CEO of Canada Fluorspar Inc., for the signing.
The repayable contribution will assist with the construction of a deep-water
port facility, enabling the company to efficiently export the acid-grade
fluorspar.


"Conclusion of the final agreement reaffirms the Provincial Government's
commitment to the reactivation of the St. Lawrence fluorspar mine and to
residents on the Burin Peninsula," said Minister Hutchings. "This agreement
outlines the terms and conditions of the agreement and the requirements of both
parties. Our partnership with Canada Fluorspar will lead to considerable
activity that will resonate throughout the region and the province. From
construction to production and all stages in between, this project will create
tremendous economic, business, and employment opportunities."


In August 2011, the Honourable Kathy Dunderdale, Premier of Newfoundland and
Labrador, announced the Provincial Government's support of the project. The
final agreement outlines the terms and conditions of the Provincial Government's
contribution including project expenditures, repayment terms, and general
security issues on the contribution.


"This is an exciting, well-capitalized project involving international
partners," said Minister Hutchings. "As Canada Fluorspar progresses with
bringing the mine into full commercial production it will bring new investment
to the province, as well as lead to future mineral exploration. It means renewed
optimism and renewed prosperity for St. Lawrence and the entire Burin
Peninsula."


Minister King views the mine's reactivation as continuing the long history of
mining in St. Lawrence.


"The signing of the formal agreement of the Provincial Government's $17 million
repayable contribution brings the mine's reactivation another step closer to
reality," said Minister King. "It is great news for the Town of St. Lawrence,
and indeed the entire region. I am very pleased that our government is assisting
Canada Fluorspar with this redevelopment as it will bring considerable economic
benefit to the Burin Peninsula in new jobs and spin-offs for local businesses
looking to service the mine's operations."


The project is anticipated to produce approximately 126,000 tonnes of acid grade
per year. Globally the annual consumption of fluorspar is approximately 5.6
million tonnes with an estimated value of US $1.6 billion. Over the forecasted
15-year life of the mine the net economic impact on the region is expected to
exceed $380 million.


"This marks another important milestone in the march to reactivating the
Fluorspar mine at St. Lawrence," said Mr. Carl. "It is a tribute to the
Government of Newfoundland and Labrador, the people of St Lawrence and the Burin
Peninsula and our partners at Arkema."


NOTE: A photo to accompany this release is available on the News Releases site
at www.gov.nl.ca/releases or on the News Releases Photos site at
www.gov.nl.ca/releases/gallery.
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