CN Condor Resources Inc

CHAMPION IRON MINES LIMITED (TSX:CHM)(FRANKFURT:P02) ("Champion", or the
"Company") is pleased to update the development and status of its 100% owned
Consolidated Fire Lake North Project ("FLN Project"). The Company made
substantial progress during 2012 in advancing major elements of the FLN Project
including increasing and upgrading the mineral resources on the property,
confirming the metallurgical profile and marketability of the concentrate
product, negotiating port access at Sept Iles/Pointe Noire, developing rail
transportation options and other project infrastructure.


Champion expects to release a preliminary feasibility study in January 2013
further refining the project operating assumptions and economics. This study is
the culmination of two years of exploration and development during which
Champion's project team has demonstrated the unique profile and viability of the
FLN Project. However, the Company will continue to assess its options and key
elements of the FLN Project, particularly rail transportation alternatives to
further enhance the mine plan, operating parameters, and capital and operating
cost estimates. The results of this work and the ongoing Canadian National
Railway ("CN")/La Caisse de depot et placement du Quebec ("Caisse") North Shore
rail feasibility study (see the Company's press release dated August 29, 2012)
are expected to be included in a FLN Project feasibility study in July 2013.


Thomas Larsen, Champion's President and CEO commented, "During this past year,
our project team successfully advanced the Fire Lake North Project on a number
of fronts. We confirmed our Fermont iron ore deposits can compete globally in
terms of resource size, product quality and demonstrated the potential for a
world class mine at Fire Lake North. I look forward to 2013 with confidence that
we will further advance Fire Lake North and move the project closer to
operation. He added, "recent investment by major Asian steel producers in the
Fermont area of the Labrador Trough are very encouraging and confirm the
attractiveness and value of these iron ore deposits."


In 2012, following two successful Preliminary Economic Assessment studies (see
press releases dated November 3, 2010 and January 6, 2012, respectively) that
confirmed the technical and economic viability of the iron resources at the FLN
Project, the Company proceeded with several initiatives to advance the project
to the feasibility study stage.


Metallurgical Testing and Product Marketing

Metallurgical test results on various samples from the Fire Lake North deposit
confirmed that an excellent grade and superior quality of sinter concentrate can
be produced from the FLN Project. A highly saleable sinter-feed product,
produced from mainly hematite ore, can be processed using a conventional
Autogenous Grinding mill with standard three-stage gravity spiral beneficiation
process. The sinter-feed product has been generated both from both heavy-liquid
separation Wilfley tables and from pilot-plant testing. Confirmatory tests on
the metallurgy and product specification conducted at a second laboratory
closely duplicated results from the first laboratory.


Initial market analysis and discussions with global iron marketers and consumers
confirm that the sinter-feed product will be suitable for various steel-making
processes. The purity and composition of the iron ore concentrate from the
Fermont district, and in particular, from Champion's FLN Project is attractive
to a wide range of end-users and is expected to command a premium over the
Platt's sinter feed product reference price.


Rail Transportation Options

As part of the feasibility study process, the Company received positive results
from its 2012 Rail Cantech Feasibility Study on an independent rail
transportation solution for a haulage route from the FLN Project to the Pointe
Noire port facilities. Subsequently, as announced on August 29, 2012, Champion
joined a multi-user railway consortium consisting of CN and Caisse, and five
other mining companies. The CN/Caisse-led consortium's feasibility study due by
mid-2013 will evaluate a proposed new railway from the port facilities at Pointe
Noire to Schefferville, running adjacent to the FLN Project. 


Champion believes the proposed railway will help "unlock" the inherent value of
the substantial iron ore deposits in the Labrador Trough, which hosts all
current iron-ore production in Canada. 


Port Access and Material Handling

The Company has secured port access and loading capacity at Sept-Iles/Pointe
Noire, the second largest natural port in North America, for the FLN Project's
life-of-mine concentrate production. The agreement allows for a guaranteed
annual ship-loading capacity of 10 million tonnes of iron ore concentrate at
very competitive commercial rates, with an option to increase the annual tonnage
capacity. The agreement has a 20-year term and includes multiple 5-year
extension options totalling an additional 20 years.


Champion, along with four other future users, are participating in and financing
their pro-rata share of the construction costs for a new, multi-user,
ship-loading system being built by the Port Authority of Sept-Iles, and which is
on-schedule for completion by March 31, 2014, roughly a year and half ahead of
FLN's anticipated start-up.


Environmental Baseline Studies

On November 21, 2012, Champion announced that future mining operations at the
FLN Project will not impact water quality in the area. Sample tests confirmed
neither the Run of Mine (ROM) iron ore concentrate or waste rock materials are
acid generating, nor do they represent a risk with respect to heavy-metal
liberation. On this basis, no special groundwater protection measures (i.e.,
geo-membrane) will be required for the tailings impoundment area. Moreover, no
waste-water treatment will be necessary to control dissolved metals: a
sedimentation pond will be sufficient to control the water effluent quality. 


The completed Environmental Study or Environmental Impact Statement (EIS) will
be submitted to the Ministere du Developpement Durable, de l'Environnement, de
la Faune et des Parcs (MDDEFP) and Canadian Environmental Assessment Agency
(CEAA) in late February 2013.


Additional investigations are underway to evaluate minimizing water transfer
between the concentrator and tailings pond by transferring partially dewatered
tailings to the impoundment area. 


Project Infrastructure and Permitting

The all-season Trans-Quebec-Labrador Highway (Route 389 in Quebec), which is
being upgraded by the Quebec Ministry of Transportation, transects north-south
through the western part of the FLN Project claim group. Within the FLN Project
planned mine-site area, a network of over 15 km of roads were built in order to
allow access to the East and West pit areas from and provide direct access to
Route 389. An additional 14 km extension was added to allow access to the Oil
Can Project where Champion delineated close to 2 billion tonnes of inferred iron
resources in 2012. 


Advanced, electrical-power rate discussions with the Quebec government are
ongoing and anticipated to be finalized by the end of January 2013. Champion has
recently received a contract proposal from Hydro-Quebec regarding linking the
FLN Project to the provincial power grid. Tender documents were issued and bids
were received for the construction of the 161/34.5 kV (kiloVolt) electrical
substation components, which will feed the construction camp and eventually the
construction site.


Champion has received three (3) land lease agreements from the Ministere des
Ressources Naturelles pertaining to the campsite construction, the 161/34.5 kV
substation and a 34.5 kV power line. The wood-cutting permits for campsite
construction, the 161/34.5 kV substation and the 34.5 kV power line, are also
in-hand.


The application for a Certificat d'Autorisation (CA) required for camp
construction and for the 161/34.5 kV electrical substation have been submitted
to the MDDEFP. Once the CA is available, the Company will have the final
approval to proceed with building the construction camp, the 161/34.5 kV
substation and the 34.5 kV power line.


Detailed Engineering

Champion is pleased to announce that a contract has been recently awarded to BBA
Engineering of Montreal for all the pre-construction engineering work relating
to the FLN Project. 


Champion is currently reviewing bids received in response to a tender that was
issued for the building of the construction camp and the 161/34.5 kV substation
required for the project.


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 Quebec and Newfoundland & Labrador. Champion holds a 100% interest
in the Fermont Iron Holdings and a 44% interest in the Attikamagen Iron Project
located in both Quebec and Labrador. The Attikamagen Project is under option to
Labec Century Iron Ore Inc. ("Labec"), a subsidiary of Century Iron Mines
Corporation, under which Labec can earn up to a 60% interest.


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
ArcelorMittal's operating Fire Lake Mine and 60 km south of Cliffs Natural
Resources Inc.'s Bloom Lake Mine in northeastern Quebec. Champion's team and
advisory board includes mining and exploration professionals with the mine
operations experience to build, commission, and operate the future Consolidated
Fire Lake North mine.


The technical information in this news release was prepared, revised and
approved by Mr. Jean-Luc Chouinard P. Eng. M. Sc., VP Project Development for
Champion Iron Mines who is a Qualified Person under NI 43-101 standards. 


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 Fire Lake North
Project. 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 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
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

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