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Press release from Marketwire

Swiss and China-Based Companies to Make $3.0 Million Strategic Investment in Champion Minerals

Tuesday, October 05, 2010

Swiss and China-Based Companies to Make $3.0 Million Strategic Investment in Champion Minerals16:34 EDT Tuesday, October 05, 2010TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Champion Minerals Inc. ("Champion" or the "Company") (TSX:CHM)(FRANKFURT:P02) is pleased to announce that two companies, one Swiss and one from China, will invest a total of $3.0 million in the Company in a private placement financing (the "Offering"). No broker, dealer or finder is involved in the private placement and, accordingly, no commissions or finder's fees are payable in connection with these transactions.Zug, Switzerland-based MRI Advisory AG ("MRI"), or associated entities, will invest $2.0 million, and Winner Max Investment Co., Ltd. of Hong Kong ("Winner Max") will invest $1.0 million.The Offering is subject to completion of certain closing items and final regulatory approval. Under the terms of the Offering, Champion will issue 2,222,222 units ("Units") to MRI and 1,111,111 Units to Winner Max, at $0.90 each. Each Unit consists of one common share and one warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share at a price of $1.20 for the first 24 months and $1.50 thereafter until 36 months after the closing date, when the Warrants expire. The securities issued under or in connection with the Offering will be subject to a four month hold period. Champion is also entering into an advisory services agreement with MRI, to provide strategic planning and technical advice to the Company."We identified Champion as an excellent strategic investment as we believe it is well positioned within the iron-rich Labrador Trough," said Ashwath Mehra, CEO of MRI. "Champion has the potential to become the area's next producer of iron ore from its inferred and historical iron resources, which are estimated at more than 1 billion tonnes"(1).Mr. Mehra added, "The claim blocks are very well-situated in a developed and politically stable country near infrastructure that will be beneficial in a production scenario. We believe that the assets of Champion are currently undervalued and that there is potential for a significant increase in the value of the Company as technical milestones are met."Thomas Larsen, Champion's President and CEO, remarked, "We are pleased to welcome both the MRI Group and Winner Max as major investors in our company. I anticipate further benefits by adding the MRI group to our team as we advance development of our Fermont Property and move towards a Preliminary-Economic-Assessment (PEA) study on our Fire Lake North Claim Block. MRI, with its successful track record in financing, mine development, iron ore production, strategic global partnerships and shipping, will help enhance and unlock the full value of Champion's assets."Mr. Mehra has been appointed to Champion's board of directors, subject to regulatory approval. He is an economist who has worked in the minerals industry for over 25 years, starting his career with Philipp Brothers after which he spent 10 years with Glencore International AG, where he was a senior partner and ran the Nickel and Cobalt Divisions. He is a co-founder and Non-Executive Director of Northern Iron Limited (ASX:NFE).Mick McMullen, a principal of MRI, will join Champion's newly created advisory board, to provide technical assistance and strategic advice. Mr. McMullen is a geologist with a BSc (Geology) from the University of Newcastle, Australia and in excess of 17 years' experience in exploration, financing, development and operation of mining projects. He most recently was the Managing Director and a co-founding shareholder of Northern Iron Limited (http://www.northerniron.com.au), an ASX listed iron ore company.About MRI ADVISORY AGMRI Advisory AG is a member of the MRI Group of Companies, a leading investment and trading group in the commodities arena. MRI Trading AG, another group member, is a top-tier trader of concentrates and other non-ferrous raw materials. With over US$3 billion in annual sales, MRI Group has available credit lines in excess of US$800 million. Based in Zug, Switzerland, the Group has a global presence through its offices in Beijing, Shanghai, Santiago do Chile, Lima, Lubumbashi - DRC, Johannesburg, New Delhi and Brisbane. Please visit MRI's website for additional information at http://mritrading.ch.About Winner Max Investment Co. Ltd.Winner Max Investment Co. Ltd., is a Hong Kong incorporated equity firm with an investment focus in overseas natural resources opportunities. Its team has built extensive relationships within the Chinese natural resources State Owned Enterprises circle.About Champion Minerals Inc. Champion is a junior exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in northeastern Quebec and in Labrador and Newfoundland. The Company's projects include the Fermont Iron Property in northeastern Quebec, the Attikamagen Iron Property in western Labrador and northeastern Quebec and the Powderhorn and Gullbridge Base Metal Projects in central Newfoundland. Please visit Champion's website at www.championminerals.com.(1) All historical mineral resources outlined in the text are non-compliant to NI 43-101 Mineral Resources and Mineral Reserves standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to upgrade or classify these historical mineral resources as current NI 43-101 compliant Mineral resources. Inferred Resources are part of a National Instrument 43-101 Mineral Resource for which the estimated quantity and grade of a deposit, or a part thereof, that is determined on the basis of limited sampling, but for which there is sufficient geological information and a reasonable understanding of the continuity and distribution of metal values to outline a deposit of potential economic merit. There is no guarantee that further exploration will upgrade the Inferred Resources to Indicated and/or Measured Resources.Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.FOR FURTHER INFORMATION PLEASE CONTACT: Champion Minerals Inc. Thomas G. Larsen President and CEO 1 (877) 448 2201 or (416) 866-2200 or Champion Minerals Inc. Jorge Estepa Vice-President 1 (877) 448 2201 or (416) 866-2200 www.championminerals.com