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Press release from CNW Group

Champion Minerals Inc. announces $20 million bought deal financing

Friday, January 14, 2011

Champion Minerals Inc. announces $20 million bought deal financing07:30 EST Friday, January 14, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TORONTO, Jan. 14 /CNW/ - Champion Minerals Inc. (TSX:CHM, FSE:PO2) (the "Company" or"Champion") announced today that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the "Underwriters"), which have agreed to purchase, on a bought deal private placement basis, 8,000,000 shares of the Company (the "Shares") at a price of C$2.50 per Share (the "Issue Price"), for aggregate gross proceeds of C$20,000,000.The Company has granted the Underwriters an over-allotment option to purchase additional Shares to raise additional gross proceeds of up to $3,000,000, exercisable no later than 48 hours prior to the closing.Closing of the offering is anticipated to occur on or before February 3, 2011 and is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.The net proceeds of the financing will be used to fund the exploration and development of the Company's Fermont Iron Property, as well as for general corporate purposes.The securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.About Champion Minerals Inc.Champion is a Canadian exploration Company focused on discovering and developing significant iron ore resources in eastern Canada, particularly in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include the Fermont Iron Property in northeastern Quebec, the Attikamagen Iron Property in northeastern Quebec and western Labrador, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland. Please visit Champion's website at www.championminerals.com.The 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: Thomas G. Larsen, President and CEO, and Jorge Estepa,Vice-President, at (416) 866-2200