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Press release from Marketwire

Champion Minerals Announces Start of Feasibility Definition-Drilling at Fire Lake North Project, Fermont, Quebec

Monday, November 07, 2011

Champion Minerals Announces Start of Feasibility Definition-Drilling at Fire Lake North Project, Fermont, Quebec07:30 EST Monday, November 07, 2011TORONTO, ONTARIO--(Marketwire - Nov. 7, 2011) -CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is pleased to announce the start of Feasibility resource definition drilling at the Company's flagship Fire Lake North project in the Fermont Iron Ore District, Quebec.Results of the recently completed National Instrument 43-101 Mineral Resource Estimate for the Fire Lake North project include Measured & Indicated Resources of 400.1 Million Tonnes grading 30.6% Total Iron ("FeT") and Inferred Resources of 661.2 Million Tonnes grading 27.7% FeT, at a 15% FeT cut-off1 (see Champion press release dated October 3, 2011).In November 2010, Champion announced positive results from a Preliminary Economic Assessment ("PEA") of the Fire Lake North project that included a Net Present Value (NPV) of $1.295 Billion at an 8% discount rate and a 24.8% Internal Rate of Return (IRR) based on total mineral resources estimated at 388 Million Tonnes grading 29% FeT at the same 15% FeT cut-off (see Champion press release dated November 3, 2010).Champion has substantially increased current mineral resources at the Fire Lake North project to over 1 Billion Tonnes from the resource estimate used in the 2010 PEA. Improved economics are anticipated* from the revised PEA which is expected from BBA Inc. in mid-November, 2011. As a result, Champion is aggressively moving forward with plans to complete a Feasibility study for Fire Lake North in 2012.*Statements regarding forthcoming anticipated economic improvements in this paragraph are "forward-looking statements" and are not historical facts. Readers are cautioned that any such statements are not guarantees of future results, and that actual developments or results may vary materially from those inferred herein.In advance of receiving results from the revised PEA, Champion is mobilizing drill rigs from the Oil Can Project to the West Area of the Fire Lake North Project to commence resource definition drilling. This drill program is designed to up-grade the majority of the current resources to the Measured and Indicated Resources categories for the planned 2012 Feasibility study production schedule.Champion has commissioned Knight-Piésold Ltd. to complete geotechnical investigations required for the open-pit engineering component of the Feasibility study. Geotechnical crews are scheduled to commence logging drill core by mid-November. In addition to the resource definition and geotechnical drilling, the Feasibility study requirements include condemnation drilling of proposed tailings ponds, waste dumps and facility locations. Champion intends to design and complete these holes upon receipt of the revised PEA.Tom Larsen, Champion's President and CEO commented, "These are exciting times as Champion moves into the Feasibility and Development phase at Fire Lake North. Champion's future is promising, having achieved a major milestone on its path to becoming an iron producer. We believe the PEA financials will be robust given the greater than expected quantity of resources our exploration group has delineated and look forward to announcing the PEA numbers in the coming weeks."Following the completion of the five remaining holes planned for 2011 on the Oil Can project, the remaining drills will be mobilized to Fire Lake North. Champion expects to augment the Fire Lake North project with additional drills in early 2012 to accelerate completion of the feasibility drilling. A Mineral Resource Estimate and PEA study for the Oil Can project, located north and contiguous with the Fire Lake North property, will be initiated in early 2012.The Fermont Iron HoldingsChampion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined, NI 43-101 compliant, Measured and Indicated Mineral Resources estimated at 400 Million Tonnes grading 30.6% FeT and Inferred Mineral Resources estimated at 1.82 Billion Tonnes grading 25.4% FeT, at a 15% FeT cut-off1. Seven of Champion's remaining fourteen properties contain combined historical Mineral Resource estimates2 totalling 620 Million Tonnes grading 31% FeT.About Champion Minerals Inc.Champion Minerals is an iron ore exploration and development company with offices in Montreal and Toronto, focused on developing its significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include: the Fermont Holdings in Quebec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); and the Attikamagen Iron Property in Quebec and Labrador. Champion's Fermont Holdings, including the flagship Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to three producing mines. Champion's team and advisory board includes mining and exploration professionals with substantial iron ore expertise to effectively advance the Fire Lake North Project into production.1 The current Mineral Resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions. The current Mineral Resource estimates were prepared by P&E Mining Consultants Inc. (Brampton, ON) and approved by Mr. Antoine Yassa, P. Geo. and Qualified Professional of P&E.Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.2 All historical Mineral Resource estimates outlined in this disclosure 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.The technical information in this news release was reviewed and approved by Bruce Mitton, P.Geo., VP Exploration of the Company and a Qualified Person under NI 43-101 standards.FOR FURTHER INFORMATION PLEASE CONTACT: Thomas G. LarsenChampion Minerals Inc.President and CEO(416) 866-2200ORJorge EstepaChampion Minerals Inc.Vice-President(416) 866-2200ORSalisha HoseinChampion Minerals Inc.Director, Investor Relations(416) 866-2200www.championminerals.com