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Press release from Marketwire

Canada Fluorspar Inc.'s 2012 Trenching Program Continues to Uncover South Extension of the Director Vein

Friday, March 30, 2012

Canada Fluorspar Inc.'s 2012 Trenching Program Continues to Uncover South Extension of the Director Vein08:57 EDT Friday, March 30, 2012ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - March 30, 2012) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce an update of its exploration activity on the Director Vein located on the Company's 100% owned development properties at St. Lawrence, Newfoundland.CFI has undertaken surface trenching of the Director Vein over the past 80 days and to date has uncovered fluorspar mineralization at six locations. The trenches are currently located over an area that extends more than 850 meters to the south of the old mine workings of the Director Vein, and indicate surface mineralization in width varying from 3.4 meters to 23 meters. As a result of these findings the trenching operations are planned to continue over the next month and the Company expects to commence a drilling program on the southern extension of the Director Vein during the second quarter of 2012. Assay work on the trench samples is currently underway, and results will be provided as they become available.Based on the positive results from the sixth and seventh trenches, the Company is moving to complete a minimum of two more trenches on the Director Vein under the current exploration program.Lindsay Gorrill, President & CEO of Canada Fluorspar Inc. stated that, "we continue to uncover a vein structure which is very encouraging. These findings could indicate an extension of the Director Vein structure of more than 850 meters along strike and south of the old mine workings. We look forward to providing further updates on exploration results as assays results become available."Results to-date from Trenches 6 and 7 are as follows:Trench #6Trench #6 is located half-way between Trenches #4 & #5 (as described in the Company's press release dated March 13, 2012). The trench was designed to evaluate the change in geological features in the vein structure between these two trenches. The excavation at Trench #6 exposed the following:21.5 meter wide fault structure comprised of a 12.5 meter wide zone of brecciated granite with traces of fluorite on fracture surfaces; and 9.0 meter wide section of fault gouge containing brecciated granite, fluorite and quartz.The gouge material is similar to the material in Trench #5 except that there are rare clasts of purple fluorite up to 2 centimeters in diameter. These fluorite clasts suggest that the massive vein material identified in Trench #4 to the north has been fractured by fault movement along strike and that the clast size has been further reduced in size as observed in the gouge zone in Trench #5 to the south. The trench was mapped and the mineralized interval has been sampled and sent for analyses.Trench #7Trench #7 is located adjacent to and south of the second and most southern trench dug by Alcan from 1974 to 1975. Trench #7 successfully uncovered the Director Vein structure which is 23 meters wide at this locality. The trench also exposed the following:12.5 meter wide structure containing a 12.5 meter wide section of brecciated granite with traces of purple fluorite along fracture surfaces; and 6.0 meters of brecciated granite with traces of fluorite and 4.5 meters of fault gouge.The gouge material is comprised of brecciated granite, fluorite and quartz and resembles the gouge that was exposed in the adjacent Trench #5, 100 meters to the north. The trench was mapped and the mineralized interval was sampled for analyses.About the CompanyThe Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through its 50/50 joint venture with Arkema, called Newspar. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.Previous fluorspar operators, Alcan and Minworth, who operated on Blue Beach North and Tarefare veins, produced in excess of 4.6 million tonnes of fluorite (CaF2) in a 47 year history of production ending in 1991.At a cut-off grade of 20% CaF2 and a minimum horizontal thickness of two meters, the Mineral Resources of Blue Beach North and Tarefare veins total approximately 9.1 million tonnes of Indicated Mineral resources at an average grade of 42.0% CaF2, and 950,000 tonnes of Inferred Mineral Resources at an average grade of 31.1% CaF2, in each case, estimated by the Roscoe Postle Associates Inc. 43-101 technical report dated April 29 2011 (the "43-101 Report"). At a cut-off grade of 30% CaF2 and a minimum horizontal thickness of two meters, the Probable Mineral Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of approximately 39.8% CaF2. The Mineral Reserves are part of the Mineral Resources. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in the 43-101 Report which has been filed under the Company's profile on Sedar (www.sedar.com). The Blue Beach North and Tarefare veins have overall average widths of 5 meters and 3.5 meters respectively.Jim Reeves, Senior Geologist with CFI, who is Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this release. The historic production information provided has not been verified by the Company and is provided for reference only.Jim Reeves was on site during the trenching at the Director Vein and verified the data collected. The trenched area of the Director Vein was washed down to remove as much till material as possible to expose the bedrock and to permit geological mapping and sampling. Each of the trenches was mapped in detail, including the lithologic units and the structures. Continuous chip samples across each of the designated mineralized intervals were collected, bagged, labeled and sealed. Chip samples of the wall rock, one meter on each side of the mineralized zones, were also collected, bagged, labeled and sealed. For more information please see: www.canadafluorspar.com.To view a map associated with this release, please visit the following link: http://media3.marketwire.com/docs/canada_fluorspar_fig01_march30.pdfFOR FURTHER INFORMATION PLEASE CONTACT: Lindsay GorrillCanada Fluorspar Inc.President and CEO1-800-823-8095lgorrill@canadafluorspar.comwww.canadafluorspar.comNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.