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Press release from Marketwire

CFI Announces Assay Results From Drill Holes Completed on Director Vein, South Extension, Including Holes DS-13-120; 121 & 122, One Hole Having an Average Assay of 35.3% CaF2 Over 12.25 Metres

Wednesday, June 05, 2013

CFI Announces Assay Results From Drill Holes Completed on Director Vein, South Extension, Including Holes DS-13-120; 121 & 122, One Hole Having an Average Assay of 35.3% CaF2 Over 12.25 Metres

08:09 EDT Wednesday, June 05, 2013

ST. JOHN'S, NEWFOUNDLAND--(Marketwired - June 5, 2013) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce assay results from three holes on its Phase 2 diamond drilling program along the southern extension of the Director Vein. The assay results from the previous eight drill holes from the Company's Phase 1 and Phase 2 diamond drilling program were disclosed by press releases on March 12, 2013, April 24, 2013, and May 8, 2013.

All three drill holes, DS-13-120, DS-13-121 & DS-13-122, are located on the same cross-section at 1,700 metres south of the old Aluminum Company of Canada ("Alcan") shaft. Hole DS-13-120 was collared with an azimuth of 050° (GN) and an inclination of -60°, and intersected the Director Vein structure from 57.28 to 61.00 meters in the hole and a fluorite vein in the footwall from 74.40 to 76.08 meters in the hole. Average assay values of 26.9% CaF2 over 3.72 metres were returned from 57.28 metres to 61.00 metres measured depth and 59.63% CaF2 over 1.68 metres from 74.40 metres to 76.08 metres measured depth, respectively, with no lost core. Drill hole DS-13-121, a shallow hole, was collared with an azimuth of 050° (GN) and an inclination of -45° and intersected the Director Vein structure returning average assay values of 47.9% CaF2 over 2.42 metres [located from 37.90 metres to 41.22 metres measured depth], excluding 0.90 metres of lost core. Hole DS-13-122, the deepest hole, was collared with an azimuth of 050° (GN) and an inclination of -68° and intersected the Director Vein structure at 81.75 meters in the hole returning average assay values of 35.3% CaF2 over 12.25 metres [located between 81.75 metres and 94.00 metres down the hole] and a footwall vein at 120.90 metres in the hole returning 29.6% CaF2 over 3.22 metres [located between 120.90 metres and 124.12 metres in the hole], respectively, with no lost core.

"The assays from these three holes as well as previously reported holes, DS-13-115 and DS-13-116, are encouraging in that the southern extension of the Director Vein in this area is now known to extend from surface to a projected depth of 75 metres and along a projected north-south strike for approximately 200 metres with grades and widths that would categorize the mineral resources as mineable", stated Lindsay E Gorrill, President & CEO of Canada Fluorspar Inc.

The fluorite mineralization in the north-south trending veins at the St. Lawrence Project and the Company's 100% owned mineral license occur in the form of massive mineralization and as fault gouge. Historically, core drilling of the massive mineralization has resulted in good core recovery. The areas of faulted mineralization generally contain finely ground fluorite and larger fragments of the harder siliceous material. Drilling through the faulted gouge zones commonly results in poor core recovery as the fine grained fluorite material in the vein is washed out by the drill fluid. Drill hole DS-13-121 successfully intersected the Director Vein structure, however, due to the fine nature of some of the vein material, core recovery in the structure was only 73%. Past underground mine operations document the high grade, fine, sandy fluorite mineralization in the vein structure.

To view "Director Vein Phase 1 and 2 Drilling" please visit the following link: http://media3.marketwire.com/docs/director1and2.pdf.

Assay Results

CFI has received assay results for samples collected from drill holes DS-13-120, DS-13-121 and DS-13-122 located along the southern extension of the Director Vein. All three drill holes were drilled from west to east and located 100 metres south of a previously reported hole, DS-13-116, which was reported in a press release dated May 8, 2013. Drill holes DS-13-120, DS-13-121 and DS-13-122 are located on the same plane and we drilled to intersect the Director Vein structure below a previously reported trench, Trench No. 4, which was reported in two press releases, dated March 13 and April 24, 2012. Trench No. 4 was reported to have exposed a 16.1 metre wide fault structure containing brecciated granite with thin veinlets of fluorite containing 33.3% CaF2 over 3.1 metres of gouge and a 2.9 metres wide vein of massive fluorite grading 81.3% CaF2 with a combined grade over 6.0 metres to be 56.5% CaF2.

All three drill holes intersected the Director Vein structure, which trends north-northwest and dips steeply from east to west. Drill hole DS-13-120 intersected the Director Vein structure at 57.28 metres and 58 metres vertically from surface (below Trench No. 4 and hole DS-13-121). A second vein in this hole was intersected at 74.40 metres and 72 metres vertically from surface. Drill hole DS-13-121 intersected the Director Vein structure at 37.90 metres and 30 metres vertically from surface (directly below Trench No. 4). Drill hole DS-13-122 intersected the Director Vein structure at 81.75 metres and 83 metres vertically from surface (below DS-13-120). A second vein in this hole was intersected at 120.90 metres and 113 metres vertically from surface. The three drill holes completed at this location indicate that the structure may be increasing in width with depth although the grade remains relatively unchanged. The results of the drilling under trench No.4 are similar to the information from the previously reported results from the Trench No.3 area to the north and indicate that the structure continues to be in a pinch zone. Parallel veins such as the vein identified in the footwall in drill holes DS-13-120 and DS-13-122 have been known to develop into mineable veins in other locations in the St Lawrence area. The significance of this footwall vein remains to be evaluated.

The following table details the results of the fourth set of drill holes completed by CFI on the Director Vein Phase 1 and Phase 2 2013 diamond drill program:

2013 Diamond Drill Hole Assay Results

Canada Fluorspar Inc.
St. Lawrence Project, NL

Drill hole DS-13-120

Sample No.

From (m)

To (m)

Length (m)

% CaF 2
1 st Vein
65203 57.28 58.00 0.72 26.92
65204 58.00 59.00 1.00 34.12
65205 59.00 60.00 1.00 27.36
65206 60.00 61.00 1.00 19.02
2 nd Vein
65209 74.40 75.30 0.90 55.43
65210 75.30 76.08 0.78 64.48

Drill hole DS-13-121
Sample No.
From (m)

To (m)

Length (m)

% CaF 2
65235 37.90 39.10 1.20 66.24
65237 40.00 40.22 0.22 52.85
65238 40.22 41.22 1.00 24.86

Drill hole DS-13-122
Sample No.
From (m)

To (m)

Length (m)

% CaF 2
65215 81.75 82.25 0.50 24.08
65216 82.25 83.00 0.75 26.09
65217 83.00 83.82 0.82 78.00
65218 83.82 85.11 1.29 40.52
65219 85.11 86.00 0.89 50.36
65220 86.00 87.00 1.00 25.77
65221 87.00 88.00 1.00 15.95
65222 88.00 89.00 1.00 49.39
65223 89.00 90.00 1.00 22.31
65224 90.00 91.00 1.00 51.73
65225 91.00 92.00 1.00 33.08
65226 92.00 93.00 1.00 20.93
65227 93.00 94.00 1.00 20.09

Assays on these drill holes were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).

Quality Assurance and Quality Control ("QA/QC")

Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.

Phase 1 of the current exploration program is designed to assess the northern extension of the Director Vein structure. The six drill holes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Alcan workings.

Phase 2 of the 2013 exploration program has been designed to evaluate the southern extension of the Director Vein. A trenching program and a geophysical survey conducted in the area during 2012 identified the structure over a strike length of 1,000 metres. The current drill program was planned to evaluate the mineral potential, at depth, of the southern extension of Director Structure and to test the north extension of the adjacent Hares Ears Vein to the west.

Historic mining operations by Alcan on the property produced in excess of 4.2 million tonnes of fluorspar during a 44 year continuous production from 1942 to 1977. Production resumed in 1986 and continued until 1991, when St. Lawrence Fluorspar Limited reopened the nearby Blue Beach North Mine and processed 440,000 tonnes of fluorspar ore from small open pits, one of which was located in a surface pillar at the Director Mine near the main shaft.

Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press releases dated January 16, 2013 and March 12, 2013.

To date, six (6) Phase 1 drill holes have been completed together with 26 additional drill holes in Phase 2 (19 holes in south extension Director Vein and 7 holes at Hares Ears Vein) of the 2013 exploration program. Assay results for remaining completed drill holes in Phase 2 are pending.

Historic exploration data indicates that there are more than forty mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. 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 a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated March 6, 2013, which has been filed by the Company on SEDAR (www.sedar.com).

About the Company

The 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 North and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through Newspar, which it's a 50/50 joint venture with Arkema. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.

Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-‐101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.

Material results of the Company's 2012 and 2013 exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and March 12, 2013, April 24, 2013 and May 8, 2013.

For more information please see: www.canadafluorspar.com.

Cautionary Note and Forward-Looking Statements

This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward looking statements.

Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Canada Fluorspar Inc.
Lindsay Gorrill
President and CEO
1-800-823-8095
lgorrill@canadafluorspar.com
www.canadafluorspar.com

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