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TORONTO, ONTARIO -- (Marketwire) -- 01/30/13 -- Canada Fluorspar Inc. (TSX VENTURE: CFI) ("CFI" or the "Company"), is pleased to announce the results of a newly completed Preliminary Feasibility Study ("PFS") for its St. Lawrence fluorspar project in Newfoundland. The St. Lawrence Project is held by Newspar of which CFI holds a 50% interest. The PFS was prepared by the independent engineering firm, Roscoe Postle Associates Inc. ("RPA"). The PFS is based on updated capital and operating costs, and the existing resource estimate. The PFS contemplates a 131,000 tonne per annum ("TPA") fluorspar production facility.

All dollar amounts are in Canadian dollars, unless otherwise stated.

----------------------------------------------------------------------------                                                                   US$550/MT                                                  US$500/MT        Base CasePRELIMINARY FEASIBILITY STUDY HIGHLIGHTS          Base Case         +10% (i)----------------------------------------------------------------------------Pre-Tax Net Present Value("NPV") @ 5.0% Discount Rate                                 $124 million     $182 million----------------------------------------------------------------------------Pre-Tax Internal Rate of Return ("IRR")               16.4%            21.1%----------------------------------------------------------------------------Cash Operating Costs (per tonne of ore processed)                                          $78.61           $78.61----------------------------------------------------------------------------Capital (required to build 131,000 TPA of Fluorspar Concentrate Production)                       $154 million--------------------------------------------------------------------------------------------------------------------------------------------------------    (i)approximates current market price    MT: Metric Tonne

"The results of this preliminary feasibility study highlight the economics of the project, which combined with the size, quality, logistical and infrastructure advantages make this a significant fluorspar asset," stated Lindsay Gorrill, President and CEO of CFI. Mr. Gorrill added, "the current fluorspar prices of approx. US$540 per MT (Acid grade fluorspar, filtercake, less than 5 ppm As, quoted FOB Tampico, Mexico, as reported by Industrial Minerals on Jan. 22, 2013) adds significant potential upside to the economics of the project."

Base Case Economic Analysis and Assumptions

The PFS base case pre-tax NPV is $124 million and the pre-tax IRR is 16.4%, assuming a 5.0% discount rate. Production of fluorspar is estimated to average 131,000 TPA over a fourteen year mine life. The capital costs associated with the pre-production phase are estimated to be $154 million, while the ongoing capital costs are estimated to be $72.5 million (which is expected to be paid from cash flow generated by the project). The table below summarizes the total initial capital costs and ongoing capital expenditures. The estimated average annual production has grown from 122,000 to 131,000 MT, capital cost has moved from $98 million to $154 million and Operating costs from $208 per mt to $231 per mt, when compared to the original PFS dated May 11, 2011.

--------------------------------------------------------------------------------------------------------------------------------------------------------                                                Pre-         LOMSummary of Capital Costs (in Millions)    Production     Ongoing       Total--------------------------------------------------------------------------------------------------------------------------------------------------------Mine & Mill                                     66.2        27.5        93.6----------------------------------------------------------------------------Infrastructure & Indirect Costs                 73.5         9.9        83.4----------------------------------------------------------------------------Sustaining Capital                                          25.6        25.6----------------------------------------------------------------------------Closure                                                      5.8         5.8----------------------------------------------------------------------------Sub Total                                      139.7        68.8       208.4----------------------------------------------------------------------------Contingency                                     14.0         3.7        17.7----------------------------------------------------------------------------Total Capital Costs                            153.6        72.5       226.1--------------------------------------------------------------------------------------------------------------------------------------------------------