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Advanced, electrical-power rate discussions with the Quebec government are ongoing and anticipated to be finalized by the end of January 2013. Champion has recently received a contract proposal from Hydro-Quebec regarding linking the FLN Project to the provincial power grid. Tender documents were issued and bids were received for the construction of the 161/34.5 kV (kiloVolt) electrical substation components, which will feed the construction camp and eventually the construction site.

Champion has received three (3) land lease agreements from the Ministere des Ressources Naturelles pertaining to the campsite construction, the 161/34.5 kV substation and a 34.5 kV power line. The wood-cutting permits for campsite construction, the 161/34.5 kV substation and the 34.5 kV power line, are also in-hand.

The application for a Certificat d'Autorisation (CA) required for camp construction and for the 161/34.5 kV electrical substation have been submitted to the MDDEFP. Once the CA is available, the Company will have the final approval to proceed with building the construction camp, the 161/34.5 kV substation and the 34.5 kV power line.

Detailed Engineering

Champion is pleased to announce that a contract has been recently awarded to BBA Engineering of Montreal for all the pre-construction engineering work relating to the FLN Project.

Champion is currently reviewing bids received in response to a tender that was issued for the building of the construction camp and the 161/34.5 kV substation required for the project.

About Champion Iron Mines Limited

Champion is an iron exploration and development company with offices in Montreal and Toronto, and is focused on developing its significant iron resources in the provinces of Quebec and Newfoundland & Labrador. Champion holds a 100% interest in the Fermont Iron Holdings and a 44% interest in the Attikamagen Iron Project located in both Quebec and Labrador. The Attikamagen Project is under option to Labec Century Iron Ore Inc. ("Labec"), a subsidiary of Century Iron Mines Corporation, under which Labec can earn up to a 60% interest.

Champion's Fermont Iron Holdings, including its flagship Consolidated Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to five producing iron mines, existing transportation and power infrastructure. Consolidated Fire Lake North is located immediately north of ArcelorMittal's operating Fire Lake Mine and 60 km south of Cliffs Natural Resources Inc.'s Bloom Lake Mine in northeastern Quebec. Champion's team and advisory board includes mining and exploration professionals with the mine operations experience to build, commission, and operate the future Consolidated Fire Lake North mine.

The technical information in this news release was prepared, revised and approved by Mr. Jean-Luc Chouinard P. Eng. M. Sc., VP Project Development for Champion Iron Mines who is a Qualified Person under NI 43-101 standards.

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about planned operations at the Company's projects, including its Fire Lake North Project. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Champion's annual information forms, management discussion and analysis and other securities regulatory filings by Champion on SEDAR (including under the heading "Risk Factors" therein). There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of Champion's management and information available to management as at the date hereof. Champion disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This press release has been prepared by Champion Iron Mines Limited and no regulatory authority has approved or disapproved the information contained herein.



Contacts:
Champion Iron Mines Limited
Thomas G. Larsen
President and CEO
(416) 866-2200

Champion Iron Mines Limited
Jorge Estepa
Vice President
(416) 866-2200
www.championironmines.com