1. Building the Next Major Iron Ore
Mine in the Labrador Trough
Corporate Presentation
September 2011
FSE: P02
2. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained herein regarding Champion Minerals Inc., including
management’s assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks, including but not
limited to risks associated with mining exploration, operating costs, production costs, volatility of
share prices, currency fluctuations, imprecision of resource and reserve estimates,
environmental risks and ability to access sufficient capital from internal and external sources.
As a consequence, actual results may differ materially from those anticipated in any forward
looking statements. Plans, intentions or expectations disclosed in any forward-looking
statements or information should not be read as guarantees of future results or events, and will
not necessarily be accurate indications of whether or when or by which such results or events
will be achieved.
Except as required by law, Champion Minerals Inc., expressly disclaims any intention and
undertakes no obligation to update any forward looking statements or information as conditions
change.
The historical mineral resources mentioned are strictly historical in nature and are non-
compliant to National Instrument 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 the historical mineral resources as current National Instrument NI-43-101 compliant.
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3. About Champion Minerals
Advanced iron ore exploration and development projects located in
Canada’s principal iron ore district, the Labrador Trough
Fermont Projects
Flagship project: Fire Lake North
- November 2010 PEA on Fire Lake North
demonstrated a viable project with an NPV of US$940
million on a 10% discounted cash flow basis using
US$81.4 per tonne of concentrate at 65%
1.55 billion tonnes of NI 43-101 compliant
iron ore resources at 25.4% iron
Champion Minerals holds an 82.5% direct interest,
3% NSR (C$3 million to buyback 1% of NSR)*
Attikamagen Property
Champion Minerals holds a 100% interest
Century Iron Mines Corp. has option to earn up to a
60% interest in the property by spending C$13
million by May 2014**
* Fancamp Exploration Ltd. holds remaining 17.5% interest.
** Announced investment by WISCO of 25% ($60M) and Minmetals of 5% ($12M) 3
4. Canada’s Next Iron Ore Mine
Advanced Project
Preliminary Economic Assessment (PEA) update on the Fire Lake North Project is
underway and expected by the end of Q3 2011
Feasibility Study on Fire Lake North to be released in Q2 2012
On-going 60,000+ metre drill program in the Fire Lake North area
- 26,713 metres of drilling has been completed at the Fire Lake North Project, since
the release of the November 2010 PEA for a total of 32,308 metres drilled to date.
Established Iron Ore District
Canada’s premier iron ore district (i.e. ArcelorMittal, RTZ/IOC,
Cliffs Natural Resources)
Established rail, power and port infrastructure
- Commitment by Quebec’s Plan Nord to invest $80 billion over the next 25 years
Proven Team
Strengthened the advisory board and the board of directors – appointed Richard
Quesnel (formerly President and CEO of Consolidated Thompson) as senior
technical advisor and appointed Jean Depatie (formerly founder and director of
Consolidated Thompson) director. Also appointed Marc Duchesne (formerly Sr. VP of
Finance of Consolidated Thompson) as Project Finance Advisor.
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5. Strong Capital Structure
Share Data and Cash Position as of September 1, 2011.
Shares Outstanding 88.0 million
Warrants 6.9 million @ C$1.50
Options 8.4 million @ C0.85
Fully Diluted Shares Outstanding 103.5 million
Market Capitalization (based on $1.32 share price) C$116.2 million
Cash Position C$28.0 million
Fully Diluted Cash Position C46.5 million
Debt (Purchase of 17.5% Fermont Interest from C$0.5 million
Sheridan Platinum Group)
Management Ownership ~ 8%
Analyst Coverage Canaccord Genuity
Jennings Capital
Haywood Securities
Paradigm Capital
RBC Capital Markets
Salman Partners
6. Experienced Management Team
Over 200 years of combined exploration and mine operations experience
Board of Directors Management Team
Tom Larsen Tom Larsen
Chairman President and CEO
Alexander Horvath, P.Eng. Alexander Horvath, P.Eng.
Director Executive Vice President, Exploration
Jean Depatie Martin Bourgoin, P. Geo.
Director Executive Vice President, Operations
Ashwath Mehra Jeff Hussey, P.Geo.
Director Executive Vice President, Development
Donald A. Sheldon, LLB., P.Eng. Bruce Mitton, P.Geo.
Director Vice President, Exploration
Paul Ankcorn Jean-Luc Chouinard, P.Eng.
Director Director of Projects
Francis Sauve Miles Nagamatsu, CA
Director Chief Financial Officer
Joseph S. C. Chan Jorge Estepa
Director Vice President, Secretary-Treasurer
Advisory Board: Richard Quesnel, Mick McMullen and Doug Bache
Project Finance Advisor: Marc Duchesne
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7. Comparable Companies Analysis
EV / Contained Fe (US$/t) (EV+Capex) / Contained Fe (US$/t)
8.00
7.14
4.94
4.48
2.06
1.68
1.15
0.29 0.15 0.06
(1) (2) (1) (2)
Labrador Iron Northland New Millenium Champion Adriana Northland Adriana Labrador Iron New Millenium Champion
Mines Resources Capital Minerals Resources Resources Resources Mines Capital Minerals
Note: Share price in exchange currency as at August 12, 2011 market close
(1) Labrador Iron Mines resources of 166Mt at 57.0% Fe includes historical resource estimate of 125Mt at 57.0% Fe which is non-NI 43-101 compliant
(2) Champion Minerals based on attributable resources; includes historical resource estimate of 613Mt at 30.5% Fe (100%) which is non-NI 43-101 compliant
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8. Rail Infrastructure
Quebec North Shore & Labrador
Railway (“QNS&L”)
High Linked to Sept-Iles and Pointe Noire ports
Voltage
Power
Capacity estimate = ~ 80-100 Mtpy
Lines Capacity Demand = ~ 55-60 Mtpy
Expansions: RTZ–IOC, Cliffs Bloom Lake
Cluster 2 and Wabush + 9 Mtpy of Schefferville DSO
Capacity Surplus = ~ 40 Mtpy
Cluster 3 Fire Lake North connection to Bloom Lake
rail will require 62 km of new rail (PEA 2010)
QNS&L
Bloom Lake and QNS&L railways are
Cartier
Rail considered common carriers.
Private
Common
Rail
Carrier Cartier Railway: Linked to Port-Cartier
Privately owned by ArcelorMittal
Three Ports/ Adjacent to west of Fire Lake North
Stockpile
Locations
St Lawrence Seaway
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9. Multi User Port Infrastructure
Expanding to Meet Demand
Three Deep Sea Ports Operating
Port of Sept-Iles
RTZ-IOC shipping facility
Pointe Noire Sept-Iles
Cliffs Resources shipping facilities
New Multi-User Port:
Pointe Noire
Phase 1: 40-50 Mtpy $220M
Phase 2: 100 Mtpy
Phase 1 planned completion March
31, 2014; announcement pending
Port-Cartier
ArcelorMittal shipping facility
$2.1B expansion is underway and will China Max ship capacity 300kt
include concentrator expansion with
port and rail infrastructure upgrades
Located 62 km west of Sept-Iles
Courtesy of the Port de Sept Isles
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9
10.
11. Fermont Project Resource Base
Current NI 43-101 Compliant Resources
1000 947*
900
Converting historical estimates to NI 43-101
800 compliant mineral resources with
60,000+ metres of drilling planned in 2011
Millions of tonnes of iron ore
700
600
500
388*
400
300
215*
200
100
0
Project Bellechasse Fire Lake North Harvey Tuttle
Location Quebec, Canada Quebec, Canada Quebec, Canada
Grade 28.7% 28.9% 23.2%
Mineralization Magnetite Rich Specular Hematite Rich Magnetite Rich
Historical 91 Mt @ 30.0% Iron 41 Mt @ 31.0% iron n/a
Resources
* 15 % cut-off grade 11
13. Fire Lake North
Rapid Project Development Fire Lake North Project
Drillholes over 2nd vertical derivative magnetic response
Completed a 26,713-metre drill program
since 2010 PEA ; Positive initial PEA on 7 Mt
per annum concentrate operation
A total of 32,380 metres completed to date
Mineral Resource Estimate Q3 2011
Metallurgical tests indicate a clean
concentrate grading 65% iron
- Iron oxide at a coarse liberation grind size of
(-850 microns) (0.85mm) similar to RTZ/IOC
and ArcelorMittal operations
- Grinding tests are underway to better
quantify concentrator production rate
PEA update expected Q3 2011
− Objective is to increase mine life to 25+
years and to reduce the strip ratio and
associated operating expenses.
Rail and port infrastructure studies on-going
Release Feasibility Study in Q2 2012
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14. Fire Lake North - Metallurgy
High grade and coarse grained deposits with higher grade zones (See Below Left)
Gravity separation is the typical beneficiation technique in the Fermont
mining camp; magnetic separation is not included in the current mill design
Deposits of quartz specularite iron ore are typical of the Fermont area
− Coarser grind means that this product will be sold as sinter feed that comprises
80% of the global iron ore market.
− The low deleterious elemental levels should command a premium price.
Above: High Grade - Coarse Specular Above: Typical Quartz-Specular
Hematite Hematite-Magnetite Mineralization 14
15. Fire Lake North Development Project
PEA update will include 26,000 metres of additional drilling
The new interpretation versus the initial PEA block model and open-pit outline will likely
contain increased in-pit resources and reduced strip ratios.
Hornblende
Iron Fm.
Lean Iron Fm.
Marble
Basement
November 2010
PEA
Open Pit Outline 100 m
November 2010 PEA
New geological interpretation Sub-Vertical Zones were
from 2011 drilling for PEA update interpolated
Looking North
East Pit area: Section 2600 N
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16. Fire Lake North Development Project
November 2010 Preliminary Economic Assessment – Highlights
Key Results Pre-Tax Basis
Net Present Value @ 5% US$1.64B
Net Present Value @ 10% US$0.94B
Internal Rate of Return 24.8%
Payback on Initial Capital @ 5% 2.8 Years
Based upon the following assumptions:
Capital Costs: US$754 million (+ US$137 million, 20% contingency)
Operating Costs: US$41.69 per tonne
Price assumptions: US$81.40 per tonne of concentrate at 65% Fe
Mine-Life: 14 years at 7 million tonnes/year (In Pit Resources Only)
Exchange rate: $1 USD to $1.10 CDN
Total Resources(1): 388 million tonnes grading 29% Fe (NI43-101 Inferred Resources)
In Pit Resources: 250 million tonnes grading 30.5% Fe in two pits
(1) Total Resource used a 15% Fe cut-off 16
17. Fire Lake North Timeline
Development to Production Project Schedule
2011 2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Diamond Drilling
Scoping Study
Feasibility Study
Environmental / Social Studies
Community Consultation
Permitting
Construction
Production
• 26,713 metres of drilling has been completed at Fire Lake North since
the release of the November 2010 Preliminary Economic Assessment
(PEA) to date.
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19. 2011 Exploration Program
Focused on resource definition and expansion at Fire Lake North
2011 EXPLORATION DRILLING
PROJECT NAME 2011 DEVELOPMENT PLAN 2011 JOINT VENTURE BUDGET ($)
PROGRAM (metres)
Fire Lake North 21,000 MRE, PEA/FS 9,450,000
Moire Lake 9,600 MRE, PEA 4,320,000
Bellechasse 5,000 MRE, PEA 2,250,000
Harvey-Tuttle Lake 3,000 MRE, PEA 1,350,000
O’Keefe -Purdy 10,000 MRE, PEA 4,500,000
Oil Can Lake 8,000 MRE 3,600,000
Midway 3,000 MRE 1,350,000
Hope Lake 1,500 MRE 675,000
Claire Lake 1,500 MRE 675,000
60,000+ 28,170,000
Drilling from the 2011 drilling programs will be used to conduct Mineral Resource Estimates
(MRE), to update the Preliminary Economic Assessments (PEA) and to define the scope for
a Feasibility Study (FS) with a centralized concentrator complex at Fire Lake North.
The development plan for each project will verify if there is a potential to be a stand alone
operation or to be integrated into the cluster two centralized concentrator complex.
Several satellite deposits have the potential to enhance the growth profile of this area, all
within 20-30km which is within reach of conveyor equipment today.
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20. Advanced Exploration
Bellechasse Project Harvey Tuttle Project
NI 43-101 Inferred Resource Estimate:
NI 43-101 Inferred Resource Estimate: 215Mt
717Mt @ 25% iron; magnetite rich
@ 29% Iron; Magnetite Rich iron formation
Intersected multiple significant iron
Historical Resources increased from 91Mt formation intervals in 2010 drill program
remaining upside potential.
Total of 13,165m of drilling completed
2,000-metre drill program underway Less than 50% of the kilometric scale
magnetic anomalies have been tested
Metallurgical tests underway
Located 25 km NW of Fire Lake North
Within conveying distance from Fire Lake
North planned concentrator (20-30km)
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21. O’Keefe Purdy Project: Drilling Underway
Exploration Upside
• Historical Resources of 51 Mt @ 37% Iron
• Potential to double resources minimally with deposits listed above
and obvious untested iron formation strike length
• Completed 2,000 metres (3 drill rigs ) of a 10,000 metre drill program
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22. Moire Lake Project
Exploration Upside
Historical Resources:
Arcelor Mittal Property Boundary
101Mt @ 30.5% Iron
N
• Potential to significantly increase resources
• 1 drill completing a 10,400 metre program
• Mineral resource estimate will follow
• Drilled 8,140 metres to date
A A’
Arcelor Mittal Property Boundary
Moire Lake Property Boundary
Hole LM11-04: 27.9% Fe / 158.2 m
Includes
30.5% Fe / 130.2 m
500 Historical
meters Interpretation
New
Hole LM11-05: 25.0% Fe / 167.4 m Interpretation
Includes
28.9% Fe / 133.5 m
200 22
metres
23. Exploration: Fermont Projects
Moire Lake: 10,400-metre drilling program currently underway
Complete initial NI 43-101 mineral resource estimate in 2011
O’Keefe Purdy: 10,000 metre program (3 drill rigs); 2,000 metres completed
Hematite-rich targets being tested
Bellechasse: NI 43-101 Mineral Resource of 215 Mt at 28.7% Iron*
2,000 metre diamond drill program planned (Ongoing)
Metallurgical testing and update to the Mineral Resource Estimate next
Harvey Tuttle: NI 43-101 Mineral Resource of 947 Mt at 23.2% Iron*
13,165 metres of drilling completed; 50% of anomalies tested
717Mt @ 25% iron; magnetite rich; 20% cut off grade
Metallurgical testing (Q3 2011)
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24. Why Invest In Champion Minerals?
Advanced Project
Preliminary Economic Assessment update on Fire Lake North expected in Q3 2011
Release Feasibility Study on Fire Lake North in Q2 2012
On-going 60,000+ metre drill program in the Fire Lake North area
Established Iron Ore District
Canada’s premier iron ore district
Established rail, power and port infrastructure
- Commitment by Quebec’s Plan Nord to invest $80 billion over the next 25 years
Proven Team
Strengthened the advisory board and the board of directors – appointed Richard
Quesnel (formerly President and CEO of Consolidated Thompson) as senior technical
advisor and appointed Jean Depatie (formerly director of Consolidated Thompson)
director. Also appointed Marc Duchesne (formerly Senior Vice President of Finance of
Consolidated Thompson) as Project Finance Advisor.
Strong Cash Position
C$28.0 million in cash; 40% tax rebate on exploration expenditures and 17.5%
contribution from JV partner
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