1. Building the Next Major Iron Ore
Mine in the Labrador Trough
Corporate Presentation
October 2012
www.championironmines.com FSE: P02; OTCQX: CPMNF
2. FORWARD-LOOKING STATEMENTS
Certain information contained herein regarding Champion Iron Mines Ltd., 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 Iron Mines Ltd., 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 Iron Mines
Advanced iron ore exploration and development projects located in
Canada’s principal iron ore district, the Labrador Trough
Fermont Projects (747 km2)
14 projects in the Fermont Iron Ore District
Flagship Consolidated Fire Lake North Project
with the feasibility study due in early Q4 2012
4.7 billion tonnes of NI 43-101 compliant estimates of
iron mineral resources on 3 projects (564 MT of Measured
+ Indicated and 4,136 MT of Inferred Mineral Resources)
100% direct interest, 3% NSR (C$1.5 million buyback
for an additional 0.5% NSR)
Attikamagen Project (310 km2)
Champion Iron Mines holds a 44% interest
Century Iron Mines Corp. subsidiary has a 56% interest
and can earn up to a 60% interest by spending further $3
million on exploration expenditures by May 2014*.
* Investment by WISCO of 25% ($60M) and Minmetals of 5% ($12M)
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4. Quebec’s Next
Major Iron Ore Mine
Consolidated Fire Lake North (CFLN) Development Project
Nov. 21 2011 PEA indicated an ability to produce 8.7 million tonnes of
concentrate per year for the first 25 years of a 40-year mine life the first
5 years will average approximately 10 million tonnes of concentrate annually
Net Present Value of $4 billion at a discounted cash flow rate of 8% with
an Internal Rate of Return of 41.5% and a payback period of 2.3 years
Established Iron Ore District
Canada produces 44 Mtpy of iron ore concentrate in the southern end of the
Labrador Trough and this is expected to grow to 200 Mtpy over the next 10
years if all proposed development projects are realized
Established rail, power and port infrastructure
- Quebec’s Plan Nord: $80 billion investment over the next 25 years in
northern Quebec for various projects including infrastructure projects
- Competitive power rates: ~ $0.04 - $0.045; price to be negotiated in 2012
- World-class multi-user port project (50 Mtpy) underway
Proven Team
Strengthened advisory board and board of directors includes former
Consolidated Thompson Iron Mines management and officers
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5. Capital Structure
Share Data and Cash Position as of September 28, 2012.
Shares Outstanding 119.3 million
Warrants 10.0 million @ C$2.59 (avg. strike price)
(7.0 million @ C$3.00 not exerciseable until Nov. 2014
0.8 million @ C$2.84 expiring Feb. 2013
2.22 million @ C$1.50 expiring Oct. 2013, which are owned by insiders and
advisors.)
Options 11.6 million @ C$1.03 (avg. exercise price)
Fully Diluted Shares Outstanding 141.1 million
Market Capitalization C$84.7 million
(based on $0.71 share price)
Cash Position C$15 million
Fully Diluted Cash Position C$52.8 million
Management /Insiders Ownership ~ 17%
Analyst Coverage
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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, P.Geo. Martin Bourgoin, P.Geo.
Director Executive Vice President, Operations
Ashwath Mehra Jeff Hussey, P.Geo.
Director Executive Vice President, Business Development
Donald A. Sheldon, LLB., P.Eng. Bruce Mitton, P.Geo.
Director Vice President, Exploration
Jean Lafleur P.Geo. Jean-Luc Chouinard, P Eng.
Director Vice President, Project Development
Francis Sauvé Miles Nagamatsu, CA
Director Chief Financial Officer
Joseph S. C. Chan Jorge Estepa
Director Vice President, Secretary-Treasurer
Richard Quesnel: Senior Technical Advisor and Head of the Advisory Board
Advisory Board: Richard Quesnel, Paul Ankcorn, Doug Bache, and William Harding
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7. Why invest in Champion Iron Mines?
Favourable Operating Champion Iron Mines’
Environment Competitive Advantage
Established iron ore mining district: Fermont holdings: 14 iron ore
The Labrador Trough Brownfield projects (747 km2)
Favourable tax environment Consolidated Fire Lake North
(40% tax rebate on exploration Project: Feasibility Study of surface
expenditures) deposits of coarse grained specular
Hematite:
Access to low-cost power and close
to rail and port infrastructure Easier to liberate
Quebec’s Plan Nord $80 billion Deleterious elements in
over 25 years concentrate are well below
industry specifications limits
Quebec is a world class area to
develop mines Experienced team of project
developers and mine builders
Unprecedented Iron Ore price range
and forecast Upside potential for growth is high with
4.7 Billion tonnes
Skilled labor work force
Several de-risking initiatives underway
Environmental: Iron ore process is including rail, port, agreements and
grinding to liberate iron and using environmental studies and permit
gravity and magnetics for separation applications
from gangue minerals
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8. Existing Rail Infrastructure
Quebec North Shore & Labrador
Railway (“QNS&L”)
Consolidated Fire Lake North PEA Base
Case connection to Bloom Lake railway
requires 94 km of rail – includes turnaround
loop and sidings
QNS&L links to Sept-Îles and Pointe Noire
Bloom Lake and QNS&L railways are
considered common carriers
Common carriers allocate capacity on a first-
come, first-serve basis
Cartier Railway:
Linked to Port-Cartier
Privately owned by ArcelorMittal
Within Consolidated Fire Lake North Project
boundary
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9. World Class
Port of Sept-Îles Infrastructure
Expanding to Meet Demand
Pointe Noire Multi User Wharf
Announced long term agreement between
CHM & Port of Sept-Îles (20-40 years) on
July 18th, 2012
10 Mt ship loading capacity reserved with
the possibility to increase tonnage Sept-Iles
Completion March 31st, 2014; 18 months
prior to “CFLN" startup
Phase 1: 50 Mtpy $220 million Pointe Noire
Federal Government announced $55
million funding or 25% of project
Phase 2: Planning for 100 Mtpy
Port of Sept-Îles
RTZ-IOC shipping facility
Port-Cartier China Max ship capacity 300kt
ArcelorMittal shipping facility
$2.1B expansion is underway and will
include concentrator expansion with port
and rail infrastructure upgrades
Located 62 km west of Sept-Îles Courtesy of the Port de Sept Isles 9
10. Champion Iron Mines participating in a
feasibility study with CN Rail and Caisse
de Dépot et Placement du Quebec
See August 29th 2012 press release
Reduction in OPEX compared to PEA study
Objective to reduce rail CAPEX component
CHM still focused on the feasibility study
CN focused on environmental permitting
CHM will continue to develop independent
options for port handling for concentrate
stockpiling and reclaiming
13. Consolidated Fire Lake North
Development Project
November 2011 Preliminary Economic Assessment Update – Highlights
Key Results Pre-Tax Basis
Internal Rate of Return (IRR) (8% Discount Rate) 41.5%
Undiscounted Cash Flow $10.9B
Net Present Value @ 5% Discounted Cash Flow $5.6B
Net Present Value @ 8% Discounted Cash Flow $4.0B
Based upon the following assumptions:
Net Present Value @ 10% Discounted Cash Flow $3.2B
Payback Period (8% Discount Rate) 2.3 Years
Capital Costs: US$1,368 million (includes rail and port infrastructure)
Operating Costs: US$52.68 per tonne (average 25 years);
US$44.63 per tonne (average years 1 to 5)
Price assumptions: US$115 per tonne of concentrate at 65% Fe
Mine-Life: 40 years (average of 8.7 million tonnes/year for the first 25 years)
Exchange rate: $1.00 USD to $1.00 CDN
Total Resources(1): 400 million tonnes grading 30.6% Fe (NI43-101 Measured and Indicated Resources)
661 million tonnes grading 27.7% Fe (NI43-101 Inferred Resources)
In Pit Resources 921.8 million tonnes grading 28.8% Fe at an 8% cut-off grade 13
14. Consolidated Fire Lake North Project
Preliminary Economic Assessment Study
OPERATING EXPENDITURES (US$/TONNE OF CONCENTRATE)
COST PARAMETERS AVERAGE 25 YEARS AVERAGE YEARS 1 TO 5
Mining 22.56 12.13
Concentrating, crushing and processing 4.52 3.97
Site infrastructure, sales and general administration 4.40 3.39
Environmental tailings and management 0.29 0.26
Rail transport 15.52 16.14
Port facilities 3.72 3.57
Equipment Lease Cost 1.67 5.17
Total 52.68 44.63
CAPITAL EXPENDITURES (US$ MILLIONS)
COST CENTRES $ MILLIONS
Pre-stripping of open pit areas 97.5
Concentrator and site infrastructure including loadout facilities 682.3
Railway (62km distance and 94km total including turnaround loop and sidings) 228.8
Port Facilities: Railcar unloading, stacker/reclaimer, conveyors 96.8
Environmental and Tailings Management 27.9
Other Pre Production Costs 34.0
Sub-total 1,167
Contingency 201
Total 1,368
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15. Consolidated Fire Lake North
Project Schedule
Development, Construction, and Production
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
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16. Consolidated
Fire Lake North Project
Growth through Development
Feasibility Study: Early Q4 2012
Press Release June 21, 2012: Over
20,000 m feasibility definition drilling is
completed for feasibility study
Strike length of both the West Pit
(3500m) and the East Pit (2400m)
synformal fold closures are open at
depth
Resources are increasing outside the
Nov. 2011 PEA ultimate pit limits
Several de-risking initiatives are
underway
See www.championiromines.com for reports maps and assays
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17. Consolidated Fire Lake North
Metallurgy
Press Release, August 1st, 2012
High quality sinter concentrate with very low deleterious elemental content
Liberates at 850 micron (-20 mesh) and produces a 65-66% iron concentrate
Assuming a concentrate with 66% Fe ; No magnetic separation circuit required
Alumina is 0.52% International Standard < 2%
Silica content is 5%
Al2O3 : SiO2 ratio of 0.14 versus the upper industry specification limit of 1
This very low alumina to silica ratio is an ideal blending product for steel mills
High Grade – Coarse Specular Hematite Quartz Specular Hematite Mineralization 17
20. Moiré Lake Project
Initial Mineral Resource Estimate: March 29, 2012
Mineral Resource Estimate:
Arcelor Mittal Property Boundary
Indicated Resources: 164 million
tonnes grading 30.5% Total Iron
Inferred Resources: 417 million
tonnes grading 29.4% Total Iron
DDH LM11-12: 503 m @ 31% total iron
Kilometric synform with hematite and
magnetite outcrops at surface
A’ Adjacent to ArcelorMittal Mont-Wright mine
A
500
meters
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22. Oil Can Project
Initial Mineral Resource Estimate
Potential for low strip ratio < 1 : 1
Potential Bench width 150- 350m
972 Mt of iron oxide grading 33.2% at a
15% iron cut-off
924 Mt of mixed iron oxide
mineralization with a silicate component
This deposit is open at depth
Orientation metallurgical tests indicate a
relatively coarse liberation grind size
Commercial grade magnetite sinter feed
concentrate can be produced
2011 drill program returned long
magnetite-hematite iron formation
intersections up to 545 metres in length
400 metre spaced drill program is
completed
To view a larger more detailed version of this map please visit:
http://www.championironmines.com/vns-site/page-oil_can.html 22
23. Oil Can Project
Exploration Upside
South & East Zones
Section 9800N (Facing North)
South Zone
OC11-05
OC11-07 East Zone
OC11-08
303.4m @ 34.7% OC11-02 OC11-19
Ovb OC11-01
incl. 130.8m @
36.5%
Assay Pending
545.7m @ 33.7% IF
incl. 442.3 @
IF 36.4% 190.0m @
30.6%
197.2m @ 26.8%
401.5m @ 30.7%
incl. 145.5 @
incl. 213.5 @
28.1%
33.1%
200 metres
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26. Milestones
Consolidated Fire Lake North Definition Drilling Completed
Updated PEA on Consolidated Fire Lake North Completed
Initial NI 43-101 Mineral Resource Estimate for Oil Can Project
Completed
(adjacent to Fire Lake North Project)
Metallurgical results – Consolidated Fire Lake North, Moire Lake, Oil Can
Completed
Projects
Consolidated Fire Lake North Feasibility Study Q4 2012
Consolidated Fire Lake North Construction Start Q4 2013
Consolidated Fire Lake North Production 2015
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27. Why Invest in
Champion Iron Mines?
Fire Lake North NPV: $4 Billion @ 8% DCF.
Oil Can Deposit: Initial Resource Estimate 1,896Mt @
28.7%.
14 Brownfield projects (747 km2) near 5 operating mines.
Experienced team: Exploration; development;
construction; commissioning & operations management.
Financed through to feasibility; Favourable tax
environment.
Quebec`s Plan Nord: Object to attract $80B in investment.
Access to power and close to rail and port.
Multi-user port in construction; Trans-shipping is an option.
Iron price range and forecasts is unprecedented.
Several de-risking initiatives associated to mine start-up
underway.
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28. Thank You
www.championironmines.com
FSE: P02; OTCQX: CPMNF
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29. Fire Lake North Exploration Camp
Coarse Grained
Coarse Specular Hematite in Drill Core
Specular Hematite
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31. Advanced Exploration
Bellechasse Deposit Harvey Tuttle Project
Deposit located within Consolidated Fire Lake North NI 43-101 Inferred Resource Estimate:
717Mt @ 25% iron; magnetite rich iron formation
NI 43-101 Resource Estimate:
Intersected multiple significant iron formation
Inferred Resources; 215Mt @ 29% Iron intervals in 2010 drill program
Magnetite rich iron formation
Total of 13,165m of drilling completed
Adjacent to Hwy 389
Less than 50% of the kilometric scale magnetic
Synform geometry is favorable for open pit mining anomalies have been tested
25 km W-NW of Consolidated Fire Lake North
Within conveying distance from Consolidated Fire
Lake North planned concentrator (20-30km)
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32. Labrador Trough Annual Production
Iron Ore Production Upside
Current Annual Future
Company
Production Annual Forecast
IOC/RTZ 17 mtpy 26 mtpy1
ArcelorMittal 13 mtpy 24 mtpy2
Cliffs Natural Resources (Wuhan) 12 mtpy 28 mtpy
Labrador Iron Mines 2 mtpy 5 mtpy
Adriana Resources (Wuhan) 0 50 mtpy
New Millennium (Tata) 0 27 mtpy
Century Iron Mines (Wuhan) 0 ~22 mtpy
Champion Iron Mines 0 ~18 mtpy
Alderon Iron Ore Corp. 0 ~16 mtpy
Total Current and Forecasted Production 44 ~ 200 mtpy
1. Possibility of expanding production up to 50 mtpy
2. Possibility of expanding production to 50 mtpy
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33. Global Steel Production Shows
Continued Demand for Iron Ore
1,600,000
1,400,000 China’s CAGR* is 9.88% over
the last 30 years vs. 2.30% for
1,200,000
total global steel production
over the same period.
Kilotons
1,000,000
China
800,000
Japan
600,000 Rest of the
World
400,000
200,000
-
1980 1985 1990 1995 2000 2005 2010
Source: World Steel Association website
* CAGR: Compound annual growth rate 33
35. Fermont Iron Ore District
(“FIOD”)
Historically the Fermont and Labrador mining
camps have produced 33 Mtpa.
RTZ/IOC = 17 Mtpa
ArcelorMittal = 13 Mtpa
Wabush = 3 Mtpa
“ Marginal Era”:
For 30-40 years pre-2003
the price per tonne of concentrate
was $25- $30/tonne,
costs per tonne were similar.
Current 3 years moving average is
$115-120/tonne
2011 spot price averaged ~$150-170/tonne
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