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Champion Iron Appoints Director of Project Finance, Europe

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2012) - CHAMPION IRON MINES LIMITED (CHM.TO)(CPMNF)(P02.F) ("Champion" or the "Company") is pleased to announce that Mr. Beat Frei has been appointed the Company's Director of Project Finance, Europe. Throughout his career Mr. Frei successfully executed mandates in various areas including corporate and infrastructure/project finance. Mr. Frei will be based in Switzerland.

Prior to commencing his role as a financial advisor in the commodities field in 2000, Mr. Frei worked for more than 20 years in various positions at Credit Suisse/CSFB (Vice President) and as a Director of UBS AG. More recently, Mr. Frei contributed significantly to the upgrade of several steel and metal plants in the Middle East and CIS countries, was Finance Director of Klöckner & Co., Germany (a leading steel distribution company), was engaged by global steel traders such as Duferco SA, Switzerland and Balli Group, UK and advised SMS Demag AG, Germany (a leading equipment maker for the steel industry). Furthermore, Mr. Frei held the position of CFO with OOO Enisey, a mid-size Russian oil company which transformed into an integrated oil company by building the world's most northerly-located refinery in Usinsk. Significantly, projects which were completed and advanced with Mr. Frei's input had a value of more than US $2 billion and were mainly financed with debt instruments.

Thomas Larsen, Champion's President and C.E.O. stated, "We are very pleased to have Beat join our team. His global experience as a financial advisor to both steel companies and other resource commodities-based industrial corporations will benefit Champion greatly as we complete the Feasibility Study at the Company's wholly-owned Consolidated Fire Lake North Project and continue with its development. Champion is pursuing a strategy of not only focusing on building alliances with Asian based end users but also targeting customers that are more proximal, such as those in Europe and the United States. Fire Lake North's high quality hematite sinter feed combined with the very high ratio of silica to alumina at 10:1 positions Champion as one of the few potential iron ore suppliers that can attract steel mills who produce premium products with the advantage of cheaper seaborne shipping rates."

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 Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to five producing iron mines. Fire Lake North is located immediately adjacent to and 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 the Fire Lake North Project into a producing mine.

For additional information on Champion, please visit our website at www.championironmines.com

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.