1. Building the Next
Major Iron Ore Mine
in the Labrador Trough
Corporate Presentation
2014
Oct 19th,2013
21 February 2014
| championironmines.com
FSE: P02
CPMNF

2. FORWARD-LOOKING STATEMENTS
Certain information contained herein regarding Champion Iron Mines Ltd., including
management’s assessment of future plans & operations, may constitute forward-looking
statements under applicable securities law & 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 & reserve estimates, environmental risks
& ability to access sufficient capital from internal & 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, & 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 &
undertakes no obligation to update any forward looking statements or information as conditions
change.
The historical mineral resources mentioned are strictly historical in nature & are non-compliant
to National Instrument 43-101 mineral resources & mineral reserves standards, & 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.
2

3. About Champion Iron Mines
Advanced iron ore exploration & development projects located in
Canada’s principal iron ore district, the Labrador Trough
Fermont Holdings (755 km2)
 121 projects in the Fermont Iron Ore District
 Flagship Consolidated Fire Lake North (“CFLN”) Project
Prefeasibility Study (“PFS”) announced Feb. 7, 2013
 5.1 billion tonnes of NI 43-101 compliant Mineral Resource
Estimates of iron ore


910 million tonnes of Measured + Indicated Resources
4,185 million tonnes of Inferred Mineral Resources
 100% direct interest; option to buy back 0.5% of the NSR
for C$1.5 million, resulting in a 2.5% NSR overall)
Attikamagen Project (310 km2)
 1.7 billion tonnes @ 31.3% FeT & a plan for a 2 Mtpa2 DSO project
 Champion retains a 2% NSR in the Attikamagen Project that is owned through
a joint venture between Century Iron Mines and Wuhan3
1. Champion signed a definitive option agreement with Cartier Iron to earn a 65% interest in 7 of its projects (Cluster 3)
2. As reported by Champion Iron’s JV Partner on Mar. 25, 2013 press release
3. As reported in Champion Iron’s October 3, 2013 press release
3

4. Québec’s Next
Major Iron Ore Mine
CFLN Prefeasibility Study


Feb. 7, 2013 PFS indicated an average production
rate of 9.3 Mtpa of iron concentrate for the 20 year
mine life
 First 5 year average: 9.8 Mtpa
Net Present Value of $3.3B at a discounted cash flow
rate of 8% with an Internal Rate of Return of 30.9% &
a payback period of 3.4 years
Established Fermont Iron Ore District

Canada produces 47 Mtpa of iron ore concentrate & this
is expected to increase to a total of 200 Mtpa over the
next 10 years if all proposed development projects are
realized

Established rail, power & port infrastructure
- Competitive power rates are available
- Port of Sept-Îles is building a world-class 50 Mtpa
multi-user wharf project for the iron ore industry
which is on schedule & on budget
4

5. Capital Structure
Share Data & Cash Position as of September 30, 2013.
Total Shares – Outstanding
Warrants
Options
137.4
Issued
7,000,000 at $3.00 (expire May 17, 2015) - Fancamp
15,000,000 at $0.25 (expire July 17, 2015) – Baotou
Outstanding
7,000,000
15,000,000
22,000,000
8.34 M @ C$1.00 (avg. exercise price)
Total Shares – Fully Diluted
168.0 M
Outstanding Share Market
Capitalization
(based on $0.25 share price)
C$34M
Cash & Receivables
C$15M
Management / Insiders Ownership
~ 26.7%
Analyst Coverage
5

6. Board of Directors
Over 200 years of combined exploration & mine operations experience
B OARD
OF
D IRECTORS
Tom Larsen*
Donald A. Sheldon, LLB., P.Eng.*
Alexander Horvath, P.Eng.*
William Harding
Francis Sauvé
Harry Burgess, P.Eng.
Paul Ankcorn
James Wang
PRESIDENT
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
M AN AGEM E NT T E AM
Tom Larsen
Miles Nagamatsu
Alexander Horvath, P.Eng.
Martin Bourgoin, P.Geo.
Beat Frei
Jeff Hussey, P.Geo.
Jean-Luc Chouinard, P.Eng., M.Sc.
Bruce Mitton, P.Geo.
Jorge Estepa
PRESIDENT & CEO
CHIEF FINANCIAL OFFICER
EXECUTIVE VICE PRESIDENT, EXPLORATION & PROJECT DEVELOPMENT
EXECUTIVE VICE PRESIDENT, OPERATIONS
SENIOR VICE PRESIDENT, PROJECT FINANCE
SENIOR VICE PRESIDENT, CORPORATE COMMUNICATIONS
VICE PRESIDENT, PROJECT DEVELOPMENT
VICE PRESIDENT, EXPLORATION
VICE PRESIDENT, SECRETARY & TREASURER
CORPORATE ADVISORS
Doug Bache; Jérome Cliche
6

7. Why invest in Champion Iron Mines?
Favourable Operating
Environment
 October 7th 2013, Government
announce a pre-feasibity study for a
new multi-users rail – accessible to
all
 The forecast for Iron ore prices over
the mid to long term remain positive
 Favourable tax environment
(40% tax rebate on exploration
expenditures)
Champion Iron Mines
Competitive Advantage
 Fermont Holdings: 12 iron ore brownfield
projects (755 km2)
 CFLN Prefeasibility Study of coarse
grained specular hematite surficial
deposits
 Easier to liberate
 Deleterious elements in
concentrate are well below
industry specifications limits
 Access to low-cost power & close to
rail & port infrastructure
 Team with experience in mine start-ups
including construction and commissioning
 Québec is a very stable jurisdiction to
develop & operate mines
 Upside potential for short, mid, & long term
growth is high with 5.1 billion tonnes of
iron ore resources
 Skilled labor work force in Québec
 Environmental: Iron ore beneficiation
includes crushing & grinding to
liberate the iron; followed by gravity
& magnetic separation of iron ore
from gangue minerals rather than the
use of reagents
 Several de-risking initiatives underway
including a multi-user rail solution,
Environmental & Social Impact Study that
is near completion & permit applications
underway
 Closest t project development to the St.
Lawrence Seaway & electrical power
infrastructure
7

8. Global Mineral Resources
NI 43-101 Compliant Mineral Resource Estimates
Consolidated Fire Lake North Mineral Resource Estimates @ 15% FeT cut-off
Deposit
FLN - West*
FLN - East*
FLN - Don Lake
Bellechasse
Oil Can - Oxide
Oil Can - Mixed
Total
*Total Resource under Prefeasibility Study
Total Resource Tonnes (millions)
Measured
tonnes
(millions)
24
3
0
Grade
FeT%
35.4
34.2
21.4
Indicated
tonnes
(millions)
405
262
52
Grade
FeT%
32.6
29.6
26.5
-
-
-
-
27
1,215
35.0
719
31.0
Inferred
tonnes
(millions)
329
192
188
215
972
924
2,821
Grade
FeT%
30.9
28.7
25.3
28.7
33.2
24.1
28.8
3,567
Other Fermont Holdings Mineral Resource Estimates @ 15% FeT cut-off
Harvey-Tuttle
Moire Lake
Other Fermont Projects Total Resources Tonnes
(millions)
Total Fermont Holdings Mineral Resources Tonnes
(millions)
164
27
35.0
30.5
947
417
883
30.9
4,185
23.2
29.4
27.6
5,095
3.567 billion tonnes, out of the 5.1 billion tonnes of global resources, are within the confines of the
CFLN Project; the resource base has the potential to produce up to 35-40 Mtpa of iron concentrate;
that could support an independent rail solution, if necessary. Oil Can has the potential for 16-20 Mtpa.
8

9. Existing Rail Infrastructure
REGIONAL LOCATION MAP &
INFRASTRUCTURE
Québec North Shore & Labrador Railway
(“QNS&L”):

CFLN PEA Base Case connection to Bloom
Lake railway required 62 km of rail + 32 km of
loops and sidings including 14 km for the CFA1
railway for a total of 94 km of rail

New option under study: multi-user railway

QNS&L links to Sept-Îles & Pointe Noire

Bloom Lake & QNS&L railways are considered
common carriers

Common carriers allocate capacity on a firstcome, first-serve basis
Cartier Railway:


Privately owned by ArcelorMittal

Chemin de Fer Arnaud
Transports ore from ArcelorMittal’s Fire Lake
Mine northward to Mt. Wright concentrator

1
Links Mont Wright to Port-Cartier (Max 30Mtpa)
Within CFLN Project boundary
9

10. World Class Port of Sept-Îles Infrastructure
Expanding to Meet Demand
Pointe Noire Multi-Users Wharf
 Completion Mar. 31, 2014; 18 months prior
to “CFLN" startup
 Federal Government announced $55M
funding or 25% of project
 Phase 1: 50 Mtpa for $220M
 Phase 2: Planning for 100 Mtpa
Port of Sept-Iles
Sept-Iles
Pointe Noire
Port of Sept-Îles
Port of Sept-Iles
 RTZ-IOC shipping facility
Port-Cartier
Pointe Noire
 ArcelorMittal shipping facility
 $2.1B expansion is underway & will include
concentrator expansion with port & rail
infrastructure upgrades
China Max ship capacity 300kt
 Located 62 km west of Sept-Îles
Courtesy of the Port de Sept Îles
10

11. 11

12. Site Layout of Consolidated Fire Lake North Project
12

13. Consolidated Fire Lake North Project
Prefeasibility Study – February 2013
Key Results
Pre-Tax Basis
Internal Rate of Return (IRR) (8% Discount Rate) 1
30.9%
Undiscounted Cash Flow
$9.0B
Net Present Value @ 5% Discounted Cash Flow
$4.7B
Net Present Value @ 8% Discounted Cash Flow
$3.3B
Net Present Value @ 10% Discounted Cash Flow
$2.6B
Payback Period (8% Discount Rate)
3.4 Years
Pre-production Capital Expenditures:
Direct Operating Costs2
US$1,607.9M* (Fire Lake North & Pointe Noire)*
US$34.58 per tonne (average 20 years);
US$27.99 per tonne (average years 1 to 5)
Iron Ore Spot Price Assumptions3
US$115 per tonne of concentrate at 62% Fe (years 1 -5)
US$110 per tonne of concentrate at 62% Fe (years 6-20)
Mine-Life
19.6 years
Exchange Rate
$1.00 USD to $1.00 CDN
Overall Stripping Ratio
2.74:1 for the current 20 year mine-life
1.56:1 (years 1-3 of production); 2.02:1 (years 1-5 of operation)
Mineral Resource Estimate (MRE)
East & West Pits
Measured & Indicated Resources 693.5 Mt grading 31.5% FeT (NI43-101)
Inferred Resources 521.6 Mt grading 30.1% FeT @ 15% FeT cut-off (NI43-101)
Proven & Probable Reserves
464.6 million tonnes grading 32.4% Fe at a 15% cut-off grade;
1. This includes railway capital repayment and interest
2. Direct operating costs excludes railway capital repayment & interest
3. Iron ore spot price assumption does not take into account that Champion will be producing a 66% FeTconcentrate and can command a $2-5 premium
per percentage above 62% FeT, for each tonne of ore.
13
* includes $213.4M for multi-user rail

14. Consolidated Fire Lake North Project
Prefeasibility Study – Feb. 2013
OPERATING EXPENDITURES (US$/TONNE OF CONCENTRATE)
COST PARAMETERS
AVERAGE 20 YEARS
AVERAGE YEARS 1 to 5
Mining
18.89
12.76
Concentrating, crushing & processing
4.38
3.89
Site infrastructure, sales & general administration
4.05
3.66
Environmental tailings & management
0.13
0.12
Rail transport including lease for rolling stock
4.80
5.42
Port facilities
2.34
2.14
34.58
27.99
Railway capital repayment ($1,133.6M)
6.22
7.40
Railway interest payment ($592.6M)
3.25
7.29
44.05
42.68
Total Direct Operating Cost
Total Operating Cost
PRE-PRODUCTION CAPITAL EXPENDITURES (US$ MILLIONS)
Fire Lake North & Pointe Noire
Total Capital
in
$ MILLIONS
Direct Costs
COST AREA
Indirect Costs
Railway
Mining
687.7
Pointe Noire
106.5
Project Indirect Costs
140.5
Contingency
200.0
Rolling Stock Leasing
13.4
53.2
Engineering, Procurement, Construction & Mgmt. (EPCM)
Railway
158.2
Owner’s Cost
Total Capital in
$ MILLIONS
133.7
Concentrator & FLN Site Infrastructure
COST AREA
114.6
Sub-total
1,394.4
Grand Total (100% of the project)
Sub-total
1,607.9
213.4
14

15. Consolidated Fire Lake North
Project Schedule
2011
2012
2013
2014
2015
2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CFLN Definition Drilling
Scoping Study
Updated PEA
Metallurgical Results - CFLN, Moire
Lake, Oil Can
Pre-Feasibility Study
Environmental and Social Impact
Assessment (ongoing)
Community Consultation
Oil Can Definition Drilling Planned
Feasibility Study
Permitting
Construction
Production
Legend:
Critical point: Project Schedule will be revised and updated once the feasibility study of the railway solution is confirmed
Completed milestones

16. Consolidated Fire Lake North Project
Growth Through Development

Prefeasibility Study results released Feb. 7, 2013

Feasibility Study with 20 Mtpa production rate
scope underway

West Pit
Area
East Pit
Area
West (3500m) & East (2400m) Pits are both
synformal fold closures that are open at depth

Don Lake
Area
Mineral Resource Estimate (MRE) announced on
Jan. 9, 2013 (COG 15% FeT):
Measured & Indicated Resources
693.5 M tonnes grading 31.5% total iron (FeT)
Inferred Resources
521.6 M tonnes grading 30.1% total iron (FeT)

Several de-risking initiatives are underway
See www.championironmines.com for reports maps & assays
16

17. Consolidated Fire Lake North Metallurgy
Press Release, August 1, 2012




High quality sinter concentrate with very low deleterious elemental content
Weight recovery @ 39.9%; no magnetic separation required
Liberates at 850 micron (-20 mesh) & produces a 65-66% iron concentrate
Assuming a concentrate with 66% Fe ; No magnetic separation circuit required
 Alumina is 0.52% versus industry standard of 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
17

18. Consolidated Fire Lake North Project
Economic Projections based on PFS Metrics
Assumptions: 1Projections of an expansion plan at CFLN for a second concentrator production line
are listed in the table below. This projection of an 18-20 Mtpa production rate of iron concentrate is
not NI 43-101 compliant but rather an estimation of mid term potential:
IRR = 34.7%
NPV (M$)
Payback (yrs)
0%
$18,441 M
3.9
5%
$9,400 M
4.1
8%
$6,465 M
4.32
10%
$5,081 M
4.4
Discount Rate
2Payback
period at an 8% discounted rate is estimated from the production start of the 1st
concentrator production line, the payback for the 2nd production line is 1.9 years after it starts based
on the additional CAPEX for the 2nd line of US$587M including indirect (mine and concentrator)
costs, railway capital repayment and interest.
Feasibility Study Objectives:
•
•
•
•
Potential to integrate a Multi-Users rail solution
Reduce CFLN sustaining capital in the economic model.
Continue metallurgical test work with the objective of eliminating the second AG mill ($100 million sustaining capital) in year.
Continue negotiations with Hydro-Québec to find ways to reduce the $217.5 million participation in sustaining capital for the
construction of a new 315 kV power line.
• Review iron ore deposits at both CFLN & Oil Can to increase Measured & Indicated Resources and reduce the overall strip ratio.
18

19. Fire Lake North Development Project
19

20. Fire Lake North Development Project
20

21. Oil Can Project
Initial Mineral Resource Estimate
 Potential for low strip ratio < 1–1.5
 972 Mt of iron oxide grading 33.2% at a
15% iron cut-off
 924 Mt of mixed iron oxide-silicate
mineralization
 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
 Inferred Resources drilled on 400 metre
sections is completed
To view a larger more detailed version of this map please visit:
http://www.championironmines.com/vns-site/page-oil_can.html
21

22. Moiré Lake Project
Initial Mineral Resource Estimate: March 29, 2012
Mineral Resource Estimate:
Arcelor Mittal Property Boundary
Indicated Resources:
164 M tonnes grading 30.5% FeT
Inferred Resources:
417 M tonnes grading 29.4% FeT
 DDH LM11-12: 503 M @ 31% FeT
A’
 Kilometric synform with hematite &
magnetite outcrops at surface
 Adjacent to ArcelorMittal Mont-Wright mine
A
500
meters
22

23. Moiré Lake Project
Infrastructure: Adjacent to Bloom Lake Railway (8km), road, & power
442 Mt @ 30.1% FeT;
Zone B: 285 Mt @ 30.1% FeT
500
meters
23

24. Oil Can Project
Exploration Upside
South & East Zones
Section 9800N (Facing North)
South Zone
OC11-05
OC11-07
East Zone
OC11-08
OC11-02
OC11-19
OC11-01
Ovb
IF
OC11-07
OC11-019
IF
197.2m @ 26.8%
incl. 145.5 @
28.1%
163.1m @
30.5%
OC11-01
190.9m @
30.6%
OC11-05
303.4m @ 34.7%
incl. 130.8m @
36.5%
OC11-02
401.5m @ 30.7%
incl. 213.5 @
33.1%
OC11-08
545.7m @ 33.7%
incl. 442.3 @
36.4%
200 metres
24

25. Oil Can Project
Exploration Upside
Central Zone
(Facing Northwest)
OC11-14
OC11-16 OC11-03
OC11-10
Ovb
OC11-014
191.7m @
28.2%
OC11-016
311.4m @ 27.6%
incl. 269.0m @
29.2%
OC11-03
224.0m @ 28.1%
incl. 176.0m @
29.0%
IF
OC11-10
472.2m @ 28.0%
incl. 119.6m @
35.2%
200 metres
25

26. Oil Can Project
Exploration Upside
North Zone
Section 5800E (Facing East)
OC11-12
OC11-13
OC11-15
OC11-04
Ovb
OC11-09
OC11-012
221.2m @ 25.0%
incl. 128.9m @
28.7%
IF
OC11-15
OC11-09
292.5m @ 25.8%
incl. 113.8m @
30.4%
OC11-04
328.9m @ 31.5%
Incl. 111.1m @
32.9%
141.5m @ 29.2%
Incl. 179.5m @
OC11-13
32.8%
414.1m @ 25.1%
incl. 139.0m @
29.5%
200 metres
26

27. Why Invest in
Champion Iron Mines?

Robust Economics: (CFLN NPV, US$3.3B @ 8%
DCF (PFS Feb. 2013); IRR 30.9%; 3.4 year
payback period
 12 Projects (755 km2) near 5 operating mines;
 5.1 billion tonnes of NI 43-101 compliant
resource

Oil Can Deposit:
Initial Resource Estimate 1,896 Mt @ 28.7%

High-Quality CFLN concentrate @ 66%Fe, with low
impurity levels

Experienced team: Exploration, development,
construction, commissioning & operations
management

Financed through to feasibility; Favourable tax
regime; Political support; & known operating
environment
27

28. Fire Lake North Exploration Camp
Coarse Specular Hematite in Drill Core
Coarse Grained Specular Hematite
28

29. Thank You
www.championironmines.com
FSE: P02; OTCQX: CPMNF
20 Adelaide Street East, Suite 301, Toronto, ON M5C 2T6
| 416 866 2200
29

30. Global Steel Production Shows
Continued Demand for Iron Ore
1,600,000
China’s CAGR* is 9.88% over
the last 30 years vs. 2.30% for
total global steel production
over the same period.
1,400,000
Kilotonnes
1,200,000
1,000,000
China
800,000
Japan
600,000
Rest of the
World
400,000
200,000
1980
1985
Source: World Steel Association website
* CAGR: Compound Annual Growth Rate
1990
1995
2000
2005
2010
30

31. Labrador Trough Annual Production
Iron Ore Production Upside
Current Annual
Production
Future
Annual Forecast
IOC/RTZ
17 Mtpa + 6 Mtpa
23 Mtpa
ArcelorMittal
16 Mtpa + 8 Mtpa
24 Mtpa
Cliffs Natural Resources (Wuhan)
12 Mtpa + 8 Mtpa
20 Mtpa
2 Mtpa1
5 Mtpa1
0
50 Mtpa2
Company
Labrador Iron Mines
Adriana Resources (Wuhan)
New Millennium (Tata)
0
4 Mtpa1
24 Mtpa2
2 Mtpa1
Century Iron Mines (Wuhan)
0
Champion Iron Mines Limited
0
~20 Mtpa
Alderon Iron Ore Corp.
0
~16 Mtpa
47 + 22 Mtpa
~208 Mtpa
Total Current & Forecasted Production
1.
2.
Direct shipping ore
Taconite fine grained iron ore
20 Mtpa2
31

32. Fermont Iron Ore District
(“FIOD”)
Historically, before 2003, the Fermont &
Labrador mining camps produced 33 Mtpa.
RTZ/IOC = 17 Mtpa; increased now to 24
ArcelorMittal = 13 Mtpa; increased now to 24
Wabush = 3-4 Mtpa
Price
“ Marginal Era”:
For 30-40 years pre-2003
the price per tonne of concentrate
was $15- $30/tonne for 62% Fe,
costs per tonne were similar.
Current 3 year moving average is
$115/tonne (62% Fe)
Current Spot Price Average
~$130-135/tonne (Oct. 2013)
(62% Fe)
32

33. O’Keefe Purdy Project
Exploration Upside
33

34. Advanced Exploration
Bellechasse Deposit
Harvey Tuttle Project

Deposit located within CFLN


NI 43-101 Resource Estimate: Inferred Resources

estimate; 215 Mt @ 29% Fe; potential for more

Magnetite rich iron formation

Adjacent to Hwy 389

Synform geometry is favorable for open pit mining
NI 43-101 Inferred Resource Estimate:
717 Mt @ 25% Fe; magnetite rich iron formation
Intersected multiple significant iron formation
intervals in 2010 drill program

Total of 13,165 m of drilling completed

Less than 50% of the kilometric scale magnetic
anomalies have been tested

25 km W-NW of CFLN

Within conveying distance from CFLN planned
concentrator (20-30 km)
34