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www.championironmines.com FSE: P02; OTCQX: CPMNF
Building the Next Major Iron Ore
Mine in the Labrador Trough Corporate Presentation
October 2012
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.
2
About Champion Iron Mines
3
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 20141
Sept. 25th 2012: 1.7 billion tonnes @ 31.3% FeT and a
plan for a DSO project of 1 Mtpy 2
Advanced iron ore exploration and development projects located in
Canada’s principal iron ore district, the Labrador Trough
1. Investment by WISCO of 25% ($60M) and Minmetals of 5% ($12M)
2. As reported by Champion Iron’s JV Partner on Sept 25th, 2012
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
- Port of Sept-Îles: 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 in addition
with other mining companies.
4
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, (insiders and advisors)
Options 11.6 million @ C$1.03 (avg. exercise price)
Fully Diluted Shares Outstanding 141.1 million
Market Capitalization
(based on $0.71 share price)
C$84.7 million
Cash Position C$15 million
Management /Insiders Ownership ~ 17%
5
Analyst Coverage
Experienced Management Team
Board of Directors Management Team
Tom Larsen
Chairman
Tom Larsen
President and CEO
Alexander Horvath, P.Eng.
Director
Alexander Horvath, P.Eng.
Executive Vice President, Exploration
Jean Depatie, P.Geo.
Director
Martin Bourgoin, P.Geo.
Executive Vice President, Operations
Ashwath Mehra
Director
Jeff Hussey, P.Geo.
Executive Vice President, Business Development
Donald A. Sheldon, LLB., P.Eng.
Director
Bruce Mitton, P.Geo.
Vice President, Exploration
Jean Lafleur P.Geo.
Director
Jean-Luc Chouinard, P Eng.
Vice President, Project Development
Francis Sauvé
Director
Miles Nagamatsu, CA
Chief Financial Officer
Joseph S. C. Chan
Director
Jorge Estepa
Vice President, Secretary-Treasurer
Claude Léveillée
Human Resources Director
Richard Quesnel: Senior Technical Advisor and Head of the Advisory Board
Advisory Board: Richard Quesnel, Paul Ankcorn, Doug Bache, and William Harding 6
Over 200 years of combined exploration and mine operations experience
Why invest in Champion Iron Mines?
7
Favourable Operating
Environment
Established iron ore mining district:
The Labrador Trough
Favourable tax environment
(40% tax rebate on exploration
expenditures)
Access to low-cost power and
close to rail and port infrastructure
Quebec’s Plan Nord $80 billion
over 25 years
Quebec is a world class area to
develop mines
Unprecedented Iron Ore price
range and forecast
Skilled labor work force
Environmental: Iron ore process is
grinding to liberate iron and using
gravity and magnetics for
separation from gangue minerals
Champion Iron Mines’
Competitive Advantage
Fermont holdings: 14 iron ore
Brownfield projects (747 km2)
Consolidated Fire Lake North
Project: Feasibility Study of surface
deposits of coarse grained specular
Hematite:
Easier to liberate
Deleterious elements in
concentrate are well below
industry specifications limits
Experienced team of project
developers and mine builders
Upside potential for growth is high
with 4.7 Billion tonnes
Several de-risking initiatives
underway including rail, port,
agreements and environmental
studies and permit applications
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
8
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
Completion March 31st, 2014; 18 months prior to “CFLN" startup
Phase 1: 50 Mtpy $220 million
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
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
Pointe Noire
Sept-Iles
Courtesy of the Port de Sept Îles
China Max ship capacity 300kt
Champion Iron Mines participating in a
feasibility study with CN Rail and Caisse
de Dépot et Placement du Québec
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
Development: Consolidated Fire Lake North Project
11
Based upon the following assumptions:
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
Net Present Value @ 10% Discounted Cash Flow $3.2B
Payback Period (8% Discount Rate) 2.3 Years
Capital Costs:
Operating Costs:
Price assumptions:
Mine-Life:
Exchange rate:
Total Resources(1):
In Pit Resources
US$1,368 million (includes rail and port infrastructure)
US$52.68 per tonne (average 25 years);
US$44.63 per tonne (average years 1 to 5)
US$115 per tonne of concentrate at 65% Fe
40 years (average of 8.7 million tonnes/year for the first 25 years)
$1.00 USD to $1.00 CDN
400 million tonnes grading 30.6% Fe (NI43-101 Measured and Indicated Resources)
661 million tonnes grading 27.7% Fe (NI43-101 Inferred Resources)
921.8 million tonnes grading 28.8% Fe at an 8% cut-off grade
Consolidated Fire Lake North
Development Project November 2011 Preliminary Economic Assessment Update – Highlights
13
OPERATING EXPENDITURES (US$/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
Consolidated Fire Lake North Project Preliminary Economic Assessment Study
14
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
15
Consolidated Fire Lake North
Project Schedule Development, Construction, and Production
Diamond Drilling
Scoping Study
Feasibility Study
Environmental / Social Studies
Community Consultation
Permitting
Construction
Production
Q1
2011 2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4
2014 2015
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
Feasibility Study: Nov. 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
Consolidated
Fire Lake North Project
Growth through Development
See www.championironmines.com for reports maps and assays 16
17 High Grade – Coarse Specular Hematite Quartz Specular Hematite Mineralization
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
Fire Lake North Development Project
18
Fire Lake North Development Project
19
500
meters
Moiré Lake Project Initial Mineral Resource Estimate: March 29, 2012
20
Arc
elo
r Mitta
l Pro
pe
rty B
ou
ndary
Mineral Resource Estimate:
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
Adjacent to ArcelorMittal Mont-Wright mine
A
A’
500
meters
Moiré Lake Project Infrastructure: Adjacent to Bloom Lake Railway (8km), road, &
power
21
442 Mt @ 30.1% FeT; Zone B: 285 Mt @ 30.1% FeT
22
To view a larger more detailed version of this map please visit:
http://www.championironmines.com/vns-site/page-oil_can.html
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
The 2011 drill program returned long
magnetite-hematite iron formation
intersections up to 545 metres in length
The 400 metre spaced drill program is
completed
South & East Zones
Section 9800N (Facing North)
200 metres
OC11-02
IF
IF
Ovb OC11-19 OC11-01
OC11-08 OC11-07
OC11-05 East Zone
South Zone
190.0m @
30.6%
Assay Pending
401.5m @ 30.7%
incl. 213.5 @
33.1%
545.7m @ 33.7%
incl. 442.3 @
36.4%
197.2m @ 26.8%
incl. 145.5 @
28.1%
303.4m @ 34.7%
incl. 130.8m @
36.5%
Oil Can Project Exploration Upside
23
Central Zone (Facing Northwest)
200 metres
OC11-10 OC11-03
OC11-16 OC11-14
191.7m @
28.2%
472.2m @ 28.0%
incl. 119.6m @
35.2%
224.0m @ 28.1%
incl. 140.0m @
30.0%
311.4m @ 27.6%
incl. 269.0m @
29.2%
IF
Ovb
Oil Can Project Exploration Upside
24
200 metres
North Zone
Section 5800E (Facing East)
OC11-04
472.2m @ 28.0%
incl. 119.6m @
35.2%
IF
Ovb OC11-09
OC11-12 OC11-13 OC11-15
221.2m @ 25.0%
incl. 128.9m @
28.7%
Assays Pending
414.1m @ 25.1%
incl. 139.0m @
29.5%
141.5m @ 29.2%
179.5m @ 32.8%
Oil Can Project Exploration Upside
25
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
(adjacent to Fire Lake North Project) Completed
Metallurgical results – Consolidated Fire Lake North, Moire Lake, Oil Can
Projects Completed
Consolidated Fire Lake North Feasibility Study Q4 2012
Consolidated Fire Lake North Construction Start Q4 2013
Consolidated Fire Lake North Production Q4 2015
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.
27
Thank You
28
28
FSE: P02; OTCQX: CPMNF
www.championironmines.com
Fire Lake North Exploration Camp
Coarse Grained
Specular Hematite
29
Coarse Specular Hematite in Drill Core
O’Keefe Purdy Project
Exploration Upside
30
Harvey Tuttle Project NI 43-101 Inferred Resource Estimate:
717Mt @ 25% iron; magnetite rich iron formation
Intersected multiple significant iron formation
intervals in 2010 drill program
Total of 13,165m of drilling completed
Less than 50% of the kilometric scale magnetic
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)
31
Advanced Exploration
Bellechasse Deposit
Deposit located within Consolidated Fire Lake
North
NI 43-101 Resource Estimate: Inferred Resources
estimate; 215Mt @ 29% Iron; potential for more
Magnetite rich iron formation
Adjacent to Hwy 389
Synform geometry is favorable for open pit mining
Labrador Trough Annual Production Iron Ore Production Upside
Company Current Annual
Production
Future
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 32
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1980 1985 1990 1995 2000 2005 2010
China
Japan
Rest of theWorld
Global Steel Production Shows
Continued Demand for Iron Ore
33
China’s CAGR* is 9.88% over
the last 30 years vs. 2.30% for
total global steel production
over the same period.
Source: World Steel Association website
* CAGR: Compound annual growth rate
Kil
oto
ns
Iron Ore Types
Coarse Grained Specular Hematite
Direct Shipping Ore
Magnetite Rich Taconite & DSO
Coarse Grained Specular Hematite
34
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
35
