Champion Minerals Corporate Presentation February 2 2012

Building the Next Major Iron Ore Mine in the Labrador Trough

Corporate PresentationFebruary, 2012

FSE: P02

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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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Fermont Projects (710 km2) 17 projects in the Fermont Quebec mining camp

The flagship Fire Lake North Project is currently in feasibility stage

Over 2.2 Billion tonnes of NI 43-101 compliant iron ore resources hosted in 3 projects in close proximity to one another

Champion Minerals holds an 82.5% direct interest, 3% NSR (C$3 million to buyback 1% of NSR)*

Fermont neighours are ArcelorMittal and Cliffs Resources

Attikamagen (310 km2) Champion Minerals holds a

49% interest Century Iron Mines Corp. (51% interest)

has option to earn up to a 60% interest by funding a further C$5.5 million inexploration expenditures by May 2014**

Advanced iron ore exploration and development projects located in Canada’s principal iron ore district, the Labrador Trough

About Champion Minerals

• Fancamp Exploration Ltd. holds remaining 17.5% interest; CHM can earn an additional 2.5% interest upon completing a bankable feasibility study.

** Announced investment by WISCO of 25% ($60M) and Minmetals of 5% ($12M)

Quebec’s Next Major Iron Ore Mine

Fire Lake North (FLN) Development Project Nov. 21 2011 PEA indicates ability to produce 8.7 million tonnes of

concentrate per annum for the first 25 years of a 40-year mine life the first five years will average approximately 10 million tonnes of concentrate per annum

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

FLN Mineral Resource Estimate (Oct. 2011): 1.06 billion tonnes− Measured and Indicated Resources of 400.1 million tonnes grading 30.6%

total iron− Inferred Resources of 661.2 million tonnes grading 27.7% total iron

Established Iron Ore District Canada’s produces 44 mtpy of iron ore concentrate in the southern end of the

Labrador Trough 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- Initiative for world-class port facilities underway

Proven Team Strengthened advisory board and board of directors includes former Consolidated

Thompson Iron Mines management and officers

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Capital StructureShare Data and Cash Position as of January 31, 2012.

Shares Outstanding 88.4 million

Warrants 6.8 million @ C$1.51(406,845 @ C$1.15 expiring 04/20122.7 million @ C$1.50 expiring 04/20122.9 million @ C$1.50 expiring 10/2013, of which 75% are owned by insiders and advisors.)

Options 12.2 million @ C$1.04

Fully Diluted Shares Outstanding 107.6 million

Market Capitalization (based on $1.80 share price)

C$159.1 million

Cash Position C$15.6 million

Fully Diluted Cash Position C$38.6 million

Management Ownership ~ 8%

Analyst Coverage Canaccord GenuityFraser MackenzieHaywood SecuritiesJennings CapitalMacquarie Capital MarketsParadigm CapitalRBC Capital MarketsSalman PartnersStifel NicolausTD SecuritiesRaymond James 5

Experienced Management Team

Board of Directors Management TeamTom LarsenChairman

Tom LarsenPresident 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 MehraDirector

Jeff Hussey, P.Geo.Executive Vice President, Development

Donald A. Sheldon, LLB., P.Eng.Director

Bruce Mitton, P.Geo.Vice President, Exploration

Paul AnkcornDirector

Jean-Luc Chouinard, P.Eng.Director of Projects

Francis SauveDirector

Miles Nagamatsu, CAChief Financial Officer

Joseph S. C. ChanDirector

Jorge EstepaVice President, Secretary-Treasurer

Richard Quesnel: Senior Technical Advisor and Head of the Advisory BoardAdvisory Board: Richard Quesnel, Mick McMullen, and Doug BacheProject Finance Advisor: Marc Duchesne 6

Over 200 years of combined exploration and mine operations experience

Why invest in Champion Minerals?

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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 the next 25 years

• Quebec is known to be a world class area to develop mines

• Unprecedented Iron Ore Price Range and Forecast

• Skilled Labor Work Force

Champion Minerals’ Competitive Advantage

• Fermont: 17 iron ore (710 km2) brownfield projects

• Feasibility Stage Fire Lake North Surface Deposits contain coarse grained specular hematite

Easier to liberate Deleterious elements

are below industry specifications limits

• Experienced team of project developers and mine builders

• Upside Potential for Growth

• Several De-Risking Initiatives Underway

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Three Ports/ Stockpile Locations

Cartier Private Rail

QNS&L Rail

Common Carrier

Cluster 3

Cluster 2

High Voltage Power Lines

Gulf of St Lawrence

Rail Infrastructure

Quebec North Shore & Labrador Railway (“QNS&L”) QNS&L links to Sept-Iles and Pointe Noire Bloom Lake and QNS&L railways are

considered common carriers Common carriers allocate capacity on a

first-come, first-serve basis Fire Lake North PEA Base Case connection

to Bloom Lake railway requires 94 km of rail – includes turnaround loop and sidings Participation in a private multi user rail

solution as an alternative transportation / haulage option is also under study

Cartier Railway: Linked to Port-Cartier Privately owned by ArcelorMittal Adjacent to the west of Fire Lake North Proj.

Cluster 1

Attikamagen

Fermont

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Multi-User Port Infrastructure Expanding to Meet Demand

Port of Sept-Iles RTZ-IOC shipping facility

Pointe Noire 50Mtpy Multi User Port Project to be

announced; Phase 2 Planning…. Cliffs Natural Resources shipping

facility New multi-user port to be expanded

in two phases: phase one expansion of 40-50 Mtpy and phase two expansion of 100 Mtpy

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-Iles

Pointe Noire

Sept-Iles

Courtesy of the Port de Sept Isles

China Max ship capacity 300kt

Development: Fire Lake North ProjectOil Can Project 6 km

from FLN Concentrator

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PEA indicates ability to produce 8.7 million tonnes of concentrate per annum for the first 25 years of a 40-year mine life the first five years will average almost 10 million tonnes of concentrate per annum

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 capital payback period of 2.3 years.

Recent mineral resource update announced (October 6, 2011)

− Measured and Indicated Resources of 400.1 million tonnes grading 30.6% total iron

− Inferred Resources of 661.2 million tonnes grading 27.7% total iron

Metallurgy indicates coarse liberation grind size similar to RTZ/IOC and ArcelorMittal operations nearby

Feasibility Study underway; Several project studies initiated in 2011

Fire Lake North Project Growth through Development

12See www.championminerals.com for reports maps and assays

13High Grade - Coarse Specular Hematite Typical Quartz-SpecularHematite-Magnetite Mineralization

Fire Lake North - Metallurgy Deposits are coarser grained; at -24 to -28 mesh the SiO2 content is low (3-4%) ;

SPI tests indicate a relatively soft ore; 2nd Phase of tests underway

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− Coarse liberation grind size (600-850 microns / 20 to 28 mesh) ; product will

be sold as sinter fines ; 80% of the global iron ore market seeks this product− Low deleterious elemental levels will help to secure market share

Fire Lake North Development Project

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Fire Lake North Development Project

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Based upon the following assumptions:

Key Results Pre-Tax Basis

Internal Rate of Return (IRR) (8% Discount Rate) 41.5%

Undiscounted Cash Flow US$10.9B

Net Present Value @ 5% Discounted Cash Flow US$5.6B



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$51.01 per tonne (average 25 years); US$39.46 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

Fire Lake North Development ProjectNovember 2011 Preliminary Economic Assessment Update – Highlights

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OPERATING EXPENDITURES (US$/TONNE OF CONCENTRATE)

COST PARAMETERS AVERAGE 25 YEARS AVERAGE YEARS 1 TO 5Mining 22.56 12.13Concentrating, crushing and processing 4.52 3.97Site infrastructure, sales and general administration 4.40 3.39Environmental tailings and management 0.29 0.26Rail transport 15.52 16.14Port facilities 3.72 3.57

Total 51.01 39.46Equipment Lease Cost (not included in above total) 1.67 5.17

Fire Lake North ProjectPreliminary Economic Assessment Study

CAPITAL EXPENDITURES (US$ MILLIONS)

COST CENTRES $ MILLIONSPre-stripping of open pit areas 97.5Concentrator and site infrastructure including loadout facilities 682.3Railway (62km distance and 94km total including turnaround loop and sidings) 228.8Port Facilities: Railcar unloading, stacker/reclaimer, conveyors 96.8Environmental and Tailings Management 27.9Other Pre Production Costs 34.0

Sub-total 1,167Contingency 201

Total 1,368

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Fire Lake North Project ScheduleDevelopment, Construction, and Production

Diamond Drilling

Scoping Study

Feasibility Study

Environmental / Social Studies

Community Consultation

Permitting

Construction

Production

Q12011 2012

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q42014 2015

Q1 Q2 Q3 Q42013

Q1 Q2 Q3 Q4

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Oil Can Project Exploration Upside

First three drill holes of 8,000 metres planned program intersected magnetite-hematite iron formation from 191 metres to 402 metres in length

Drill hole OC11-02 intersected 401.5 metres grading 30.7% Total Iron including a 213.5 metres interval grading 33.1% Total Iron

TABLE 1 – SELECTED* COMPOSITE ASSAY RESULTS (HOLES OC11-01 to OC11-03)HOLE-ID HOLE LENGTH AZIMUTH DIP FROM TO INTERVAL** GRADE***

metres degrees degrees metres metres metres Total Fe%OC11-01 396 260 -45 185.42 376.31 190.89 30.6OC11-02 594 310 -45 188.53 590.03 401.50 30.7including 246.86 460.40 213.54 33.1OC11-03 372 250 -45 40.58 264.60 224.02 28.1including 76.58 216.58 140.00 30.0

* Selected Composite Assay Resultsare stated only for results recently received. The Selected Composites are not necessarily representative of the average grade or thickness of the mineral zones or potential resource.** Intervals are down-hole lengths and not true widths of the mineral zones.*** Grades are calculated from Total Fe% sample assays completed by ALS Chemex Laboratories using the “High Grade/Ores Method” and XRF analysis.

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TABLE 2 - SELECTED* COMPOSITE ASSAY RESULTS (HOLES OC11-04 to OC11-08)HOLE-ID HOLE LENGTH AZIMUTH DIP FROM TO INTERVAL** GRADE***

metres degrees degrees metres metres metres Total Fe%South Zone

OC11-05 545.00 020 -45 241.56 545.00 303.44 34.7including 407.24 538.00 130.76 36.5OC11-07 370.67 250 -45 83.82 281.00 197.18 26.8including 83.82 229.36 145.54 28.1OC11-08 616.00 180 -50 67.00 612.73 545.73 33.7Including 67.00 509.34 442.34 36.4

North ZoneOC11-04 543.00 360 -45 Assay results pendingOC11-06 520.00 290 -45 Assay results pending

Selected Composite Assay Results are stated only for results recently received. The Selected Composites are not necessarily representative of the average grade or thickness of the mineral zones or potential resource.** Intervals are down-hole lengths and not true widths of the mineral zones.*** Grades are calculated from Total Fe% sample assays completed by ALS Chemex Laboratories using the “High Grade/Ores Method” and XRF analysis.

Oil Can ProjectExploration Upside

Four drill holes completed on the South Zone at Oil Can were drilled on sections spaced approximately 400 metres (m) apart, along the estimated 1,300 m strike length of a crescent-shaped magnetic anomaly

2011 drill program completed at Oil Can; Mineral Resource Estimate Q1 2012

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Oil Can Project Exploration Upside

Section 9800N

South & East ZonesSection 9800N

(Facing North)

200 metres

OC11-02

IFIF

Ovb OC11-19 OC11-01OC11-08

OC11-07OC11-05East 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%


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Central ZoneComposite Cross Section A-A’

(Facing Northwest)

Central Zone

200 metres

OC11-10OC11-03OC11-16OC11-14

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


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200 metres

North ZoneSection 5800E

(Facing East)

North Zone

OC11-04

472.2m @ 28.0%incl. 119.6m @

35.2%

IF

OvbOC11-09

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%


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500 meters

Moire Lake Project Exploration Upside

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Arcelor M

ittal Property B

oundary

• 2011: 10,400m drill program completed

• Mineral Resource Estimate Q1 2012

• Drill results include: 503 metres grading 31% total iron (LM11-12)

• Potential to significantly increase Historical Resource: 101 million tonnes grading 31% iron

• Kilometric Synform with Hematite and Magnetite outcrops at surface

• Adjacent to the East of ArcelorMittal Mont Wright Mine

• 10 km from QNS&L Railway

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215

661

947

0

100

200

300

400

500

600

700

800

900

1000

MeasuredandIndicated(M&I)

Fermont Project Resource BaseCurrent NI 43-101 Compliant Resources

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Over 2.2 Billion Tonnes of NI 43-101 Compliant Iron Ore Resources

Project Bellechasse Fire Lake North Harvey Tuttle

Location Quebec, Canada Quebec, Canada Quebec, Canada

Grade 28.7% 30.6% (M&I)27.7% (Inferred)

23.2%

Mineralization Magnetite Specular Hematite Magnetite

Historical Resources

91 Mt @ 30.0% Iron 41 Mt @ 31.0% iron n/a

* 15 % cut-off grade

400

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Milestones

Fire Lake North Definition Drilling Ongoing

Updated PEA on Fire Lake North Completed

Initial NI 43-101 Mineral Resource Estimate for Moire Lake Project Q1 2012

O’Keefe Purdy Drill Results Remaining Q1 2012

Initial NI 43-101 Mineral Resource Estimate for Oil Can Project (adjacent to Fire Lake North Project)

Q1 2012

Metallurgical results at Fire Lake North, Moire Lake, and Oil Can Projects Q1-Q2 2012

Fire Lake North Feasibility Study Q3 2012

Fire Lake North Construction Start Q4 2013

Fire Lake North Production 2015

Why Invest in Champion Minerals?

Fire Lake North NPV: $4 Billion @ 8% DCF & adjacent Oil Can

17 Brownfield Projects (710 km2) near 5 operating mines

Experienced Management Team: Developers & Mine Builders

Good cash position Favourable tax environment

Quebec`s Plan Nord: $80 billion over 25 years

Access to low-cost power and close to rail and port

Multi User Port is planned ; Trans-Shipping is an option

Several Railway options are under study

Iron Price Range and Forecasts is Unprecedented

Upside Potential of Adjacent Fermont Projects & Attikamagen

Several De-Risking Initiatives Underway for Fire Lake North Project

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Exploration Projects

Fire Lake North Exploration Camp

Coarse Grained Specular Hematite

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O’Keefe Purdy ProjectExploration Upside

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Harvey Tuttle Project NI 43-101 Inferred Resource Estimate:

717Mt @ 25% iron; magnetite rich

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

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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Advanced Exploration

Bellechasse Project NI 43-101 Inferred Resource Estimate: 215Mt @

29% Iron; Magnetite Rich iron formation

Historical Resources increased from 91Mt remaining upside potential.

Adjacent to Hwy 389; 10km from Fire Lake North

Synform Geometry is good for Open Pit

Labrador Trough Annual ProductionIron Ore Production Upside

Company Current Annual Production

ProjectedAnnual 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 ~20 mtpy

Champion Minerals 0 ~18 mtpy

Alderon Iron Ore Corp. 0 ~8 mtpy

Total current and forecasted production

44 ~ 200 mtpy

1. Possibility of expanding production up to 50 mtpy2. Possibility of expanding production to 50 mtpy

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-

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

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* Compound annual growth rate

Thank You

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Iron Ore Types


Direct Shipping Ore

Magnetite Rich Taconite


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Fermont Iron Ore District

(“FIOD”)

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Champion Minerals Corporate Presentation February 2 2012

Investor Relations

Transcript of Champion Minerals Corporate Presentation February 2 2012