1. Building the Next Major Iron Ore
Mine in the Labrador Trough
Corporate Presentation
August 1st , 2012
FSE: P02; OTCQX: CPMNF
2. 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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3. About Champion Minerals
Advanced iron ore exploration and development projects located in
Canada’s principal iron ore district, the Labrador Trough
Fermont Projects (710 km2)
17 properties in the Fermont Quebec mining camp
Flagship Fire Lake North project - currently in the
feasibility stage.
Over 4 billion tonnes of NI 43-101 compliant iron mineral
resource estimates on 5 of 17 projects.
100% direct interest, 3% NSR (C$1.5 million buyback for
an additional 0.5% NSR).
Attikamagen Property (310 km2)
Champion Minerals holds a 44% interest.
Century Iron Mines Corp. subsidiary (56% interest) has
option to earn up to a 60% interest in the property by
funding a further $3 million in exploration expenditures by
May 2014*.
* CHM 44% / Century Iron Ore Mines subsidiary 56%; Investment by WISCO of 25% ($60M) and Minmetals of 5% ($12M)
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4. 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
5 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
Established Iron Ore District
Canada 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
- World-class multi-user port project (5mMtpy) 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 July 31, 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$112.2 million
(based on $0.94 share price)
Cash Position C$21.9 million
Fully Diluted Cash Position C$59.7 million
Management /Insiders Ownership ~ 17%
Analyst Coverage Canaccord Genuity Paradigm Capital
Desjardins Capital Markets Raymond James
Dundee Capital Markets RBC Capital Markets
Fraser Mackenzie Salman Partners
Haywood Securities Scotia Capital
Jennings Capital Stifel Nicolaus
Macquarie Capital Markets TD Securities
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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, Corporate 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, William Harding
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7. Why invest in Champion Minerals?
Favourable Operating Champion Minerals’
Environment Competitive Advantage
•Established iron ore mining •Fermont holdings: 17 iron ore
district the Labrador Brownfield projects (710 km2).
Trough. •Feasibility Stage Fire Lake
•Favourable tax environment North project (Surface deposit
(40% tax rebate on of coarse grained specular
exploration expenditures). Hematite)
•Access to low-cost power Easier to liberate.
and close to rail and port Deleterious elements
infrastructure. in concentrate are
•Quebec`s Plan Nord $80 well below industry
billion over 25 years. specifications limits.
•Quebec is a world class area •Experienced team of project
to develop mines. developers and mine builders.
•Unprecedented Iron Ore •Upside potential for growth is
price range and forecast. high.
•Skilled labor work force. •Several de-risking initiatives
underway.
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8. Attikamagen
Rail Infrastructure
Quebec North Shore & Labrador
Railway (“QNS&L”)
High Fire Lake North PEA Base Case connection
Voltage to Bloom Lake railway requires 94 km of rail –
Power
Lines
includes turnaround loop and sidings
Cluster 1 Participation in a private multi user rail
Cluster 2 solution as an alternative transportation /
haulage option is also under study to reduce
mid and long term operating expenditures.
Cluster 3 Fermont
QNS&L links to Sept-Iles and Pointe Noire.
Bloom Lake and QNS&L railways are
QNS&L considered common carriers.
Cartier
Rail
Private
Common
Common carriers allocate capacity on a first-
Rail come, first-serve basis.
Carrier
Cartier Railway:
Three Ports/
Stockpile Linked to Port-Cartier
Locations
Privately owned by ArcelorMittal
Gulf of St Lawrence
Within Fire Lake North Project boundary.
8
9. World Class Port of Sept-Isle Infrastructure
Expanding to Meet Demand
Pointe Noire Multi User Wharf
Announced long term agreement (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 "FLN" startup. Sept-Iles
Phase 1: 50Mtpy $220 million.
Federal Government announced $55
million funding or 25% of project. Pointe Noire
Phase 2: Planning for 100 Mtpy.
Port of Sept-Iles
RTZ-IOC shipping facility.
Port-Cartier
ArcelorMittal shipping facility.
$2.1B expansion is underway and will China Max ship capacity 300kt
include concentrator expansion with port
and rail infrastructure upgrades.
Located 62 km west of Sept-Iles.
Courtesy of the Port de Sept Isles 9
12. 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 Discounted Cash Flow
Net Present Value @ 10% assumptions: $3.2B
Payback Period (8% Discount Rate) 2.3 Years
Capital Costs: US$1,368 million (includes rail and port infrastructure)
Operating Costs: US$51.01 per tonne (average 25 years);
US$39.46 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 $1.00 CDN
Total Resources(1): 400 million tonnes grading 30.6% Fe (NI43-101 Measured and Indicated Resources)
661 million tonnes grading 27.7% Fe (NI43-101 Inferred Resources)
In Pit Resources 921.8 million tonnes grading 28.8% Fe at an 8% cut-off grade
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13. Fire Lake North Project
Preliminary Economic Assessment Study
OPERATING EXPENDITURES (US$/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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14. 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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15. 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
2 rail infrastructure solutions being studied
See www.championminerals.com for reports maps and assays
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16. 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.
Alumina is 0.52% International Standard < 2%.
Al : Si ratio 0.14 versus the industry specification limit of 1. This very low
alumina to silica ratio is an ideal blending product for steel mills.
No magnetic separation circuit required.
High Grade – Coarse Specular Hematite Quartz Specular Hematite Mineralization 16
19. Moire 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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21. 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
To view a larger more detailed version of this map please visit:
http://www.championminerals.com/vns-site/page-oil_can.html 21
22. Oil Can Project
Exploration Upside
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.
Mineral Resource Estimate scheduled for Q2 2012.
SELECTED* COMPOSITE ASSAY RESULTS
HOLE-ID HOLE LENGTH AZIMUTH DIP FROM TO INTERVAL** GRADE***
Metres Degrees Degrees Metres Metres Metres Total Fe%
OC11-02 594 310 -45 188.5 590.0 401.5 30.7
Including 246.9 460.4 213.5 33.1
OC11-05 545 020 -45 241.6 545.0 303.4 34.7
Including 407.2 538.0 130.8 36.5
OC11-08 616 180 -50 67.0 612.7 545.7 33.7
Including 67.0 509.3 442.3 36.4
* 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.
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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
Fire Lake North Definition Drilling Completed
Updated PEA on Fire Lake North Completed
Initial NI 43-101 Mineral Resource Estimate for Oil Can Project
Completed
(adjacent to Fire Lake North Project)
Metallurgical results - Fire Lake North, Moire Lake, Oil Can Projects Completed
Fire Lake North Feasibility Study including Marketing Study Q3 2012
Fire Lake North Construction Start Q4 2013
Fire Lake North Production 2015
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27. Why Invest in
Champion Minerals?
Fire Lake North NPV: $4 Billion @ 8% DCF.
Adjacent Oil Can Initial Resource Estimate 1,896Mt @ 28.7%.
17 Brownfield projects (710 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 is in construction ; Trans-shipping is an option.
Two railway options are at feasibility stage.
Iron price range and forecasts is unprecedented.
Several de-risking initiatives associated to mine start-up
underway.
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31. Advanced Exploration
Bellechasse Project Harvey Tuttle Project
NI 43-101 Resource Estimate: NI 43-101 Inferred Resource Estimate:
717Mt @ 25% iron; magnetite rich.
Inferred Resources; 215Mt @ 29% Iron;
Intersected multiple significant iron formation
Magnetite rich iron formation. intervals in 2010 drill program.
Historical resources was 91Mt; remaining upside
Total of 13,165m of drilling completed.
potential.
Less than 50% of the kilometric scale magnetic
Adjacent to Hwy 389; 10km from Fire Lake North.
anomalies have been tested.
Synform geometry is favorable for open pit mining.
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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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 Minerals 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
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.
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
34. Iron Ore Types
Coarse Grained Specular Hematite
Direct Shipping Ore
Magnetite Rich Taconite Coarse Grained Specular Hematite 34
35. Fermont Iron Ore District
(“FIOD”)
Historically the Fermont and Labrador mining
camps have produced 33 Mta.
RTZ/IOC = 17 Mta.
ArcelorMittal = 13 Mta.
Wabush = 3 Mta.
“ 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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