Champion Minerals Intersects 503 Metres Grading 31% Total Iron

Building Shareholder Value from Iron Ore

Exploring Base Metal and Iron Properties in Western Labrador, Central Newfoundland and Northeastern Quebec: Featuring over 5.0 Bt of Iron Ore Resources in the Fermont Property Claim Blocks

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Champion Minerals Intersects 503 Metres Grading 31% Total Iron

posted on Oct 06, 2011 07:48AM

Champion Minerals Intersects 503 Metres Grading 31% Total Iron at Its Fermont Holdings' Moire Lake Project (ccnm)

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2011) -CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is pleased to provide the latest assay results from the Company's Moire Lake Project, which is strategically located immediately east of and contiguous to ArcelorMittal's Mont Wright Mine property, and is 8 km south of existing rail transport infrastructure.

Drill hole LM11-12 intersected 503.4 metres grading 31.2% Total Iron ("FeT") on the southeast side of the historic Lac Moire Occurrence(1). Drill hole, LM11-16, located approximately 400 m northeast and along strike of drill hole LM11-12, intersected 390.1 m grading 27.6% FeT and included an interval of 237.1 m grading 31.5% FeT. Drill hole LM11-09, located approximately 400m northeast of LM11-16, intersected 383.4 m of iron formation grading 30.3% FeT (see Champion's press release dated September 15, 2011). These three drill holes delineate approximately 1 kilometre of iron formation along strike, with down-hole intersections of 383 m to 503 m (core-length), and confirm the continuity of the iron-rich Sokoman Formation around the thickened southeast fold closure.

Tom Larsen, Champion's President and CEO commented, "The latest results from our 2011 drill program at Moire Lake further confirm the high grade and continuity of the iron formations present on the property which is strategically located in the Labrador Trough. The combined thickness and assay results from Moire Lake are significant and we expect the new resource estimate will identify a sizeable increase in the historical resource."

Table 1 provides a list of select composite assay results from holes LM11-11 to LM11-16.
*TABLE 1 - SELECTED COMPOSITE ASSAY RESULTS (HOLES LM11-11 to LM11-16)**
HOLE-ID	HOLE LENGTH	AZIMUTH	DIP	FROM	TO	INTERVAL **	GRADE ***
metres	degrees	degrees	metres	metres	metres	Total Fe%
LM11-11	451	120	-55	No intersection
LM11-12	515	111	-45	3.50	506.93	503.43	31.21
including	60.30	490.40	430.10	31.83
LM11-13	572	45	-60	407.50	572.00	164.50	29.56
including	407.50	509.95	102.45	31.45
and	527.10	572.00	44.90	32.25
LM11-14	307.5	170	-45	2.70	231.45	228.75	29.50
34.70	231.45	196.75	30.26
LM11-14A	389	170	-45	288.90	337.20	48.30	28.16
LM11-015	402	55	-65	143.80	361.17	217.37	25.29
including	159.26	236.70	77.44	30.75
LM11-016	474	100	-45	83.90	474.00	390.10	27.63
including	87.90	325.00	237.10	31.53

* 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.

Champion previously announced plans to drill a northeast-trending linear magnetic anomaly underlying the eastern part of the Moire Lake Project, where recent prospecting located outcrop containing specular-hematite and magnetite iron mineralization in zones up to 40 m wide, coincident with this anomaly. Permits are pending for this additional planned drilling, and hence this element of the exploration program has been deferred until 2012.

The final 2011 drill hole (LM11-21), which is designed to pass through the southeast fold closure of the Lac Moire Occurrence, is in-progress. It is being drilled on the same section as LM11-12, but on an opposing azimuth in order to verify the dips and true thickness of the iron formation intersected by holes LM11-09, LM11-12 and LM11-16. These holes may have been drilled slightly down-dip, as the iron formation is interpreted to dip steeply southeast in this area (see appended figures 1 and 2).

A total of 21 drill holes, totalling approximately 9,325 m, will be completed in 2011 at the Moire Lake Project. Champion is preparing samples for initial metallurgical tests as the geological interpretation is finalized. Upon receipt of the remaining assay results in early November Champion will initiate a NationaI Instrument 43-101 Mineral Resource Estimate ("MRE") for the Moire Lake Project with results expected later in Q4-2011. Champion plans to initiate a Preliminary Economic Assessment for the Moire Lake Project upon completion of the MRE.

The Fermont Iron Holdings

Champion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined, NI 43-101 compliant, Measured and Indicated Mineral Resources estimated at 400 Million Tonnes grading 30.6% FeT and Inferred Mineral Resources estimated at 1.82 Billion Tonnes grading 25.4% FeT, at a 15% FeT cut-off(3). Seven of Champion's remaining fourteen properties contain combined historical Mineral Resource estimates(2) totalling 620 Million Tonnes grading 31% FeT.

The Company will continue drilling with three drill rigs through the remainder of 2011 at the O'Keefe-Purdy and Oil Can projects in order to complete the ongoing 10,000 m and 8,000 m programs, respectively. These drills will be moved to Fire Lake North to commence Feasibility definition-drilling as soon as drilling permits are obtained.