Champion Minerals Announces an Agreement With the Port of Sept-Iles (ccnm)

TORONTO, ONTARIO--(Marketwire - July 18, 2012) - CHAMPION MINERALS INC. (TSX:CHM)(OTCQX:CPMNF)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce that it has signed a long-term agreement (the "Port Agreement") with the Sept-Îles Port Authority related to its planned 50 million tonne per year multi-user port facilities. The Port Agreement has an initial term of 20 years, renewable for up to four additional 5-year terms. The Sept-Îles Port Authority has committed to complete its planned port facilities by March 31st, 2014, which is approximately eighteen months ahead of the planned production start-up date for Champion's wholly-owned Fire Lake North Project. This agreement guarantees Champion ship-loading capacity at the Port of Sept-Iles for a minimum of 10 million tonnes of iron concentrate per year at preferential rates, using two ship loaders, each with a capacity of 8000 tonnes per hour. The Port Agreement also provides an opportunity to expand Champion's reserved annual tonnage in the event of potential future expansions of iron concentrate production from Fire Lake North.

In order to finance the estimated $220 million cost of the new facility, the Sept-Îles Port Authority required Champion and other potential end-users to fund a portion of the construction cost through a "buy-in payment". Champion's buy-in payment is $25,581,000 payable in instalments, with the initial instalment payable on signing and the final payment payable on July 1, 2013. The buy-in payment will constitute an advance on Champion's future shipping, wharfage and equipment fees.

The Port Agreement also includes a sliding-scale fee schedule for shipping, wharfage and equipment fees payable on Champion's iron concentrate shipped through the port facilities and a monthly "take or pay" fee based on 50% of reserved tonnage commencing from the date of completion of the port facilities.

Tom Larsen, Champion's President and CEO commented, "We are extremely pleased to announce this agreement with the Sept-Îles Port Authority which will substantially advance our goal to bring Champion's robust Fire Lake North project into production."

About Champion Minerals Inc.