Consolidated Thompson Iron Mines Limited
TSX VENTURE : CLM

Consolidated Thompson Iron Mines Limited

January 16, 2007 10:54 ET

Consolidated Thompson Decides Not to Proceed With the Wabush Transaction After Due Diligence and Announces Update Conference Call for Wednesday, Jan 17th at 11 AM E.S.T.

TORONTO, ONTARIO--(CCNMatthews - Jan. 16, 2007) - Consolidated Thompson Iron Mines Limited (TSX VENTURE:CLM) announces that the previously announced exclusivity period relating to a possible transaction with Wabush Mines has expired and an agreement has not been reached. Discussions regarding a transaction may continue, however Consolidated has no reason to believe that such a transaction can or will be completed.

After an extensive due diligence process, Consolidated Thompson could not be satisfied with the due diligence and the potential liabilities and has therefore decided not to make a formal offer on Wabush. The Company has concluded that it is more advantageous to our shareholders to consider an expansion of Bloom Lake.

To discuss the above developments with Management, a conference call has been scheduled as follows:



CONFERENCE CALL SCHEDULED FOR WEDNESAY, JAN 17TH AT 11 AM
EASTERN STANDARD TIME

CONFERENCE CALL DETAILS:
------------------------
LOCAL CALLERS: 416-695-6130
NORTH AMERICAN CALLERS: 1-800-769-8320
INTERNATIONAL CALLERS:+1-416-695-6130


Bloom Lake Expansion

As part of optimization studies for the development of Bloom Lake, Consolidated Thompson has completed the preliminary engineering on an expansion from a production rate of 5 million tonnes of iron concentrate per year to 7 million tonnes of iron ore concentrate per year and has commissioned BBA Engineering to conduct a pre-feasibility level study on this option. The Company is optimistic that such an option could significantly improve project economics for Bloom Lake on a stand alone basis.

"The recent 9.5 % price increase on iron ore concentrate and the continued positive outlook going forward for iron ore would make the move from 5 to 7 million tonnes extremely attractive. It may be possible to increase the capacity, subject to confirmation by BBA Engineering, with no incremental risk and still meet the timelines we have set for the original project." said Richard Quesnel, Consolidated Thompson's President and Chief Executive Officer.

Consolidated will continue to fast track the development of the Bloom Lake project, and has proceeded to order long lead time equipment which would allow the Company to step up to 7 millions tonnes of annual production if the economics warrant.

About Consolidated Thompson

Consolidated Thompson is an exploration and development company, with approximately 33.4 million shares outstanding and trades on the TSX Venture exchange under the symbol CLM. The April 2006 completion of a positive feasibility study on the Bloom Lake Deposit coupled with recent significant financing, demonstrates the company's ability to develop the project. The feasibility study was completed by BBA Engineering, Montreal and was authored by Mr. Andre Allaire, Eng and Mr. Patrice Live, Eng both qualified persons as defined in National Instrument 43-101. A copy of the report is available at www.sedar.com.

The Bloom Lake Iron Ore deposit is located in Normanville Township, Duplessis County, Province of Quebec, on the south end of the Labrador trough, approximately 400 km north of Sept-Iles. The Bloom Lake deposit is situated approximately 10 km north of the Mount-Wright iron mining operation of Quebec Cartier Mining Company.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements. The Company cautions investors that the projections for increases to the Indicated Resources are based on Inferred Resources. There is no certainty that these projections will be added to the Indicated Resources or that they will be economically viable.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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