Consolidated Thompson Iron Mines Limited
TSX : CLM

Consolidated Thompson Iron Mines Limited

May 04, 2010 08:00 ET

Consolidated Thompson Is Granted an Operating Permit for Its Railway and Concludes an Agreement to Sell a Minimum of 250,000 Tonnes of Iron Ore Concentrate to Be Delivered in May 2010

MONTREAL, QUEBEC--(Marketwire - May 4, 2010) - Consolidated Thompson Iron Mines Ltd. (TSX:CLM) ("CLM" or the "Corporation") is pleased to announce the completion of the construction of its 31-kilometer railway running from the Bloom Lake mine load out facilities, to Wabush, Labrador. The Corporation was granted an operating permit from the Government of Newfoundland and Labrador for the hauling of trains unit of iron ore over such 31-kilometer railway.

"We are very proud of this achievement" declared Mr. Richard Quesnel, President and Chief Executive Officer of the Corporation "Building a railway in the midst of winter and keeping the construction on schedule is a testimony of the quality and proficiency of the work of our business partners and their employees. We could not have done this without the great support and cooperation of all the communities, local interest groups, the government departments and our Innu partners".

The commencement of the transportation of iron ore concentrate over the newly completed railway follows the recent successful commissioning of the Bloom Lake mine. To date, 200,000 metric tons of high-grade iron ore concentrate have been produced and stockpiled at Bloom Lake. While completing the construction of CLM's port facilities at Pointe-Noire and the necessary railway improvements at Arnaud Junction, the Corporation's subsidiary, The Bloom Lake Iron Ore Mine Limited Partnership ("BLLP"), has entered into a confidential iron ore purchase agreement to sell and deliver to Arnaud Junction, located in Sept-Iles, Quebec a minimum of 250,000 tonnes of iron ore concentrate in May 2010. Subject to mutual agreement between the parties to this purchase agreement, BLLP may sell and deliver an additional quantity of iron ore concentrate in June 2010. This purchase agreement is in addition to the previous off-take agreements already signed by BLLP for 8 million tonnes annually, for which delivery will commence upon completion of the construction of port facilities at Pointe-Noire expected to be completed in the coming weeks.

Caution regarding forward-looking statement

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the closing of the Iron Ore Purchase Agreement, delivery of iron ore concentrate, receipt of all necessary approvals; capital required to complete the development of the Bloom Lake mine and timing of such requirements; the conclusions, parameters and assumptions underlying current mine plans, the development potential and timetable of Bloom Lake project; capital and operating expenditures; iron ore prices; permitting time lines and permitting; government regulation of mining operations; environmental risks and the impact of management appointments; mineral reserve and resource estimates; the ability to realize estimated mineral reserves and to convert mineral resources into mineral reserves; terms and costs of future exploration; mineralization projections; receipt of all necessary approvals; the parameters and assumptions underlying the mineral resource estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bloom Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates as are set out in CLM's feasibility study. Capital and operating cost estimates are based on extensive research of the Corporation, purchase orders placed by the Corporation to date, recent estimates of construction and mining costs and other factors that are set out in CLM's feasibility study. Production estimates are based on mine plans and production schedules, which have been developed by the Corporation's personnel and independent consultants. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Consolidated Thompson to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks described in the annual information form of the Corporation posted under the profile of the Corporation on SEDAR at www.sedar.com. Although management of Consolidated Thompson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Consolidated Thompson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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