Consolidated Thompson Iron Mines Limited

Consolidated Thompson Iron Mines Limited

December 20, 2010 08:00 ET

Consolidated Thompson Continues to Produce Despite the Heavy Rain Affecting its Railway Supplier

MONTRÉAL, QUÉBEC--(Marketwire - Dec. 20, 2010) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("CLM" or the "Corporation") indicates it has been notified today by its rail transportation carrier, QNS&L Railway, ("QNS&L") that its rail operations have been suspended for approximately 14 days due to damages to some portions of the railway caused by heavy rain and extreme wind in the North Shore sector of Québec.

These damages do not affect production at the Corporation's Bloom Lake mine site. Production of concentrate at the mine will be stockpiled at the site and be moved to our port facilities once the rail services are restored. CLM will work with its railway suppliers to haul iron ore concentrate very expeditiously to minimize the impact of the current rail service interruption. CLM has enough iron ore concentrate at its port facilities to complete the loading of the vessel currently at port. The loading of the next vessel will be postponed to the beginning of January.

"Despite this extraordinary adverse set of weather conditions, our processing facility at Bloom Lake is not affected and we maintain normal production activity. The only impact is the postponement of loading one vessel to the following month. We are very confident that QNS&L staff are doing everything to reinstate the railway service as soon as possible." said Brian V. Tobin, Executive Chairman, President and CEO of the Corporation.

About Consolidated Thompson

Consolidated Thompson Iron Mines Limited is a mining company with mineral exploration and development activities focused on iron ore. Based in Montreal, Canada, it has iron ore rich mining properties in the well known Labrador Trough that spans North-Eastern Québec and Western Newfoundland and Labrador. It is currently operating the Bloom Lake mine and currently moving towards the initial production rate of 8.0 million tonnes per year of high quality iron ore concentrate. Consolidated Thompson is listed on the Toronto Stock Exchange under the symbol 'CLM' and is part of several S&P/TSX indices including the S&P/TSX Composite Index.

Forward-looking statements

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 suspension and resumption of rail service, capital required to complete the development and ramp-up 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 the 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 the Corporation's feasibility study. Capital and operating cost estimates are based on extensive research by 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 the Corporation'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 the Corporation to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks described in the Corporation's Annual Information Form posted under its profile on SEDAR at Although Management 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 could 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. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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