Consolidated Thompson Iron Mines Limited

Consolidated Thompson Iron Mines Limited

July 10, 2007 08:40 ET

Consolidated Thompson Signs Definite Agreement With Worldlink Resources Limited to Sell 5,000,000 MTS of Iron Concentrate per Year

TORONTO, ONTARIO--(Marketwire - July 10, 2007) - Consolidated Thompson Iron Mines Ltd. (TSX VENTURE:CLM) ("CLM" or the "Company") is pleased to announce that it has signed a Definite Agreement (the "Agreement") with Worldlink Resources Ltd ("WL"), a major China Base integrated trading company for the supply of iron ore concentrates. The company has entered into an exclusive distributor agreement for China under which WL will purchase, on commercially reasonable terms, 5,000,000MTS of iron ore concentrate produced per year from CLM's Bloom Lake facility (the "Bloom Lake Concentrate"). The Company expects to begin production at Bloom Lake in the first quarter of 2009.

The Agreement is for an initial five-year term and can be renewed upon mutual agreement. The agreement with WL is subject to the receipt of all necessary regulatory approvals. WL is a successful trading company engaged in import and export business of iron ore, coal and other dry bulk commodities and has been marketing in China since 2000, including having joint ventures with two Chinese steel mills. By providing long-term mineral resources, WL has been able to build consolidated marketing channels and relationships with major steel customers in China.

Richard Quesnel, President and CEO stated: "We are very pleased to have signed an offtake agreement with WL, an outstanding partner with a well-recognized reputation. This agreement will ensure effective long-term access to the world's largest consumers of iron ore for our future high quality product. Bloom Lake is an extremely robust project as evidenced by the quality and size of the deposit and the results of our recent 7 million tonnes per year feasibility study. The signing of this offtake agreement marks a significant milestone in its development."

Bloom Lake Feasibility Study Summary:

- Bloom Lake to produce 7 million tonnes of high-quality 66.5% concentrate per year beginning in Q1 2009

- Capital Cost (excluding working capital): US$333 million

- Pre-tax IRR: 44.5% using US$0.633 per iron unit equivalent to revenue price of US$42.09/tonne of concentrate

- Total operating cost: US$19.76 / tonne concentrate

- NPV (at 12% Discount rate): US$739 million

- Total undiscounted Cash Flow: US$2.754 billion

- Forecasted yearly Cash Flow: exceeding US$150 million

- Payback of 2.4 years

The updated Feasibility Study is based on an output scenario of 7 million tonnes of iron concentrate per year with a mine life of 34 years. The Study's level of accuracy is considered to be +/- 10%. The economics were based on a 20 year mining plan. The Feasibility study was completed by Breton Banville & Associates ("BBA"), an international engineering firm based in Montreal with expertise in mining and mineral processing. The principal author of the report is Mr. Andre Allaire, Eng., M.Eng., Ph.D. and Mr. Patrice Live, Eng, was responsible for the update of the mining and the financial evaluation. They are both qualified persons as defined in National Instrument 43-101, are independent of the Company and have reviewed the scientific and technical information in this release. Please see April 11, 2007 press release for complete details.

About Consolidated Thompson:

CLM holds the Bloom Lake Iron Ore Property which is located in the 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 ore mining operation of Quebec Cartier Mining Company. Further information is available at

Forward Looking Information

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; the benefits of the off take agreement; production levels, timing and costs; potential contractual arrangements and the delivery of equipment; receipt of working capital; anticipated revenue; mineral reserve and resource estimates; and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, third party risks, acquisition risks, risks inherent in the mining industry, permitting risks, financing risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Consolidated Thompson Iron Mines Limited is an exploration and development company. The Company has approximately 79.94 million shares outstanding and trades on the TSX Venture exchange under the symbol (CLM).


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