Consolidated Thompson Iron Mines Limited
TSX VENTURE : CLM

Consolidated Thompson Iron Mines Limited

November 22, 2006 09:41 ET

Consolidated Thomson Enters Into Exclusivity Agreement With the Owners of Wabush Mines

TORONTO, ONTARIO--(CCNMatthews - Nov. 22, 2006) - Consolidated Thompson Iron Mines Limited (TSX VENTURE:CLM) today entered into an agreement with the current equity owners of Wabush Mines, consisting of various subsidiary companies of Stelco Inc, Dofasco Inc., and Cleveland Cliffs Inc.

This agreements provide for a period of exclusivity in which Consolidated will complete a due diligence review of the Wabush assets, and explore synergies that may exist between Wabush Mines assets and the Consolidated assets currently under development at Bloom Lake.

The exclusivity period extends to January 12, 2007.

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.

Bloom Lake Feasibility Study Summary:

- Bloom Lake to produce 5 million tonnes of high-quality 66% concentrate per year beginning in 2008

- Capital Cost (including working capital) US $ 270 million

- Pre-tax IRR 40.2% using US $ 0.59 per dry metric tonne iron unit equivalent to revenue price of US $ 38.94/tonne of concentrate

- Total operating cost US $ 20.96 / tonne concentrate

- NPV (at 5% Discount rate) of US$ 888 million

- Total undiscounted Cash Flow of US $ 1.6 billion

- Forecasted yearly Cash Flow exceeding US $ 90 million

- Payback of 2.2 years

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 that 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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