TECHNICAL REPORT AND MINERAL RESOURCE ESTIMATE ON THE MOIRE LAKE PROPERTY FERMONT PROJECT AREA QUÉBEC, CANADA NTS MAP-SHEETS 23-B/14 52°46’30” North 67°08’30” West UTM 625250 E, 5849250 N (NAD83 Zone 19) FOR CHAMPION MINERALS INC. By P&E Mining Consultants Inc. NI 43-101 & 43-101F1 TECHNICAL REPORT No. 238 Ms. Tracy Armstrong, P.Geo. Mr. Antoine Yassa, P.Geo. Effective Date: March 28, 2012 Signing Date: May 11, 2012 TABLE OF CONTENTS 1.0 SUMMARY .........................................................................................................................1 1.1.1 Phase 1 .........................................................................................................5 2.0 INTRODUCTION ...............................................................................................................6 2.1 TERMS OF REFERENCE ......................................................................................6 2.2 SITE VISITS ............................................................................................................7 2.3 UNITS AND CURRENCY .....................................................................................7 2.4 SOURCES OF INFORMATION ............................................................................7 2.5 ACKNOWLEDGEMENTS .....................................................................................7 2.6 GLOSSARY OF TERMS ........................................................................................7 3.0 RELIANCE ON OTHER EXPERTS ................................................................................10 3.1 ACKNOWLEDGEMENTS ...................................................................................10 4.0 PROPERTY DESCRIPTION AND LOCATION .............................................................11 4.1 LOCATION ...........................................................................................................11 4.2 FERMONT IRON PROPERTIES AGREEMENT ...............................................12 4.3 FERMONT PROPERTY .......................................................................................13 4.4 MOIRE LAKE PROPERTY..................................................................................14 4.5 THE QUÉBEC MINING ACT AND CLAIMS ....................................................15 4.6 AREAS OF INTEREST ........................................................................................17 4.7 SURFACE RIGHTS AND PERMITS ..................................................................17 4.8 ENVIRONMENTAL CONSIDERATIONS .........................................................18 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ..................................................................................................19 5.1 ACCESSIBILITY ..................................................................................................19 5.2 CLIMATE ..............................................................................................................21 5.3 LOCAL RESOURCES AND INFRASTRUCTURE ............................................21 5.4 PHYSIOGRAPHY .................................................................................................22 6.0 HISTORY ..........................................................................................................................23 6.1 REGIONAL HISTORICAL EXPLORATION .....................................................23 6.2 MOIRE LAKE PROPERTY..................................................................................23 6.3 HISTORICAL RESOURCE ESTIMATES ...........................................................29 7.0 GEOLOGICAL SETTING AND MINERALIZATION ...................................................31 7.1 REGIONAL GEOLOGY .......................................................................................31 7.2 FERMONT IRON ORE DISTRICT (FIOD) GEOLOGY ....................................34 7.3 STRATIGRAPHY .................................................................................................36 7.3.1 Knob Lake Group ......................................................................................37 7.4 MOIRE LAKE PROPERTY STRUCTURE .........................................................40 7.5 MINERALIZATION .............................................................................................41 7.5.1 FIOD Mineralization ..................................................................................41 7.6 MOIRE LAKE PROPERTY MINERALIZATION ..............................................42 8.0 DEPOSIT TYPES ..............................................................................................................44 8.1 IRON FORMATIONS ...........................................................................................44 8.2 LAKE SUPERIOR-TYPE IRON FORMATIONS ...............................................45 9.0 EXPLORATION................................................................................................................46 10.0 DRILLING .........................................................................................................................47 10.1 2011 DRILLING ....................................................................................................47 10.2 GEOLOGICAL INTERPRETATION ...................................................................50 10.2.1 Moire Lake Occurrence Magnetic Anomaly .............................................50 10.2.2 Rock Units .................................................................................................51 10.3 SAMPLING METHOD AND APPROACH .........................................................55 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ..........................................56 11.1 SAMPLE PREPARATION AND ASSAYING ....................................................56 12.0 DATA VERIFICATION ...................................................................................................57 12.1 SITE VISIT AND INDEPENDENT SAMPLING ................................................57 12.2 QUALITY ASSURANCE AND QUALITY CONTROL (QA/QC).....................58 12.3 PERFORMANCE OF CERTIFIED REFERENCE MATERIALS .......................58 12.4 PERFORMANCE OF BLANKS ...........................................................................58 12.5 PERFORMANCE OF DUPLICATES ..................................................................59 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................................60 14.0 MINERAL RESOURCE ESTIMATES ............................................................................61 14.1 INTRODUCTION .................................................................................................61 14.2 RELIANCE ON OTHER EXPERTS ....................................................................61 14.3 DATA VALIDATION...........................................................................................61 14.3.1 Moire Lake 2012 Resource estimate..........................................................62 14.3.1.1 Moire Lake Geological Model ...................................................................62 14.3.2 Moire Lake Rock Types, Rock Codes and Bulk Densities ........................62 14.3.3 Moire Lake Assay Statistics.......................................................................63 14.3.4 Moire Lake Composites .............................................................................64 14.3.5 Moire Lake Variography............................................................................65 14.3.6 Moire Lake Grade Capping .......................................................................65 14.3.7 Moire Lake Model Grade Estimation Parameters .....................................66 14.3.8 Moire Lake Block Modeling ......................................................................67 14.3.9 Moire Lake Grade Estimation ....................................................................68 14.3.10 Moire Lake Mineral Resource Estimate.................................................70 14.3.11 Moire Lake Model Validation ................................................................71 15.0 MINERAL RESERVE ESTIMATES................................................................................73 16.0 MINING METHODS ........................................................................................................74 17.0 RECOVERY METHODS ..................................................................................................75 18.0 PROJECT INFRASTRUCTURE ......................................................................................76 19.0 MARKET STUDIES AND CONTRACTS .......................................................................77 20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT ............................................................................................................................78 21.0 CAPITAL AND OPERATING COSTS ............................................................................79 22.0 ECONOMIC ANALYSIS .................................................................................................80 23.0 ADJACENT PROPERTIES ..............................................................................................81 24.0 OTHER RELEVANT DATA AND INFORMATION .....................................................82 25.0 INTERPRETATION AND CONCLUSIONS ...................................................................83