Consolidated Thompson Iron Mines Reports First Profit and Positive Operating Cash Flow in Third Quarter 2010

MONTREAL, QUEBEC -- (Marketwire) -- 11/05/10 -- Attention: Business / Financial Editors

Consolidated Thompson Iron Mines Ltd. (TSX: CLM) ('CLM' or the 'Corporation', or 'Consolidated Thompson') today reported financial and operational results for the third quarter ended September 30, 2010.

Highlights:

- The Corporation successfully achieved the first full quarter of production
  and shipments of high-quality iron ore concentrate from its Bloom Lake
  property.
- The Corporation recorded its first quarterly profit with a net income of
  $46.4 million or $0.19 per diluted share.
- Cash flow from operating activities was positive for the first time in the
  third quarter at $51.0 million or $0.21 per share.
- Production ramp-up at the Bloom Lake mine continues and the Corporation
  expects to reach 90% of the design capacity of 8 million tonnes per year
  ('MTPY') at the end of this year and expects to reach a rate of 8 MTPY at
  the end of the first quarter 2011.
- The Corporation ended the quarter with cash resources of $48.2 million and
  expects positive operating cash flow going forward, subject to global
  market conditions.
- Expansion of the Bloom Lake mine and mill to 16 MTPY of high quality iron
  ore concentrate is underway as engineering and civil work are proceeding.
  The Corporation will also start the foundation of the new mill before
  year-end. In addition, authorization has been received from the government
  of Newfoundland and Labrador to double annual rail transport volume to 16
  MTPY.

Subsequent to the end of the quarter:

- Agreement was reached with the Corporation's two largest clients to
  establish a price mechanism for their contracted purchases, representing 7
  MTPY or 88% of annual sales volume. Discussions with the third client for
  the remaining 1 MTPY of production are in progress.

'We achieved several new milestones in the third quarter with our first quarterly profit and positive operating cash flow as well as our first full quarter of production and shipments. Our near-term focus is to end the year with a strong financial performance while remaining on track to ramp-up to design capacity by the end of the first quarter of 2011. Our operational progress to date combined with favourable price trends in global markets give us even greater confidence to accelerate our plans to double production at Bloom Lake to 16 million tonnes,' said Richard Quesnel, President and Chief Executive Officer of Consolidated Thompson.

'We are pleased with the rapid progress the Corporation has made to reach operating status, quarterly profit and positive operating cash flow. The third quarter results provide further visibility for investors and shareholders on the value of the Bloom Lake property and its long-term potential,' added Brian V. Tobin, Executive Chairman of the Board of Directors.

For the three months ended September 30, 2010, the Corporation's sales volumes reached 1,179,000 WMT of iron ore concentrate compared to 539,000 WMT in the second quarter of 2010. Total sales volumes in the nine months ended September 30, 2010 were 1,718,000 WMT compared to nil in the same period last year. The Corporation recorded its initial sales in May 2010 and the first shipment from its port facilities in July 2010. The third quarter was the first full quarter of production and shipments from the Bloom Lake operations.

Sales increased to $153.8 million in the third quarter of 2010, reflecting an average selling price of $130/WMT compared to $37.4 million (average selling price of $69/WMT) in the second quarter of 2010 and nil in the corresponding 2009 period. For the nine months ended September 30, 2010, sales were $191.2 million compared to nil in the same period last year.

Net income in the third quarter was $46.4 million or $0.19 per diluted share compared to a net loss of $28.3 million or $(0.10) per diluted share in the second quarter of 2010 and a net loss of $22.6 million or $(0.12) per diluted share in the same period last year.

For the nine months ended September 30, 2010, net loss was $11.5 million or $(0.05) per diluted share compared to a net loss of $38.6 million or $(0.25) per diluted share in the corresponding 2009 period.

Third quarter cash flow from operating activities was positive for the first time at $51.0 million or $0.21 per diluted share.

As at September 30, 2010, investment in the Bloom Lake property, including the mine and mill, totaled $571.2 million and investment in the ancillary rail (including the Arnaud junction section) and port facilities reached $346.1 million.

Notes:

All figures are in Canadian dollars unless otherwise stated.

The Corporation reports sales volumes in wet metric tons ('WMT'). The Q3 F2010 MD&A, financial statements and accompanying notes have been filed on SEDAR and may also be found at http://www.consolidatedthompson.com/news.asp-t=stock.htm.

Q3 Financial Results Conference Call

Consolidated Thompson will hold a financial analyst conference call today November 5, 2010 at 10:00 a.m. to review the third quarter results. The Dial-in numbers are 416-340-8530 or 877- 240-9772 (toll free North America). Brian V. Tobin - Executive Chairman, Richard Quesnel - President and Chief Executive Officer and Francois Laurin - Chief Financial Officer will discuss the Q3 results and take questions from financial analysts and media.

A replay of the conference call will be available starting at 2:00 p.m. on November 5, 2010, until 11:59 p.m., November 12, 2010, by dialing 416-695-5800 or 1-800-408-3053, passcode: 2273402# or through the Investor section of the Corporation's website at www.consolidatedthompson.com.

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 Quebec and Western Newfoundland and Labrador. It is currently operating the Lake Bloom mine and currently moving towards the initial production rate of 8.0 million tonnes per year of high quality iron ore concentrate with a Fe content greater than 66%. An emerging world-class producer, 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 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 www.sedar.com.

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.

Contacts:

Consolidated Thompson Iron Mines Ltd.

Richard Quesnel

President and Chief Executive Officer

(514) 396-6345


Consolidated Thompson Iron Mines Ltd.

Francois Laurin

Chief Financial Officer

(514) 396-6345
INFO@CONSOLIDATEDTHOMPSON.COM
www.consolidatedthompson.com