Consolidated Thompson Enters Into A New US$250 Million Revolving Credit Facility

MONTREAL, QUEBEC -- (Marketwire) -- 12/16/10 -- Consolidated Thompson Iron Mines Limited (TSX: CLM) ('CLM' or the 'Corporation') today announced that it has entered into a new US$250 million senior secured revolving credit facility with a syndicate of banks comprised of Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, WestLB AG, New York Branch and Desjardins. This facility has a maturity of December 2014 and can be used for general corporate purposes.

'The entering into this new revolving credit facility marks another important milestone in the development of our company, reinforcing our financial position as we implement our strategic and growth plans for the future. This second important financing transaction in two months once again demonstrates the strong support of the financial community for CLM as a profitable producing mining company' said Brian V. Tobin, Executive Chairman, President and CEO of the Corporation.

'This US$250 million facility, in addition to the recent issuance of convertible unsecured subordinated debentures for US$230 million brings close to US$500 million of available funds which further improves the Corporation's liquidity and increase its capital resources' said Francois Laurin, Chief Financial Officer of the Corporation.

The facility can be drawn in Canadian or US dollars and will bear interest at floating rates, plus a margin based on the leverage ratio of the Corporation. Both CLM and its subsidiary, The Bloom Lake Iron Ore Mine Limited Partnership, will have the ability to borrow under the facility. The obligations under the facility will be senior secured indebtedness ranking pari passu with the US$100 million senior secured bonds issued in January 2010. A portion of the facility can be used for the issuance of letters of credit, which will allow for the immediate release of the restricted cash currently shown on the balance sheet 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 Quebec 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 with. 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 Limited

Francois Laurin

Chief Financial Officer

(514) 396-6345
info@consolidatedthompson.com
www.consolidatedthompson.com