Oceanic Receives Results of Shipping Optimization Study

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 12, 2013) - Oceanic Iron Ore Corp. ("Oceanic" or the "Company") (TSX VENTURE:FEO)(OTCQX:FEOVF) announces that it has received the results of its previously announced Shipping Optimization Study (the "Study") led by AMEC.

This Study concludes with greater certainty that the Company's shipping strategy, which will include direct shipments during ice free months from Breakwater Point and transshipment during winter months, is technically feasible and supports the cost projections contained in the Company's Preliminary Marine Facility and Shipping Logistics Study announced September 22, 2011.

The Study includes the practical perspectives, experience, and inputs provided by shipping and transshipment companies Fednav Limited ("Fednav") Canada Steamship Lines ("CSL"), and Europees Massagoed Overslagbedtijf ("EMO") as well as the port authorities of Rotterdam Netherlands, Nuuk Greenland, and St. Pierre and Miquelon.

Fednav has successfully shipped bulk concentrates in the Canadian Arctic for in excess of fifteen years on a year round basis serving the shipping needs of Glencore Xstrata's Raglan mine, Vale's Voisey's Bay mine, and is scheduled to commence shipments at Jilin Jien's Canadian Royalties mine. Some of these projects are located further north than the Company's Hopes Advance project.

Thomas Paterson, Senior Vice President of Fednav commented: "Our extensive experience operating in the Canadian Arctic allows us to conclude that shipping from the Hopes Advance project can be accomplished year round. Fednav looks forward to following up our budget estimate provided for this Study by submitting a competitive proposal for Oceanic's Hopes Advance project at a future date and would be pleased to participate in satisfying the project's long term shipping needs."

The Study identifies three potential transshipment locations that all result in similar average annual shipping costs for the Hopes Advance project. These are Nuuk Greenland, Rotterdam Netherlands, and St. Pierre and Miquelon. Each of these presents desirable attributes for transshipment. The actual transshipment location will be determined in consultation with the Company's future strategic partner and will be based on the negotiated commercial terms reached with the applicable port authority and shipping companies at a later date when the project's partner is in place and project financing and construction are imminent. The selected option will be included in the Company's bankable feasibility study.

In the context of current market pricing for Capesize vessels and fuel costs, as well as insurance, port charges, commissions, etc. in addition to the costs associated with dedicated polar class vessels and transshipment, the Study projects estimated average annual shipping costs of approximately $31 per tonne of product from Nuuk, $33 per tonne from Rotterdam and $32 per tonne from St. Pierre and Miquelon with all shipping costs based on a shipment destination to the port of Qingdao, China via the Cape of Good Hope. As a consequence, based on the operating cost conclusions derived from the Company's Prefeasibility Study, in all instances the resulting cash cost CFR China is projected at less than $65/ tonne.

In the event that some future product is sold into Europe the average annual shipping costs would decrease.

Alan Gorman, President/COO indicated: "We are pleased with the results of this independent Shipping Optimization Study led by AMEC. Further defining the shipping considerations associated with the Hopes Advance project is a critical development in respect of the Company's objective to secure a capable strategic partner. The involvement of Fednav, CSL, EMO, and others, adds the experience of these very reputable organizations and practical inputs that ensure product can be shipped at the lowest possible cost on a year round basis.

At the current spot prices of approximately $135/tonne CFR (62% Fe) and taking into account the likely premium to spot prices to be associated with Hopes Advance product given its quality and grade, and given a CFR cash cost (including shipping) of under $65/tonne, the Hopes Advance project is a low cost high margin project. We believe that this is a compelling attribute that will attract the required investment from a strong strategic partner in due course. While we do not necessarily agree that iron ore prices will soften considerably Hopes Advance's position as a low cost global producer qualifies it as an attractive investment for steel producers who are committed to improving their margins by lowering their costs for raw materials, as well as other potential strategic partners who see the merits in a direct ownership stake in a long life, high quality, low cost, iron ore asset."

About Oceanic:

Oceanic is focused on the development of its 100% owned Hopes Advance, Morgan Lake and Roberts Lake iron ore development projects located on the coast in the Labrador Trough in Québec, Canada. The Company is led by a highly experienced management team that has managed, operated developed and/or sold over $20 bn in assets. The Company published a technical report entitled "Oceanic Iron Ore Corp. - NI 43-101 Technical Report on a Prefeasibility Study Completed on the Hopes Advance Bay Iron Deposits Ungava Bay Region, Québec, Canada - NTS 24M/08, 24N05" dated November 2, 2012, outlining a base case pre-tax NPV of $5.6 bn (post-tax NPV of $3.2 bn) over a 30 year mine life, supported by a NI 43-101 proven and probable reserve of approximately 1.36 bn tonnes with a grade of 32.2% Fe (comprising 763 million tonnes of proven reserves with a grade of 32.3% Fe and 596 million tonnes of probable reserves with a grade of 32.1% Fe) and a life of mine operating cost of approximately $30/tonne, making it one of the lowest cost development projects globally. The pre-feasibility study is available for review on the Company's website (www.oceanicironore.com) and SEDAR (www.sedar.com). Further information in respect of the Morgan Lake and Roberts Lake projects, both of which have been explored historically and which have defined historical resources, is also available on the Company's website.

Eddy Canova, P.Geo., OGQ(403), the Director of Exploration for the Company and a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this news release.

Oceanic Iron Ore Corp. (www.oceanicironore.com)

On behalf of the Board of Directors

Steven Dean, Chairman and Chief Executive Officer

This news release includes certain "Forward-Looking Statements" as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the "Company"), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results "potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, weather, damage to equipment or otherwise; (2) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (3) certain price assumptions for iron ore; (4) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current expectations. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's MD&A filed August 29, 2012 (a copy of which is publicly available on SEDAR at www.sedar.com under the Company's profile) and elsewhere in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of iron ore or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.