Chieftain Files Tulsequah Chief 2014 Feasibility Study (NI 43-101 Technical Report)

TORONTO, ONTARIO--(Marketwired - Dec 1, 2014) - Chieftain Metals Corp. ("Chieftain" or the "Company") (TSX VENTURE:CFB) is pleased to announce that it has filed its National Instrument 43-101 Technical Report - 2014 Feasibility Study for the high-grade Tulsequah Chief polymetallic deposit located in north-western British Columbia on SEDAR (www.sedar.com) as well as on the Company's website (www.chieftainmetals.com). The Feasibility Study includes an updated resource estimate for the nearby Big Bull deposit.

The 2014 Feasibility Study reflects a project with lower capital costs resulting in enhanced projected investment returns, notwithstanding the lower annual production relative to the prior 2012 Feasibility Study. Additionally, this operating profile preserves all the growth potential and is expected to allow Chieftain to use funds for project expansion out of future cash flow. Chieftain previously announced the results from this study, summarized below, on October 20, 2014 (see October 20, 2014 press release):

(all amounts in Canadian dollars unless stated otherwise)

• 1,100 tonne per day underground mining operation with an 11-year mine life.
• Reserves of 4.4 M tonnes of which 684 K tonnes, (15%) are proven and are the higher-grade portion of the 6.4 M tonnes previously reported in the 2012 Feasibility Study.
• Base Case price deck for metals and foreign exchange based on spot prices at October 15, 2014.
• Operating costs are estimated to average $186 /tonne processed including concentrate shipment.
• Annual Zinc Production of 46.9 million pounds (lbs) at a C1 cash cost of zinc production (net of by-product credits) of negative ($0.25)/lb.*
• Use of conventional barging for five months of the year to transport concentrate and supplies. This logistical solution eliminates the road proposed in the 2012 Feasibility Study, saving $125 million in capex.
• Pre-production capital costs are estimated at $198.6 million including contingency.
• The 2014 Feasibility Study yields a pre-tax Net Present Value (NPV8%) of $212 million and an IRR of 25.1% and post-tax NPV8% of $146 million and an IRR of 21.8%.

* C1 Cash cost of zinc production is calculated by taking the life of mine operating costs and the off-site costs to produce all metals, minus the revenue generated by all produced metals excluding zinc, divided by the total pounds of zinc produced.

Victor Wyprysky, President and CEO commented: "We are pleased to deliver the completed feasibility study report demonstrating robust economics for the Tulsequah Chief project. We are now evaluating options to secure project financing."

The independent technical report, entitled "Feasibility Study Technical Report, Tulsequah Chief Project, Northern British Columbia, Canada" was prepared by JDS Energy & Mining Inc. of Vancouver, British Columbia.

Keith Boyle, P.Eng., Chief Operating Officer of Chieftain Metals Corp. and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release.

About Chieftain Metals

Chieftain Metals Corp.'s principal business is the acquisition, exploration and development of mineral properties. The Company's business has focused on the development of the shovel ready, high-grade Tulsequah Chief deposit located in northwestern British Columbia, Canada. The Company has commenced project financing discussions based on the strong results of the 2014 Feasibility Study.

Forward-Looking Information:

This news release contains forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of future-oriented words and phrases including without limitation "may", "will", "could", "would", "subject to", "expects" and similar words and their negative variations thereof. Forward-looking statements in this press release are based on the reasonable beliefs, estimates and opinions of the Company's management on the date the statements are made and address activities, events or developments that the Company expects or anticipates will or may occur in the future. Forward-looking statements involve a number of risks and uncertainties both known and unknown. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information or otherwise, except as may be required under applicable securities laws.