TSX Venture Exchange

Trading Symbol: CFI

ST JOHN'S NL, May 31, 2012 /CNW/ - Canada Fluorspar Inc., (TSX-V:CFI) ("CFI" or the "Company") has been advised by Newspar, the Company's 50/50 joint venture with Arkema, that Newspar is undertaking a review of the St Lawrence Fluorspar project in order to establish a more precise understanding of the currently anticipated costs and scope of the project.

This estimate review is in part being conducted by members of the Newspar and Arkema management teams and overseen by members of the Newspar and CFI boards. Concurrently, certain bid packages are expected to be released for quotes in short order and all of the permitting process will proceed while the release of the other parts of the overall bid package will be defined by the outcome of this review.

About the Company

The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through its 50/50 joint venture with Arkema, called Newspar. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.

Neither 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.

Cautionary Note and Forward-looking statements

This press release contains forward-looking statements which include, but are not limited to: anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, project cost estimates and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Canada Fluorspar Inc.

Copyright 2012 Canada NewsWire

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