Chieftain Announces Filing of NI 43-101 Technical Report for its Tulsequah Chief Feasibility Study

TORONTO, ONTARIO January 28, 2013 – Chieftain Metals Inc. (“Chieftain” or the “Company”) (TSX: CFB) is pleased to announce that it has filed on SEDAR (www.sedar.com) its National Instrument 43-101 Technical Report – Feasibility Study for its Tulsequah Chief project. The Feasibility Study confirms the technical and financial viability of constructing and operating an underground mining and processing operation at Tulsequah Chief. Results from this study were previously announced (see December 21, 2012 press release), and are summarized below.

    • 2,000 tonne per day underground mining operation with a 9-year mine life.
    • Pre-production capital costs are estimated to total $439.5 million, with an additional $64.0 million in sustaining capital over the life-of-mine and closure costs net of salvage value of $6.2 million (all amounts in Canadian dollars).
    • Operating costs are estimated to total $125.96/tonne.
    • Based on three-year trailing average metals prices, the study yields a pre-tax NPV8% of $192.7 million and an IRR of 16.5% and post-tax NPV8% of $138.7 million and an IRR of 14.7%.

Victor Wyprysky, President and CEO commented: “We are pleased to deliver the complete feasibility study report demonstrating robust economics for Tulsequah. The NPV8% of $192.7 million represents a pre-tax Net Asset Value of approximately $13.24 per share and average annual EBITDA at full production of $120.4 million from the project or $8.28 per share based on the current outstanding shares. This study will form the basis for the project financing discussions that the Company is now embarking on with a number of parties. Chieftain also intends to continue optimization work in the areas of mill layouts, concentrate processing and logistical aspects. In addition Chieftain intends to review exploration opportunities in the entire project area, given the significant potential identified on the property. Chieftain is committed to developing the project to production as the company believes this is the best way to maximize value to shareholders as well as providing significant benefits to the Atlin community and the Taku River Tlingit First Nation.” The independent technical report, entitled “Technical Report for the Tulsequah Chief Project of Northern British Columbia, Canada” was prepared by JDS Energy & Mining Inc. of Vancouver, British Columbia. Gordon Doerksen of JDS, a Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release.

About Chieftain Metals Inc.:

Chieftain Metals Inc.’s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company’s business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain’s Property consists of 39 mineral claims and Crown-grants covering approximately 14,089 hectares and covers two previously producing mines. For more information on Tulsequah and related projects, please refer to the Company’s NI 43-101 compliant technical reports, “Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia” and “Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia”, each dated as of November 8, 2010 and available under the Company’s profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release includes certain “forward-looking statements” within the meaning of the Ontario Securities Act or other laws or regulations. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, mineral resources or reserves, exploration results, future plans and objectives of Chieftain Metals Inc. are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

For further information, please contact:

Victor Wyprysky
President & CEO
Tel: (416) 479-5411
Email: vw@chieftainmetals.com
Timothy Lee
Director, Investor Relations
Tel: (416) 479-5415
Email: timothy.lee@chieftainmetals.com
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