Oceanic Defines Power Solution for Hopes Advance Bay Project and Updates on Pre-Feasibility Study

Oceanic Iron Ore Corp. (TSX VENTURE:FEO)(OTCQX:FEOVF) ("Oceanic", the "Company")
announces that it has defined a viable power solution for its Hopes Advance Bay
project. The Company will commence construction and operations in 2017 utilizing
self-generated power, during its initial phase of operations.


Steven Dean, Chairman and C.E.O., commented, "We are pleased that we have
defined a viable solution for power supply for our Hopes Advance project.
Self-generation during the initial phase of operations safeguards Oceanic's
development timeline at a minimal incremental operating cost and preserves our
ability to construct the project during the current demand cycle. With this
critical infrastructure component clearly defined, Oceanic is now in full
control of the project risks and schedule, with no reliance on outside parties
for major project infrastructure components. We will continue to work with Hydro
Quebec and anticipate a future connection to the grid, on commercially
acceptable terms for both parties, during our second stage of operations.


Being largely in control of the timeline to develop power and port
infrastructure combined with the other key characteristics of the project
including our 'no-rail' advantage due to our tidewater location and low
operating cost per tonne, provides Oceanic a competitive edge compared to other
iron ore development projects."


The Preliminary Economic Assessment released in September 2011 relating to the
Hopes Advance project assumed that power for the project would be provided
through the development of a new power line to the mine site from an existing
generation station in Quebec (Laforge 2). The Company has been engaged with
Hydro Quebec since late last year when Hydro Quebec commenced its evaluation of
the development of the new transmission line. 


Hydro Quebec has indicated it will continue its evaluation of the new
transmission line and it is anticipated that the Company will connect to the
power grid after 2025, when the line becomes available, which is viewed by both
Hydro Quebec and Oceanic as a realistic target. The Company's Pre-Feasibility
Study due out in September will incorporate a grid power connection commencing
in 2025.


The Company anticipates that it will be capable of generating its own power,
during the initial phase of operations, for an operating cost of approximately
$0.15 per kilowatt hour and the capital costs associated with the procurement
and installation of the Company's power plant are expected to be less than the
$540 million provision contained in the Preliminary Economic Assessment but will
be confirmed by detailed engineering in the PFS. 


Update on Pre-Feasibility Study ("PFS"):

Oceanic announces that it remains on track for the delivery of its
Pre-Feasibility Study by the end of September. Highlights of the current status
of work are as follows:




--  The Company has completed its 2012 field program which included
    geotechnical drilling and other associated field work to support the
    PFS, geological mapping and claim maintenance activities, in addition to
    the establishment of a new field camp adjacent to the village of
    Aupaluk. Crews were mobilized during the spring and were demobilized
    during the first week of August. All of the work required to facilitate
    input data for the PFS is now complete. 
--  Metallurgical test work and Pilot Plant work led by SGS has been
    completed. The final results and report are in the process of being
    compiled and will be released when available, at or around the time the
    PFS is released. The conclusions from this testwork are being
    incorporated into the design criteria for the processing plant and
    equipment selection. Results are not expected to be materially different
    from the assumptions contained in the Company's Preliminary Economic
    Assessment although there will be a significantly higher level of
    confidence and engineering in those assumptions. 
--  The Company's consulting engineering firms are currently finalizing
    design criteria and pit optimization as well as their estimates of
    capital and operating costs, which are expected to confirm the positive
    economics of this world class project. 



Mr. Dean added: "We are also pleased with the fast-track progress being made on
the Pre-Feasibility Study and look forward, with enthusiasm, to its release on
schedule before the end of September."


OCEANIC IRON ORE CORP. (www.oceanicironore.com) 

On behalf of the Board of Directors

Steven Dean, Chairman and Chief Executive Officer