Champion Announces Entering into Definitive Agreements FOR Previously Announced Financing Arrangements

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CHAMPION ANNOUNCES ENTERING INTO DEFINITIVE AGREEMENTS FOR PREVIOUSLY

ANNOUNCED FINANCING ARRANGEMENTS

Montréal (Québec), Canada, October 11, 2017 : Champion Iron Limited (ASX: CIA) (TSX: CIA)

(the “Corporation” or “Champion”) is pleased to announce that it has entered, through its subsidiary

Québec Iron Ore Inc. (“QIO”), into definitive agreements in connection with its previously announced

debt financing by way of secured loans by each of Sprott Private Resource Lending (Collector), LP

(“Sprott”) and CDP Investissements Inc., a wholly-owned subsidiary of Caisse de dépôt et placement

du Québec (“Caisse”), for an aggregate amount of US$180 million (collectively, the “Debt

Financings”).

The closing of the transactions under each of the definitive Debt Financing agreements, and the

funding of the proceeds thereunder, are conditional upon the satisfaction of certain closing conditions,

including, with respect to the funding of the initial advance under the Caisse Debt Financing

transaction, the contribution by Fonds Capital Mines Hydrocarbures (CMH), managed by Ressources

Québec Inc., of its CA$26.2 million equity contribution to QIO, the non-brokered sale to Glencore

International AG for the previously announced US$25 million subordinated unsecured mandatory

convertible debenture as well as the release to the Corporation, and further contribution to QIO, of the

net proceeds of the subscription receipts public offering (the “Offering”) which was completed on

September 29, 2017, as previously announced by the Corporation.

The Corporation is now working to expeditiously satisfy such conditions in order to use the proceeds

of these financing arrangements as previously disclosed by the Corporation, including, principally, for

the restart of the operations of the Bloom Lake iron ore mine located near Fermont, Québec (“Bloom

Lake”).

Debt Financings

As previously disclosed by the Corporation, the Debt Financings are comprised of (i) a 5-year senior

secured loan in the aggregate amount of US$80 million provided by Sprott and carrying interest at a

rate of 7.5% plus the greater of US dollars 3 month LIBOR and 1% per annum; and (ii) a 7-year

subordinated loan in the aggregate amount of US$100 million provided by Caisse and carrying interest

at a rate of 12% for the first year and thereafter at an interest rate linked to the price of iron ore for

subsequent years.

Under the terms of the definitive Debt Financing agreements, Sprott will be issued a total of 3,000,000

ordinary share purchase warrants of Champion and Caisse will be issued a total of

21,000,000 ordinary share purchase warrants of Champion, each of which will entitle its holder to

purchase one ordinary share of Champion at a price of CA$1.125, as approved by the shareholders of

Champion on August 18, 2017.

About Champion

Champion is an iron development and exploration company, focused on developing its significant iron

resources in the south end of the Labrador Trough in the province of Québec. Following the

acquisition of its flagship asset, the Bloom Lake iron ore property, the Corporation’s main focus is to

implement upgrades to the mine and processing infrastructure it now owns while also advancing

projects associated with improving access to global iron markets, including rail and port infrastructure

initiatives with government and other key industry and community stakeholders.

Champion’s management team includes professionals with mine development and operations

expertise who also have vast experience from geotechnical work to green field development, brown

field management including logistics development and financing of all stages in the mining industry.

For further information please contact:

Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858

David Cataford, COO at Tel. +1 514-316-4858

For additional information on Champion Iron Limited, please visit our website at

www.championiron.com

Forward-Looking information

This news release includes certain information that may constitute “forward-looking information” under

applicable Canadian securities legislation. All statements, other than statements of historical facts,

included in this news release that address the closing of the Debt Financing transactions, the sale of

the Debenture, the contribution by Fonds Capital Mines Hydrocarbures, the release of the net

proceeds of the Offering to the Corporation, the expected restart date of Bloom Lake as well as future

activities, events, developments or financial performance constitute forward-looking information. The

use of any of the words “will”, “expect”, “anticipate”, “intend”, “believe”, “plan”, “potential”, “outlook”,

“forecast”, “estimate” and similar expressions are intended to identify forward-looking information.

Forward-looking information is necessarily based upon a number of estimates and assumptions that,

while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors

which may cause the actual results and future events to differ materially from those expressed or

implied by such forward-looking information, including the risks identified in Champion’s final short

form prospectus relating to the Offering, annual information form, management’s discussion and

analysis and other securities regulatory filings made by Champion on SEDAR (including under the

heading “Risk Factors” therein). There can be no assurance that such information will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such

forward-looking information. Accordingly, readers should not place undue reliance on forward-looking

information. All of Champion’s forward-looking information contained in this press release is given as

of the date hereof and is based upon the opinions and estimates of Champion’s management and

information available to management as at the date hereof. Champion disclaims any intention or

obligation to update or revise any of its forward-looking information, whether as a result of new

information, future events or otherwise, except as required by law.