Champion Announces Offering of Subscription Receipts and Filing of Preliminary Short Form Prospectus

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CHAMPION ANNOUNCES OFFERING OF SUBSCRIPTION RECEIPTS

AND FILING OF PRELIMINARY SHORT FORM PROSPECTUS

Montréal (Québec), Canada, August 1, 2017: Champion Iron Limited (ASX: CIA) (TSX: CIA)

(the "Corporation" or " Champion") is pleased to announce that it has filed a preliminary short

form prospectus with the securities regulatory authorities in each of the provinces of Canada

with respect to a marketed offering o f approximately $50 million (the “ Offering”) of subscription

receipts of the Corporation (the “Subscription Receipts”).

As previously announced on July 12, 2017, Québec Iron Ore Inc. (“QIO”), a subsidiary of the

Corporation, has received conditional commi tments of US$180 million (the “ QIO Debt

Financing”) to partially fund the costs of resuming the operations of the Bloom Lake Iron Ore

Mine (“Bloom Lake”). One of the conditions of the QIO Debt Financing requires the Corporation

and QIO to secure all financ ing requirements for the Bloom Lake restart. In connection

therewith, Champion and Ressources Québec Inc . are required to contribute financially to

support the resumpt ion of operations at Bloom Lake by making capital contributions to QIO of

approximately $44.8 million and $26.2 million, respectively. The Corporation intends to use the

net proceeds of the Offering to make such capital contribution to QIO, and for general corporate

purposes.

The net proceeds of the Offering will be held in escrow and, upon the satisfaction or waiver of

certain conditions, being: (a) the execution of definitive documentation in connection with the

QIO Debt Financing and the satisfaction or waiver of all conditions precedent to the availability

of the funds thereunder (other than such condition precedents that by their nature are to be

satisfied upon closing of the QIO Debt Financing); and (b) the funding of the capital contribution

of Ressources Québec Inc.; the net proceeds will be released to the Corporation and holders of

the Subscription Receipts will be entitled to receive, without payment of additional consideration

or taking of further action, one ordinary share of Champion for each Subscription Receipt held. If

these conditions have not been satisfied or waived by September 29, 2017 or if any of the

parties to the QIO Debt Financing decides not to proceed with the QIO Debt Financing, then the

Subscription Receipts shall be automatically cancelled and the e scrow agent shall remit to

holders of the Subscription Receipts an amount equal to the original purchase price plus

accrued interest.

The underwriting syndicate for the Offering will be led by RBC Capital Markets, which will act as

sole bookrunner, and includes Sprott Capital Partners as co-lead underwriter. The Corporation

expects to grant the underwriters an option to purchase additional Subscription Receipts to

cover over-allotments, if any, and for market stabilization purposes.

The underwriters intend to market the Offering over the next week and the number of

Subscription Receipts to be issued and the issue price will be determined by arm's length

negotiations between the Corporation and the underwriters. At that time, the Corporation will

announce the final terms of the Offering, execute the underwriting agreement and file the final

short form prospectus.

The Corporation will apply to list the Subscription Receipts and the ordinary shares underlying

the Subscription Receipts (the “ Underlying Shares ”) on the Toronto Stock Exchange . The

Corporation will also apply for quotation of the Underlying Shares on the Australian Securities

Exchange. The Offering is expected to close in mid-August, 2017 and is subject to receipt of the

prior app roval of the Offeri ng by the Toronto Stock Exchange and other customary closing

conditions. A copy of the preliminary short form prospectus is available under the Corporation’s

profile at www.sedar.com.

The Offering is being made i n all the provinces of Canada. Subject to a pplicable law and the

provisions of the underwriting agreement, the u nderwriters may offer the Subscrip tion Receipts

outside of Canada, including in the United States in reliance on applicable private placement

exemptions under United States federal and state securities laws.

No securities regulatory authority has either approved or disapproved the contents of this press

release. This news release does not constitute an offer to sell or a solicitation of an offer to buy

any of the securities in the United States. Champion’s securities have not been and will not be

registered under the United States Securities Act of 1933, as amended (the “ U.S. Securities

Act”), or any state securities laws and may not be offered or sold within the United States

unless registered under the U.S. Securities Act and applicable state securities laws or an

exemption from such registration is available.

The Corporation is not required to and does not intend to seek shareholder approval in relation

to the proposed issue of Subscription Receipts or the Underlying Shares.

About Champion

Champion is an iron development and exploration company, focused o n developing its

significant iron resources in the south end of Labrador Through 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 infrastructur e 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 rele ase that address the terms of the Offering, the

satisfaction of the escrow release conditions, the use of proceeds, the listing of the Subscription

Receipts and the Underlying Shares on the Toronto Stock Exchange and the quotation of the

Underlying Shares on the Australian Securities Exchange , and the tim ing for closing of the

Offering 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, inclu ding the risks identified in Champion’s preliminary 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 pla ce 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 t o 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.