Champion Iron Announc Es That Rail Way Services Resumed Following a Third-Party Train Derailment
PRESS RELEASE
CHAMPION IRON ANNOUNC ES THAT RAIL WAY SERVICES RESUMED FOLLOWING A
THIRD-PARTY TRAIN DERAILMENT
MONTRÉAL , January 8, 2026 / SYDNEY , January 9, 202 6 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or
the "Company") announces that railway services have resumed following a recent third-party train derailment on the Quebec North Shore
and Labrador Railway ("QNSL"), which is utilized to transport high -purity iron ore concentrate from the Company’s Bloom Lake mine
("Bloom Lake") to the port of Sept-Îles (the "Railway"). The derailment on the Railway occurred on December 28, 2025 (Montréal time) (the
"Derailment") and services gradually resumed on January 4, 2026. While operations at Bloom Lake were not materially affected by the
Railway interruptions, the Company had to stockpile high-purity iron ore concentrate at its mine site. Champion is collaborating with QNSL
to optimize the gradual resumption of services on the Railway and minimize the impact to its operations and sales.
About Champion Iron Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the
south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open -pit operation with two
concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wet
metric tonnes per year that produce lower contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5%
Fe direct reduction quality iron ore concentr ate. Benefiting from one of the highest purity resources globally, Champion is investing to
upgrade half of the Bloom Lake 's mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake 's high-
grade and lower contaminant iron ore products have attracted a premium to the P62 index. Champion ships iron ore concentrate from
Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan,
the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion holds a 51% equity interest in Kami Iron Mine
Partnership, an entity also owned by Nippon Steel Corporation and Sojitz Corporation, which owns the Kami Project. The Kami P roject is
located near available infrastructure, only 21 kilometres southeast of Bloom Lake. Champion also owns a portfolio of explorat ion and
development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 kil ometres south of Bloom
Lake.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that may constitute "forward- looking information" or "forward -looking
statements" under applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the use of words such as "plans" , "expects" , "is expected" , "budget" ,
"scheduled" , "estimates" , "continues" , "forecasts" , "projects" , "predicts" , "intends" , "anticipates" , "aims" , "targets" or "believes" , or variations
of, or the negatives of, such words and phrases, or state that certain actions, events or results "may" , "could" , "would" , "should" , "might" or
"will" be taken, occur or be achieved. Inherent in forward- looking stateme nts are risks, uncertainties and other factors beyond the
Company's ability to predict or control.
Specific Forward-Looking Statements
All statements other than statements of historical facts included in this press release that address future events, developments or
performance that Champion expects to occur are forward-looking statements. Forward-looking statements include, among other things,
Management's expectations regarding the Railway service interruptions , the resumption of services on the Railway, the impact of the
Derailment and the Railway service interruptions on the Company's operations and sales and the collaboration with QNSL to mitigate the
impacts of the Derailment.
Risks
Although Champion believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such
forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the con trol of
the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or
implied by such forward- looking statements. Factors that could cause the actual results to differ materially from th ose expressed in
forward-looking statements include, without limitation, future prices of iron ore; future transportation costs; general economic,
competitive, political and social uncertainties; continued availability of capital and financing and general economic, market or business
conditions; timing and uncertainty of indust ry shift to electric arc furnaces, impacting demand for high -grade feed; failure of plant,
equipment or processes to operate as anticipated; delays in obtaining governmental approvals, necessary permitting or in the completion
of development or construction activities; the results of feasibility and other studies; changes in the assumptions used to prepare
feasibility and other studies; project delays; geopolitical events; and the effects of catastrophes and public health crises on the global
economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Fact ors" of the
Company's Management's Discussion and Analysis for the finan cial year ended March 31, 202 5, which are available on SEDAR+
at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com. There can be no assurance
that such information will prove to be accurate as actual results and future events could differ materially from those antici pated in such
forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Additional Updates
All of the forward-looking statements contained in this press release are given as of the date hereof or such other date or dates specified
in the forward-looking statements and are 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 the forward- looking
statements, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update
one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other
forward-looking statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should
carefully consider the above factors as well as the uncertainties they represent and the risks they entail.
For further information, please contact:
Champion Iron Limited
Michael Marcotte, CFA
Senior Vice-President, Corporate Development and Capital Markets
+1-514-316-4858, Ext. 1128
For additional information on Champion Iron Limited, please visit our website at: www.championiron.com.
This press release has been authorized for release to the market by Champion’s CEO, David Cataford.