Champion Iron Corporate Update: Strong FY2019 First Quarter Results as Bloom Lake Iron ORE MINE Produces 2,166,000 Tonnes During RAMP-up

PRESS RELEASE

CHAMPION IRON CORPORATE UPDATE: STRONG FY2019 FIRST QUARTER

RESULTS AS BLOOM LAKE IRON ORE MINE PRODUCES 2,166,000 TONNES

DURING RAMP-UP

Montréal, Québec, August 13 , 2018 – Champion Iron Limited (TSX: CIA) ( ASX: CIA)

(“Champion Iron” or “The Company”) is pleased to announce that, with the successful

production ramp-up of its Bloom Lake Iron Ore Mine (“Bloom Lake”), it reported strong

operational and financial results for the 2019 financial year first quarter ended June 30,

2018 (see Champion Iron’s filings on SEDAR dated August 7, 2018)

Q1 FY2019 Highlights(All dollar figures are in Canadian dollars unless otherwise indicated)

 Production of 1,542,859 tonnes of iron ore concentrate in Q1 FY 2019 and

2,166,192 tonnes since the Bloom Lake restart

 Quarterly consolidated iron ore concentrate revenue of $150.7 million at an

average realized price of $86.61 per tonne

 Quarterly net income of $20.7 million

 Bloom Lake achieved commercial production on June 30, 2018, a head of

schedule

 Bloom Lake cash operating costs (See “Non -IFRS Financial Performance

Measures” in “Forward Looking information” section below) of $56.15 per

tonne, which were lower thanthe ramp-up forecasted cash operating costs

 Cash flow from operatingactivities (after non-cash working capital changes) of

$44.3 million

 Strong cash position of $89.0 million at quarter-end

 Undrawn balance of US$34.7 million from its subsidiary’s USD$180.0 million

financing debt facility

“The Company delivered strong earnings this quarter, during the production ramp-up at

Bloom Lake. Even though it is our first period with revenue, it resulted in a profit which

is a major achievement for the Company. Champion Iron demonstrated its ability to

significantly improve operatio nal performance at Bloom Lake while generating solid

operating cash flows.Management and its team at the minehave achieved their targets

set out in the Bloom Lake mine restart Feasibility Study announced on February 16,

2017 and published on March 17, 2017, which is an outstanding result”, said Chairman

and Chief Executive OfficerMichael O’Keeffe.

Currently and going forward, Champion Iron’s strategy is to continue with operational

improvements at the Bloom Lake mining operation while applying cost and capital

discipline. With the mine now generating positive cash flow from operations, the

Company is in a position to focus on strengthening its financial position and pursuing

growth opportunities.

About Quebec Iron Ore Inc.

Founded in 2016 by the mining development company Champion Iron Limited,

Quebec Iron Ore Inc. is a 100% Quebec -based entity managed by experts from

Quebec. The company was mandated to direct the relaunch of the Bloom Lake Mine,

a Champion Iron flagship project in Fermont, in northern Quebec.

About Champion Iron Limited

Champion is an iron mining, 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 Company implemented upgrades to the mine and processing

infrastructure and has partnered inprojects associated with improving access to global

iron markets, including rail and port infrastructure initi atives 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 and Non-IFRS Financial Performance Measures

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 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 Iron’s final short form prospectus relating to a completed equity Offering, annual

information form, management’s discussion and analysis and other securities regulatory filings

made by Champion Iron on SEDAR (including under the heading “Risk Factors” therein). There

can be no assurance that such infor mation 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 Iron’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 Iron’s

management and information available to management as at the date hereof. Champion Iron

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 bylaw.

Non-IFRS Financial Performance Measures

The Company has included cer tain Non -IFRS measures in this document with no standard

meaning under International Financial Reporting Standards ("IFRS"). Refer to Non-IFRS Financial

Performance Measures in the Company's Q1 FY2019 M anagement’s Discussion and Analysis

found under the Company’s filings on SEDAR (www.sedar.com) for further information.

The Company believes that these measures, in addition to conventional measures prepared in

accordance with IFRS, provide investors an improved ability to evaluate the underlying

performance of the Company. The non -IFRS measures are intended to provide additional

information and should not be considered in isolation or as a substitute for measures of

performance prepared in accordance with IFRS. These measures do not have any standardized

meaning prescribed under IFRS, and therefore may not be comparable to other issuers.