Champion Iron Limited Responds to Market Activity

January 13, 2017

Champion Iron Limited Responds to Market Activity

Montréal, Québec, Canada: At the request of IIROC (“Investment Industry Regulatory

Organization of Canada”), Champion Iron Limited (ASX: CIA, TSX: CIA) (the “Company”) wishes to

confirm that it is not aware of any material, undisclosed information related to the Company that

would account for the recent increase in the market price and level of trading volume of its ordinary

shares.

For further information please contact:

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

About Champion

Champion has been working on the development of iron ore deposits in the Labrador Trough for

more than 10 years through acquisition of tenements, geological evaluation and development of a

Feasibility study (Fire Lake North deposit). The management team has a vast experience from

geotechnical work to green field development, brown field management including logistics

development and financing of all stages in the mining industry.

Prior to the acquisition of Bloom Lake, the main focus of Champion’s activities, holding over 3 billion

tons of high quality iron ore resources, were concentrated on the effort to achieve an economical

long term access from mine to ship. The Government of Québec has granted CAD $20 million for the

feasibility study of a new rail linking Fire Lake / Bloom Lake area to the port of Sept-Îles. This study is

being managed by Champion.

Following the acquisition of Bloom Lake the Company’s main focus is to implement upgrades to the

mine and processing infrastructure it now owns whilst advancing projects associated with improving

access to global markets. This includes progressing rail and port infrastructure initiatives with

government and other key industry and community stakeholders.

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

www.championiron.com.

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

applicable Canadian securities legislation. Forward -looking information includes, but is not limited to,

statements about planned operations at the Company’s projects, including its joint venture projects. For ward-

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 dif fer materially from those expressed or implied by such forward -looking

information, including the risks identified in Champion’s annual information forms, management discussion

and analysis and other securities regulatory filings by Champion on SEDAR (incl uding 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.

This press release has been prepared by Champion Iron Limited and no regulatory authority has approved or

disapproved the information contained herein.