Champion Iron Reports Its FY2025 Third Quarter Results, Advances the Drpf Project and Initiates Kami Feasibility Study with Partners
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PRESS RELEASE
CHAMPION IRON REPORTS ITS FY2025 THIRD QUARTER RESULTS, ADVANCES THE
DRPF PROJECT AND INITIATES KAMI FEASIBILITY STUDY WITH PARTNERS
▪ Quarterly production of 3.6M wmt, sales of 3.3M dmt, revenue of $363M and EBITDA of $88M1
▪ DRPF project advancing on budget and as scheduled for commissioning in December 2025, including an
additional $69M deployed in the quarter with cumulative investments to date of $288M
▪ Entered into a binding agreement with Nippon and Sojitz to form a partnership to evaluate the Kami
Project and initiated a definitive feasibility study
Montréal, January 29, 2025 (Sydney, January 30, 2025) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“ Champion” or the
“Company”) reports its operational and financial results for its financial third quarter ended December 31, 2024.
Champion’s CEO, Mr. David Cataford, said, “Our workforce demonstrated their responsiveness and ingenuity during the breakdown of a critical
piece of equipment in the period. While events inevitably impacted quarterly results, Bloom Lake has proven its oper ational stability in the last
several years, providing the foundation to grow our position as a leading high -purity iron ore producer. As such, our DRPF project continues to
advance towards an expected commissioning in December 2025, further aligning our C ompany with the green steelmaking transition which
supports higher pricing premiums for our products. Additionally, the rare quality of our high-purity iron ore resources, local support and operational
expertise enabled our Company to attract global indust ry leaders as partners for the Kami Project. This newly formed agreement provides an
opportunity to further evaluate the Kami Project, including initiating a definitive feasibility study, which is expected to be completed by mid-2026. ”
Conference Call Details
Champion will host a conference call and webcast on January 30, 2025, at 9:00 AM (Montréal time) / January 31, 2025, at 1:00 AM (Sydney time)
to discuss the results of the financial third quarter ended December 31, 2024. Call details are set out at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
• During the three -month period ended December 31, 2024, no major environmental incidents were reported; however, one non-fatal
incident occurred involving a contractor at the DRPF construction site;
• Quarterly production of 3.6 million wmt (3.5 million dmt) of high -grade 66.3% Fe concentrate for the three -month period ended
December 31, 2024, up 14% from the previous quarter and down 10% over the same period last year;
• In December 2024, shipments were negatively impacted by a 14-day interruption due to the breakdown of a critical piece of equipment
at the Bloom Lake mine’s train load- out facility, which is utilized to ship iron ore concentrate by railway to the port of Sept -Îles (the
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“Load-Out”). During this period, the Company stockpiled its production and took the opportunity to complete additional maintenance,
which impacted production. Despite th is interruption, quarterly iron ore concentrate sales were 3.3 million dmt for the three -month
period ended December 31, 2024, comparable to the previous quarter and the prior-year period;
• Iron ore concentrate stockpiled at Bloom Lake increased slightly to 2.9 million wmt as at December 31, 2024, compared to 2.8 million
wmt as at September 30, 2024, primarily as a result of events at the Load-Out. The Company is confident that the iron ore concentrate
currently stockpiled at Bloom Lake will decrease in future periods. The Company believes that the receipt of 400 railcars, and additional
rolling stock recently commissioned by the rail operator should improve the rail shipment capabilities in the near-term; and
• Record material mined and hauled at Bloom Lake totalling 20.0 million tonnes for the three-month period ended December 31, 2024,
up 8% from the previous quarter and 10% from last year. The Company also achieved monthly sales in November of almost 1.6 million
dmt, driven by 1.4 million wmt of concentrate transported from Bloom Lake, and by the loading of the two largest vessels in the
Company’s history.
Financial Results
• Gross average realized selling price of US$113.4/dmt1, compared to the P65 index average of US$118.0/dmt in the period;
• Net average realized selling price of US$78.8/dmt1, comparable quarter-on-quarter, and representing a decrease of 32% year-on-year;
• C1 cash cost of $78.7/dmt1 (US$56.3/dmt)2, comparable quarter-on-quarter, and representing an increase of 8% year-on-year;
• EBITDA of $88.2 million1, an increase of 18% quarter-on-quarter, and a decrease of 64% year-on-year;
• Net income of $1.7 million, a decrease of 91% quarter-on-quarter, and 99% year-on-year, negatively impacted by an unrealized foreign
exchange loss of $21.1 million resulting from the revaluation of net monetary liabilities denominated in U.S. dollars;
• Cash balance totalled $93.1 million as at December 31, 2024, a decrease of $90.7 million since September 30, 2024, as the Company
continued to advance the DRPF project and paid its seventh semi-annual dividend of $0.10 per ordinary share totalling $51.8 million on
November 28, 2024 (Montréal and Sydney); and
• Available liquidity to support growth initiatives, including amounts available from the Company’s credit facilities, totalled $595.0 million1
at quarter-end, compared to $759.3 million1 as at September 30, 2024.
Growth and Development
• The DRPF project, aimed at upgrading half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, is progressing
on schedule and on budget, with commissioning currently expected in December 2025. Quarterly and cumulative investments of
$69.3 million and $287.8 million, respectively, as at December 31, 2024, out of the estimated total capital expenditures of
$470.7 million, as detailed in the project study released in January 2023;
• Entered into a binding agreement with Nippon Steel Corporation (“Nippon”) and Sojitz Corporation (“Sojitz” , and collectively with Nippon,
the “Partners”) to form a partnership (the “Partnership”) for the joint ownership and development of the Kami Project (the “Transaction”).
The Partners share the Company’s long -term vision for Kami and will initially contribute $245 million for 49% of the equity interest in
the Partnership. The Company may receive future payments based on the Kami Project’s financial performance, if and when in
operation. Closing of the Transaction is subject to the Company and the Partners entering into a framework agreement (the “Framework
Agreement”) to advance the Kami Project towards a potential interim investment decision (“IID”) and ultimately a final invest ment
decision (“FID”), including Kami Project permitting and the completion of a definitive feasibility study for the Kami Project (the “DFS”),
which is expected to be completed in calendar mid-2026. The Partners will also contribute cash to the Partnership to support their share
of the DFS over the next two years. Should the Company and the Partners make a positive FID election following the completion of the
DFS, they will share development and construction costs of the Project in accordance with their respective ownership interests. Through
the Transaction and future pro -rata contributions from the Partners, the Project will benefit from up to $490 million in contributions
prior to Champion requiring additional capital funding for its pro-rata share of the Project; and
• Additional mining equipment received during the period, increasing the Bloom Lake’s mine production capacity, including stripping
activities.
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2. Bloom Lake Mine Operating Activities
During the three-month period ended December 31, 2024, an outage occurred on the Company’s Load-Out facility at Bloom Lake, which caused
a 14-day interruption of rail haulage activities. During the repair period of the Load-Out, the Company took the opportunity to complete additional
maintenance, which impacted production. The port operator also took advantage of this interruption to carry out maintenance work on its ship
loader. Despite reclaimed tonnes in the first two months of the quarter, the iron ore concentrate stockpiled at Bloom Lake increased to 2.9 million
wmt as at December 31, 2024, compared to 2.8 million wmt as at September 30, 2024, as no iron ore concentrate was hauled to the port of Sept-
Îles from December 3 to December 17, 2024. The Load -Out facility was repaired at a relatively low cost and rail haulage activities gradually
resumed on December 17, 2024. During the three -month period ended December 31, 2024, sales volumes were also impacted by a planned
shutdown at the port of Sept-Îles for maintenance activities, a rail service interruption due to a landslide on the main line, as well as a minor train
derailment at the beginning of the period. Despite these events, sales volume remained stable quarter-on-quarter and year-on-year.
The Company is confident that the iron ore concentrate currently stockpiled at Bloom Lake will decrease in future periods. The Company believes
that the receipt of 400 railcars, and additional rolling stock recently commissioned by the rail operator should improve the rail shipment
capabilities in the near-term. The Company also continues to seek improvements from the rail operator to receive contracted haulage services
on a continued basis to ensure that Bloom Lake’s production, as well as iron ore concent rate currently stockpiled at Bloom Lake, is hauled over
future periods.
As part of the investments required to address operational bottlenecks and increase stripping activities in the future, as pe r the mine plan, the
Company received and commissioned additional haul trucks and loading equipment during the three-month period ended December 31, 2024.
As a result, the Company achieved record production at Bloom Lake , with material mined and hauled exceeding 20 million tonnes during the
quarter for the first time. The Company continues to analyze work programs and investments required to structurally increase Bloom Lake’s
nameplate capacity beyond 15 Mtpa over time.
To optimize operations, since the fourth quarter of the 2024 financial year, the Company has arranged for both plants' scheduled maintenance
to be in tandem in the financial second and fourth quarters, compared to alternating scheduled plant maintenance quarterly. This cr eates
significant differences quarter-on-quarter on production output, mining and processing costs and inventory valuation at quarter-end.
Q3 FY25 Q2 FY25 Q/Q Change Q3 FY24 Y/Y Change
Operating Data
Waste mined and hauled (wmt) 9,694,200 9,323,600 4 % 6,993,200 39 %
Ore mined and hauled (wmt) 10,347,500 9,287,100 11 % 11,215,800 (8) %
Material mined and hauled (wmt) 20,041,700 18,610,700 8 % 18,209,000 10 %
Stripping ratio 0.94 1.00 (6) % 0.62 52 %
Ore milled (wmt) 10,305,300 9,125,000 13 % 11,137,000 (7) %
Head grade Fe (%) 29.3 29.1 1 % 29.4 — %
Fe recovery (%) 79.1 78.7 1 % 81.4 (3) %
Product Fe (%) 66.3 66.3 — % 66.3 — %
Iron ore concentrate produced (wmt) 3,620,600 3,170,100 14 % 4,042,600 (10) %
Iron ore concentrate sold (dmt) 3,287,400 3,265,700 1 % 3,227,500 2 %
Bloom Lake produced 3.6 million wmt ( 3.5 million dmt) of high -grade iron ore concentrate during the three-month period ended
December 31, 2024, a decrease of 10% compared to 4.0 million wmt (3.9 million dmt) during the same period in 2023.
During the three -month period ended December 31, 2024, a record 20.0 million tonnes of material were mined and hauled, compared to
18.2 million tonnes during the same period in 2023, representing an increase of 10%. The increased mine performance was attributable to a higher
utilization and availability of mining equipment, additional haul trucks, and loading equipment commissioned at the end of the period.
The mining equipment’s increased performance allowed the Company to mine and haul a higher volume of waste material, resulting in a stripping
ratio of 0.94 for the three-month period ended December 31, 2024, significantly higher than the 0.62 ratio for the same prior-year period. During
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the previous quarter, the Company mined and hauled 18.6 million tonnes of materials for a stripping ratio of 1.00 . With the recent addition of
mining equipment, Champion expects to maintain this high level of mining and hauling activities in the future, in line with the LoM plan.
During the three- month period ended December 31, 2024, the two concentration plants at Bloom Lake processed 10.3 million tonnes of ore,
compared to 11.1 million tonnes for the same prior -year period, representing a decrease of 7%. During the same period last year, the Company
decided to run both plants beyond their nameplate capacity to identify operational bottlenecks. Ore processed during the three-month period
ended December 31, 2024, continued to be negatively impacted by higher ore hardness which reduced milling capacity and Fe recovery.
Production was also slightly impacted by the timing of maintenance activities during the interruption of the rail haulage act ivities as described
above.
The iron ore head grade for the three-month period ended December 31, 2024, was 29.3%, comparable to the same period in 2023. The variation
in head grade was within expected normal variations of the mine plan.
Champion’s average Fe recovery rate was 79.1% for the three-month period ended December 31, 2024, compared to 81.4% for the same period in
2023. The Company will continue to optimize recovery circuits and expects to improve and stabilize recovery rates over time.
3. Financial Performance
Q3 FY25 Q2 FY25 Q/Q Change Q3 FY24 Y/Y Change
Financial Data (in thousands of dollars)
Revenues 363,170 350,980 3 % 506,891 (28) %
Cost of sales 258,728 252,960 2 % 235,457 10 %
Other expenses 17,290 23,153 (25) % 27,219 (36) %
Net finance costs 30,508 7,486 308 % 8,747 249 %
Net income 1,741 19,807 (91) % 126,462 (99) %
EBITDA1 88,216 74,536 18 % 246,609 (64) %
Statistics (in dollars per dmt sold)
Gross average realized selling price1 158.8 161.8 (2) % 195.8 (19) %
Net average realized selling price1 110.5 107.5 3 % 157.1 (30) %
C1 cash cost1 78.7 77.5 2 % 73.0 8 %
AISC1 93.9 101.4 (7) % 83.9 12 %
Cash operating margin1 16.6 6.1 172 % 73.2 (77) %
A. Revenues
Revenues totalled $363.2 million for the three-month period ended December 31, 2024, compared to $506.9 million for the same period in 2023,
mostly driven by lower gross average realized selling prices and $17.4 million negative provisional pricing adjustments on sales recorded during
the previous quarter, partially offset by slightly lower freight and other costs, and a weaker Canadian dollar. Sales volumes of 3.3 million tonnes
of high-grade iron ore concentrate were comparable to the same prior -year period. Sales volumes were impacted by the interruption of rail
haulage activities in December as outlined in previous sections of this press release, a planned shutdown at the port of Sept-Îles, a rail interruption
due to heavy rains, as well as a minor train derailment at the beginning of the period.
Negative provisional pricing adjustments on prior quarter sales of $17.4 million (US$12.9 million) were recorded during the three-month period
ended December 31, 2024, representing a negative impact of US$3.9/dmt over 3.3 million dmt sold during the quarter. A final average price of
US$114.4/dmt was established for the 2.3 million tonnes of iron ore that remained subject to pricing adjustments as at September 30, 2024,
which were provisionally priced at US$119.9/dmt.
The gross average realized selling price of US$113.4/dmt1 for the three-month period ended December 31, 2024, was lower than the P65 index
average price of US$118.0/dmt for the period. The gross average realized selling price for the period was impacted by the 1.7 million tonnes that
remained subject to pricing adjustments as at December 31, 2024, and which were evaluated using an average price of US$110.1/dmt. The price
of sales contracts using backward -looking iron ore index prices was comparable to the P 65 index average price for the period. The P65 index
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premium over the P62 index averaged 14.1% during the quarter, up significantly from 8.1% in the comparative period.
Freight and other costs of US$30.7/dmt during the three-month period ended December 31, 2024, decreased by 5%, compared to US$32.2/dmt
in the same prior-year period. This decrease was mainly driven by lower average C3 index of US$21.6/t for the period, compared to US$24.9/t for
the same period last year. The 5% decrease in freight and other costs was lower than the 13% decrease in the average C3 index for the period, due
to the vessels being rerouted via the Cape of Good Hope as a result of the conflict in the Red Sea, and the timing of vessels booked. Champion
typically books vessels three to five weeks prior to the desired laycan period. As such, for vessels contracted on the spot m arket, the Company
did not benefit from the lower C3 index prices of December. Moreover, the events at the Load -Out negatively impacted demurrage costs during
the period.
After taking into account sea freight and other costs of US$30.7/dmt and the negative provisional pricing adjustments of US$3.9/dmt , the
Company obtained a net average realized selling price of US$78.8/dmt (C$110.5/dmt1) for its high-grade iron ore shipped during the quarter.
B. Cost of Sales and C1 Cash Cost
For the three-month period ended December 31, 2024, the cost of sales totalled $258.7 million with a C1 cash cost of $78.7 /dmt1, compared to
$235.5 million with a C1 cash cost of $73.0/dmt1 for the same period in 2023. Cost of sales in the previous quarter was $253.0 million with a C1
cash cost of $77.5/dmt1.
Mining and processing costs for the 3.5 million dmt produced in the three-month period ended December 31, 2024, totalled $49.6/dmt produced1,
representing an increase of 9% compared to $45.3/dmt produced1 in the same period last year. This increase was mainly driven by a 10% reduction
in the volume of iron ore concentrate produced leading to a lower absorption of fixed costs, higher maintenance cost relating to planned and
unplanned maintenance activities and higher subcontractor expenses at the mine required for stripping activities.
Land transportation and port handling costs for the three-month period ended December 31, 2024, were $26.2/dmt sold1, higher than $24.4/dmt
sold1 last year. This increase was partially attributable to the volume impact of iron ore concentrate hauled as a result of the events at the Load-
Out in December. The increase in C1 cash costs over the same period last year was also due to the change in conce ntrate inventory valuation
impacted by mining and processing costs incurred in the previous quarter, and production volumes.
C. Net Income & EBITDA
For the three-month period ended December 31, 2024, the Company generated EBITDA of $88.2 million1, representing an EBITDA margin of 24%1,
compared to $246.6 million1, representing an EBITDA margin of 49%1, for the same period in 2023. Lower EBITDA and EBITDA margin were mainly
driven by lower net average realized selling prices and higher cost of sales.
For the three- month period ended December 31, 2024, the Company generated net income of $1.7 million (EPS of 0.00 ), compared to
$126.5 million (EPS of $0.24) for the same prior-year period. This decrease in net income is attributable to lower gross profit and an unrealized
foreign exchange loss of $21.1 million resulting from the revaluation of net monetary liabilities denominated in U.S. dollars, partially offset by
lower income and mining taxes.
D. All in Sustaining Cost & Cash Operating Margin
During the three-month period ended December 31, 2024, the Company realized an AISC of $93.9 /dmt1, compared to $83.9/dmt1 for the same
period in 2023, mainly attributable to higher C1 cash cost and higher sustaining capital expenditures as outlined in section 5 below. AISC during
the quarter was also impacted by lower than anticipated sales volumes due to the outage of the Company’s load-out facilities.
The Company generated a cash operating margin of $16.6/dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month
period ended December 31, 2024, compared to $73.2/dmt1 for the same prior-year period. The variation was due to a lower net average realized
selling price, combined with a higher AISC for the period.
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4. Exploration Activities
During the three and nine-month periods ended December 31, 2024, the Company maintained all of its properties in good standing and no farm-
in/farm-out arrangements have come into force. As outlined in section 1 - Quarterly Highlights , subject to final negotiations and definitive
transaction documents, the Partners agreed to jointly conduct and fund certain aspects of the Kami DFS on a pro-rata basis in accordance with
their respective ownership interests. The expected reimbursements of expenses already incurred by Champion pursuant to the collaboration
agreement signed with the Partners were reduced from exploration and evaluation assets.
During the three and nine-month periods ended December 31, 2024, $9.2 million and $16.6 million were incurred in exploration and evaluation
expenditures, respectively, compared to $5.8 million and $13.1 million, respectively, for the same prior-year periods. During the three and nine-
month periods ended December 31, 2024, exploration and evaluation expenditures consisted of work done in Québec and in Newfoundland and
Labrador.
Details on exploration projects together with maps are available on the Company’s website at www.championiron.com under the Operations &
Projects section.
5. Cash Flows — Purchase of Property, Plant and Equipment
Three Months Ended Nine Months Ended
December 31, December 31,
2024 2023 2024 2023
(in thousands of dollars)
Tailings lifts 21,514 11,662 65,615 66,649
Stripping and mining activities 5,400 7,227 33,307 17,032
Other sustaining capital expenditures 11,279 5,142 43,198 20,599
Sustaining Capital Expenditures 38,193 24,031 142,120 104,280
DRPF project 69,335 30,989 192,477 59,010
Other capital development expenditures at Bloom Lake 74,741 41,656 142,315 79,442
Purchase of Property, Plant and Equipment as per Cash Flows 182,269 96,676 476,912 242,732
Sustaining Capital Expenditures
Sustaining capital expenditures were $14.2/dmt sold for the nine-month period ended December 31, 2024, compared to $12.0/dmt for the same
prior-year period. This increase was mostly driven by additional mining development and equipment rebuild programs required to support
additional production over the LoM.
The tailings-related investments for the three and nine-month periods ended December 31, 2024, were in line with the Company’s long-term plan
to support the LoM operations. As part of its ongoing and thorough tailings infrastructure monitoring and inspections, Champi on continues to
invest in its safe tailings strategy and is implementing its long- term tailings investment plan. During the three and nine -month periods ended
December 31, 2024, the Company started the expansion of its storage capacity to suppor t the higher level of operation. The Company’s tailings
work programs are typically executed between May and November due to more favourable weather conditions.
Stripping and mining activities for the three and nine -month periods ended December 31, 2024, were comprised of mine development costs,
including topographic and pre-cut drilling work, as part of the Company’s mine plan. The increase for the nine-month period ended December 31,
2024, was notably attributable to $6.3 million stripping costs capitalized ($1.8 million for the same period in 2023).
The increase in other sustaining capital expenditures for the three and nine-month periods ended December 31, 2024, was mainly attributable to
mining equipment rebuild programs driven by Champion’s growing mining fleet, renovations of accommodation complexes, and rail car-related
improvements, as part of the Company’s plan to increase its rail capacity. These expenditures are in line with the Company’s investment strategy
to support growth projects over the LoM.
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DRPF Project
During the three and nine -month periods ended December 31, 2024, $69.3 million and $192.5 million, respectively, were spent in capital
expenditures related to the DRPF project ($31.0 million and $59.0 million respectively, for the same prior -year periods). Investments mainly
consisted of engineering work, foundations -related civil work and the construction of the building extension. Cumulative investments of
$287.8 million were deployed on the DRPF project as at December 31, 2024, with an estimated total capital expenditure of $470.7 million, as per
the project study released in January 2023.
Other Capital Development Expenditures at Bloom Lake
During the three and nine-month periods ended December 31, 2024, other capital development expenditures at Bloom Lake totalled $74.7 million
and $142.3 million, respectively, compared to $41.7 million and $79.4 million, respectively, for the same periods in 2023.
The following table details other capital development expenditures at Bloom Lake:
Three Months Ended Nine Months Ended
December 31, December 31,
2024 2023 2024 2023
(in thousands of dollars)
Infrastructure improvements and conformity (i) 5,763 9,292 30,828 23,308
Mine maintenance garage expansion (ii) 612 5,359 8,075 20,543
Deposits or final payment for mining equipment 117 7,721 19,537 19,398
Railcars (iii) 59,647 — 69,370 —
Other (iv) 8,602 19,284 14,505 16,193
Other Capital Development Expenditures at Bloom Lake 74,741 41,656 142,315 79,442
(i) Infrastructure improvements and conformity expenditures included various capital projects aimed at improving the performance or capacity
of assets, including pads to expand the Company’s capacity to stockpile concentrate at the site, construction of a core shack, autonomous
and remote drilling hardware and bridge conformity work programs.
(ii) The mine maintenance garage expansion was required to support the Company’s expanded truck fleet, which made a significant contribution
to the Company’s recent mining performance. The construction was completed in the three-month period ended December 31, 2024.
(iii) To improve rail shipment flexibility in the future, Champion ordered 400 additional railcars in July 2024, which were financed by a long-term
loan. These were all delivered as at December 31, 2024.
(iv) Other expenditures mainly consisted of capitalized borrowing costs on the DRPF project. In the 2024 financial year, this included investment
in third-party facilities to handle additional production from the second plant, partially offset by the receipt of government grants related to
the Company’s initiatives to reduce GHG emissions and energy consumption.
6. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on January 30, 2025, at 9:00 AM (Montréal time) / January 31, 2025,
at 1:00 AM (Sydney time). Listeners may access a live webcast of the conference call from the Investors section of the Company’s website at
www.championiron.com/investors/events-presentations or by dialing toll free +1-888-699-1199 within North America or +61-2-8017-1385 from
Australia.
An online archive of the webcast will be available by accessing the Company’s website at www.championiron.com/investors/events-
presentations. A telephone replay will be available for one week after the call by dialing +1 -888-660-6345 within North America or +1-289-819-
1450 overseas, and entering passcode 13894#.
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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 km 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 wmt per year that produce low
contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate.
Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of 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 low contaminant iron ore products have attracted a premium
to the Platts IODEX 62% Fe iron ore benchmark. 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 owns the Kamistiatusset mining properties, a project with an estimated annual production of 9M wmt per year
of direct reduction quality iron grading above 67.5% Fe, located near available infrastructure and only a few kilometres south-east of Bloom Lake.
In December 2024, Champion entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a pa rtnership to
evaluate the potential development of the Kami project, including the completion of a definitive feasibility study. Champion also owns a portfolio
of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 km south of
Bloom Lake.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that may constitute “forward -looking information” under applicable securities
legislation. 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 statements 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: (i) Bloom Lake’s LoM, recovery rates, production, economic and other benefits, nameplate capacity and related
opportunities and benefits, as well as potential increase thereof and related work programs and equipment rebuild programs and related
investments, delivery, commissioning and financing of new mining equipment and additional railcars and their impact on production, sales and
shipment flexibility and capabilities; (ii) the project to upgrade the Bloom Lake iron ore concentrate to a higher grade with lower contaminants
and to convert approximately half of Bloom Lake’s increased nameplate capacity of 15 Mtpa to commercially produce a DR quality pellet feed iron
ore, expected project timeline, capital expenditures, budget and financing, production metrics, technical parameters, pricing premiums,
efficiencies, economic and other benefits; (iii) the Kami Project’s study (including LoM, reserves and resources), the project’s potential to produce
a DR grade product, expected project timeline and construction period, production and financial metrics, t echnical parameters, permitting and
related studies and work programs, efficiencies and economic and other benefits and evaluation of related opportunities; (iv) the formation of a
partnership with Nippon and Sojitz with respect to the Kami Project, the completion of a DFS and the timing thereof, the potential to receive future
payments based on the financial performance of the Kami Project, the Partner contributions to support the DFS, the negotiations of and entering
into definitive transaction documents with the Partners and terms thereof (including the Framework Agreement, IID and FID), the Partnership and
project structure and financing, the completion of the transactions contemplated thereby and its timing, related project permitting, the ability of
Champion to realize on the benefit of the Transaction, and the ability and timing for the parties to fund cash calls to advance the development of
the Kami Project and pursue its development; (v) the shift in steel industry production methods towards reducin g emissions and green steel,
including expected rising demand for higher -grade iron ore products and related market deficit and higher premiums, and the Company’s
participation therein, contribution thereto and positioning in connection therewith, including related research and development and the transition
of the Company’s product offering through the DRPF project (including producing high-quality DRPF products), capital expenditures, economics,
expected project timeline, related investments and expected benefits thereof; (vi) green steel, GHG and CO2 emissions reduction initiatives,
sustainability and ESG related initiatives, objectives, targets and expectations, expected implications thereof and the Compa ny’s positioning in
connection therewith; (vii) maintaining higher stripping activities; ( viii) stockpiled ore levels, shipping and sales of accumulated concentrate