Champion Iron Reports Its FY2026 First Quarter Results, and Advances the Drpf Project as Scheduled
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PRESS RELEASE
CHAMPION IRON REPORTS ITS FY2026 FIRST QUARTER RESULTS, AND ADVANCES
THE DRPF PROJECT AS SCHEDULED
▪ Quarterly production of 3.5M wmt, record level of sales of 3.8M dmt, revenue of $390M, EBITDA of $58M1 and
EPS of $0.05
▪ Reduced inventories of iron ore concentrate stockpiled at Bloom Lake by 0.4M wmt to 2.1M wmt
▪ DRPF project progressing as scheduled toward an expected start for commissioning in December 2025
▪ Refinanced Senior Credit Facilities with a US$500M Senior Unsecured Notes offering, strengthening the
Company’s financial flexibility
MONTRÉAL, July 29, 2025 / SYDNEY, July 30, 2025 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“Champion” or the “Company”)
reports its operational and financial results for its financial first quarter ended June 30, 2025.
Champion’s CEO, Mr. David Cataford, said, “ Our agile workforce remains focused on optimizing operations as we strategically position our
Company to capitalize on the anticipated growth in demand for high -purity iron ore . Improving transportation logistics enabled us to achieve
record quarterly iron ore concentrate sales volumes while further reducing stockpiled iron ore inventories at Bloom Lake. The DRPF project
remains on track, and we recently achieved a significant milestone for the Kami Project by entering into a framework agreement with Nippon
Steel Corporation and Sojitz Corporation. The framework agreement and the partnership contemplated, will allow us to advance the Kami Project
without compromising our financial liquidity in the foreseeable future. Additionally, our successful US$500M Senior Unsecured Notes offering in
July replaced our previous credit facilities, reinforcing our balance sheet with greater flexibility and long-term stability. As we continue to de-risk
our project portfolio, our commitment remains to maximizing shareholder value while maintaining a disciplined capital management approach.”
Conference Call Details
Champion will host a conference call and webcast on July 30, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results
of the financial first quarter ended June 30, 2025. The conference call details are set out at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
• No serious injuries or major environmental incidents were reported in the three-month period ended June 30, 2025;
• Quarterly production of 3.5 million wmt (3.4 million dmt) of high -grade 66.3% Fe concentrate for the three -month period ended
June 30, 2025, down 9% over the same period last year, impacted by higher hardness of processed ore and lower availability of both
concentration plants;
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• Record quarterly sales of 3.8 million dmt for the three-month period ended June 30, 2025, up 10% from the previous quarter and 11%
from the same prior-year period, despite scheduled semi -annual maintenance on third -party rail infrastructure in June 2025. As a
result, iron ore concentrate stockpiled at Bloom Lake decreased by 440,000 wmt quarter -over-quarter to 2.1 million wmt as at
June 30, 2025; and
• Material mined and hauled at Bloom Lake reached a record 21.0 million tonnes for the three-month period ended June 30, 2025, an
increase of 20% compared to the same period last year, supported by the recent addition of mining equipment.
Financial Results
• Gross average realized selling price of US$105.5/dmt1, compared to the P65 index average of US$108.4/dmt in the period;
• Net average realized selling price of US$73.4/dmt1, a decrease of 14% quarter-over-quarter and 26% year-over-year;
• C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $81.9/dmt1 (US$59.2/dmt)2, representing
an increase of 2% quarter-over-quarter and 7% year-over-year;
• Net income of $23.8 million, representing EPS of $0.05 , compared to $39.1 million with EPS of $0.08 in the previous quarter, and
compared to a net income of $81.4 million with EPS of $0.16 in the same prior-year period;
• EBITDA of $57.8 million1, a decrease of 55% quarter-over-quarter and 68% year-over-year;
• On June 3, 2025, Caisse de dépôt et placement du Québec exercised warrants to acquire 15 million ordinary shares of Champion ,
resulting in total proceeds to the Company of $36.7 million. The warrants had been granted pursuant to a financing in August 2019;
• Cash balance totalled $176.1 million as at June 30, 2025, an increase of $58.6 million since March 31, 2025, benefiting from the
improvements in operating working capital and proceeds from the warrants exercise along with a drawdown on the Company’s senior
revolving facility (the “Revolving Facility”), while the Company continued to advance the Direct Reduction Pellet Feed project (the "DRPF
Project"), and invest in sustainable capital expenditures; and
• On July 2, 2025, Champion issued US$500 million of 7-year Senior Unsecured Notes with an interest rate of 7.875%. Proceeds from the
offering were used to repay the Company’s existing US$230 million senior term loan and the outstanding balance of US$105 million
under the Revolving Facility. The transaction had minimal impact on the Company’s net debt and further strengthened its available
liquidity, which totalled $536.6 million1 as at June 30, 2025, and is expected to be used to support general corporate purposes.
Growth and Development
• The DRPF project, designed to upgrade half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, continues
to progress as scheduled, with commissioning planned for December 2025 and commercial shipments of DR quality iron expected in
the first half of the 2026 calendar year, gradually increasing thereafter. Quarterly and cumulative investments totalled $47.5 million and
$387.0 million, respectively, as at June 30, 2025, out of an estimated total capital expenditure of $470.7 million detailed in the project
study highlights released in January 2023;
• During the three -month period ended June 30, 2025, progress continued on the definitive feasibility study (the “DFS”) for the Kami
Project, which is expected to be completed by the end of the 2026 calendar year; and
• On July 21, 2025, Champion entered into a definitive framework agreement (the “Framework Agreement”) with Nippon Steel Corporation
(“Nippon Steel”) and Sojitz Corporation (“Sojitz” , and collectively with Nippon Steel, the “Partners”), pursuant to which the Partners have
agreed, subject to the Framework Agreement’s terms and conditions, to initially contribute $245 million for an aggregate 49% interest
in Kami Iron Mine Partnership (the “Partnership”), a new entity formed for the ownership and potential development of the Kami Project.
Additional details can be found in the Company’s press release dated July 21, 2025 (Montréal), available under its profile on SEDAR+ at
www.sedarplus.ca, the ASX at www.asx.com.au and the Company’s website at www.championiron.com.
2. Bloom Lake Mine Operating Activities
The Company performs both its plants’ scheduled maintenance in the second and fourth financial quarters, creating significant quarter-over-
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quarter variances in production output and mining and processing costs.
Q1 FY26 Q4 FY25 Q/Q Change Q1 FY25 Y/Y Change
Operating Data
Waste mined and hauled (wmt) 10,963,600 10,886,200 1 % 6,733,700 63 %
Ore mined and hauled (wmt) 10,070,700 9,470,100 6 % 10,779,300 (7) %
Material mined and hauled (wmt) 21,034,300 20,356,300 3 % 17,513,000 20 %
Stripping ratio 1.09 1.15 (5) % 0.62 76 %
Ore milled (wmt) 10,500,700 9,160,300 15 % 11,084,300 (5) %
Head grade Fe (%) 28.2 29.2 (3) % 29.1 (3) %
Fe recovery (%) 78.2 78.3 — % 79.3 (1) %
Product Fe (%) 66.3 66.5 — % 66.3 — %
Iron ore concentrate produced (wmt) 3,520,600 3,167,000 11 % 3,876,500 (9) %
Iron ore concentrate sold (dmt) 3,831,800 3,495,300 10 % 3,442,800 11 %
Bloom Lake produced 3.5 million wmt (3.4 million dmt) of high-grade iron ore concentrate during the three-month period ended June 30, 2025,
a decrease of 9% compared to 3.9 million wmt (3.8 million dmt) produced during the same period in 2024 . Bloom Lake’s overall performance
continued to be impacted by the hardness of ore processed, together with lower head grade. As a result, Champion’s average Fe recovery rate
was 78.2% for the three-month period ended June 30, 2025, compared to 79.3% for the same period in 2024. Champion is adjusting its operating
and maintenance strategies to manage varying ore feed characteristics . While mining performance remained robus t during the three -month
period ended June 30, 2025, processing harder ore impacted grinding efficiency and Fe recove ry. The Company will continue to optimize its
operations and remains focused on improving and stabilizing recovery rates over time . During the quarter, the Company capitalized on a
scheduled annual power interruption by the service provider, which briefly impacted operations, to perform planned maintenance on certain
processing equipment.
Sales volumes reached a record level during the three-month period ended June 30, 2025, exceeding production, thereby reducing the level of
iron ore concentrate stockpiled at Bloom Lake by 440,000 wmt to reach 2.1 million wmt as at June 30, 2025. During the quarter, sales were
negatively impacted by a scheduled semi-annual shutdown of rail operations for third-party infrastructure maintenance. The Company expects
that stockpiled volumes of iron ore concentrate will continue to decrease in future periods. However, the pace of future destocking is expected to
vary due to scheduled semi -annual maintenance work at the mine and on the rail network, as well as seasonal transportation constraints.
Champion continues to work closely with the rail operator to receive consistent contracted haulage services, ensuring that both ongoin g
production and existing stockpiles at Bloom Lake are hauled over future periods.
During the three-month period ended June 30, 2025, the Company set a new record by mining and hauling 21.0 million tonnes of waste and ore,
surpassing the 17.5 million tonnes of waste and ore recorded in the same prior-year period. This improvement in mining performance was driven
by Champion’s investments in additional haul trucks and loading equipment during the second half of the previous financial year, as well as
enhanced utilization and availability of mining equipment. The strong mining performance enabled the Company to mine and haul a higher
volume of waste material, resulting in a stripping ratio of 1.09 for the three-month period ended June 30, 2025, significantly higher than the 0.62
ratio recorded in the same prior-year period. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with
its LoM plan.
3. Financial Performance
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Q1 FY26 Q4 FY25 Q/Q Change Q1 FY25 Y/Y Change
Financial Data (in thousands of dollars)
Revenues 390,027 425,345 (8) % 467,084 (16) %
Cost of sales 313,928 279,644 12 % 264,911 19 %
Other expenses 18,712 19,619 (5) % 21,159 (12) %
Net finance costs (13,256) 11,286 (217) % 8,259 (261) %
Net income 23,784 39,140 (39) % 81,357 (71) %
EBITDA1 57,753 127,378 (55) % 181,160 (68) %
Statistics (in dollars per dmt sold)
Gross average realized selling price1 146.0 160.4 (9) % 171.6 (15) %
Net average realized selling price1 101.8 121.7 (16) % 135.7 (25) %
C1 cash cost1 81.9 80.0 2 % 76.9 7 %
AISC1 96.2 93.1 3 % 91.6 5 %
Cash operating margin1 5.6 28.6 (80) % 44.1 (87) %
A. Revenues
Revenues totalled $390.0 million for the three-month period ended June 30, 2025, down $77.1 million from $467.1 million in the same period in
2024. Sales volumes rose by 11% and freight and other costs declined by 16% year-over-year. These positive impacts were more than offset by a
lower gross average realized selling price, driven by a decline in the P65 index price, and negative provisional pricing adjustments on sales
recorded during the previous quarter.
During the three-month period ended June 30, 2025, sales volumes reached a record of 3.8 million dmt, despite the impact of a planned rail
shutdown during the quarter. A second semi-annual maintenance of rail infrastructure is scheduled in the second quarter of the current financial
year and is expected to impact shipment pace and volumes transported to the Port of Sept-Îles.
Negative provisional pricing adjustments on prior -quarter sales of $26.6 million (US$20.1 million) were recorded during the three-month period
ended June 30, 2025, representing a negative impact of US$5.2/dmt over the 3.8 million dmt sold during the quarter. A final average price of
US$103.6/dmt was established for the 2.7 million dmt of iron ore subject to pricing adjustments as at March 31, 2025, which were provisionally
priced at US$111.1/dmt.
The gross average realized selling price of US$105.5/dmt1 for the three-month period ended June 30, 2025, was lower than the P65 index average
price of US$108.4/dmt. The 2.5 million dmt of iron ore subject to pricing adjustments as at June 30, 2025, were evaluated at an average price of
US$100.2/dmt. The gross average realized selling price was also negatively impacted by the Company’s strategic transition to a higher grade
DRPF product. As part of this shift, Champion intentionally reduced volumes of iron ore concentrate sold under long-term sales contracts to retain
a greater proportion of its iron ore concentrate for the short -term and spot markets, which have recently experienced greater pricing volatility
and pricing discounts. These impacts were partially offset by sales using backward-looking iron ore index pricing, which exceeded the P65 index
average price during the period.
Freight and other costs of US$26.9/dmt during the three-month period ended June 30, 2025, decreased by 16%, compared to US$32.1/dmt in the
same prior-year period, mainly driven by a decrease in the average C3 index. Freight and other costs for the period remained elevated due to
additional shipping expenses incurred from rerouting vessels via the Cape of Good Hope, as a result of the ongoing conflict in the Red Sea.
After taking into account sea freight and other costs of US$26.9/dmt and the negative provisional pricing adjustments of US$5.2/dmt , the
Company obtained a net average realized selling price of US$73.4/dmt (C$101.8/dmt1) for its high-grade iron ore concentrate shipped during the
quarter.
B. Cost of Sales and C1 Cash Cost
For the three-month period ended June 30, 2025, the cost of sales totalled $313.9 million with a C1 cash cost of $81.9 /dmt1, compared to
$264.9 million with a C1 cash cost of $76.9 /dmt1 for the same period in 2024 . The increase in cost of sales reflected the higher sales volumes
and the reduction of stockpiled iron ore concentrate inventory over the quarter since these tonnes were valued at higher production costs than
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those of the current quarter due to major maintenance carried out in March 2025.
Mining and processing costs totalled $53.7/dmt1 for the 3.4 million dmt produced in the three-month period ended June 30, 2025, representing a
12% increase compared to $47.9/dmt produced1 in the same period last year. This increase was mainly driven by higher stripping activities, with
4.2 million more tonnes of waste mined and hauled during the quarter than in the same prior -year period, in line with the long -term mine plan.
Additional contributing factors included increased maintenance resulting from premature wear on crushers and grinding circuits due to
processing harder ore, and lower production volumes over which to amortize fixed costs.
Land transportation and port handling costs for the three-month period ended June 30, 2025, were $24.3/dmt sold 1, a decrease from the
$25.3/dmt sold1 for the same period last year. This decrease was mainly attributable to higher sales volumes during the period, which contributed
to the amortization of fixed costs of the Sept-Îles port facilities.
The C1 cash cost was also impacted by changes in iron ore concentrate inventory valuation, reflecting mining and processing costs from the
previous quarter, along with variations in production and sales volumes.
C. Net Income & EBITDA
For the three -month period ended June 30, 2025, the Company generated EBITDA of $57.8 million1, representing an EBITDA margin of 15% 1,
compared to $181.2 million1, representing an EBITDA margin of 39%1, for the same period in 2024. Lower EBITDA and EBITDA margin were mainly
driven by a lower net average realized selling price and a higher cost of sales, partially offset by higher sales volumes.
For the three-month period ended June 30, 2025, the Company generated net income of $23.8 million (EPS of $0.05), compared to $81.4 million
(EPS of $0.16 ) for the same prior -year period. This decrease in net income was attributable to lower gross profit, partially offset by a foreign
exchange gain resulting from the revaluation of U.S. dollar -denominated net monetary liabilities, driven by the strengthening of the Canadian
dollar at the end of the quarter, as well as lower income and mining taxes.
D. All-in Sustaining Cost & Cash Operating Margin
During the three-month period ended June 30, 2025, the Company realized an AISC of $96.2/dmt1, compared to $91.6/dmt1 for the same period
in 2024, an increase mainly attributable to a higher C1 cash cost, mitigated by higher volumes of iron ore concentrate sold during the period.
The Company generated a cash operating margin of $5.6 /dmt1 for each tonne of high- grade iron ore concentrate sold during the three-month
period ended June 30, 2025, compared to $44.1/dmt1 for the same prior-year period. The variation was mainly due to a lower net average realized
selling price and a higher AISC for the period.
4. Exploration Activities
During the three -month period ended June 30, 2025, the Company maintained all its properties in good standing and no farm -in or farm -out
arrangements came into effect. In relation to the Kami Project, the Partners agreed to jointly conduct and fund certain components of the DFS
on a pro -rata basis, in accordance with their respective ownership interests . Expected reimbursements of expenditures already incurred by
Champion pursuant to the existing collaboration agreement with the Partners were deducted from exploration and evaluation assets.
During the three- month period ended June 30, 2025, $8.8 million in exploration and evaluation expenditures were incurred, compared to
$2.6 million for the same prior-year period. During the three-month period ended June 30, 2025, exploration and evaluation expenditures related
to activities carried out in Québec and Newfoundland and Labrador.
Details on exploration projects, along 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
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Three Months Ended
June 30,
(in thousands of dollars) 2025 2024
Tailings lifts 14,766 16,104
Stripping and mining activities 12,975 10,325
Other sustaining capital expenditures 14,500 11,579
Sustaining Capital Expenditures 42,241 38,008
DRPF project 47,460 58,465
Other capital development expenditures at Bloom Lake 15,674 18,988
Purchase of Property, Plant and Equipment as per Cash Flows 105,375 115,461
Sustaining Capital Expenditures
Sustaining capital expenditures were $11.0/dmt sold for the three-month period ended June 30, 2025, comparable to the same prior-year period.
The tailings-related investments for the three-month period ended June 30, 2025, were in line with the Company’s long-term plan to support the
LoM operations . As part of its ongoing tailings infrastructure monitoring and inspections, Champion remains committed to its safe tailings
strategy and continues to implement its long-term investment plan for tailings infrastructure. During the third quarter of the 2025 financial year,
the Company initiated the expansion of its tailings and waste storage capacity to accommodate increased operational throughpu t. Tailings-
related construction activities are typically conducted between May and November, when weather conditions are more favourable.
Stripping and mining activities for the three-month period ended June 30, 2025, comprised $7.8 million of mine development costs, including
topographic and pre-cut drilling work, contained in the Company’s mine plan ($10.3 million for the same period in 2024). During the three-month
period ended June 30, 2025, stripping and mining activities also included $5.2 million in capitalized stripping costs ( nil for the same period in
2024).
The increase in other sustaining capital expenditures for the three-month period ended June 30, 2025, was primarily driven by investments in
mining equipment rebuilds to support the expansion of Champion’s mining fleet . These expenditures align with the Company’s long -term
investment strategy to support growth initiatives across the LoM.
DRPF Project
During the three -month period ended June 30, 2025, the Company spent $47.5 million in capital expenditures related to the DRPF project
($58.5 million for the same prior -year period). Investments during the period mainly consisted of structural construction activities, as well as
mechanical, piping and electrical work, all of which are progressing as planned. Cumulative investments totalled $387.0 million as at
June 30, 2025, out of an estimated total capital expenditure of $470.7 million outlined in the project’s study highlights released in January 2023.
Other Capital Development Expenditures at Bloom Lake
During the three-month period ended June 30, 2025, other capital development expenditures at Bloom Lake totalled $15.7 million ($19.0 million
for the same period in 2024). The following table details other capital development expenditures at Bloom Lake:
Three Months Ended
June 30,
(in thousands of dollars) 2025 2024
Infrastructure improvements and conformity (i) 3,019 10,158
Mine maintenance garage expansion 457 3,783
Deposits or final payment for mining equipment 6,219 2,752
Other (ii) 5,979 2,295
Other Capital Development Expenditures at Bloom Lake 15,674 18,988
(i) Infrastructure improvements and conformity expenditures included various capital projects aimed at improving the performance or capacity
of assets and complying with various regulations governing mining practices.
(ii) Other expenditures mainly consisted of capitalized borrowing costs on the DRPF project.
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6. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on July 30, 2025, at 9:00 AM (Montréal time) / 11:00 PM (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 96866#.
About Champion Iron Limited
Champion, through QIO, owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, appro ximately
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 wmt 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 concentrate. 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 reducti on 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 owns t he Kami Project,
a project with an expected annual production of 9M wm t per year of direct reduction quality iron grading above 67.5% Fe, located near available
infrastructure and only 21 kilometres southeast of Bloom Lake. On July 21, 2025, Champion entered into a definitive framework agreement with
Nippon Steel Corporation and Sojitz Corporation to form a partnership for the shared ownership and potential development of the Kami Project.
Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portf olio of properties,
located within 60 kilometres south of Bloom Lake.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain information and statements that may constitute “forward -looking information” under applicable securities
legislation (“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 “will” , “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, produ ction, economic and other benefits, nameplate capacity and related
opportunities and benefits; (ii) the project to upgrade the Bloom Lake iron ore concentrate to a higher grade and to convert approximately half of
Bloom Lake’s increased nameplate capacity of 15M wmt per year to commercially produce a direct reduction quality pellet feed iron ore , expected
DRPF project timeline, capital expenditures, budget and financing, production metrics, technical parameters, efficiencies, ec onomic and other
benefits, the expected commissioning, first shipments of iron ore and ramping-up of the DRPF project; (iii) Kami Project’s potential to produce a
DR grade product, expected production and technical parameters; (iv) the formation of a partnership with Nippon Steel and Sojitz with respect to
the Kami Project, the completion of the DFS for the Kami Project and the timing thereof, the Partners’ contributions to support the DFS, the
completion of the transactions contemplated by the Framework Agreement and its timing, the ability of Champion to realize the benefits of the
transactions contemplated by the Framework Agreement, and the ability and timing for the parties to the Framework Agreement to fund cash
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calls to advance the development of the Kami Project and pursue its development; (v) the Company’s capital management and shareholder return
strategies; (vi) the shift in steel industry production methods, expected rising demand for higher-grade iron ore products and direct reduced iron
(DRI) globally and related market deficit and higher premiums, and the Company’s participation therein, contribution th ereto and positioning in
connection therewith, including the transition of the Company’s product offering (including producing high -quality DRPF products), related
investments and expected benefits thereof; (vii) maintaining higher stripping activities; ( viii) stockpiled ore levels, the pace of destocking,
shipping and sales of accumulated iron ore concentrate inventories and their impact on the operating costs and the cost of sales; (ix) increased
shipments of iron ore concentrate and related rail capacity and the impact thereon of scheduled rail infrastructure maintenance activities; (x)
the Company’s mining equipment rebuild program and mining fleet expansion, safe tailings strategy, tailings investment plan a nd related work
programs, investments and benefits; (xi) the impact of iron ore price fluctuations on the Company and its financial results and the occurrence of
certain events and their impact on iron ore prices and demand for high -purity iron ore products; (x ii) production and recovery rates and levels,
ore characteristics and the Company’s performance and related strategies and work programs to optimize operations ; (x iii) pricing of the
Company’s products (including provisional pricing); (xiv) the Company’s iron ore concentrate pricing trends compared to the P65 index; (x v) the
Company’s storage expansion; (xvi) available liquidity and the Company’s financial flexibility; (xvii) the offering of Senior Unsecured N otes and
the use of proceeds therefrom; and (xviii) the Company’s growth and opportunities generally.
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 control 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 actual results to differ materially from those expressed in Forward- Looking
Statements include, without limitation: (i) future prices of iron ore; (ii) future transportation costs; (iii) general econom ic, competitive, political
and social uncertainties; (iv) continued availability of capital and financing and general economic, market or business conditions; (v) timing and
uncertainty of industry shift to electric arc furnaces, impacting demand for high -grade feed; (vi) failure of plant, equipment or processes to
operate as anticipated; (vii) delays in obtaining governmental approvals, necessary permitting or in the completion of development or
construction activities; (viii) the results of feasibility studies; (ix) changes in the assumptions used to prepare feasibility studies; (x) project delays;
(xi) geopolitical events; and (xii) 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 Factors” of the Company’s Management’s Discussion and Analysis for
the financial year ended March 31, 2025, available under the Company’s profile 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 any such Forward-Looking Statements will prove to be accurate as actual results and future events could differ
materially from those anticipated 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.
Abbreviations
Unless otherwise specified, all dollar figures stated herein are expressed in millions of Canadian dollars, except for: (i) tabular amounts which are
expressed in thousands of Canadian dollars; and (ii) per share or per tonne (including dmt and wmt) amount s, which are expressed in Canadian
dollars or United States dollars, as indicated. The following abbreviations and definitions are used throughout this press re lease: US$ (United
States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), M (million), LoM (life of mine), Bloom Lake or
Bloom Lake Mine (Bloom Lake Mining Complex), DR (direct reduction), DRPF (direct reduction pellet feed), Kami Project (Kamistiatusset project),