Champion Iron Reports Its FY2026 Second Quarter Results, Declares Dividend and Advances the Drpf Project as Scheduled
1 Page
PRESS RELEASE
CHAMPION IRON REPORTS ITS FY2026 SECOND QUARTER RESULTS, DECLARES
DIVIDEND AND ADVANCES THE DRPF PROJECT AS SCHEDULED
▪ Quarterly production of 3.6M wmt, record sales of 3.9M dmt, revenue of $493M, EBITDA of $175M1 and EPS
of $0.11
▪ Declares ninth consecutive semi-annual dividend of $0.10 per ordinary share
▪ DRPF project advancing as scheduled towards an expected start of commissioning in December 2025
▪ Reduced iron ore concentrate inventories stockpiled at Bloom Lake by 0.5M wmt to 1.7M wmt
MONTRÉAL, October 29, 2025 / SYDNEY, October 30, 2025 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“ Champion” or the
“Company”) reports its operational and financial results for its financial second quarter ended September 30, 2025.
Champion’s CEO, Mr. David Cataford, said, “We successfully capitalized on rising iron ore prices by delivering robust quarterly financial results ,
while completing our scheduled semi -annual maintenance at our site and on the third -party railway. I’m especially proud of our teams’
commitment to operating Bloom Lake sustainably while optimizing operations and advancing the DRPF project towards its complet ion. We are
pleased to have formalized the strategic partnership with Nippon Steel and Sojitz to advance t he Kami Project through the ongoing definitive
feasibility study. With robust financial liquidity, we remain focused on maximizing shareholder value while creating a positive impact for our host
communities. ”
Conference Call Details
Champion will host a conference call and webcast on October 30, 2025, at 9:00 AM (Montréal time) / October 31, 2025, at 12:00 AM (Sydney time)
to discuss the results of the financial second quarter ended September 30, 2025. The conference call details are set out at the end of this press
release.
1. Quarterly Highlights
Operations and Sustainability
• No serious workplace -related injuries or major environmental incidents were reported during the three -month period ended
September 30, 2025;
• Quarterly production of 3.6 million wmt of high-grade 66.5% Fe concentrate for the three-month period ended September 30, 2025, up
12% over the same period last year. Quarterly production compares favourably to that of the fourth quarter of the 2025 financ ial year,
during which the Company also completed scheduled semi-annual maintenance of both concentration plants;
2 Page
• Record quarterly sales of 3.9 million dmt were achieved for the three-month period ended September 30, 2025, up 18% from the same
prior-year period, reducing iron ore concentrate stockpiled at Bloom Lake by 477,000 wmt quarter-over-quarter, and bringing the total
to 1.7 million wmt as at September 30, 2025; and
• Strong mining performance with a record 22.9 million wmt of material mined and hauled at Bloom Lake for the three-month period
ended September 30, 2025, an increase of 23% compared to the same period last year, driven by the optimization and recent
deployment of additional mining equipment.
Financial Results
• Gross average realized selling price of US$114.2/dmt1, compared to the P65 index average price of US$117.4/dmt in the period;
• Net average realized selling price of US$92.9/dmt1, an increase of 27% quarter-over-quarter and 18% year-over-year;
• C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $76.2/dmt1 (US$55.3/dmt)2, representing
a decrease of 7% quarter-over-quarter and 2% year-over-year;
• Net income of $56.8 million, representing EPS of $0.11 , compared to $23.8 million with EPS of $0.05 in the previous quarter, and
$19.8 million with EPS of $0.04 in the same prior-year period;
• EBITDA of $174.8 million1, compared to $57.8 million1 quarter-over-quarter and $74.5 million1 year-over-year;
• Cash balance, excluding the initial cash contributions from Nippon Steel Corporation (“Nippon Steel”) and Sojitz Corporation (“Sojitz” ,
and collectively with Nippon Steel, the “Partners”) held in a restricted cash account by Kami Iron Mine Partnership (the “Kami
Partnership”), totalled $325.5 million as at September 30, 2025, an increase of $149.5 million since June 30, 2025, benefiting from the
proceeds of the US$500 million Senior Unsecured Notes issuance on July 2, 2025, and robust cash flows from operating activities,
partially offset by the senior credit facilities repayment, significant capital expenditure and the dividend payment;
• Strong available liquidity to support growth initiatives and general corporate purposes totalled $840.4 million1 as at
September 30, 2025, compared to $536.6 million1 as at June 30, 2025, mainly attributable to the net proceeds of long-term debt; and
• Semi-annual dividend of $0.10 per ordinary share declared on October 29, 2025 (Montréal) / October 30, 2025 (Sydney), in connection
with the semi-annual results for the period ended September 30, 2025.
DRPF Project Update
• The DRPF project, designed to upgrade half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, is
progressing as scheduled, with initial commissioning expected to begin in December 2025 and commercial shipments of DR quality
iron anticipated by the end of the first half of the 2026 calendar year, gradually increasing thereafter.
• Quarterly and cumulative investments totalled $20.6 million and $407.6 million, respectively, as at September 30, 2025. The Company
expects to advance the project into the commissioning phase with an approximate cumulative investment of $500 million, in line with
the inflation -adjusted estimated total capital expenditure of $470.7 million detailed in the project study highlights released in
January 2023; and
• Through its ongoing discussions with prospective customers, including in the Middle East and North Africa, the Company expect s to
secure commercial agreements for its anticipated production of DR quality iron ore, which is expected to attract pricing premiums over
the Company’s existing high-purity iron ore concentrate.
Kami Project Update
• On September 29, 2025, the Company completed the initial closing (the “Initial Closing”) of the transactions contemplated by the
previously announced framework agreement with Nippon Steel and Sojitz for the joint ownership and potential development of the Kami
Project (the “Framework Agreement”). Concurrently with the Initial Closing , the Partners made their initial cash contributions in an
aggregate amount of $68.6 million, out of a total planned cash contribution of $245 million, and paid their pro- rata s hare of the
feasibility study costs already incurred by the Company. Following the Initial Closing, the Company holds a 51% interest in the Kami
Partnership; and
3 Page
• Submitted the Environmental Impact Statement required by the Government of Newfoundland and Labrador in July 2025 and continued
work on the Kami Project’s DFS, which is expected to be completed by the end of the 2026 calendar year.
2. Bloom Lake Mine Operating Activities
The Company performs the scheduled maintenance of both of its plants in the second and fourth financial quarters, which may create significant
quarter-over-quarter variances in production output and mining and processing costs.
Q2 FY26 Q1 FY26 Q/Q Change Q2 FY25 Y/Y Change
Operating Data
Waste mined and hauled (wmt) 12,888,300 10,963,600 18 % 9,323,600 38 %
Ore mined and hauled (wmt) 10,016,000 10,070,700 (1) % 9,287,100 8 %
Material mined and hauled (wmt) 22,904,300 21,034,300 9 % 18,610,700 23 %
Stripping ratio 1.29 1.09 18 % 1.00 29 %
Ore milled (wmt) 9,967,600 10,500,700 (5) % 9,125,000 9 %
Head grade Fe (%) 29.6 28.2 5 % 29.1 2 %
Fe recovery (%) 79.6 78.2 2 % 78.7 1 %
Product Fe (%) 66.5 66.3 — % 66.3 — %
Iron ore concentrate produced (wmt) 3,551,600 3,520,600 1 % 3,170,100 12 %
Iron ore concentrate sold (dmt) 3,850,900 3,831,800 — % 3,265,700 18 %
Bloom Lake produced 3.6 million wmt of high-grade iron ore concentrate during the three-month period ended September 30, 2025, an increase
of 12% compared to 3.2 million wmt produced during the same period in 2024 , during which production was interrupted for approximately one
week due to nearby forest fires in July 2024.
The Company recently encountered higher ore hardness, partly attributable to a specific extension of a pit being mined to ena ble shorter haul
access to waste dumps. Despite the impact of this ore hardness, quarterly production was positively impacted by increased recoveries resulting
from the improved performance of the gravimetric systems following work programs and optimization of operations. As a result, during the three-
month period ended September 30, 2025, the Fe recovery was 79.6%, compared to 78.7% for the same period in 2024. While the recovery rates
are expected to fluctuate in accordance with the mine plan and its variations in ore grade, t he Company will remain focused on improving and
stabilizing recovery rates over time. The ore hardness challenge is expected to moderate in upcoming periods as the Company continues to deliver
strong mining performance, which should allow it to optimize the blending of material from different pits.
During the three -month period ended September 30, 2025, despite a shutdown of third -party rail operations for infrastructure maintenance
lasting several days, s ales volumes exceeded production for the third consecutive quarter, thereby reducing the level of iron ore concentrate
stockpiled at Bloom Lake by 477,000 wmt to reach 1.7 million wmt as at September 30, 2025. 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 ongoing production and existing stockpiles at
Bloom Lake are hauled over future periods.
During the three-month period ended September 30, 2025, the Company set a new record by mining and hauling 22.9 million tonnes of waste
and ore, surpassing the 18.6 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 1.29 for the three-month period ended September 30, 2025, higher than the 1.00 ratio
recorded in the same prior -year period. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its
LoM plan.
4 Page
3. Financial Performance
Q2 FY26 Q1 FY26 Q/Q Change Q2 FY25 Y/Y Change
Financial Data (in thousands of dollars)
Revenues 492,890 390,027 26 % 350,980 40 %
Cost of sales 293,398 313,928 (7) % 252,960 16 %
Other expenses 21,648 18,712 16 % 23,153 (7) %
Net finance costs (income) 25,643 (13,256) (293) % 7,486 243 %
Net income 56,794 23,784 139 % 19,807 187 %
EBITDA1 174,823 57,753 203 % 74,536 135 %
Statistics (in dollars per dmt sold)
Gross average realized selling price1 157.5 146.0 8 % 161.8 (3) %
Net average realized selling price1 128.0 101.8 26 % 107.5 19 %
C1 cash cost1 76.2 81.9 (7) % 77.5 (2) %
AISC1 96.9 96.2 1 % 101.4 (4) %
Cash operating margin1 31.1 5.6 455 % 6.1 410 %
A. Revenues
Revenues totalled $492.9 million for the three-month period ended September 30, 2025, up $141.9 million from revenues of $351.0 million in the
same period in 2024. Higher revenues were mainly attributable to an 18% increase in sales volume year-over-year, despite the scheduled semi-
annual maintenance of third-party rail operations in September 2025, and positive provisional pricing adjustments on sales recorded during the
quarter ended June 30, 2025. Freight and other costs declined by 16% year-over-year and also positively impacted revenues during the period.
Positive provisional pricing adjustments on prior -quarter sales of $40.9 million (US$30.0 million) were recorded during the three -month period
ended September 30, 2025, representing a positive impact of US$7.8/dmt for the 3.9 million dmt sold during the quarter. A final average price of
US$112.4/dmt was established for the 2.5 million dmt of iron ore subject to pricing adjustments as at June 30, 2025, which were provisionally
priced at US$100.2/dmt.
For the three-month period ended September 30, 2025, the gross average realized selling price of US$114.2/dmt1 was lower than the P65 index
average price of US$117.4/dmt. The 2.5 million dmt of iron ore subject to pricing adjustments as at September 30, 2025, were evaluated using an
average forward price of US$113.8/dmt. Sales contracts using backward-looking iron ore index pricing also contributed to lower selling prices as
index prices on these contracts were lower than the P65 index average price during the period. 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.
Freight and other costs of US$29.1/dmt, during the three-month period ended September 30, 2025, decreased by 16%, compared to US$34.7/dmt
in the same prior-year period due to a 12% decrease in the average C3 index. Sales contracts using backward-looking pricing also contributed to
the reduction of freight costs as the C3 index used was lower than the average index for the period.
After taking into account sea freight and other costs of US$29.1/dmt and the positive provisional pricing adjustments of US$7.8/dmt , the
Company obtained a net average realized selling price of US$92.9/dmt (C$128.0/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 September 30, 2025, the cost of sales totalled $293.4 million with a C1 cash cost of $76.2/dmt1, compared to
$253.0 million with a C1 cash cost of $77.5/dmt1 for the same period in 2024.
Mining and processing costs totalled $52.9 /dmt1 for the 3.4 million dmt produced in the three -month period ended September 30, 2025,
representing an 8% decrease compared to $57.7/dmt produced1 in the same period last year. This decrease was mainly driven by higher production
volumes over which to amortize fixed costs. The plants’ utilization was negatively affected in the comparative period by near by forest fires in
5 Page
July 2024, whereas it was not in the current period. Despite a portion of the ore feed from a harder ore mining sequence, which is expected to
decline in the near future, the increase in production volume s was also associated with higher head grade, and improved recovery rates which
positively impacted mining and processing costs during the period as the Company produced higher quantities of iron ore concentrate without
increasing mining costs proportionally. This gain reflects the Company’s ongoing process ing optimization and adjustments to its ore blending
strategies.
Land transportation and port handling costs for the three-month period ended September 30, 2025, were $24.4/dmt sold1, a decrease from the
$26.7/dmt sold1 for the same prior-year period. This decrease was mainly attributable to higher sales volumes during the period, which contributed
to the amortization of fixed costs for the Sept-Îles port yard facilities.
The C1 cash cost can also be impacted by changes in iron ore concentrate inventory valuation, which incorporate mining and processing costs
from the previous quarter s, along with variations in production and sales volumes. Considering the scheduled semi -annual maintenance
completed during the quarter, cash cost per tonne for the period was not significantly impacted by the destocking of iron ore inventories, as the
tonnes destocked carried approximately the same value as the cost of those produced in the period. The Company expects to continue incurring
costs to manage and reclaim stockpiles as it destocks iron ore inventories in future periods.
C. Net Income & EBITDA
For the three-month period ended September 30, 2025, the Company ge nerated EBITDA of $174.8 million1, representing an EBITDA margin of
35%1, compared to $74.5 million1, representing an EBITDA margin of 21%1, for the same period in 2024. Higher EBITDA and EBITDA margins were
mainly driven by higher sales volumes, a higher net average realized selling price and a lower cash cost.
For the three -month period ended September 30, 2025, the Company generated net income of $56.8 million (EPS of $0.11), compared to
$19.8 million (EPS of $0.04) for the same prior-year period. This increase in net income was attributable to a higher gross profit, partially offset
by an unrealized foreign exchange loss resulting from the revaluation of net monetary liabilities denominated in U.S. dollars and higher income
and mining taxes.
D. All-in Sustaining Cost & Cash Operating Margin
During the three-month period ended September 30, 2025, the Company realized an AISC of $96.9/dmt1, compared to $101.4/dmt1 for the same
period in 2024. With sustaining capital expenditures and general and administrative expenses mostly in line with the comparative period, higher
iron ore concentrate sales led to lower unit costs, favourably impacting AISC for the period.
The Company generated a cash operating margin of $31.1 /dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month
period ended September 30, 2025, compared to $6.1/dmt1 for the same prior-year period. The variation was due to a higher net average realized
selling price and a lower AISC for the period.
4. Exploration Activities
During the three and six-month periods ended September 30, 2025, the Company maintained all its properties in good standing and did not enter
into any farm-in arrangements.
During the three and six-month periods ended September 30, 2025, the Company transferred its Kami properties to the Kami Partnership and an
aggregate 49% interest in the Kami Partnership was acquired by Nippon Steel and Sojitz in exchange for cash contributions. The Kami Partnership
was created to jointly conduct and fund certain components of the DFS on a pro-rata basis, in accordance with the Partners’ respective ownership
interests.
During the three and six -month periods ended September 30, 2025, $6.4 million and $15.2 million in exploration and evaluation expenditures
were incurred, respectively, compared to $4.8 million and $7.4 million, respectively, for the same prior-year periods. Exploration and evaluation
expenditures were 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.
6 Page
5. Cash Flows — Purchase of Property, Plant and Equipment
Three Months Ended Six Months Ended
September 30, September 30,
(in thousands of dollars) 2025 2024 2025 2024
Tailings lifts 23,481 27,997 38,247 44,101
Stripping and mining activities 18,739 17,582 31,714 27,907
Other sustaining capital expenditures 27,690 20,340 42,190 31,919
Sustaining Capital Expenditures 69,910 65,919 112,151 103,927
DRPF project 20,614 64,677 68,074 123,142
Other capital development expenditures at Bloom Lake 22,675 48,586 38,349 67,574
Purchase of Property, Plant and Equipment as per Cash Flows 113,199 179,182 218,574 294,643
Sustaining Capital Expenditures
The tailings-related investments for the three and six-month periods ended September 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 inv estment 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 opera tional
throughput. Tailings-related construction act ivities are typically conducted between May and November, when weather conditions on- site are
more favourable.
Stripping and mining activities for the three and six-month periods ended September 30, 2025, were comprised of $7.3 million and $15.1 million,
respectively, of mine development costs, including topographic and pre -cut drilling work, the details of which are contained in the Company’s
mine plan ( $11.7 million and $22.0 million, respectively, for the same periods in 2024 ). During the three and six -month periods ended
September 30, 2025, stripping and mining activities also included $11.4 million and $16.6 million, respectively, in capitalized stripping costs
($5.9 million for each of the same periods in 2024).
Other sustaining capital expenditures for the three and six-month periods ended September 30, 2025, included expenditures related to mining
equipment rebuild programs. These are aligned with the Company’s long-term investment strategy to support growth initiatives across the LoM.
DRPF Project
During the three and six-month periods ended September 30, 2025, the Company spent $20.6 million and $68.1 million, respectively, in capital
expenditures related to the DRPF project ($64.7 million and $123.1 million, respectively, for the same prior-year periods). Investments during the
year mainly consisted of construction activities, including mechanical, piping and electrical work, all of which are progress ing as planned.
Cumulative investments totalled $407.6 million as at September 30, 2025.
Other Capital Development Expenditures at Bloom Lake
During the three and six-month periods ended September 30, 2025, other capital development expenditures at Bloom Lake totalled $22.7 million
and $38.3 million, respectively ($48.6 million and $67.6 million, respectively, for the same periods in 2024), and are detailed as follows:
Three Months Ended Six Months Ended
September 30, September 30,
(in thousands of dollars) 2025 2024 2025 2024
Infrastructure improvements and conformity (i) 12,172 14,907 15,191 25,065
Mine maintenance garage expansion — 3,680 457 7,463
Deposits or final payment for mining equipment 9,404 16,668 15,623 19,420
Railcars — 9,723 — 9,723
Other (ii) 1,099 3,608 7,078 5,903
Other Capital Development Expenditures at Bloom Lake 22,675 48,586 38,349 67,574
(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.
7 Page
(ii) Other expenditures include cash capitalized borrowing costs on the DRPF project.
6. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on October 30, 2025, at 9:00 AM (Montréal time) / October 31, 2025,
at 12:00 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 11410#.
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 s ource 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 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 its iron ore concentrate from Bloom Lake by rail, to a ship loading por t 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%
interest in Kami Iron Mine Partnership, an entity also owned by Nippon Steel Corporation and Sojitz Corporation, which owns the Kami Project. The
Kami Project is located near available infrastructure and only 21 kilometres southeast of Bloom Lake. Champion also owns a portfolio of
exploration and development projects in the Labrador Trough, including the Cluster II portfolio 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) the project to upgrade the Bloom Lake i ron 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 (the DRPF
project), expected DRPF project timel ine, capital expenditures, budget and financing, production metrics, technical parameters, pricing
premiums, efficiencies, economic and other benefits, related engagement with, and expectations with respect to, prospective c ustomers, the
expected commissioning, first shipments of iron ore and ramping-up of the DRPF project and the impact thereof on production, sales and financial
results and the timing thereof; (ii) the Kami Project Study (including LoM), the DFS for the Kami Project and its timing and the Kami Project’s
potential to produce a DR grade product; (iii) the partnership with Nippon Steel and Sojitz with respect to the Kami Project, the Partners’ cash
contributions to the Kami Partnership, the ability of Champion to realize on the benefits of the transactions contemplated by the Framework
8 Page
Agreement and the ability and timing for the parties to the Framework Agreement to fund cash calls to advance the development of the Kami
Project and pursue its development, future cash calls, funding thereof and the impact thereof on the Company’s liquidity; (iv ) the Company’s
capital management and shareholder return strategies; (v) the Company’s environmental, social and governance-related initiatives; (vi) the shift
in steel industry production methods, expected rising demand for higher-grade iron ore products and DRI globally and related market deficit and
higher premiums, and the Company’s participation therein, contribution thereto and positioning in connection therewith, including the transition
of the Company’s product offering (including producing high -quality DRPF products) and the expansion of its geography and customer base,
related investments and expected benefits thereof; (vii) maintaining elevated stripping activities; (viii) stockpiled ore lev els, the pace of
destocking, shipping and sales of accumul ated iron ore concentrate inventories and their impact on the operating costs and the cost of sales;
(ix) increased shipments of iron ore concentrate; (x) the Company’s plan to support LoM operations, safe tailings strategy, t ailings investment
plan, storage expansion and related work programs, investments and benefits; (xi) production and recovery rates and levels, ore characteristics
and the Company’s performance and related strategies and work programs to optimize operations, including ore blending optim ization; (xii)
pricing of the Company’s products (including provisional pricing); (xiii) available liquidity and the Company’s financial fle xibility; and (xiv) 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), DFS (definitive feasibility study), Kami