Champion Iron Reports Record Iron ORE Sales IN Its FY2025 First Quarter and Advances the Drpf Project
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PRESS RELEASE
CHAMPION IRON REPORTS RECORD IRON ORE SALES IN ITS FY2025 FIRST
QUARTER AND ADVANCES THE DRPF PROJECT
▪ Quarterly production of 3.9M wmt, record sales of 3.4M dmt, revenue of $467M, EBITDA of $181M1 and EPS
of $0.16
▪ DRPF project advancing as planned for an expected commissioning in calendar H2 2025, including an
additional $58M deployed in the quarter and cumulative investments to date of $154M
▪ High-purity iron ore added to the Canadian government's critical mineral list
Montréal, July 30, 2024 (Sydney, July 31, 2024) - 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, 2024.
Champion’s CEO, Mr. David Cataford, said, “I am proud of our people who efficiently deployed our emergency protocols in response to nearby
forest fires. Their actions prioritized the safety of our employees and contractors by completing a rapid preventive evacuation of Bloom Lake and
enabled a swift return to site as fires subsided. ” Mr. Cataford added, “With respect to our operations, I am happy to report robust quarterly
production, record sales and strong financial result s for the period. In conjunction with this, we continue to advance our DRPF project, which is
expected to significantly reduce emissions in steelmaking, support higher premiums for our products and aligns with the government of Canada’s
recent recognition of high purity iron ore as a critical mineral. ”
Conference Call Details
Champion will host a conference call and webcast on July 31, 2024, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of
the financial first quarter ended June 30, 2024. 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 reported in the three-month period ended June 30, 2024;
• Quarterly production of 3.9 million wmt (3.8 million dmt) of high -grade 66.3% Fe concentrate for the three-month period ended
June 30, 2024, up 18% from the previous quarter and up 14% over the same period last year. Production during the period benefited
from work programs completed to solidify operations and no major scheduled semi-annual shutdowns;
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• Record quarterly iron ore concentrate sales of 3.4 million dmt for the three-month period ended June 30, 2024, up 16% from the previous
quarter and up 34% from the prior-year period;
• The Company continues to seek improvements from the rail operator to receive contracted haulage services to ensure that Bloom Lake’s
production, as well as iron ore concentrate currently stockpiled at Bloom Lake, is hauled over future periods. Iron ore con centrate
stockpiled at Bloom Lake reached 3.0 million wmt as at June 30, 2024, up from 2.7 million wmt as at March 31, 2024; and
• Following a preventive evacuation of Bloom Lake in response to nearby forest fires on July 12, 2024, the Company announced a gradual
return of its workforce on July 15, 2024, and confirmed that the events did not impact its facilities and third parties’ infrastructure. With
forest fires subsiding in the region, operational cadence subsequently returned to levels experienced prior to recent events.
Financial Results
• Gross realized selling price of US$125.3/dmt1, compared to the P65 index average of US$126.1/dmt in the period;
• Net realized selling price of US$99.2/dmt1, representing a 20% increase quarter-on-quarter, and 15% year-on-year;
• C1 cash cost of $76.9/dmt1 (US$56.2/dmt)2, comparable quarter-on-quarter, and representing a decrease of 5% year-on-year;
• EBITDA of $181.2 million1, an increase of 113% quarter-on-quarter, and 175% year-on-year;
• Net income of $81.4 million, an increase of 215% quarter-on-quarter, and 388% year-on-year;
• EPS of $0.16, an increase of 220% quarter-on-quarter, and 433% year-on-year;
• Strong cash position of $294.7 million as at June 30, 2024, including $259.9 million in cash and cash equivalents and $34.8 million in
restricted cash for the previously declared dividend payment, an overall decrease of $105.4 million since March 31, 2024, mainly due to
the timing of customer payments associated with the concentration of sales at the end of the quarter, progress on the DRPF project,
and tax payments primarily related to the previous financial year; and
• Available liquidity to support growth initiatives, including amounts available from the Company’s credit facilities, totalled $860.8 million1
at quarter-end, compared to $942.1 million1 as at March 31, 2024.
Growth and Development
• The DRPF project, upgrading half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, remains on schedule
and on budget, with commissioning scheduled for the second half of calendar year 2025;
• Completed first key construction milestones of the DRPF project as planned, with quarterly and cumulative investments of $58.5 million
and $153.8 million, respectively, as at June 30, 2024, out of the estimated total capital expenditures of $470.7 million;
• High-purity iron ore was added to Canada's critical minerals list, joining other minerals such as nickel, copper and cobalt, recog nizing
its positive impact in reducing GHG emissions in steelmaking and its importance in the green steel supply chain;
• Received an additional hydroelectric power allocation from Hydro -Québec, providing access to renewable power that will enable the
Company to support growth initiatives required for the green steel supply chain and further decarbonize its operations over time; and
• Acquired additional mining equipment, to be delivered in the near term, which should increase mine production capacity, inclu ding
stripping activities, and ordered additional railcars to increase the Company's rail shipment flexibility. These additions are also expected
to support the Company's ongoing commitment to address the bottleneck of operations and potentially increase Bloom Lake's
production and sales beyond its current nameplate capacity in the future.
2. Bloom Lake Mine Operating Activities
During the three -month period ended June 30, 2024, the Company delivered strong operating results with both plants producing at their
nameplate capacity. With no major semi -annual shutdowns at the two processing plants and despite a planned two -day annual power
interruption during the three -month period ended June 30, 2024, the Company continued to solidify its operations, benefiting from improved
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mining equipment availability and plants performance, following major maintenance activities completed in the previous quarte r. During the
three-month period ended June 30, 2024, the Company exceeded its previous record for iron ore concentrate sold. However, as volumes
transported continued to be lower than production, the iron ore concentrate stockpiled at Bloom Lake increased by 0.4 million wmt since March 31,
2024, reaching a total of 3.0 million wmt as at June 30, 2024.
The Company continues to seek improvements from the rail operator to receive contracted haulage services to ensure that Bloom Lake’s
production, as well as iron ore concentrate currently stockpiled at Bloom Lake, is hauled over future periods.
During the three-month period ended June 30, 2024, the Company continued to analyze work programs and investments required to structurally
increase Bloom Lake’s nameplate capacity beyond 15 Mtpa over time. The recently acquired additional mining equipment is expected to support
the mine production capacity, as the Company evaluates opportunities to address the bottleneck of operations, and prepare for an increase of
stripping activities in the future, per the mine plan. In July 2024, the Company ordered additional railcars to increase rail haulage flexibility over
time as part of considerations to potentially increase production beyond Bloom Lake's existing nameplate capacity.
In June 2024, Société Ferroviaire et Portuaire de Pointe-Noire, a Company's rail and transshipment service provider, concluded a 5-year collective
bargaining agreement with its workers, providing additional stability for the Company's operations.
Q1 FY25 Q4 FY24 Q/Q Change Q1 FY24 Y/Y Change
Operating Data
Waste mined and hauled (wmt) 6,733,700 6,498,700 4 % 5,198,500 30 %
Ore mined and hauled (wmt) 10,779,300 9,471,200 14 % 9,593,500 12 %
Material mined and hauled (wmt) 17,513,000 15,969,900 10 % 14,792,000 18 %
Stripping ratio 0.62 0.69 (10) % 0.54 15 %
Ore milled (wmt) 11,084,300 9,349,100 19 % 9,895,600 12 %
Head grade Fe (%) 29.1 28.7 1 % 28.8 1 %
Fe recovery (%) 79.3 80.2 (1) % 78.2 1 %
Product Fe (%) 66.3 66.1 — % 66.1 — %
Iron ore concentrate produced (wmt) 3,876,500 3,275,400 18 % 3,397,200 14 %
Iron ore concentrate sold (dmt) 3,442,800 2,968,900 16 % 2,563,500 34 %
During the three-month period ended June 30, 2024, 17.5 million tonnes of material were mined and hauled, compared to 14.8 million tonnes
during the same period in 2023 and 16.0 million tonnes during the previous quarter, representing an increase of 18% and 10%, respectively. The
increased production at the mine site was attributable to higher utilization and availability of mining equipment, and reduced trucking cycle time
associated with the construction of additional ramp accesses in the previous quarters.
The stripping ratio of 0.62 for the three -month period ended June 30, 2024, was higher than 0.54 for the same prior -year period, which was
negatively impacted by forest fires and, consequently, by the focus on critical activities required to feed the plant s. The stripping ratio for the
three-month period ended June 30, 2024, was slightly lower than the 0.69 achieved in the previous quarter, when lower mills availability enabled
the reallocation of mining equipment to move additional waste materials. The Company plans to maintain higher stripping activities in
accordance with the LoM plan over the next quarters.
During the three-month period ended June 30, 2024, the two plants at Bloom Lake processed 11.1 million tonnes of ore, compared to 9.9 million
tonnes for the same prior -year period and 9.3 million tonnes in the previous quarter, an increase of 12% and 19%, respectively. Ore processed
during the three -month period ended June 30, 2024, was positively impacted by lower maintenance activities, as the major semi -annual
shutdowns were performed at both plants during the previous quarter.
The iron ore head grade for the three-month period ended June 30, 2024, was 29.1%, compared to 28.8% for the same period in 2023, and 28.7%
during the previous quarter. The variation in head grade was within expected normal variations in the mine plan.
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The Company’s average Fe recovery rate was 79.3% for the three-month period ended June 30, 2024, compared to 78.2% for the same period in
2023, and 80.2% during the previous quarter. With continuous efforts made to optimize its recovery circuits, the Company expects ongoing and
future work programs to improve recovery rates over time.
With higher Fe recovery and comparable head grade, Bloom Lake produced 3.9 million wmt (3.8 million dmt) of high-grade iron ore concentrate
during the three-month period ended June 30, 2024, an increase of 14% compared to 3.4 million wmt (3.3 million dmt) during the same period in
2023, and an increase of 18% compared to 3.3 million wmt (3.2 million dmt) during the previous quarter.
3. Financial Performance
Q1 FY25 Q4 FY24 Q/Q Change Q1 FY24 Y/Y Change
Financial Data (in thousands of dollars)
Revenues 467,084 332,673 40% 297,162 57%
Cost of sales 264,911 227,496 16% 208,485 27%
Other expenses 21,159 20,425 4% 19,645 8%
Net finance costs 8,259 8,831 (6%) 6,926 19%
Net income 81,357 25,791 215% 16,657 388%
EBITDA1 181,160 85,099 113% 65,805 175%
Statistics (in dollars per dmt sold)
Gross average realized selling price1 171.6 166.3 3% 168.8 2%
Net average realized selling price1 135.7 112.1 21% 115.9 17%
C1 cash cost1 76.9 76.6 —% 81.3 (5%)
AISC1 91.6 88.0 4% 94.1 (3%)
Cash operating margin1 44.1 24.1 83% 21.8 102%
A. Revenues
Revenues totalled $467.1 million for the three-month period ended June 30, 2024, compared to $297.2 million for the same period in 2023, mainly
due to an increase in sales volume to 3.4 million tonnes of high-grade iron ore concentrate, from 2.6 million tonnes for the same prior-year period,
representing a 34% increase. Last year's sales volume was negatively impacted by railway interruptions and reduced services capacity due to
the forest fires in June 2023. The year-over-year increase in revenues was also attributable to a 17% increase in the net average realized selling
price, driven by positive provisional pricing adjustments on sales recorded during the previous quarter which were finalized at a higher price than
expected, and a weaker Canadian dollar offsetting higher freight costs.
Positive provisional pricing adjustments on prior quarter sales of $27.9 million (US$20.8 million) were recorded during the three-month period
ended June 30, 2024, representing a positive impact of US$6.0/dmt over 3.4 million dmt sold during the quarter, due to an increase in the P65
index prices early in the period. During the three-month period ended June 30, 2024, a final average price of US$124.2/dmt was established for
the 1.8 million tonnes of iron ore that were in transit as at March 31, 2024, and which were provisionally priced at US$112.8/dmt.
The gross average realized selling price of US$125.3/dmt1 for the three-month period ended June 30, 2024, was in line with the P65 index average
price of US$126.1/dmt for the period. The 1.8 million tonnes in transit as at June 30, 2024, which were evaluated using an average forward price
of US$119.4/dmt, had a negative impact on the gross average realized selling price, which was partially offset by certain sales contracts using
backward-looking iron ore index prices, when the index was higher than the P65 index average price for the period. The P65 index premi um
increased to 12.8% over the P62 index average price of US$111.8/dmt during the quarter, compared to a premium of 11.7% in the prior-year period,
mainly impacted by favourable steelmaking profit margins. The P65 index premium over the P62 index in the cur rent quarter was up from a
premium of 10.0% in the previous quarter.
Freight and other costs of US$32.1/dmt increased by 24% during the three-month period ended June 30, 2024, compared to US$25.8/dmt in the
same prior-year period. This increase was driven by a significantly higher average C3 index of US$25.8 /t for the period, compared to US$21.1/t
for the same period last year. This can likely be attributed to the conflict in the Red Sea which impacted freight routes during the period, and a
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much higher demand for vessels in the Atlantic due to the unseasonably elevated supply of iron ore from Brazil. A year -over-year increase in
demurrage expenses, resulting from a combination of higher demurrage rates and delayed shipments caused by lower th an contracted railway
services, also negatively impacted the Company’s freight and other costs during the three-month period ended June 30, 2024.
After taking into account sea freight and other costs of US$32.1/dmt and the positive provisional pricing adjustments of US$6.0/dmt , the
Company obtained a net average realized selling price of US$99.2/dmt (C$135.7/dmt1) for its high-grade iron ore shipped during the period.
B. Cost of Sales and C1 Cash Cost
For the three -month period ended June 30, 2024, the cost of sales totalled $264.9 million with a C1 cash cost of $76.9/dmt 1, compared to
$208.5 million with a C1 cash cost of $81.3/dmt1 for the same period in 2023, and $227.5 million with a C1 cash cost of $76.6/dmt1 in the previous
quarter. Quarterly C1 cash cost per dmt sold was impacted by mining and processing costs, change in concentrate inventory val uation, as well
as land transportation and port handling costs incurred during the period.
Mining and processing costs for the 3.8 million dmt produced in the three-month period ended June 30, 2024, totalled $47.9/dmt produced1,
representing a significant decrease of 17% compared to $57.6/dmt produced1 in the previous quarter. This improvement in mining and processing
costs was attributable to better plants' performance which positively impacted fixed production costs, as well as lower maint enance activities
as the major semi-annual shutdowns of the facilities were performed in the previous quarter. These improvements were partially offset by slightly
higher mining costs. Land transportation and port handling costs for the three-month period ended June 30, 2024, represented $25.3/dmt sold1,
slightly down from the previous quarter at $26.0/dmt sold1. Fixed costs at the port facilities in Sept-Îles were amortized over a higher sales volume
and the Company benefited from volume discounts on port duties. Despite these positive factors, C1 cash cost remained compara ble to the
previous quarter due to the impact of the change in concentrate inventory valuation. The higher mining and processing costs incurred in the
fourth quarter of the 2024 financial year, with lower production volume and higher maintenance activities, have had, and will continue to have,
an impact on the cost of sales in upcoming quarters through the change in concentrate inventory valuation.
Mining and processing costs per dmt produced1 for the three-month period ended June 30, 2024, decreased by 5% compared to the same period
last year, mainly due to fixed costs amortized over a higher volume of concentrate produced. Land transportation and port handling costs for the
three-month period ended June 30, 2024, were also down by nearly $4/dmt sold. The change in concentrate inventory valuation partially offset
these decreases.
C. Net Income & EBITDA
For the three-month period ended June 30, 2024, the Company generated EBITDA of $181.2 million1, representing an EBITDA margin of 39% 1,
compared to $65.8 million1, representing an EBITDA margin of 22%1, for the same period in 2023. Higher EBITDA was mainly due to higher gross
profit.
For the three-month period ended June 30, 2024, the Company generated net income of $81.4 million (EPS of $0.16), compared to $16.7 million
(EPS of $0.03) for the same prior-year period. The year-over-year increase in net income is attributable to higher gross profit partially offset by
higher income and mining taxes.
D. All In Sustaining Cost & Cash Operating Margin
During the three-month period ended June 30, 2024, the Company realized an AISC of $91.6/dmt1, compared to $94.1/dmt1 for the same period
in 2023. The decrease was attributable to higher iron concentrate produced and sold, which favourably impacted the Company's C1 cash c ost,
offset by higher sustaining capital expenditures mainly related to mining activities, tailings management and mining equipment rebuild program
associated with the Company's expended fleet that were required to support the mine plan in future years. Refer to section 5 — Cash Flows for
details on sustaining capital expenditures.
The Company generated a cash operating margin of $44.1/dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month
period ended June 30, 2024, compared to $21.8/dmt1 for the same prior-year period. The variation is due to a higher net average realized selling
price combined with a lower AISC for the period.
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4. Exploration Activities
During the three-month period ended June 30, 2024, the Company maintained all of its properties in good standing and did not enter into any
farm-in/farm-out arrangements. During the three-month period ended June 30, 2024, $2.6 million in exploration and evaluation expenditures
were incurred, compared to $2.7 million for the same prior -year period. During the three -month period ended June 30, 2024, exploration and
evaluation expenditures mainly consisted of work done in Newfoundland and Labrador
Details on exploration projects and 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
June 30,
2024 2023
(in thousands of dollars)
Tailings lifts 16,104 11,946
Stripping and mining activities 10,325 3,263
Mining equipment rebuild and replacement 10,373 4,552
Other sustaining capital expenditures 1,206 42
Sustaining capital expenditures 38,008 19,803
DRPF project 58,465 11,083
Other capital development expenditures at Bloom Lake 18,988 24,784
Purchase of property, plant and equipment as per cash flows 115,461 55,670
Sustaining Capital Expenditures
Sustaining capital expenditures were $11.0/dmt sold for the three-month period ended June 30, 2024, compared to $7.7/dmt for the same prior-
year period. This 43% increase reflected the additional mining development, equipment rebuild and tailings lifts required to support additional
production over the LoM.
The increase in tailings-related investments is part of the Company’s long-term plan to prepare the site for the LoM operations with Bloom Lake's
increased nameplate capacity. As part of its ongoing and thorough tailings infrastructure monitoring and inspections, the Company continues to
invest in its safe tailings strategy and is implementing its long-term tailings investment plan. The Company’s tailings work programs are typically
completed in the first half of the financial year due to more favourable weather conditions.
The increase in stripping and mining activities for the three-month period ended June 30, 2024, was attributable to mine development costs,
including topographic and pre-cut drilling work, as part of the Company's mine plan. Last year's stripping and mining activities were negatively
impacted by limited equipment availability. No stripping costs were capitalized during the three-month period ended June 30, 2024 ($0.3 million
for the same prior-year period).
The increase in the Company’s mining equipment rebuild program for the three-month period ended June 30, 2024, was attributable to the major
overhaul of its growing mining fleet over the last two years, driven by the Company’s expansion. The mining equipment rebuild and replacement
program is in line with the Company’s fleet management program for the 2025 financial year.
DRPF Project
During the three-month period ended June 30, 2024, $58.5 million was spent in capital expenditures related to the DRPF project. Investments
mainly consisted of on-site preparation activities, engineering work, long lead-time equipment purchasing and finalization of the construction of
the lodging complex. Cumulative investments of $153.8 million were deployed on the DRPF project as at June 30, 2024, with an estimated total
capital expenditure of $470.7 million, as per the project study released in January 2023.
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Other Capital Development Expenditures at Bloom Lake
During the three-month period ended June 30, 2024, other capital development expenditures at Bloom Lake totalled $19.0 million ($24.8 million
for the same period last year), including $10.2 million in infrastructure improvements and conformity ($8.4 million for the same prior-year period),
$3.8 million for the mine maintenance garage expansion to support the expanded truck fleet ($8.4 million for the same prior-year period), and
$2.8 million in deposits for mining equipment ($6.6 million for the same prior-year period).
6. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on July 31, 2024, 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 +1-888-390-0546 within North America or +1-800-076-068 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 -390-0541 within North America or +1-416-764-
8677 overseas, and entering passcode 606573#.
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 concentrators that
primarily source energy from renewable hydroelectric power. The two concentrators have a combined nameplate capacity of 15 Mtpa and 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, the Company is investing to upgrade half of the Bloom Lake 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. The Company ships iron ore concentrate from Bloom Lake by rail, to a ship
loading port in Sept -Îles, Québec, and has deli vered 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 a portfolio of exploration and development projects in the Labrador Trough,
including the Kami Project, located a few kilometres south -east of Bloom Lake, and 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 investments, delivery and commissioning of new
mining equipment and railcars and their impact on production, shipments and sales; (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
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Mtpa to commercially produce a DR quality pellet feed iron ore, expected project timeline, capital expenditure, budget and fi nancing, expected
environmental footprint, pricing premiums, efficiencies, economic and other benefits; (iii) the shift in the stee l industry towards reducing
emissions and green steel production methods, 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 (including producing high-quality DRPF products) and expected
benefits thereof; (iv) GHG and CO2 emissions reduction initiatives, objectives, targets and expectations; (v) maintaining higher stripping activities;
(vi) stockpiled ore levels, shipping and sales of accumulated concentrate inventories and related rehandling costs and their impact on the cost
of sales; (vii) increased shipments of iron ore and related railway and port capacity and transportation and handling costs; (viii) the Company’s
safe tailings strategy, tailings investment plan, mining equipment rebuild and replacement program, fleet management program and related
investments and benefits; (ix) production and recovery rate targets and the Company’s performance and related work programs; (x) pricing of
the Company’s products (including provisional pricing); (xi) available liquidity to support the Company’s growth projects; and (xii) 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) the results of feasibility studies; (ii) changes in the assumptions used to prepare feasibility studies; (iii)
project delays; (iv) timing and uncertainty of industry shift to green steel and electric arc furnaces, impacting demand for high -grade feed; (v)
continued availability of capital and financing and general economic, market or business conditions; (vi) general economic, competitive, political
and social uncertainties; (vii) future prices of iron ore; (viii) future transportation costs; (ix) failure of plant, equipment or processes to operate as
anticipated; (x) delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities;
(xi) geopolitical events; and (xii) the effects of catastrophes and public hea lth crises, including the impact of COVID -19, 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 2024
Annual Report and Annual Information Form fo r the financial year ended March 31, 2024 , all of which are available 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 such information will prove to be accurate as actual results and future events could differ materially from those
anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
Additional Updates
All of the forward-looking information contained in this press release is given as of the date hereof or such other date or dates specified in the
forward-looking statements and is based upon the opinions and estimates of Champion's Management and information available to Management
as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the forward -looking information, whether as a
result of new information, future events or otherwise, except as required by law. If the Company does update one or more forw ard-looking
statements, no inf erence 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
in thousands of Canadian dollars; and (ii) per share or per tonne amounts. The following abbreviations and definitions are used throughout this
press release: US$ (United States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), Mtpa (million
tonnes per annum), M (million), km (kilometers), GHG (greenhouse gas), LoM (life of mine), Bloom Lake or Bloom Lake Mine (Bloom Lake Mining
Complex), DRPF (direct reduction pellet feed), Kami Project (Kamistiatusset project), P62 index (Platts IODEX 62% Fe CFR China index), P65 index
(Platts IODEX 65% Fe CFR China index), C3 index (C3 Baltic Capesize index), EBITDA (earnings before interest, tax, depreciation and amortization),