CHAMPION IRON REPORTS ROBUST FOURTH QUARTER AND FY2022 ANNUAL RESULTS AND DECLARES DIVIDEND FY2022 EPS of $1.03, EBITDA of $926M; Declares a dividend of $0.10 per ordinary share; Ramping up the Bloom Lake Mine Phase II expansion project and evaluating growth opportunities
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PRESS RELEASE
CHAMPION IRON REPORTS ROBUST FOURTH QUARTER AND FY2022 ANNUAL
RESULTS AND DECLARES DIVIDEND
FY2022 EPS of $1.03, EBITDA of $926M; Declares a dividend of $0.10 per ordinary share; Ramping up the Bloom
Lake Mine Phase II expansion project and evaluating growth opportunities
Montréal, May 25, 2022 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“Champion” or the “Company”) is pleased to announce
operational and financial results for the fourth quarter and fiscal year ended March 31, 2022.
Conference Call Details
Champion will host a conference call and webcast on May 26, 2022 at 8:30 AM (Montréal time) / 10:30 PM (Sydney time) to discuss the fourth
quarter and annual results for the fiscal year ended March 31, 2022. Call details are outlined at the end of this press release.
1. Highlights
Health & Safety
• No serious injuries or major environmental issues reported during the period;
• An employee recordable injury frequency rate of 2.98 for the 2022 fiscal year, which is in line with Québec's open pit indust ry
performance;
• COVID-19 testing laboratory and prev ention measures maintained in line with the Government of Québec's (the “Government”)
directives to mitigate risks related to COVID-19 and limit the spread of variants;
• Completed the Company's 2021 Sustainability Report, including Task Force on Climate- Related Financial Disclosure, available on the
Company's website at www.championiron.com; and
• Committing to greenhouse gas (“GHG”) emissions reduction of 40% by 2030, based on 2014 emission intensity with additional
consideration for the targeted nameplate capacity of 15 Mtpa. The Company is also committed to be carbon neutral by 2050.
Financial
• Inaugural dividend of $0.10 per ordinary share paid on March 1, 2022, in connection with the semi -annual results for the period ended
September 30, 2021, and an additional dividend of $0.10 per ordinary share declared by the Board of Directors in connection with the
annual results for the period ended March 31, 2022. Additional details on the dividends and related tax in formation can be found on
the Company’s website at www.championiron.com;
• Revenues of $331.4M and $1,460.8M for the three -month period and year ended March 31, 2022, respectively, compared to $396.7M
and $1,281.8M for the same periods in 2021;
• EBITDA1 of $197.9M for the three -month period ended March 31, 2022, compared to $275.8M for the same period in 2021. EBITDA 1 of
$925.8M for the year ended March 31, 2022, compared to $819.5M for the same period in 2021;
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• Net income of $115.7M for the three- month period ended March 31, 2022 (EPS of $0.23), compared to $155.9M for the same period in
2021 (EPS of $0.32). Net income of $522.6M for the year ended March 31, 2022 (EPS of $1.03), compared to $464.4M for the same
period in 2021 (EPS of $0.97);
• Net cash flow from operating activities of $4.3M for the three -month period ended March 31, 2022, representing an operating cash
flow per share 1 of $0.01, compared to $228.6M or $0.46 for the same period in 2021. Net cash flow from operating activities of
$470.4M for the year ended March 31, 2022, representing an operating cash flow per share 1 of $0.93, compared to $624.4M or $1.30
for the same period in 2021;
• Cash on hand1 and restricted cash of $396.4M as at March 31, 2022, compared to $543.4M as at December 31, 2021 and $680.5M as
at March 31, 2021, reflecting the ongoing construction of the Phase II expansion project, working capital changes and the semi -
annual dividend payment on March 1, 2022; and
• US$400.0M general purpose revolving facility agreement signed on May 24, 2022 (the “Revolving Facility”), which refinanced the
previous Phase II credit facility (the “Credit Facility”), providing increased financial flexibilit y and enabling the Company to lift the
restricted cash covenant of $43.7M, and reduce its cost of capital. The Revolving Facility was underwritten by sophisticated global
financiers, including Societe Generale, The Bank of Nova Scotia, The Toronto-Dominion Bank and The Royal Bank of Canada acting as
mandated lead arrangers. The Company drew US$180M on the Revolving Facility, equivalent to the Credit Facility balance as at
March 31, 2022.
Operations
• Production of 1,869,000 wmt of high-grade 66.2% Fe concentrate for the three- month period ended March 31, 2022, compared to
2,011,400 wmt of high-grade 66.5% Fe concentrate for the same period in 2021. Production of 7,907,300 wmt of high -grade 66.2% Fe
concentrate for the year ended March 31, 2022, compared to 8,001,200 wmt of high-grade 66.4% Fe for the same period in 2021;
• Fe recovery rate of 82.7% and 83.2% for the three- month period and year ended March 31, 2022, respectively, compared to a
Fe recovery rate of 82.6% and 83.5%, respectively, for the same periods in 2021; and
• Free on Board (“FOB”) total cash cost 1 of $60.0/dmt (US$47.42/dmt) (C1) and $58.9/dmt (US$47.0 2/dmt) for the three- month period
and year ended March 31, 2022, respectively, compared to $54.4/dmt (US$43.0 2/dmt) and $54.2/dmt (US$41.0 2/dmt), respectively,
for the same periods in 2021.
Growth and Development
• Ongoing feasibility study evaluating the reprocessing and infrastructure required to commercially produce a 69% Fe Direct Reduction
(“DR”) pellet feed pro duct. The study of this proposed project, scaled to convert approximately half of Bloom Lake’s increased
nameplate capacity, is expected to be completed in mid-2022;
• Announcement of the entering into an acquisition agreement for the Pointe -Noire Iron Ore Pelletizing Facility located in Sept -Îles,
Québec (the “Pellet Plant”) on May 17, 2022, and announcement that the Company had entered into a memorandum of understanding
with a major international steelmaking partner to evaluate the recommissioning of the Pellet Plant to produce DR grade pellets; and
• Advancing the Kamistiatusset iron ore project's (the “Kami Project”) feasibility study, expected to be complete d in the second half of
calendar 2022, whereby the project is being evaluated for its capability to produce DR grade pellet feed product.
Phase II Milestones
• Phase II commissioning achieved ahead of schedule in late April 2022, despite pandemic -related c hallenges, positioning the
Company to ramp up towards commercial production by the end of calendar 2022;
• Completion of the first rail shipments containing 24,304 wmt of high-grade 66.2% Fe iron ore concentrate from the Phase II project on
May 3, 2022; and
• Cumulative investments of $625.2M, including deposits, deployed on the project as at March 31, 2022.
Champion’s CEO, Mr. David Cataford, said: “Delivering robust operational and financial results for our 2022 fiscal year, whil e completing our
Phase II exp ansion project is a significant achievement highlighting our team’s professionalism and perseverance. This year we will work to
double Bloom Lake’s nameplate capacity and further position our Company’s contributions towards green steelmaking solutions. In addition to
ongoing feasibility studies for our DR pellet feed project and the Kami Project, we also partnered with a global leader in the steel industry, in
order to evaluate the opportunity to re-commission our recently acquired Pellet Plant in Pointe-Noire and produce DR pellets.”
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2. Bloom Lake Phase II Commissioning
During the three-month period ended March 31, 2022, the Company advanced the work required to commission its Phase II project. As such, the
Company completed its first rail shipments containing 24,304 wmt of high -grade 66.2% Fe iron ore concentrate from th e Phase II project on
May 3, 2022. The Company's first saleable Phase II high -grade iron ore concentrate is expected to be shipped from the port of Sept -Îles in the
first quarter of the 2023 fiscal year. This significant milestone represents a tangible ste p towards realizing Bloom Lake's potential to become
one of the largest global suppliers of high-purity iron ore.
As the Company anticipates reaching commercial production at Phase II by the end of calendar 20223, project milestones achieved and related
works undertaken during the three-month period ended March 31, 2022 included:
• Water-based commissioning of multiple process systems and all ancillary services at the plant;
• Obtained provincial government approval for future expansion of the tailings facilities to accommodate the full life of mine plan, while
awaiting final federal government authorization;
• Continuation of construction works; and
• Commissioning of the plant at the end of April 2022, with first rail shipments completed on May 3, 2022.
3. Decarbonization Initiatives
As part of its ongoing efforts to minimize the environmental impact of its operations, the Company committed to GHG emission s reduction of
40% by 2030, based on 2014 emission s intensity with additional consideration for the targeted nameplate capacity of 15 Mtpa. The Company
further committed to be carbon neutral by 2050. This GHG target is in line with the Paris Agreement 2 degrees Celsius scenar ios, the Canadian
government GHG reduction and the Science Based Target s initiative (“SBT i”) frameworks. Towards this effort, the Company implemented a
working group mandated to identify emission s reduction initiatives and evaluate resources required to de ploy a program to reach its GHG
emissions reduction objectives.
Recent initiatives include a partnership with Tugli q Energy Co. to initiate testing of electric pickup trucks designed for mining operations in
Northern climates, which are expected to reduce emissions.
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4. Bloom Lake Mine Operating Activities
Three Months Ended Year Ended
March 31, March 31,
2022 2021 Variance 2022 2021 Variance
Operating Data
Waste mined and hauled (wmt) 5,071,700 3,796,300 34% 20,512,500 15,481,100 33%
Ore mined and hauled (wmt) 5,388,200 5,636,100 (4%) 22,263,200 21,571,700 3%
Material mined and hauled (wmt) 10,459,900 9,432,400 11% 42,775,700 37,052,800 15%
Strip ratio 0.94 0.67 40% 0.92 0.72 28%
Ore milled (wmt) 4,904,100 5,237,800 (6%) 20,972,100 20,598,700 2%
Head grade Fe (%) 30.3 30.7 (1%) 29.9 30.7 (3%)
Fe recovery (%) 82.7 82.6 —% 83.2 83.5 —%
Product Fe (%) 66.2 66.5 —% 66.2 66.4 —%
Iron ore concentrate produced (wmt) 1,869,000 2,011,400 (7%) 7,907,300 8,001,200 (1%)
Iron ore concentrate sold (dmt) 1,889,900 1,971,100 (4%) 7,650,600 7,684,500 —%
Financial Data (in thousands of dollars)
Revenues 331,376 396,702 (16%) 1,460,806 1,281,815 14%
Cost of sales 116,658 110,299 6% 458,678 428,882 7%
Other expenses 26,648 14,591 83% 84,871 43,693 94%
Net finance costs 2,269 5,430 (58%) 11,045 22,428 (51%)
Net income 115,653 155,934 (26%) 522,585 464,425 13%
EBITDA1 197,938 275,764 (28%) 925,817 819,477 13%
Statistics (in dollars per dmt sold)
Gross average realized selling price1 207.1 220.0 (6%) 225.9 182.3 24%
Net average realized selling price1 175.3 201.3 (13%) 190.9 166.8 14%
Total cash cost (C1 cash cost)1 60.0 54.4 10% 58.9 54.2 9%
All-in sustaining cost1 70.5 65.1 8% 73.1 62.8 16%
Cash operating margin1 104.8 136.2 (23%) 117.8 104.0 13%
Operational Performance
Fourth Quarter of the 2022 Fiscal Year vs Fourth Quarter of the 2021 Fiscal Year
In the three-month period ended March 31, 2022, 10,459,900 tonnes of material were mined and hauled, compared to 9,432,400 tonnes during
the same period in 2021, an increase of 11%. The current strip ratio is in line with the revised mine plan, which includes pr eparation for Phase II
operations. The increase in material movement was enabled through the utilization of additional operational equipment compared to the same
prior-year period, offset by a longer haul cycle as material sourced from different pits, including those that deepened with mining activities over
time, contributed to a longer haul cycle year-over-year.
The iron ore head grade for the three- month period ended March 31, 2022 was 30.3%, compared to 30.7% for the same period in 2021. The
variation in head grade is attributable to the presence of some lowe r-grade ore being sourced and blended from different pits, which was
anticipated and is in line with the mining plan and the LoM head grade average.
Additionally, the Company's average Fe recovery rate remained stable quarter-over-quarter as a result of a constant recovery circuit.
Bloom Lake produced 1,869,000 wmt of 66.2% Fe high -grade iron ore concentrate during the three- month period ended March 31, 2022, a
decrease of 7%, compared to 2,011,400 wmt of 66.5% Fe during the same period in 2021. The slightly lower production is attributable to a lower
head grade and lower throughput. The plant processed 4,904,100 tonnes of ore during the three -month period ended March 31, 2022,
compared to 5,237,800 for the same prior -year period. The throughput for the pe riod was negatively affected by the operational inefficiencies
caused by the COVID-19 Omicron variant, together with minor unplanned maintenances.
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2022 Fiscal Year vs 2021 Fiscal Year
On March 24, 2020, the Company announced the ramp -down of its operations following Government directives in response to the COVID -19
pandemic. Operations gradually ramped up following the Government's announcement in April 2020 that mining activities were to be
considered a "priority service" in Québec. Early actions implemented by the Company in response to the COVID -19 pandemic minimized its
impact on the Company and its operations. Once Government restrictions were lifted, the Company accelerated its min ing activities and fully
resumed its production capacity.
The Company mined and hauled 42,775,700 tonnes of material during the year ended March 31, 2022, compared to 37,052,800 tonnes for the
same period in 2021. This increase in material mined and haul ed is attributable to the utilization of additional operational equipment compared
to the same prior -year period and the negative impact of the COVID -19 pandemic on several of the Company's other activities early in the
comparative period. The strip ratio increased to 0.92 for the year ended March 31, 2022, compared to 0.72 for the same period in 2021. The strip
ratio is consistent with the revised mine plan which includes preparation for Phase II operations.
The iron ore head grade of 29.9% for the year ended March 31, 2022 was attributable to different sourcing pits, compared to 30.7% for the same
period in 2021 and is consistent with the LoM head grade average.
The plant processed 20,972,100 tonnes of ore during the year ended March 31, 2022, an increa se of 2% over the same period in 2021. The iron
ore concentrate produced remained stable during the year ended March 31, 2022 despite a lower head grade, compared to the same period in
2021, as a result of continuous improvements and operational innovation s allowing the Company to increase throughput stability and reach a
higher level of mill productivity.
5. Financial Performance
A. Revenues
Fourth Quarter of the 2022 Fiscal Year vs Fourth Quarter of the 2021 Fiscal Year
During the three -month period ended March 31, 2022, 1,889,900 tonnes of high -grade iron ore concentrate were sold at the CFR China gross
average realized price1 of US$164.1/dmt, before freight and other costs and provisional pricing adjustments, compared to US$173.9/dmt for the
same prior-year period. The decrease in gross average realized selling price 1 mainly reflects lower index prices during the three -month period
ended March 31, 2022, compared to the same prior -year period. Despite lower index prices, the gross average realized selling price 1 of
US$164.1/dmt represents a premium of 15.9% over the benchmark IODEX 62% Fe CFR China Index (“P62”) price for the period, compared to a
premium of 4.2% for the same period in 2021.
The gross average realized sel ling price1 of US$164.1/dmt was slightly lower than the IODEX 65% Fe CFR China Index (“P65”) average price of
US$169.7/dmt for the period due to the negative impact of sales based on backward -looking iron ore prices, when prices were substantially
lower th an the P65 index average for the period. The gross average realized selling price 1 also reflects the positive impact of sales at a
determined price based on the average forward price of US$185.7 at the expected settlement date for 691,100 tonnes which were in transit at
the end of the period.
The average C3 Baltic Capesize Index (“C3”) for the three -month period ended March 31, 2022 was US$22.9/t compared to US$18.0/t for the
same period in 2021, representing an increase of 27%, which contributed to higher freight costs in the three -month period ended
March 31, 2022, compared to the same prior-year period. The freight costs variation relative to the C3 index during the period was mainly due to
the timing of the vessels' booking. A dynamic also arose where the lower C3 index during the period, likely due to lower Brazilian shipments, had
somewhat disconnected with other bulk freight indices. As a result, vessel operators were not willing to book vessels using the C3 ind ex when
prices were low. The Company expects to benefit from the quarter’s low freight index in the upcoming period for sales contracts based on fixed
backward-looking indexes.
The net average realized selling price 1 of US$139.1 for the three -month period ended March 31, 2022 was negatively impacted by a higher C3
index. Freight and other costs represented 23% of the gross average realized selling price for the period, compared to 13% for the same period in
2021, which represents a variation of US$14.2/dmt. Provisional pricing adjustments on previous sales, which were directly correlated to the
increase in the P65 index early in the quarter contributed to increasing the net average realized selling price 1. During the t hree-month period
ended March 31, 2022, the final price was established for the 856,200 tonnes of iron ore that were in transit as at December 31, 2021.
Accordingly, during the three-month period ended March 31, 2022, net positive provisional pricing adjustments were recorded as an increase in
revenues for the 856,200 tonnes, representing a positive impact of US$12.2/dmt for the period, compared to US$8.4/dmt for the same period in
2021.
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After taking into account sea freight and other costs of US$37.2/dmt and the positive provisional pricing adjustment of US$12.2/dmt, the
Company obtained a net average realized selling price 1 of US$139.1/dmt (CA$175.3/dmt) for its high -grade iron ore delivered to the end
customer. Revenues totalled $331,376,000 for the three-month period ended March 31, 2022 compared to $396,702,000 for the same period in
2021, reflecting the lower net average realized selling price1 as well as the negative volume impact attributable to the COVID-19 pandemic.
2022 Fiscal Year vs 2021 Fiscal Year
For the year ended March 31, 2022, the Company sold 7,650,600 tonnes of iron ore concentrate , mainly to customers in China, Japan, South
Korea and Europe. While the high-grade iron ore P65 index price fluctuated between a low of US$101.8/dmt and a high of US$264.2/dmt during
the year ended March 31, 2022, the Company sold its product at a gross average realized selling price 1 of US$181.1/dmt. The gross average
realized selling price is comparable to the average P65 high -grade index of US$179.9/dmt for the period. The Company expects its iron ore
concentrate pricing to continue tracking the P65 index in the long term.
Combining the gross average realized selling price 1 with the positive provisional pricing adjustment of US$7.5/dmt, the Company sold its high -
grade iron ore at a price of US$188.6/dmt during the year ended March 31, 2022, compared to the P65 high -grade index average of
US$179.9/dmt. Deducting sea freight and other costs of US$35.3/dmt, the Company obtained a net average realized selling price 1 of
US$153.3/dmt (CA$190.9/dmt) for its high-grade iron ore. The increase in freight and other costs in the year ended March 31, 2022, compared
to the same period in 2021, negatively impacted the net average realized selling price 1 for the period by US$14.8/dmt. As such, revenues
totalled $1,460,806,000 for the year ended March 31, 2022, compared to $1,281,815,000 for the same period in 2021, mainly as a result of a
higher gross average realized selling price1, partially offset by higher freight and other costs and the negative impact of foreign exchange rates.
B. Cost of Sales
Cost of sales represents mining, processing, and mine site -related G&A expenses as well as rail and port operation costs. It also inc ludes
specific and incremental costs related to COVID-19.
For the three-month period ended March 31, 2022, the cost of sales totalled $116,658,000, compared to $110,299,000 for the same period in
2021. During the three-month period ended March 31, 2022, the total cash cost1 or C1 cash cost 1 per tonne, excluding specific and incremental
costs related to COVID -19, totalled $60.0/dmt, compared to $54.4/dmt for the same period in 2021. The total cash cost 1 for the three -month
period ended March 31, 2022 was negatively impacted by fuel price increases, longer haul cycle times associated with the current mine plan,
and the utilization of additional operational mining equipment in order to prepare for Phase II. Increased explosives costs also contributed to
higher cash costs1 for the period.
For the year ended March 31, 2022, the Company produced high -grade iron ore at a total cash cost 1 amounting to $58.9/dmt, compared to
$54.2/dmt for the year ended March 31, 2021. The variation is attributable to the same fact ors that affected the total cash cost 1 for the three-
month period ended March 31, 2022. In addition, minor unplanned maintenances contributed to the higher cash cost 1 for the year ended
March 31, 2022.
C. Net Income & EBITDA1
Fourth Quarter of the 2022 Fiscal Year vs Fourth Quarter of the 2021 Fiscal Year
For the three -month period ended March 31, 2022, the Company generated net income of $115,653,000 (EPS of $0.23), compared to
$155,934,000 (EPS of $0.32) for the same period in 2021. The net income was mainly affected by lower gross profits associated with a lower
P65 index average price and higher sea freight and other costs during the period, as well as by lower volumes of iron ore concentrate sold,
compared to the same prior-year period. The decrease in net income is partially offset by lower current income and mining taxes as a result of
lower operating earnings.
For the three -month period ended March 31, 2022, the Company generated an EBITDA 1 of $197,938,000, including non -cash share -based
compensation and pre -commercial start -up costs for Phase II totalling $12,654,000, representing an EBITDA margin 1 of 60%, compared to
$275,764,000, representing an EBITDA margin 1 of 70% for the same period in 2021. The decrease in EBITDA 1 period-over-period is primarily due
to lower revenue from lower net average realized selling prices1.
2022 Fiscal Year vs 2021 Fiscal Year
For the year ended March 31, 2022, the Company generated net income of $522,585,000 (EPS of $1.03), compared to $464,425,000 (EPS of
$0.97) for the same period in 2021. The increase in net income is mainly due to higher gross profits and lower net finance costs mainly
attributable to a lower foreign exchange loss for the period. The increase is partially offset by Bloom Lake Phase II start -up costs, higher G&A
expenses and higher current income and mining taxes as a result of higher operating earnings.
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For the year ended March 31, 2022, the Company generated an EBITDA 1 of $925,817,000, representing an EBITDA margin 1 of 63%, compared to
$819,477,000, representing an EBITDA margin 1 of 64% for the same period in 2021. This increase in EBITDA 1 is mainly attr ibutable to the
increase in the net average realized selling price1, partially offset by higher production costs and pre-commercial start-up costs for Phase II.
D. AISC1 and Cash Operating Margin1
During the three-month period ended March 31, 2022, the Company realized an AISC1 of $70.5/dmt, compared to $65.1/dmt for the same period
in 2021. The variation relates to higher total cash costs 1 and the negative impact of lower volumes of iron ore concentrate sold. Deducting the
AISC1 of $70.5/dmt from the net average realized selling price1 of $175.3/dmt, the Company generated a cash operating margin 1 of $104.8/dmt
for each tonne of high -grade iron ore concentrate sold during the three -month period ended March 31, 2022, compared to $136.2/dmt for the
same prior-year period. The variation is mainly due to a lower net average realized selling price1 for the period.
During the year ended March 31, 2022, the Company recorded an AISC 1 of $73.1/dmt, compared to $62.8/dmt for the same period in 2021. The
variation is due to higher total cash costs 1, higher sustaining capital expenditures related to higher stripping and mining activities and higher
investments made in tailings lifts associated with preventive and corrective interventions on two specific dikes. The cash operating margin 1
totalled $117.8/dmt for the year ended March 31, 2022, compared to $104.0/dmt for the same period in 2021. The variation is mainly due to a
higher net average realized selling price1.
6. Reserves and Resources – As at March 31, 2022
During the 2022 fiscal year, stripping activities commenced, as detailed in the National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”) and the Joint Ore Reserves Committee (“JORC”) Code (2012 edition) compliant technical report titled “Bloom Lake Mine –
Feasibility Study Phase II” (the “Phase II Feasibility Study”), authored by BBA, Soutex and WSP Canada Inc., and dated June 20, 2019. As such, it
is no longer relevant to report reserves and resources separately as Phase I and Phase II.
The Bloom Lake reserves and resources were subject to adjustments for new drilling, operational experience and depletion , due to iron ore
being mined as of March 31, 2022. The Phase II Feasibility Study is available under the Company's filings at www.sedar.com and on the ASX at
www.asx.com.au.
The changes in resources and reserves between March 31, 2021 and March 31, 2022 are mostly due to the following:
• Change in the pit design in relation to the Phase II expansion detailed in the Phase II Feasibility Study;
• Adjustment of the geological domains due to the addition of new drill holes to the database;
• Adjustment of the estimation parameters used in modelling through calibration with results from operations; and
• Yearly depletion.
Table 1: Bloom Lake Mineral Resources (million dmt)
Property Group Measured Indicated
Total Measured
& Indicated Inferred
Bloom Lake* Bloom Lake 219 626 846 129
Table 2: Bloom Lake Mineral Reserves (million dmt)
Property / Group Proven Fe (%) Probable Fe (%)
Reserves Proven
& Probable Fe (%)
Bloom Lake** 214 30.1 531 28.3 745 28.8
* Bloom Lake mineral resources include Bloom Lake mineral reserves.
** Proven tonnage of 214 Mt includes 1 Mt of stockpiles.
Additional details on other properties mineral resources and r eserves can be found in section 11 – Reserves and Resources of the Company’s
Management's Discussion and Analysis (“MD&A”) for the year ended March 31, 2022, available under the Company's profile on SEDAR at
www.sedar.com, on the ASX at www.asx.com.au and the Company's website at www.championiron.com.
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7. Qualified Person and Data Verification
Mr. Vincent Blanchet, P. Eng., Engineer at Quebec Iron Ore Inc., the Company’s subsidiary and operator of Bloom Lake, is a “q ualified person” as
defined by NI 43-101 and has reviewed and approved, or has prepared, as applicable, the disclosure of the scien tific and technical information
contained in this press release and has confirmed that the relevant information is an accurate representation of the available dat a and studies
for the relevant projects. Mr. Blanchet’s review and approval does not include s tatements as to the Company’s knowledge or awareness of new
information or data or any material changes to the material assumptions and technical parameters underpinning the Phase II Feasibility Study.
Mr. Blanchet is a member of the Ordre des ingénieurs du Québec.
8. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on May 26, 2022 at 8:30 AM (Montréal time) / 10:30 PM (Sydney
time). Listeners may access a live webcast of the conference ca ll 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 919862 #.
About Champion Iron Limited
Champion, through its 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 Bloom Lake Phase I and Phase II plants have a combined nameplate capaci ty of
15 Mtpa and produce a low contaminant high-grade 66.2% Fe iron ore concentrate with the proven ability to produce a 67.5% Fe direct reduction
quality concentrate. 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 sells its iron
ore concentrate to customers globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to the
Bloom Lake Mining Complex, Champion owns a portfolio of exploration and development projects in the Labrador Trough, including the
Kamistiatusset project located a few kilometres south -east of Bloom Lake, and the Consolidated Fire Lake North iron ore project, located
approximately 40 km south of Bloom Lake.
Cautionary Note Regarding Forward-Looking Statements
FORWARD-LOOKING STATEMENTS
This press release includes certain information and statements that may constitute “forward -looking information” under applicable Canadian
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", "pr ojects", "predicts",
"intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, su ch 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 f orward-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, including Management’s expectations regarding:
(i) the Company's Phase II expansion project and its milestones, commissioning and impact on commercial production and on nam eplate
capacity, mining rate and shipping of iron ore concentrate and production volume; (i i) the development of green steelmaking solutions; (iii) the
opportunity to re -commission the Pellet Plant in Pointe -Noire and produce DR pellets; (i v) GHG and CO 2 emission reduction initiatives ,
objectives, targets a nd expectations; (v) the mitigation of risks related to COVID -19 and the limitation of the spread of variants ; (vi) iron ore
prices fluctuations and the correlation of the Company’s iron ore concentrate pricing and the P65 index ; (vii) the impact of exchange rates on
commodity prices and the Co mpany’s financial results; ( viii) benefits from low freight index; ( ix) the future declaration and payment of
dividends and the timing thereof; (x) the feasibility study to evaluate the reprocessing and infrastructure required for the commercial
production of a 69% Fe DR pellet feed product , including the timing thereof; (xi) the acquisition of the Pointe -Noire Pellet Plant, its completion,