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Champion Iron’s subsidiary, Quebec Iron Ore Inc. and the Innu People of Uashat mak Mani-utenam Enter into Impact and Benefits Agreement with respect to the Bloom Lake Mine

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Champion Iron’s subsidiary, Quebec Iron Ore Inc. and the Innu

People of Uashat mak Mani-utenam Enter into Impact and Benefits

Agreement with respect to the Bloom Lake Mine

Montréal (Québec), Canada, April 12, 2017: Champion Iron Limited (ASX: CIA, TSX: CIA)

(“Champion” or the “Company”), through its subsidiary Quebec Iron Ore Inc. (“QIO”), and the band

council, Innu of Takuaikan Uashat mak Mani -utenam (ITUM), have entered into an Impact and

Benefits Agreement (the “I BA”) with respect to future operations at the Bloom Lake Iron Mine

(“Bloom Lake”) located near Fermont, Quebec. An official signing ceremony has taken place today.

The signing of the IBA demonstrates the Innu of Takuaikan Uashat mak Mani -utenams support for

the Bloom Lake project. The IBA is a life -of-mine agreement and provides for real participation in

Bloom Lake for the Uashaunnuat in the form of training, jobs and contract opportunities, and

ensures that the Innu of Takuaikan Uashat mak Mani-utenam will receive fair and equitable financial

and socio -economic benefits. The IBA also contains provisions which recognize and support the

culture, traditions and values of the Innu of Takuaikan Uashat mak Mani -utenam, including

recognition of their bond with the natural environment.

Chief Mike McKenzie, the Chief of ITUM and Michael O’Keeffe, Champion and QIO Chairman and

CEO have both stated that they are very pleased with the IBA, which formalizes a period of mutual

cooperation, productive dialogue and succe ssful negotiation. Mr. O’Keeffe added, “The successful

conclusion of the IBA further strengthens Champion and QIO’s positive working relationship with the

Innu of Takuaikan Uashat mak Mani-utenam and we look forward to a beneficial future for all parties

as Bloom Lake enters into its next phase, having recently completed a positive Feasibility Study. The

signing of the IBA is a major milestone and a significant step towards the Bloom Lake restart.”

About Bloom Lake

On April 11, 2016, the Company, through its subsidiary QIO, acquired the Bloom Lake assets from

affiliates of Cliffs Natural Resources Inc. that were subject to restructuring proceedings under the

Companies’ Creditors Arrangement Act (Canada). Québec Iron Ore Inc. is 63.2% owned by the

Company, with the remaining 36.8% equity interest owned by Ressources Québec, acting as a

mandatory of the Government of Quebec.

The Bloom Lake property is located on the south end of the Labrador Trough, approxi mately 13 km

north of Fermont, Quebec, and 10 km north of the Mount -Wright iron ore mining operation of

ArcelorMittal Mines Canada. The Bloom Lake Mine is an open pit truck and shovel operation, with a

concentrator. From the site, iron concentrate can be t ransported by rail, initially on the Bloom Lake

Railway, to a ship loading port in Sept-Iles, Québec.

The Bloom Lake Mine has already been authorized for operation under the federal and provincial

environmental authorities. The project was subject to an environmental impact assessment process

under Section 31.1 of the Québec Environment Quality Act, which led to the first decree issued by

the Quebec government in 2008 authorizing mining activities at the Bloom Lake site . An updated

positive Feasibility St udy on Bloom Lake is being completed and will be available under the

Company’s profile on SEDAR (www.sedar.com) at the end of March, 2017.

About Champion

Champion is an iron development and exploration company, focused on developing its significant

iron re sources in the south end of the Labrador Trough in the province of Québec. Following the

acquisition of its flagship asset, the Bloom Lake iron ore property, the Company’s main focus is to

implement upgrades to the mine and processing infrastructure it now owns while also advancing

projects associated with improving access to global iron markets, including rail and port

infrastructure initiatives with government and other key industry and community stakeholders.

Champion’s management team includes professi onals with mine development and operations

expertise who also have vast experience from geotechnical work to green field development, brown

field management including logistics development and financing of all stages in the mining industry.

For further information please contact:

Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858

David Cataford, COO at Tel. +1 514-316-4858

For additional information on Champion Iron Limited, please visit our website at www.championiron.com

This news release includes certain information that may constitute "forward -looking information" under

applicable Canadian securities legislation. All statements, other than statements of historical facts, included in

this news release that address future activities, events, developments or financial performance constitute

forward-looking information. The use of any of the words "will", "expect", “anticipate”, “intend”, "believe",

"plan", "potential", “outlook”, “forecast”, “estimate” and similar expression s are intended to identify forward -

looking information. Forward -looking information is necessarily based upon a number of estimates and

assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and

other factors which may cause the actual results and future events to differ materially from those expressed or

implied by such forward -looking information, including the risks identified in Champion’s annual information

form, management’s discussion and analysis and ot her securities regulatory filings made by Champion on

SEDAR (including under the heading "Risk Factors" therein). There can be no assurance that such information

will prove to be accurate, as actual results and future events could differ materially from th ose anticipated in

such forward -looking information. Accordingly, readers should not place undue reliance on forward -looking

information. All of Champion’s forward -looking information contained in this press release is given as of the

date hereof and is ba sed 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 its forward -looking information, whether as a result of ne w information, future events or

otherwise, except as required by law.