-- Quarterly production of 3.5M wmt, record level of sales of 3.8M dmt, 
      revenue of $390M, EBITDA of $58M1 and EPS of $0.05 
 
   -- Reduced inventories of iron ore concentrate stockpiled at Bloom Lake by 
      0.4M wmt to 2.1M wmt 
 
   -- DRPF project progressing as scheduled toward an expected start for 
      commissioning in December 2025 
 
   -- Refinanced Senior Credit Facilities with a US$500M Senior Unsecured Notes 
      offering, strengthening the Company's financial flexibility 

MONTRÉAL, July 29, 2025 /CNW/ - SYDNEY, July 30, 2025 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial first quarter ended June 30, 2025.

Champion's CEO, Mr. David Cataford, said, "Our agile workforce remains focused on optimizing operations as we strategically position our Company to capitalize on the anticipated growth in demand for high-purity iron ore. Improving transportation logistics enabled us to achieve record quarterly iron ore concentrate sales volumes while further reducing stockpiled iron ore inventories at Bloom Lake. The DRPF project remains on track, and we recently achieved a significant milestone for the Kami Project by entering into a framework agreement with Nippon Steel Corporation and Sojitz Corporation. The framework agreement and the partnership contemplated, will allow us to advance the Kami Project without compromising our financial liquidity in the foreseeable future. Additionally, our successful US$500M Senior Unsecured Notes offering in July replaced our previous credit facilities, reinforcing our balance sheet with greater flexibility and long-term stability. As we continue to de-risk our project portfolio, our commitment remains to maximizing shareholder value while maintaining a disciplined capital management approach."

Conference Call Details

Champion will host a conference call and webcast on July 30, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the financial first quarter ended June 30, 2025. The conference call details are set out at the end of this press release.

1. Quarterly Highlights

Operations and Sustainability

   -- No serious injuries or major environmental incidents were reported in the 
      three-month period ended June 30, 2025; 
 
   -- Quarterly production of 3.5 million wmt (3.4 million dmt) of high-grade 
      66.3% Fe concentrate for the three-month period ended June 30, 2025, down 
      9% over the same period last year, impacted by higher hardness of 
      processed ore and lower availability of both concentration plants; 
 
   -- Record quarterly sales of 3.8 million dmt for the three-month period 
      ended June 30, 2025, up 10% from the previous quarter and 11% from the 
      same prior-year period, despite scheduled semi-annual maintenance on 
      third-party rail infrastructure in June 2025. As a result, iron ore 
      concentrate stockpiled at Bloom Lake decreased by 440,000 wmt 
      quarter-over-quarter to 2.1 million wmt as at June 30, 2025; and 
 
   -- Material mined and hauled at Bloom Lake reached a record 21.0 million 
      tonnes for the three-month period ended June 30, 2025, an increase of 20% 
      compared to the same period last year, supported by the recent addition 
      of mining equipment. 

Financial Results

   -- Gross average realized selling price of US$105.5/dmt1, compared to the 
      P65 index average of US$108.4/dmt in the period; 
 
   -- Net average realized selling price of US$73.4/dmt1, a decrease of 14% 
      quarter-over-quarter and 26% year-over-year; 
 
   -- C1 cash cost for the iron ore concentrate loaded onto vessels at the Port 
      of Sept-Îles totalled $81.9/dmt1 (US$59.2/dmt)2, representing an 
      increase of 2% quarter-over-quarter and 7% year-over-year; 
 
   -- Net income of $23.8 million, representing EPS of $0.05, compared to $39.1 
      million with EPS of $0.08 in the previous quarter, and compared to a net 
      income of $81.4 million with EPS of $0.16 in the same prior-year period; 
 
   -- EBITDA of $57.8 million1, a decrease of 55% quarter-over-quarter and 68% 
      year-over-year; 
 
   -- On June 3, 2025, Caisse de dépôt et placement du Québec 
      exercised warrants to acquire 15 million ordinary shares of Champion, 
      resulting in total proceeds to the Company of $36.7 million. The warrants 
      had been granted pursuant to a financing in August 2019; 
 
   -- Cash balance totalled $176.1 million as at June 30, 2025, an increase of 
      $58.6 million since March 31, 2025, benefiting from the improvements in 
      operating working capital and proceeds from the warrants exercise along 
      with a drawdown on the Company's senior revolving facility (the 
      "Revolving Facility"), while the Company continued to advance the Direct 
      Reduction Pellet Feed project (the "DRPF Project"), and invest in 
      sustainable capital expenditures; and 
 
   -- On July 2, 2025, Champion issued US$500 million of 7-year Senior 
      Unsecured Notes with an interest rate of 7.875%. Proceeds from the 
      offering were used to repay the Company's existing US$230 million senior 
      term loan and the outstanding balance of US$105 million under the 
      Revolving Facility. The transaction had minimal impact on the Company's 
      net debt and further strengthened its available liquidity, which totalled 
      $536.6 million1 as at June 30, 2025, and is expected to be used to 
      support general corporate purposes. 

Growth and Development

   -- The DRPF project, designed to upgrade half of Bloom Lake's capacity to DR 
      quality pellet feed iron ore grading up to 69% Fe, continues to progress 
      as scheduled, with commissioning planned for December 2025 and commercial 
      shipments of DR quality iron expected in the first half of the 2026 
      calendar year, gradually increasing thereafter. Quarterly and cumulative 
      investments totalled $47.5 million and $387.0 million, respectively, as 
      at June 30, 2025, out of an estimated total capital expenditure of $470.7 
      million detailed in the project study highlights released in January 
      2023; 
 
   -- During the three-month period ended June 30, 2025, progress continued on 
      the definitive feasibility study (the "DFS") for the Kami Project, which 
      is expected to be completed by the end of the 2026 calendar year; and 
 
   -- On July 21, 2025, Champion entered into a definitive framework agreement 
      (the "Framework Agreement") with Nippon Steel Corporation ("Nippon 
      Steel") and Sojitz Corporation ("Sojitz", and collectively with Nippon 
      Steel, the "Partners"), pursuant to which the Partners have agreed, 
      subject to the Framework Agreement's terms and conditions, to initially 
      contribute $245 million for an aggregate 49% interest in Kami Iron Mine 
      Partnership (the "Partnership"), a new entity formed for the ownership 
      and potential development of the Kami Project. Additional details can be 
      found in the Company's press release dated July 21, 2025 (Montréal), 
      available under its profile on SEDAR+ at www.sedarplus.ca, the ASX at 
      www.asx.com.au and the Company's website at www.championiron.com. 

2. Bloom Lake Mine Operating Activities

The Company performs both its plants' scheduled maintenance in the second and fourth financial quarters, creating significant quarter-over-quarter variances in production output and mining and processing costs.

 
                Q1 FY26     Q4 FY25     Q/Q Change  Q1 FY25     Y/Y Change 
 
Operating 
Data 
Waste mined 
 and hauled 
 (wmt)          10,963,600  10,886,200         1 %   6,733,700        63 % 
Ore mined and 
 hauled (wmt)   10,070,700   9,470,100         6 %  10,779,300       (7) % 
Material mined 
 and hauled 
 (wmt)          21,034,300  20,356,300         3 %  17,513,000        20 % 
Stripping 
 ratio                1.09        1.15       (5) %        0.62        76 % 
Ore milled 
 (wmt)          10,500,700   9,160,300        15 %  11,084,300       (5) % 
Head grade Fe 
 (%)                  28.2        29.2       (3) %        29.1       (3) % 
Fe recovery 
 (%)                  78.2        78.3        -- %        79.3       (1) % 
Product Fe (%)        66.3        66.5        -- %        66.3        -- % 
Iron ore 
 concentrate 
 produced 
 (wmt)           3,520,600   3,167,000        11 %   3,876,500       (9) % 
Iron ore 
 concentrate 
 sold (dmt)      3,831,800   3,495,300        10 %   3,442,800        11 % 
 

Bloom Lake produced 3.5 million wmt (3.4 million dmt) of high-grade iron ore concentrate during the three-month period ended June 30, 2025, a decrease of 9% compared to 3.9 million wmt (3.8 million dmt) produced during the same period in 2024. Bloom Lake's overall performance continued to be impacted by the hardness of ore processed, together with lower head grade. As a result, Champion's average Fe recovery rate was 78.2% for the three-month period ended June 30, 2025, compared to 79.3% for the same period in 2024. Champion is adjusting its operating and maintenance strategies to manage varying ore feed characteristics. While mining performance remained robust during the three-month period ended June 30, 2025, processing harder ore impacted grinding efficiency and Fe recovery. The Company will continue to optimize its operations and remains focused on improving and stabilizing recovery rates over time. During the quarter, the Company capitalized on a scheduled annual power interruption by the service provider, which briefly impacted operations, to perform planned maintenance on certain processing equipment.

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