Mr. Michael O'Keeffe reports

CHAMPION ANNOUNCES EARLY WARNING REPORT ON ITS CARTIER IRON HOLDINGS

On Oct. 17, 2014, Champion Iron Ltd.'s wholly owned subsidiary, Champion Iron Mines Ltd., acquired 6,176,471 units of Cartier Iron Corp. at 17 cents per unit pursuant to the conversion of $1.05-million of debt owed by Cartier Iron to Champion, and it also received one million common shares of Cartier Iron pursuant to the Gagnon holdings option and joint venture agreement executed by both Champion and Cartier Iron on Dec. 10, 2012. All of the common shares issued by Cartier Iron in the transactions are subject to a four-month hold period.

Pursuant to the debt conversion, each unit of Cartier Iron consists of one common share and one-half of one common share purchase warrant, with each full warrant exercisable into one common share at an exercise price of 22 cents, subject to an expiry on the earlier of 18 months from the date of issue or, if the average closing price of Cartier Iron's common shares on the Canadian Securities Exchange, or such other stock exchange on which Cartier Iron's common shares are listed and posted for trading, is greater than 40 cents per common share for a period of 20 consecutive business days (following the expiry of the initial regulatory hold period under National Instrument 45-102, resale of securities), the date which is 10 calendar days (or such longer period as the issuer may provide) from the date on which written notice is given by Cartier Iron to the warrantholders by ordinary mail by depositing notice thereof in the mail after Cartier Iron has issued a news release in respect of such acceleration.

Early warning

Champion has acquired the Cartier Iron common shares in the transactions for investment purposes and has reserved the right to acquire additional securities of Cartier Iron. Depending upon its evaluation of the business, prospects and financial condition of Cartier Iron, the market for Cartier Iron's securities, general economic and tax conditions, and other factors, Champion may acquire more securities of Cartier Iron and, subject to certain limitations on transfer, may sell its holdings of Cartier Iron securities. Following these transactions, Champion holds 11,019,971 common shares of Cartier Iron, representing approximately 37.42 per cent of the issued and outstanding common shares of Cartier Iron. Further details regarding the early warning report may be obtained from the early warning report filed in respect of the transactions under Cartier Iron's profile on SEDAR.

We seek Safe Harbor.