Mr. David Cataford reports

CHAMPION IRON UPDATES MINERAL RESOURCES AND RESERVES FOR ITS BLOOM LAKE OPERATIONS

Champion Iron Ltd. has updated mineral resource and reserve estimates, along with a life-of-mine plan, prepared pursuant to National Instrument 43-101 (Standards of Disclosure for Mineral Projects), for the Bloom Lake mining complex, located near the town of Fermont in northeastern Quebec. The technical report with respect to the mineral resource and reserve estimate and the LoM plan for Bloom Lake will be filed under the company's profile on SEDAR+ within 45 days of the date of this press release.

Highlights:

• Optimized mine plan, confirming the 18-year LoM, based on the mineral reserve;
• Expanded opportunity beyond the LoM plan, including an increase to the measured and indicated resources by 40 per cent and an increase to the inferred resources by 360 per cent;
• LoM average iron metallurgical recovery of 82.0 per cent and plant feed grade of 28.6 per cent iron;
• Average LoM yearly production of 15.2 million wet metric tonnes of high-purity iron ore concentrate at 66.2 per cent Fe.

Champion Iron chief executive officer David Cataford commented: "The combination of our expanded mineral resources, skilled work force and supportive local stakeholders positions our company to continue to positively impact the region for generations. The Labrador Trough, including Bloom Lake, contains one of the largest and purest iron ore resources globally and offers a unique opportunity for local stakeholders to participate in reducing steel industry emissions, which represents nearly 10 per cent of global emissions. In tandem with our vision to be a global leader in the green steel supply chain, we continuously strive to minimize our impact on the environment in keeping with our corporate values and respect for the land where we operate."

Mineral resource and reserve estimate summary

Since the previously issued National Instrument 43-101 technical report entitled "Bloom Lake Mine Feasibility Study Phase 2, Fermont, Que., Canada," with an effective date of June 20, 2019, additional work programs were completed by the company, including diamond drilling and advanced modelling, to optimize mining and processing of the deposit. Additionally, a revised assessment of iron ore prices resulted in higher price assumption compared with the 2019 technical report, which, together with the additional work programs, resulted in an increase of 40 per cent in the estimated M&I mineral resources for Bloom Lake. While the LoM plan and the pit designs have been optimized, the change in mineral reserves is not material.

Mineral resources

SRK Consulting (U.S.) Inc. was retained to audit the mineral resources model for Bloom Lake completed by the company. Since the 2019 technical report, the company drilled an additional 106 core boreholes (18,465 metres), representing an increase of 13 per cent in core borehole drilled metres. The infill drilling completed at Bloom Lake resulted in the successful conversion of inferred resources to indicated resources. Furthermore, the infill drilling demonstrated continuity of iron mineralization, enabling for grade continuity to be established and estimated. This, combined with the revised Iodex 65-per-cent-iron CFR China index (P65) price assumption, resulted in a significantly larger estimated resource pit shell compared with the 2019 technical report model. Offsetting this increase in mineral resources includes the depletion of resources based on topographic differences between Jan. 1, 2020, and the forecasted April 1, 2023, accounting for a reduction of the mineral resources by 67 million tonnes.

Mineral reserves

The mineral reserves for Bloom Lake are estimated at 716 million tonnes at an average grade of 28.6 per cent Fe. The mineral reserve estimate was prepared by the company, and the resource block model was prepared by the company and audited by SRK. The mineral reserve estimate stated herein is consistent with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards on mineral resources and reserves. As such, the mineral reserves are based on M&I mineral resources and do not include any inferred mineral resources, which are classified as waste within the mine design. While the pits were optimized, their scope and size are very similar to those previously published in the 2019 technical report. The pit redesign was based on Pseudoflow shells with an updated cost model and a more conservative iron ore price of $99 (U.S.) per dry metric tonne for P65, compared with the resource shells.

Direct reduction pellet feed project

On Jan. 26, 2023, the company announced the positive results of a study evaluating the processing and infrastructure required to modify the Bloom Lake phase 2 plant to improve its product from a 66.2-per-cent-iron iron ore concentrate to a direct reduction pellet feed quality iron ore at 69 per cent Fe. The DRPF project was not considered in the 2023 technical report as the project is pending final investment decision. As such, the mine plan, cost model and sales described herein are based entirely on Bloom Lake's current infrastructure and iron ore concentrate quality of 66.2 per cent Fe.

The DRPF project could impact the mineral resources and mineral reserves for Bloom Lake. Pending a final investment decision and the advancement of the DRPF project, its impact on the profitability of uneconomic ore should be assessed. As a result, the ultimate pit size, cut-off grades and material routing could be modified.

About Champion Iron Ltd.

Champion Iron, 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 kilometres north of Fermont, Que. 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 million tonnes per year and produce a low-contaminant high-grade 66.2-per-cent-iron iron ore concentrate with a proven ability to produce a 67.5-per-cent-iron direct reduction quality iron ore concentrate. In January, 2023, the company announced the positive findings of a study evaluating the upgrade of half of the Bloom Lake mine capacity to a direct reduction quality pellet feed iron ore and approved an initial budget to advance the project. Bloom Lake's high-grade and low-contaminant iron ore products have attracted a premium to the Platts Iodex 62-per-cent-iron iron ore benchmark. The company ships iron ore concentrate from Bloom Lake by rail to a shiploading port in Sept-Iles, Que., and has sold its iron ore concentrate to customers globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion Iron owns a portfolio of exploration and development projects in the Labrador Trough, including the Kamistiatusset project, located a few kilometres southeast of Bloom Lake, and the Consolidated Fire Lake North iron ore project, located approximately 40 kilometres south of Bloom Lake.

Qualified person and data verification

Vincent Blanchet, PEng, engineer at QIO, the operator of Bloom Lake, is a QP as defined by National Instrument 43-101, and has reviewed and approved, or has prepared, as applicable, the disclosure of the scientific and technical information contained in this press release. Mr. Blanchet's review and approval do not include statements as to the company's knowledge or awareness of new information or data, or any material changes to the material and technical assumptions underpinning the feasibility study contained in the 2019 technical report. Mr. Blanchet is a member of the Ordre des ingenieurs du Quebec.

QPs have participated in the preparation of the 2023 technical report.

• It is the QPs' opinion that data verification procedures have yielded confidence in resource data and site procedures related to drilling, logging and sampling. The QPs undertook an audit on the reconciliation practices that yielded confidence in ore control procedures with minor areas for operational improvement.
• The QPs are of the opinion that the database is appropriate for the purposes of mineral resource estimation and that the sample density allows for a reliable estimate of the size, tonnage and grade of the mineralization in accordance with the level of confidence established by the mineral resource classification categories as per CIM definition standards.
• It is the QPs' opinion that the classification at Bloom Lake is a reasonable reflection of the overall mineral resource risks associated with geologic understanding and confidence, data support, and grade continuity associated with the varying levels of resource categories assigned.

National Instrument 43-101 compliance

Unless otherwise indicated, Champion Iron has prepared the technical information in this news release based on information contained in the technical reports, news releases, and management's discussions and analyses that are or will be available under Champion Iron's company profile on SEDAR+. Each disclosure document was prepared by, or under the supervision of, a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators. Readers are encouraged to review the full text of the disclosure documents, which qualifies the technical information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The disclosure documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information is subject to the assumptions and qualifications contained in the disclosure documents.

CIM and Joint Ore Reserves Committee comparison

Mineral resources and mineral reserves contained in this press release are classified using the CIM definition standards. The confidence categories assigned under the CIM definition standards were reconciled to the confidence categories in the JORC Code (2012 edition). As the confidence category definitions are the same, no modifications to the confidence categories were required.

There are differences in terminology in the JORC Code and the CIM definition standards. Terminology differences are as follows: the term ore reserves in the JORC Code is equivalent to mineral reserves using the CIM definition standards, and the term proven ore reserves in the JORC Code is equivalent to proven mineral reserves using the CIM definition standards. There are no other material differences between the JORC Code and the CIM definition standards.

Measured and indicated mineral resources have been reported separately from inferred mineral resources.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to lower certainty, the inclusion of mineral resources should not be regarded as a representation by Champion Iron that such amounts can necessarily be totally economically exploited, and investors are cautioned not to place undue reliance upon such figures. Therefore, no assurances can be given that the estimates of mineral resources presented in this statement will be recovered at the tonnages and grades presented or at all.

We seek Safe Harbor.