Mr. David Cataford reports

CHAMPION IRON PRODUCES DR QUALITY IRON ORE FROM ITS DRPF PROJECT AND ENTERS INTO COMMERCIAL AGREEMENT

Champion Iron Ltd. has produced direct reduction quality iron ore from its direct reduction pellet feed project at the Bloom Lake mine. An inaugural commercial sale of a Capesize vessel, expected to carry at least 160,000 wet metric tonnes of DR quality iron ore, is anticipated in the third calendar quarter of 2026. The DRPF project was completed within the recently estimated $500-million budget and is expected to gradually increase in capacity to reach commercial production toward the end of the company's current financial year.

In tandem with the commissioning of the DRPF project, the company has entered into a commercial agreement covering a portion of its expected near-term capacity and is actively advancing discussions with several prospective customers globally to secure agreements for its remaining volumes.

Champion's chief executive officer, David Cataford, said: "The initial production of DR quality iron ore represents a defining milestone in the commissioning of the DRPF project and, once again, highlights our team's ability to deliver sizable construction projects. By leveraging the exceptional quality of the resources in the Labrador Trough, our commercial agreement with a globally recognized group confirms the growing demand for DR quality iron ore. As we progress toward commercial production, we seek to build long-term partnerships with steelmakers, while strengthening Quebec's and Canada's position as a key player in the low-carbon steelmaking supply chain."

The DRPF project is designed to upgrade half of Bloom Lake's capacity to a DR quality pellet feed iron ore grading up to 69 per cent iron, with combined silica and alumina content below 1.2. The DRPF project is expected to position Bloom Lake among the highest-purity iron ore producers globally, and could attract a considerable pricing premium over its currently produced high-purity 66.2 per cent Fe iron ore concentrate.

Demand and pricing premiums for DR quality iron ore are supported by the steel industry's transition toward lower-carbon production pathways, including an increasing adoption of direct reduced iron and electric arc furnaces steelmaking. These processes require higher-purity iron ore inputs, such as DR quality pellet feed iron ore, to achieve optimal metallurgical performance and reduce overall emission intensity. With the Labrador Trough's high-purity iron ore products and access to hydroelectricity, resulting in one of the lowest-carbon footprints for high-purity iron ore production globally, Quebec and Canada are well positioned to expand their roles as strategic suppliers of critical minerals and contribute to the decarbonization of the steel industry.

Champion thanks its employees and partners, whose dedication and collaboration enabled the success of the DRPF project, consolidating Bloom Lake's position as a leader in the high-purity iron ore industry.

About Champion Iron Ltd.

Champion is a high-purity iron ore producer with operations in Canada and Norway. Through Quebec Iron Ore Inc., Champion 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 concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce low-contaminant high-purity 66.2-per-cent-iron iron ore concentrate with a proven ability to produce a 67.5 per cent Fe direct reduction quality iron ore concentrate. The iron ore concentrate from Bloom Lake is transported by rail, to a shiploading port in Sept-Iles, Que. Benefiting from one of the highest-purity resources globally, Champion is investing to be able to upgrade up to half of the Bloom Lake's mine capacity to a direct reduction quality pellet feed iron ore with up to 69 per cent Fe. Bloom Lake's high-purity and lower-contaminant iron ore products have attracted a premium to the P61 index (formerly, the P62 index).

Champion also owns and operates Rana Gruber AS, a Norwegian iron ore producer based in Mo i Rana, Nordland. With continuous production dating back to the 1960s, Rana Gruber produces approximately 1.8 million dmt per year of hematite and magnetite iron ore concentrates.

Champion has delivered iron ore concentrates to global markets, including China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to its producing mines, Champion holds a 51-per-cent interest in the Kami Iron Mine Partnership, jointly owned with Nippon Steel Corp. and Sojitz Corp., through which the Kami project is held. Located approximately 21 kilometres southeast of Bloom Lake, the Kami project benefits from access to existing infrastructure. Champion also holds a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II properties, situated within 60 kilometres south of Bloom Lake.

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