CHAMPION IRON PROVIDES AN UPDATE ON ITS ONGOING COLLECTIVE AGREEMENT NEGOTIATIONS

MONTRÉAL, Feb. 5, 2024 /CNW/ - (Sydney, February 6, 2024) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") announces that its unionized employees represented by the Syndicat des Métallos (the "Métallos"), representing approximately 63% of the workforce at the Bloom Lake mine ("Bloom Lake"), voted against the Company's proposed terms towards a new collective bargaining agreement ("CBA") and voted in favor of a strike action mandate (the "Strike Mandate"). The Strike Mandate enables the Métallos to initiate at any time a strike if the ongoing discussions do not conclude in a new CBA. While negotiations continued over the last few days, including a mediation process, the parties did not come to an agreement in principle for a new CBA.  The Company remains collaborative with the Métallos to find common grounds for a new CBA. The Strike Mandate and ongoing discussions do not impact operations at Bloom Lake at this time.

The Company believes to have proposed fair and equitable terms for a new CBA. The Company's offer carefully balances the needs of its employees to protect their individual buying power, considering inflationary pressures, and reflects industry competitive dynamics. Benefiting from significant liquidity and stockpiled iron ore concentrate, the Company is well positioned to mitigate the impacts of a potential strike on its operations and financial position.

Champion's CEO, Mr. David Cataford said "We are disappointed that we could not reach an agreement with the union following recent discussions and a mediation process. We always have the well-being of our employees at heart, whether unionized or not. As such, we aim to create the best possible work conditions to retain, attract and develop the best talent, while ensuring our Company can navigate volatile economic environments. Our latest global offer submitted to the Métallos meets this objective in every aspect. We have shown a great deal of transparency with the Métallos since the beginning of negotiations and we are confident that its members recognize our significant efforts in offering a healthy work environment and competitive terms towards a new CBA."

About Champion Iron Limited

Champion, 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 km north of Fermont, Québec. 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 Mtpa and produce low contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, the Company is investing to upgrade half of the Bloom Lake mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high-grade and low contaminant iron ore products have attracted a premium to the Platts IODEX 62% Fe iron ore benchmark. The Company ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, 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 owns a portfolio of exploration and development projects in the Labrador Trough, including the Kamistiatusset Project, located a few kilometres south-east of Bloom Lake, and the Cluster II portfolio of properties, located within 60 km south of Bloom Lake.

Cautionary Note Regarding Forward-Looking Statements

Although Champion believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause the actual results to differ materially from those expressed in forward-looking statements include, without limitation, the factors discussed in the section entitled "Risk Factors" of the Company's 2023 Annual Report, Annual Information Form and MD&A for the financial year ended March 31, 2023, which are available on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.

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

This press release has been authorized for release to the market by the CEO of Champion Iron Limited, David Cataford.

SOURCE Champion Iron Limited