Champion Iron Reports Its FY2026 Second Quarter Results, Declares Dividend and Advance the DRPF Project as Scheduled

• Quarterly production of 3.6M wmt, record sales of 3.9M dmt, revenue of $493M, EBITDA of $175M¹ and EPS of $0.11
• Declares ninth consecutive semi-annual dividend of $0.10 per ordinary share
• DRPF project advancing as scheduled towards an expected start of commissioning in December 2025
• Reduced iron ore concentrate inventories stockpiled at Bloom Lake by 0.5M wmt to 1.7M wmt

MONTRÉAL, Oct. 29, 2025 – SYDNEY, October 30, 2025 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“Champion” or the “Company”) reports its operational and financial results for its financial second quarter ended September 30, 2025.

Champion’s CEO, Mr. David Cataford, said, “We successfully capitalized on rising iron ore prices by delivering robust quarterly financial results, while completing our scheduled semi-annual maintenance at our site and on the third-party railway. I’m especially proud of our teams’ commitment to operating Bloom Lake sustainably while optimizing operations and advancing the DRPF project towards its completion. We are pleased to have formalized the strategic partnership with Nippon Steel and Sojitz to advance the Kami Project through the ongoing definitive feasibility study. With robust financial liquidity, we remain focused on maximizing shareholder value while creating a positive impact for our host communities.”

Conference Call Details

Champion will host a conference call and webcast on October 30, 2025, at 9:00 AM (Montréal time) / October 31, 2025, at 12:00 AM (Sydney time) to discuss the results of the financial second quarter ended September 30, 2025. The conference call details are set out at the end of this press release.

1. Quarterly Highlights

Operations and Sustainability

• No serious workplace-related injuries or major environmental incidents were reported during the three-month period ended September 30, 2025;
• Quarterly production of 3.6 million wmt of high-grade 66.5% Fe concentrate for the three-month period ended September 30, 2025, up 12% over the same period last year. Quarterly production compares favourably to that of the fourth quarter of the 2025 financial year, during which the Company also completed scheduled semi-annual maintenance of both concentration plants;
• Record quarterly sales of 3.9 million dmt were achieved for the three-month period ended September 30, 2025, up 18% from the same prior-year period, reducing iron ore concentrate stockpiled at Bloom Lake by 477,000 wmt quarter-over-quarter, and bringing the total to 1.7 million wmt as at September 30, 2025; and
• Strong mining performance with a record 22.9 million wmt of material mined and hauled at Bloom Lake for the three-month period ended September 30, 2025, an increase of 23% compared to the same period last year, driven by the optimization and recent deployment of additional mining equipment.

Financial Results

• Gross average realized selling price of US$114.2/dmt¹, compared to the P65 index average price of US$117.4/dmt in the period;
• Net average realized selling price of US$92.9/dmt¹, an increase of 27% quarter-over-quarter and 18% year-over-year;
• C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $76.2/dmt¹ (US$55.3/dmt)², representing a decrease of 7% quarter-over-quarter and 2% year-over-year;
• Net income of $56.8 million, representing EPS of $0.11, compared to $23.8 million with EPS of $0.05 in the previous quarter, and $19.8 million with EPS of $0.04 in the same prior-year period;
• EBITDA of $174.8 million¹, compared to $57.8 million¹ quarter-over-quarter and $74.5 million¹ year-over-year;
• Cash balance, excluding the initial cash contributions from Nippon Steel Corporation (“Nippon Steel”) and Sojitz Corporation (“Sojitz”, and collectively with Nippon Steel, the “Partners”) held in a restricted cash account by Kami Iron Mine Partnership (the “Kami Partnership”), totalled $325.5 million as at September 30, 2025, an increase of $149.5 million since June 30, 2025, benefiting from the proceeds of the US$500 million Senior Unsecured Notes issuance on July 2, 2025, and robust cash flows from operating activities, partially offset by the senior credit facilities repayment, significant capital expenditure and the dividend payment;
• Strong available liquidity to support growth initiatives and general corporate purposes totalled $840.4 million¹ as at September 30, 2025, compared to $536.6 million¹ as at June 30, 2025, mainly attributable to the net proceeds of long-term debt; and
• Semi-annual dividend of $0.10 per ordinary share declared on October 29, 2025 (Montréal) / October 30, 2025 (Sydney), in connection with the semi-annual results for the period ended September 30, 2025.

DRPF Project Update

• The DRPF project, designed to upgrade half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, is progressing as scheduled, with initial commissioning expected to begin in December 2025 and commercial shipments of DR quality iron anticipated by the end of the first half of the 2026 calendar year, gradually increasing thereafter.
• Quarterly and cumulative investments totalled $20.6 million and $407.6 million, respectively, as at September 30, 2025. The Company expects to advance the project into the commissioning phase with an approximate cumulative investment of $500 million, in line with the inflation-adjusted estimated total capital expenditure of $470.7 million detailed in the project study highlights released in January 2023; and
• Through its ongoing discussions with prospective customers, including in the Middle East and North Africa, the Company expects to secure commercial agreements for its anticipated production of DR quality iron ore, which is expected to attract pricing premiums over the Company’s existing high-purity iron ore concentrate.

Kami Project Update

• On September 29, 2025, the Company completed the initial closing (the “Initial Closing”) of the transactions contemplated by the previously announced framework agreement with Nippon Steel and Sojitz for the joint ownership and potential development of the Kami Project (the “Framework Agreement”). Concurrently with the Initial Closing, the Partners made their initial cash contributions in an aggregate amount of $68.6 million, out of a total planned cash contribution of $245 million, and paid their pro-rata share of the feasibility study costs already incurred by the Company. Following the Initial Closing, the Company holds a 51% interest in the Kami Partnership; and
• Submitted the Environmental Impact Statement required by the Government of Newfoundland and Labrador in July 2025 and continued work on the Kami Project’s DFS, which is expected to be completed by the end of the 2026 calendar year.

2. Bloom Lake Mine Operating Activities

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

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