Champion Iron Ltd. · ASX:CIA
Champion Iron — Non-Deal Roadshow (November 2019)
43 slides from Champion Iron's roadshow presentation, November 2019
Slide 1: Roadshow Presentation
.» -NOVEMBER e019 ee PREMIUM PRODUCT, TIER 1 JURISDICTION, CHAM P| ON IRON LAX HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 2 This presentation contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect. anticipate”. "continue "estimate", "may", “project”, "should", "believe", "plans", “intends”, “forecast” and
Slide 3: Corporate Overview
CORPORATE OVERVIEW BLOOM LAKE ~
Slide 4: Structural Shift in Iron Ore
STRUCTURAL SHIFT IN IRON ORE ✓ Champion sells based on P65 premium benchmark > Iron ore price US$/tonne) > > Source: Platts, Bloomberg; P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Slide 5: Canada's 2nd Largest Region in High Grade
CANADA’S 2ND LARGEST REGION IN HIGH GRADE > > SWEDEN – 16,1 CANADA RUSSIA 52 18,1 > UKRAINE 17 INDIA 2,5 BRAZIL 385,4 AUSTRALIA 31,7 SOUTH AFRICA 14
Slide 6: Competing on Cost Curve
COMPETING ON COST CURVE CHAMPION IRON 24 > Bloom Lake has proven cost GLOBAL SEABORN TOTAL COST CURVE 120 structure (CFR CHINA - ADJUSTED FOR “VALUE-IN-USE”)* > Product quality premium offsets ‘00 freight differential when compared to Australian 2 . operators 2 8 Zz 5 > Major producers act as price
Slide 7: Positioned for Profitability
POSITIONED FOR PROFITABILITY > > P62: Platts TSI IODEX 62% Fe CFR China
Slide 8: Corporate Snapshot
CORPORATE SNAPSHOT MARKET STATISTICS (C$M) SHAREHOLDERS (CIA-TSX; CIA-ASX) INSIDERS UNDISCLOSED 9.8% 15.4% INSTITUTIONAL RETAIL 12.2% 12.7% CORPORATE WYNNCHURCH 1.5% CAPITAL 15.5% FAMILY RESSOURCES QUEBEC OFFICES 8.7% 24.3%
Slide 9: History of Bloom Lake vs Iron Ore Price (C$/t)
HISTORY OF BLOOM LAKE VS IRON ORE PRICE (C$/T) Cliffs Acquires Bloom Lake CLM for C$4.9B Recommissioned Cliffs seeks creditor QIO Releases 1st Shipment protection Feasibility Study QIO Acquires Bloom Lake VALE Events *P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Slide 10: Labrador Trough = World-Class Opportunity
LABRADOR TROUGH = WORLD-CLASS OPPORTUNITY > > > > > > >
Slide 11: Cost Structure Improvement (2014 vs Today)
COST STRUCTURE IMPROVEMENT (2014 VS TODAY) >
Slide 12: Bloom Lake Today
BLOOM LAKE TODAY CHAMPION IRON 4 > Achieved highest annual production on record > Achieved lowest cash cost on record BLOOM LAKE PRODUCTION BLOOM LAKE TOTAL CASH COST HISTORY (WMT/YEAR) (C$/DMT) - FISCAL 2019 7,000,000 $60 6,000,000 —_— $50 $7.03 $49.40 $19.28 $40 5,000,000 $30 $2.22 4,000,000 $10.5
Slide 13: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE Product sold to 18 different EUROPE – 4.3% CHINA SOUTH KOREA – 3.6% customers since 1st shipment > > > 50% JAPAN – 22.5% INDIA – 2.5% BAHRAIN – 17.1% * Customer mix based on total volumes sold since first shipment in April 2018
Slide 14: Realized Pricing
REALIZED PRICING ✓ *P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Slide 15: Operational Results
OPERATIONAL RESULTS > > > > > > >
Slide 16: Financial Results
FINANCIAL RESULTS > Generated C$323.9M in cash flow from operations in last 4 quarters > Proven ability to produce at total cash cost below C$50/t > Strong cash operating margin of $51.8/tonne YTD > Not incumbered by stream or royalties Financial Results ($ MILLION) Revenue EBITDA Operating profit N
Slide 17: Simplified Structure, Full Upside to Growth Initiatives
SIMPLIFIED STRUCTURE FULL UPSIDE TO GROWTH INITIATIVES ✓ → → → →
Slide 18: Repositioned Balance Sheet
REPOSITIONED BALANCE SHEET ↑ ↓ ↑ ↓
Slide 19: Bloom Lake Phase I (7.4 Mtpa)
BLOOM LAKE PHASE I (7.4 MTPA) > > > > > →
Slide 20: Bloom Lake Phase II Robust Economics
BLOOM LAKE PHASE II ROBUST ECONOMICS ~
Slide 21: Bloom Lake Phase II Rapid Timeline to Production
BLOOM LAKE PHASE II RAPID TIMELINE TO PRODUCTION ✓ ✓ ✓ ✓
Slide 22: Phase II - Execution
PHASE II - EXECUTION CHAMPION IRON 249 [ vis.00n worked V 3,200m? of concrete V 8,300m? of backfill ] < Silo tunnel form work Concrete pouring on > conveyor foundation Electrical room 600V distribution Plant foundations modifications 22
Slide 23: Bloom Lake Phase II Positioning as a Global Leader
BLOOM LAKE PHASE II POSITIONING AS A GLOBAL LEADER > >
Slide 24: Regional Opportunities Phase III
REGIONAL OPPORTUNITIES PHASE III > > >
Slide 25: FY2020 Health & Safety
FY2020 HEALTH & SAFETY QUEBEC IRON ORE + CONTRACTORS FINANCIAL YEAR 2020 BENCHMARK Q1 July August September YTD 2019* Lost Time Injury Frequency Rate (LTIFR) 4,28 6,92 3,93 3,56 4,99 3,38 Disability Injury Severity Rate (DISR) 6,85 2,3 47,25 37,97 17,89 9
Slide 26: Environmentally Focused
ENVIRONMENTALLY FOCUSED ↓ ↓ ↓ New Old
Slide 27: Strong Leverage to Commodity Price
STRONG LEVERAGE TO COMMODITY PRICE > >
Slide 28: Experienced Team
EXPERIENCED TEAM > > > > > > > > > > > > > > > > > > > >
Slide 29: Track-Record of Success
TRACK-RECORD OF SUCCESS $20 $15 ~ $10 ~ $5 – Sep-04 May-06 Jan-08 Oct-09 Jun-11 > > > > ~ ~ > > > > > > > > ~ > > ~ > ~
Slide 30: Appendix
Slide 31: Iron Ore Value Chain
IRON ORE VALUE CHAIN SLINTER PELLETS >
Slide 32: Tailings Management
TAILINGS MANAGEMENT > > > > > Centerline/Downstream Upstream
Slide 33: Infrastructure and Logistics
INFRASTRUCTURE AND LOGISTICS > > > > > > > > > > > > > > > > > >
Slide 34: Bloom Lake Updated Recovery Flowsheet
BLOOM LAKE UPDATED RECOVERY FLOWSHEET > > > > >
Slide 35: Updated Feasibility Economics
UPDATED FEASIBILITY ECONOMICS COMBINED PHASE I & II (JUNE 2019)
Slide 36: Bloom Lake Reserves & Resources
BLOOM LAKE RESERVES & RESOURCES
Slide 37: Valuable and Sought-After Product
VALUABLE AND SOUGHT-AFTER PRODUCT > > > > > ~ ✓ ✓ ✓
Slide 38: Bloom Lake Mine Complex
BLOOM LAKE CHAMPION IRON 29 MINE COMPLEX
Slide 39: Phase I Plant
PHASE | PLANT CHAMPION IRON 24 39
Slide 40: Phase II Plant
PHASE II PLANT CHAMPION IRON 24 40
Slide 41: Multi-User Port
MULTI-USER PORT CHAMPION IRON 24 4l
Slide 42: First Vessel (April 2018)
FIRST VESSEL (APRIL 2018) CHAMPION IRON Z2¥ 42
Slide 43: Thank You!
THANK YOU! Contact us for more information. DAVID CATAFORD, MICHAEL MARCOTTE, CEO VP INVESTOR RELATIONS dcataford@championrionmines.com mmarcotte@championironmines.com 1100 René-Lévesque Blvd. West, Suite 610 Montreal QC H3B 4N4 Lx Tel.: +1 514 316 4858 M P Fax.: +1 514 819 8100 CHA | 0 N CHAMPIONIR