Slide 1: Investor Presentation June 2020
INVESTOR PRESENTATION JUNE 2020 PREMIUM PRODUCT, TIER 1 JURISDICTION, C HAM P| O N | R O N LAX HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 24 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", “will”, project", "should", "believe", "plans", “intends”, “f
Slide 3: COVID-19 Response
COVID-19 RESPONSE TSX: CIA ⎪ ASX: CIA
Slide 4: Corporate Overview
CORPORATE OVERVIEW BLOOM LAKE ~
Slide 5: FY 2019 → FY2020 Strengthening Position
FY 2019 → FY2020 STRENGTHENING POSITION * * ✓ ✓ ✓ ✓
Slide 6: Structural Shift in Iron Ore
STRUCTURAL SHIFT IN IRON ORE ✓ Champion sells based on Platts 65% Fe premium benchmark > Premium/Discount to P62 Index (%) > > > > Source: Platts, Bloomberg; P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Slide 7: Canada - 2nd Largest Export Region in High Grade
CANADA - 2ND LARGEST EXPORT 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 8: Steel Industry Going Green, DR Pellet Feed in Rising Demand
STEEL INDUSTRY GOING GREEN DR PELLET FEED IN RISING DEMAND > > > 1 Wood Mackenzie research
Slide 9: Competing on Cost Curve
COMPETING ON COST CURVE > > > > > P62: Platts TSI IODEX 62% Fe CFR China
Slide 10: Corporate Snapshot
CORPORATE SNAPSHOT MARKET STATISTICS (C$M) SHAREHOLDERS (CIA-TSX; CIA-ASX)
Slide 11: History of Bloom Lake vs Iron Ore Price (C$/t)
HISTORY OF BLOOM LAKE VS IRON ORE PRICE (C$/T) Cliffs Acquires Bloom Lake CLM for C$4.9B Recommissioned Released Phase II Cliffs Seeks Creditor QIO Releases Feasibility Study Protection Feasibility Study QIO Acquires Bloom Lake *P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR
Slide 12: Labrador Trough = World-Class Opportunity
LABRADOR TROUGH = WORLD-CLASS OPPORTUNITY > > > > > > >
Slide 13: Bloom Lake Today
BLOOM LAKE TODAY Vv Achieved highest annual production on record > BLOOM LAKE PRODUCTION HISTORY (MILLION WMT/YEAR) $100 $90 $80 a $70 $60 $50 B $40 $30 nm $20 $10 $0 *FY2020 ends March 31, 2020 $95.00 Structural changes implemented 2014 VS FY2020 CHAMPION IRON 24 BLOOM LAKE TOTAL CASH COST ($C/DMT)
Slide 14: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE Product sold to 22 different customers since 1st shipment EUROPE – 5% KOREA – 4% > MIDDLE EAST – 15% CHINA – 49% > JAPAN – 25% > INDIA – 2% * Customer mix based on total volumes sold since first shipment in April 2018
Slide 15: Operational Results
OPERATIONAL RESULTS > > > > > > >
Slide 16: Financial Results
FINANCIAL RESULTS Vv WV Vev Not incumbered by stream or royalties volumes and maximize cash flow from operations Financial Results ($ MILLION) Revenue 277.9 EBITDA 166.9 Operating income 163.3 Net income (loss) 74.2 Adjusted Net income 74.2 Cash flow from operation he) Earnings per share - basic 0.0
Slide 17: Premium Pricing
> PREMIUM PRICING CHAMPION IRON 29 $ PER DMT SOLO $120 $12.3 $100 $949 $80 Includes forward adjustments on $60 current quarter sales $40 $20 $0 P62 Index Premium over P62 (US$) Proven positive cash operating margin despite volatile iron ore prices EBITDA margin of 44% in fiscal year 2020 (US$) REALI
Slide 18: Strong Financial Position
STRONG FINANCIAL POSITION CHAMPION IRON 2 -C$10.0M Working Capital ffi C$298.7M Cash & S-T Investments “a Strong financial partners d SociETE = Scotiabank. 2) GENERAL! re) C$283.7M Long-Term Debt (Face Value)* Caisse de dépdt et placement ©) + @ gh 4 du Québec BANK OF CHINA {[@)iesessene" O Desjardi
Slide 19: Bloom Lake Phase I (7.4 Mtpa)
BLOOM LAKE PHASE I (7.4 MTPA) > > > > > →
Slide 20: Bloom Lake Phase II Robust Economics
BLOOM LAKE PHASE II ROBUST ECONOMICS ~
Slide 21: Phase II - Capital Spending
PHASE II — CAPITAL SPENDING LOW CAPIT, CHAMPION IRON 24 (C$M) (US$M) faeneral 28.2 214 ine - Phase Il 37.6 28.5 (Crusher and stockpile 24.3 18.4 (Concentrator 165.0 125.0 [Tailings and water management 50.2 38.0 pervices 30.5 23.1 Rail and port 73.4 55.6 (Owner's costs 105.1 73.6 (Contingency (15%)
Slide 22: Phase II Update
PHASE II UPDATE CHAMPION IRON 23 PHASE Il - EXECUTION UPDATE [ vise. worked V 3,800m3 of concrete v 18,000m3 of boc] v $58M deployed to date, in accordance with the plans from the initial $68M budget approved by the board of directors v Work to date significantly de-risked the construction timeline
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 Q2 Q3 Q4 FY2020 2019* Lost Time Injury Frequency Rate 4.28 4.85 4.37 2.58 4.1 3,38 (LTIFR) Disability Injury Severity Rate (DISR) 6.85 33.99 26.62 17.54 24.94 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: Tailings Management
TAILINGS MANAGEMENT > > > > > Centerline/Downstream Upstream
Slide 32: Iron Ore Value Chain
IRON ORE VALUE CHAIN SLINTER PELLETS >
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 2 MINE COMPLEX
Slide 39: Multi-User Port
MULTI-USER PORT CHAMPION IRON 24 39
Slide 40: Structural Improvements 2018 Recommissioning
STRUCTURAL IMPROVEMENTS 2018 RECOMMISSIONING
Slide 41: 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