Slide 1: Q2 FY2022 Investor Presentation
\ \ OF THE 20221 SEC SELON mabe 0 eer ve 2021 ma] z ISCAL YEAR PREMIUM PRODUCT, TIER 1 JURISDICTION, HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF This presentation (the "Presentation”) contains information aboutChampion Iron Limited ("Champion Iron Limited!" or the "Company’?,currentas atthe date hereof ar as at such earlier date asmay be specified herein This Presentation doesnat
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF V7 DAVID CATAFORD MICHAEL O’KEEFFE NATACHA GAROUTE ALEXANDRE BELLEAU MICHAEL MARCOTTE Chief Executive Officer Executive Chairman Chief Financial Officer Chief Operating Officer Senior Vice-President Corporate Developmen
Slide 4: FY2022 Second Quarter Highlights
FY2022 SECOND QUARTER HIGHLIGHTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF wm -¢ m ii 2,089,100 WMT $56.2/DMT REVENUES $331.0M $567.5M TOTAL CASH ON HAND!2 CONCENTRATE PRODUCED TOTAL CASH COST? NET CASH irate BEFORE WC & RESTRICTED CASH EBITDA? $200.0M $279.3M SHORT-TERM AND LONG-TERM DEBT
Slide 5: Sustainability and Health & Safety
SUSTAINABILITY AND HEALTH & SAFETY CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Maintained the operating rapid testing COVID-19 laboratory at the Bloom Lake mine with strict measures to adapt operations and conform to or exceed the Government's directives > Québec vaccination campaign progr
Slide 6: Community & Sustainability
COMMUNITY & SUSTAINABILITY CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Completed the 2020 Sustainability Report and 2021 Modern Slavery Statement, both available on the Company's website at www.championiron.com > Contributed to the commemoration activities that took place in the Uashat mak
Slide 7: Industry Overview
INDUSTRY OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Iron ore prices declined in the period with various crude steel production restrictions enforced in China and seasonally higher iron ore output in Australia and Brazil > While China witnessed a decline of 14.2% in crude steel ou
Slide 8: CIAFF
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF
Slide 9: Operations Overview
OPERATIONS OVERVIEW > Robust operational results despite ongoing work programs in preparation of the Phase Il expansion project operations > Iron ore recovery in line with target and stable product quality NZ Strip ratio and head grade in line with the mine plan > Continuous improvements enabling im
Slide 10: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Strong profitability resulting in an EPS of $0.23, a cash operating margin of 56.6% and an EBITDA margin of 60.4% > Operating costs per tonne increase year on year partially attributable to lower volume of conc
Slide 11: Positioning for Stability & Growth
POSITIONING FOR STABILITY & GROWTH CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Total cash cost impacted by advancement of maintenance work on crusher #2 and increased mining activities > Sustaining costs impacted by a previously disclosed work program aimed at correcting identified discrep
Slide 12: Positive Provisional Price Adjustment
POSITIVE PROVISIONAL PRICE ADJUSTMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > 1.16M tonnes which were subject to provisional pricing at the end of Q1/FY22 realized final prices during the quarter > 02/FY22 negative provisional pricing adjustment of US$10.1M, represents a negative impac
Slide 13: Second Quarter Average Realized Selling Price
SECOND QUARTER AVERAGE REALIZED SELLING PRICE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Rising demand for high-grade iron ore enabled the Company to benefit from the premium pricing of its high-grade products > Average gross realized price of US$174.6/t, up 42.8% year over year, impacted
Slide 14: Promoting Stability
PROMOTING STABILITY CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Redeemed the remaining 125M QIO preferred shares held by Caisse de dépét et placement du Québec for $125M > Redemption terminates preferred shares dividend payments, reduces the overall cost of capital and positions the Compan
Slide 15: Cash Change Details
CASH CHANGE DETAILS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Cash flows from operations* of $128.6M, an improvement of 2% year on year > Cash positively impacted by timing of cash receipts and negatively impacted by the Phase II work programs and deposits, the preferred shares redemptio
Slide 16: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH CHAMPION IRON 2a a $522.9M Cash & S-T investments II I $44.6M Restricted cash* -$105.3M Working capital “8 ] $279.3M Short-term & Long-term debt* $470.9M Available & undrawn loans* v Net cash* positive of $182.9M (including working capital) Cash and cash equivalen
Slide 17: CIAFF
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF
Slide 18: Phase II - Significant Progress
PHASE II - SIGNIFICANT PROGRESS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Deployed an additional $110.5M in capital expenditures and start-up costs and $14.1M in advanced payments in the quarter. DEPLOYED BY > Cumulative investments to date of $388.2M* CHAMPION TO DATE* > Progress on key
Slide 19: Phase II - Advancing Critical Work
PHASE II - ADVANCING CRITICAL WORK CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Several critical construction work programs completed, including the major tie-in between the Phase | and Phase II project > Evaluating a potential accelerated completion schedule for the project currently expec
Slide 20: Positioning for the Future
POSITIONING FOR THE FUTURE CHAMPION IRON 2a > The steel industry will need to adapt to limit a global average temperature increase to 1.5°C by implementing measures including*: LAX = Improving raw material input quality (including higher Fe content ore) CHAMPION seye . . . ALREADY REDUCED = Shifting
Slide 21: Regrinding Rougher Flotation
⎪ ⎪ → > Regrinding → Rougher Flotation → > → Scavenger Flotation 66.2% >69% Fe Fe >
Slide 22: Concentrate Fines Lump
⎪ ⎪ → → → > > > Concentrate Fines Lump Pellets Bloom Lake "66.2%" Bloom Lake ">67.5%" Bloom Lake ">69%"
Slide 23: Positioning for the Future
POSITIONING FOR THE FUTURE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF V Announced a collaborative relationship with Caterpillar and Toromont Cat to develop, test and implement a suite of advanced technologies on Cat equipment at Bloom Lake using proprietary artificial intelligence and analy
Slide 24: Thank You to Our Staff
THANK YOU TO OUR STAFF CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF PRIDE UPHOLDING ® OUR VALUES ats INGENUITY FORA SUSTAINABLE 4 RESPECT FUTURE > {TRANSPARENCY y v 2 24
Slide 25: Thank You!
THANK YOU! CHAMPION IRON 24 antec uS ir-more information: Michael Marcotte, Senior- Vite-President — Corporate Development and Capital Markets mmarcotte@championiron.com 514-316-4858