Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION NOVEMBER 2020 in: i PREMIUM PRODUCT, TIER 1 JURISDICTION, CHAMPI ON IRON LAX HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 24 This presentation (the "Presentation") contains information about Champion Iron Limited ("Champion ron”, “Champion” or the "Company"), current asat the date hereof or as at such earlier date as may be specified herein. This Presentation doesnot constitute or form part of
Slide 3: Corporate Overview
CORPORATE OVERVIEW BLOOM LAKE
Slide 4: COVID-19 Response
COVID-19 RESPONSE ◼ ◼ → TSX: CIA ⎪ ASX: CIA
Slide 5: FY2020 Health & Safety
FY2020 HEALTH & SAFETY ◼ ◼ ◼ ◼ ◼ ◼
Slide 6: Environmentally Focused
ENVIRONMENTALLY FOCUSED ◼ ↓ ◼ ◼ ◼ ↓ ↓ ◼ ◼ ◼ ◼ ◼ New Old
Slide 7: Steel Industry Going Green
STEEL INDUSTRY GOING GREEN DR PELLET FEED IN RISING DEMAND ◼ ◼ ◼ ◼ Source: Champion Iron Limited, Wood Mackenzie data
Slide 8: 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: Champion Iron Limited, Platts, Bloomberg; P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Slide 9: Corporate Snapshot
CORPORATE SNAPSHOT MARKET STATISTICS AS OF Q2/FY21(C$M) SHAREHOLDERS (CIA-TSX; CIA-ASX)
Slide 10: Investment History
INVESTMENT HISTORY TIMELINE & CUMULATIVE TOTAL INVESTMENT ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ — ◼ — — ◼ — — ◼ — — —
Slide 11: Bloom Lake Today
BLOOM LAKE TODAY CHAMPION IRON 24 JV Sustainable operations following significant investments since the restart of Bloom Lake in 2018 @ Achieved highest annual production on record ® Structural changes implemented resulting on significant cost reduction BLOOM LAKE PRODUCTION HISTORY BLOOM LAKE TOTAL
Slide 12: Competing on Cost Curve
COMPETING ON COST CURVE ◼ ◼ ◼ ◼ ◼ P62: Platts TSI IODEX 62% Fe CFR China
Slide 13: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE Product sold to 22 different customers since 1st shipment EUROPE – 4% KOREA – 4.5% MIDDLE EAST – 12.5% CHINA – 52.5% JAPAN – 25% ◼ INDIA – 1.5% ◼ ◼
Slide 14: Operational Results
OPERATIONAL RESULTS ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼
Slide 15: Bloom Lake Phase I (7.4 MTPA)
BLOOM LAKE PHASE I (7.4 MTPA) ◼ ◼ ◼ ◼ ◼ ◼ ◼ →
Slide 16: Financial Results
FINANCIAL RESULTS CHAMPION IRON 23 Ml EBITDA of $444.5M $400 EBITDA (C$M) M@ Adjusted net income of $240.3M ™ Net cash flow from operations $316.3M $300 ep) — ™ Proven ability to produce at total cash cost below <US$40/t (FOB) $200 5 M@ Not incumbered by streams or royalties 2 . . . $100 @ Fiscal 20
Slide 17: Premium Pricing
PREMIUM PRICING ◼ 150 150.00 $ Net Average Selling Price (FOB CA$ per dmt 100 100.00 $ CA$/dmt)) ◼ 50 50.00 $ 0 - $ Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Total Cash Cost Total All-in Sustaining Cost Cash Operating Margin Net Average Selling Price (FOB)
Slide 18: Labrador Trough World-Class Opportunity
LABRADOR TROUGH = WORLD-CLASS OPPORTUNITY ◼ ◼ ◼ ◼ ◼ ◼ ◼
Slide 19: Growth Opportunities: Project Pipeline
GROWTH OPPORTUNITIES CHAMPION IRON 24 PROJECT PIPELINE . 9 AX upd OPERATING UNDER CONSTRUCTION STUDY STAGE DEVELOPEMENT FIRE LAKE NORTH MOIRE LAKE BLOOM LAKE BLOOM LAKE 9.3 MTPA* QUINTO PHASE | PHASE II HARVEY TUTTLE 7.4 MTPA 15 MTPA KAMI PROJECT O'KEEFE PURDY 7.8 MTPA* POWDERHORN iN nn I» FINANCING
Slide 20: Bloom Lake Phase II Project
BLOOM LAKE PHASE II PROJECT ROBUST ECONOMICS ◼ ◼ ◼ ◼ ◼ ◼ ◼
Slide 21: Phase II – Advanced Project
PHASE II – ADVANCED PROJECT ◼ ◼ ◼
Slide 22: Bloom Lake Area Potential Opportunities
BLOOM LAKE AREA POTENTIAL OPPORTUNITIES ◼ ◼ ◼
Slide 23: Acquisition of Kami Project
ACQUISITION OF KAMI PROJECT ◼ ◼ ◼ ◼ ◼
Slide 24: Regional Opportunities
REGIONAL OPPORTUNITIES ◼ ◼ ◼ ◼ ◼ 599 ◼
Slide 25: Strong Financial Position
STRONG FINANCIAL POSITION CHAMPION IRON 2 V OnNovember 12, 2020, received commitments to increase the Credit Facility from US$200M to US$400M* ffi C$425.8M Cash & S-T Investments “my Strong financial partners -C$10.2M Working Capital ‘a Hi enerace Scotiabank. 1D C$266.8M Long-Term Debt (Face Value)*
Slide 26: Strong Leverage to Commodity Price
STRONG LEVERAGE TO COMMODITY PRICE ◼ ◼
Slide 27: Appendix
Slide 28: Experienced Team
EXPERIENCED TEAM ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼
Slide 29: Infrastructure and Logistics
INFRASTRUCTURE AND LOGISTICS 1 Mining 2 Crushing 3 Concentrating 4 Rail 5 Port Co Asset Snapshot ◼ Typical blast and shovel ◼ Crushed in near-pit ◼ Upgrading the ~30% Fe ◼ Transported by rail from ◼ Agreement with mining operations crusher and conveyed to 66% Fe loading station at Bloom Government o
Slide 30: Tailings Management
TAILINGS MANAGEMENT ◼ ◼ ◼ ◼ ◼ Water basin required for finer particles to deposit Centerline/Downstream Upstream
Slide 31: Updated Feasibility Economics
UPDATED FEASIBILITY ECONOMICS COMBINED PHASE I & II (JUNE 2019)
Slide 32: Bloom Lake Reserves & Resources
BLOOM LAKE RESERVES & RESOURCES
Slide 33: Bloom Lake Phase II Positioning as a Global Leader
BLOOM LAKE PHASE II POSITIONING AS A GLOBAL LEADER ◼ ◼ ◼ ◼
Slide 34: Bloom Lake Updated Recovery Flowsheet
BLOOM LAKE UPDATED RECOVERY FLOWSHEET > > > > >
Slide 35: Iron Ore Value Chain
IRON ORE VALUE CHAIN SINTER PELLETS >
Slide 36: Bloom Lake Mine Complex
BLOOM LAKE CHAMPION IRON 2 MINE COMPLEX
Slide 37: Multi-User Port
MULTI-USER PORT CHAMPION IRON 2 37
Slide 38: Structural Improvements
STRUCTURAL IMPROVEMENTS 2018 RECOMMISSIONING
Slide 39: Champion Iron
CHAMPION IRON 249 Contact us for-more information. Michael Marcotte, VP Invest6r-Relations mmarcotte@championiron.com 514-316-4858 pein pe wT 7