Slide 1: Third Quarter of the 2023 Financial Year
SoS ae ay SF Www eee a ee THIRD QUARTER OF THE 2023 FINANCIAL YEAR Webcast Presentation — January 27, 2023 PREMIUM PRODUCT TIER 1 JURISDICTION CHAMPION IRON As HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER c on foe IRON 24 Thispresentation(t "Presantation")contains information about Championiron Limited("Champion” or the "Company”),current asatthe datehereof oras at such earlier date asmay be speciiedherein ThisPresentation daesnatconstitutgorfarmpartof, andshould nat becanstruedas, an offe
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS CHAMPION IRON 2s WAG DAVID CATAFORD ALEXANDRE BELLEAU DONALD TREMBLAY MICHAEL MARCOTTE Chief Executive Officer Chief Operating Officer Chief Financial Officer Si Vice-President and Capital Markets
Slide 4: FY2023 Third Quarter Highlights
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF FY2023 THIRD QUARTER HIGHLIGHTS bof r =n! m 2,962,500 WMT $351.2M $166.3M CONCENTRATE PRODUCED $76.0/DMT REVENUES CASH & SHORT-TERM TOTAL CASH COST $118.2M INVESTMENTS 2,694,200 DMT EBITDA? $461.6M CONCENTRATE SOLD $86.7/DMT $54.1M SHORT-TERM AND 8
Slide 5: Sustainability Focused Champion Iron
SUSTAINABILITY FOCUSED CHAMPION IRON 2a > No occurrence of any major environmental issues > Introduced additional training programs to identify factors leading to work-related incidents > Environment and Climate Change Canada performed a regulatory audit of the Bloom Lake facilities and reported no
Slide 6: Community & Sustainability
COMMUNITY & SUSTAINABILITY CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF > All employees participated in diversity and cultural training sessions developed in collaboration with our First Nations partners > Newly elected officials of the Uashat Mak Mani-Utenam Band Council visited Bloom Lake, f
Slide 7: Industry Overview
INDUSTRY OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > The P62 iron ore index and the P65 index premium declined modestly by 4.2% and 2.5% from the previous quarter, respectively, mainly attributable to weak global economic conditions and China’s economic impact of the zero-COVID po
Slide 8: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 9: Operations Overview
OPERATIONS OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Record iron ore production up nearly 50% year on year, positively impacted by the increasing production throughput from the Phase Il, and negatively impacted by third-party delays in delivering mining equipment, significant el
Slide 10: Financial Highlights
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF FINANCIAL HIGHLIGHTS EBITDA! (C$M) +> Revenues of $351.2M, EBITDA! of $118.2M and adjusted EPS! of $0.10 $250 > Financial results negatively impacted quarter on quarter by lower iron ore $200 prices, higher operating costs resulting from transition
Slide 11: Note
⎪ ⎪ → → → Note: 1 Non-IFRS financial measure, ratio or other financial measure. Refer to the disclaimer at the page 2 of this presentation.
Slide 12: Provisional Price Adjustment
PROVISIONAL PRICE ADJUSTMENT CHAMPION IRON 2a > 1.28M tonnes which were subject to provisional pricing at the end of Q2/FY23 realized final prices during the quarter > Q3/FY23 negative provisional pricing adjustment of US$3.8M represents a negative impact of US$1.4/dmt on the average realized price
Slide 13: Average Realized Selling Price
AVERAGE REALIZED SELLING PRICE CHAMPION IRON 2s TSX: CIA | ASX: CIA | OTCQX: CIAFF > 03/FY23 average gross realized price! of US$126.5/t, comparing favourably to the P65 index average of US$110.9/t during the period > Average gross realized price! positively impacted by certain sales based on fixed
Slide 14: Cash Change Details
CASH CHANGE DETAILS CHAMPION IRON 2a > Cash and short-term investments of $166.3M positively impacted by operating cash flow before working capital of $113.2M, and negatively impacted by: = Change in working capital of $99.7M, including higher trade receivables and higher inventories attributable to
Slide 15: Notes
⎪ ⎪ Notes Non-IFRS financial measure, ratio or other financial measure. Refer to the disclaimer at the p.2 Receivables:$160.4M; Income and mining taxes receivables $63.6M; Prepaid expenses and advances:$47.7M; Inventories: $174.2M; accounts payable and other: ($207.4M) Short-term and long-term debt
Slide 16: Growth Projects
GROWTH PROJECTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 17: Phase II - Ramping-Up as Scheduled
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF PHASE II - RAMPING-UP AS SCHEDULED > Achieved commercial production milestone in December 2022 > While the project was negatively impacted in the period by unplanned shutdowns, mining equipment deliveries and significant electrical failures in the
Slide 18: Green Steel Supply Chain Solutions
GREEN STEEL SUPPLY CHAIN SOLUTIONS CHAMPION IRON 2a > Champion is well positioned to service the steel industry's transition to Electric Arc Furnaces (EAF) with its growth projects focused on Direct Reduction (DR) quality iron ore products > Positive findings of the feasibility > Advancing the Kami
Slide 19: DRPF Project Study Highlights
DRPF PROJECT STUDY HIGHLIGHTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 20: DRPF Project - Overview
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF DRPF PROJECT - OVERVIEW LX 66.2% » 69% > Additional reprocessing and Fe Fe infrastructure required to upgrade the Bloom Lake phase II plant production from 66.2% to a 69% Fe DRPF quality iron ore (the “Project”), including: = Phase Il circuit optim
Slide 21: DRPF Project and Benefits
DRPF PROJECT AND BENEFITS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF PROJECT BENEFITS Project expected to produce one of the highest DRPF iron ore quality products available on the seaborne market Product expected to attract a substantial premium over the Company's current high-grade 66.2%
Slide 22: 69% Fe DRPF: Prime Product in a Niche Market
69% FE DRPF: PRIME PRODUCT IN A NICHE MARKET CHAMPION IRON 2s > Fewiron ore deposits globally have the ability to produce DRPF quality iron ore with low contaminants required in the DRI/EAF steelmaking process to produce complex steels > Champion's 69% Fe DRPF quality iron ore is expected to be a ma
Slide 23: DRPF Product: Expected Deficit
DRPF PRODUCT: EXPECTED DEFICIT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF DR-GRADE IRON ORE SUPPLY/DEMAND BALANCE BY 2031 Million tonnes Demand ORiron ore demanc! AE 2 Supply Brazil | 21 Sweden |’ Canada | 15 Russia Ju Ukraine |1 Integrated players ; 114 Other seaborn producers | 25 Balance
Slide 24: DRPF Project: Design and Basic Flow Sheet
DRPF PROJECT: DESIGN AND BASIC FLOW SHEET TSX: CIA | ASX: CIA | OTCQX: CIAFF CHAMPION IRON 24 PROJECT USING PROVEN AND OPTIMIZED TECHNOLOGIES y, Feed Or Coarse Flotation - FEED GRINDING > Proven tower mill technology, reducing Tower Mill energy consumption significantly compared to traditional ball
Slide 25: DRPF Project: Investing in Our Vision
DRPF PROJECT: INVESTING IN OUR VISION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Total pre-production investments estimated at C$470.7M, including $46.4 in electrical upgrade and port related infrastructure Key Project assumptions including: > Project estimated construction timeline of 30
Slide 26: DRPF Project: Positive Impact for All Stakeholders
DRPF PROJECT: POSITIVE IMPACT FOR ALL STAKEHOLDERS CHAMPION IRON 2s > Positive findings in the feasibility study including robust Project economics C$ US$ PN Net Present Value Pre-tax NPV,q, of $1230.1M Pre-tax NPVpq, of $918.0M ("NPV") After-tax NPV», of $738.2M — After-tax NPVgq, of $550.9M Intern
Slide 27: DRPF Timeline and Funding
DRPF TIMELINE AND FUNDING CHAMPION IRON 2a > To maintain the Project timeline, the Board of Directors approved a preliminary budget of $10M, to be funded from existing liquidity, to advance the project during the remainder of 2023, including detailed engineering and deposits on long-lead items > The
Slide 28: Thank You to Our Staff
THANK YOU TO OUR STAFF CHAMPION IRON 2a ® PRIDE 38 INGENUITY a ee iN tt <> RESPECT ® 4 TRANSPARENCY Gd 6a UPHOLDING OUR VALUES FOR A SUSTAINABLE FUTURE 28
Slide 29: Thank You!
THANK YOU! CHAMPION IRON 24