Champion Iron Ltd. · ASX:CIA
Champion Iron — Investor Day (November 2023)
126 slides from Champion Iron's investor day presentation, Nov 13, 2023
Slide 1: A Rare Solution to Decarbonize Steelmaking
A RARE SOLUTION TO DECARBONIZE STEELMAKING -_*. CHAMPION IRON 24
Slide 2: Disclaimer
CHAMPION IRON 24 DISCLAIMER TSX: CIA | ASX: CIA | OTCOX: CIAFF ‘Thisprasentation (the “Presentation")containsinformation about Champion ranimited Champion” or the ‘Company"), current a athe date hereof or as at suchearllerdate asmay bespecfiedherein ThisPresentation does nat constitute formpart of,
Slide 3: Attending Executives and Directors
ATTENDING EXECUTIVES AND DIRECTORS CHAMPION IRON 2s EXECUTIVES BOARD OF DIRECTORS q \ \ e \ MICHAEL O'KEEFFE DAVID CATAFORD ALEXANDRE BELLEAU DONALD TREMBLAY MICHELLE CORMIER Executive Chairman Chief Executive Officer Chief Operating Officer Chief Financial Officer Director v STEVE BOUCRATIE MICHAEL
Slide 4: Agenda: Day
AGENDA: DAY 1 CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF PIC TIME PRESENTERS Welcome remarks smin___Michael Marcotte Message from . . , the Executive Chairman 10min Michael O'Keeffe Message from our First 10 min Mike Mckenzie, Chief, Uashat Mak Mani-utenam Nations partners Jean-Claude Therr
Slide 5: Introduction Video
INTRODUCTION VIDEO CHAMPION IRON 2s CHAMPION IRON 249 A rare solution to decarbonize steelmaking
Slide 6: Message from the Executive Chairman
MESSAGE FROM THE EXECUTIVE CHAIRMAN CHAMPION IRON Zs CHAMPION IRON 24
Slide 7: Message from Our First Nations Partners
MESSAGE FROM OUR FIRST NATIONS PARTNERS CHAMPION IRON Zs UASHAT MAK MANI-UTENAM INNU TAKUAIKAN UASHAT MAK MANI-UTENAM MIKE MCKENZIE JEAN-CLAUDE THERRIEN PINETTE CHIEF, UASHAT MAK MANI-UTENAM HEAD OF POLITICAL CABINET
Slide 8: Introduction
ae mint CHAMPION IRON 2M TSX: CIA | ASX: CIA | OTCOQX: CIAFF
Slide 9: Introduction: Vision
INTRODUCTION CHAMPION IRON 2s VISION al ih Leveragexttie™ force Gf responce ble” qt Materials to décarbonizeland =, ‘brighten tHe future.
Slide 10: Introduction: Mission
INTRODUCTION CHAMPION IRON 2s MISSION Produce responsible materials with ingenuity to reduce the carbon footprint with and for those who seek change.
Slide 11: Upholding Values for a Sustainable Future
CHAMPION IRON 24 INTR ODUCTION TSX: CIA | ASX: CIA | OTCQX: CIAFF UPHOLDING VALUES FOR A SUSTAINABLE FUTURE INGENUITY RESPECT TRANSPARENCY Develop a collective sense Leverage employee creativity It is our guiding principle: respect Promote transparent of belonging in all spheres and expertise to ach
Slide 12: Largest Publicly Listed Pure-Play High-Grade Iron Ore Producer Globally
CHAMPION IRON 24 INTR ODUCTION TSX: CIA | ASX: CIA | OTCQX: CIAFF LARGEST PUBLICLY LISTED PURE-PLAY HIGH-GRADE IRON ORE PRODUCER GLOBALLY 2" largest hub of high-grade exports globally High-purity iron ore produced with renewable power and with one of the lowest carbon intensity 9.3%! management owne
Slide 13: Sustainability Commitment
a SUSTAINABILITY COMMITMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF eee Pa Sys
Slide 14: The Company of Tomorrow Now
SUSTAINABILITY COMMITMENT CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF THE COMPANY OF TOMORROW NOW Core priority > Zero fatalities > Introduced training programs to identify work- related incidents > Ultimate target of zero harm Source: Champion Iron Limited Environment Minimizing impact > >
Slide 15: 2022 Sustainability Report Performance Highlights
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s 2022 SUSTAINABILITY REPORT PERFORMANCE HIGHLIGHTS a Go ae 99099) ot = PerformanceHighlights ) ' Includes information from both the 2022 calendar and 2023 financial year ended March 31, 2023
Slide 16: Demonstrated Contribution to Society and Community
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s DEMONSTRATED CONTRIBUTION TO SOCIETY AND COMMUNITY Ministers Fitzgibbon and Lafreniére visiting Bloam Lake in March 2023 Inauguration of the new Fermont skatepark Since Bloom Lake recommissioning (FY 2019") As of October 31*, 2023 > $848M income, mining and
Slide 17: A Safe Working Environment Is Top Priority
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s A SAFE WORKING ENVIRONMENT IS TOP PRIORITY > No major environmental issue since the recommissioning of Bloom Lake in 2018 > Fully compliant result following multiple regulatory audits by provincial and federal authorities > Increased training and awareness
Slide 18: Responsible Tailings Construction Method
SUSTAINABILITY COMMITMENT CHAMPION IRON Zs RESPONSIBLE TAILINGS CONSTRUCTION METHOD Bloom Lake Mining Project THE SAFE TAILINGS MANAGEMENT STRATEGY
Slide 19: Committed to Reduce Carbon Emissions
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s COMMITTED TO REDUCE CARBON EMISSIONS > Substantial investments completed since recommissioning in 2018, enabling the Company's CO; emission intensity per tonne to be reduced by approximately 30% compared to the previous owner > Committing to greenhouse gas
Slide 20: Envisioned Roadmap to Net Zero 2050
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s ENVISIONED ROADMAP TO NET ZERO 2050 MISION TO.REDUCE GHG EMISSIONS THROUGH THREE STAGES. OF INITIATIVES. Current life-of-mine C"LoM’) ending:in calendar:2040' 2030 -40% target At 8.8 Kg of Stage : ‘a ore (completed) Champion already:holds an: industry leadi
Slide 21: Work Programs Identified to Reduce Emissions
SUSTAINABILITY COMMITMENT CHAMPION IRON 2a TSX: CIA | ASX: CIA | OTCQX: CIAFF WORK PROGRAMS IDENTIFIED TO REDUCE EMISSIONS IN LINE WITH THE COMPANY'S TARGETS INVESTMENTS INITIATIVES 49% 100% COMPLETED TO-DATE IN PROGRESS as > D Ys Progress towards net zero 2050 A 5 10% 40% en LEN 8% 30% 19% issey oN
Slide 22: Market Dynamics
CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOQX: CIAFF
Slide 23: Steel Is Critical for the Transition to a Low Carbon Economy
MARKET DYNAMICS CHAMPION IRON Zs STEEL IS CRITICAL FOR THE TRANSITION TO A LOW CARBON ECONOMY tn Geothermal Hydro Nuclear Electric Bioenergy Concentrated Hydrogen Wind Solar PV Electric Networks Solar Power Vehicles [ Steel Copper Aluminum Nickel Zinc Dysprosium Neodymium Praseodymium Silicon Terbiu
Slide 24: Steel Is Critical to Enable Infrastructure Required for Decarbonization
MARKET DYNAMICS CHAMPION IRON 2s STEEL IS CRITICAL TO ENABLE INFRASTRUCTURE REQUIRED FOR DECARBONIZATION +> Under the Accelerated Energy Transition (AET) of 1.5°C, over 3.5 billion additional tonnes of steel will be required by 2050, representing over 50% of total material used across infrastructure
Slide 25: The Steel Industry Needs to Evolve to Limit Emissions
MARKET DYNAMICS CHAMPION IRON Zs THE STEEL INDUSTRY NEEDS TO EVOLVE TO LIMIT EMISSIONS Mining Freight 1% 2% Agglomeration 12% Agriculture, forestry and > Steelmaking increased its share of global emissions sollmanegement in the last 20 years, now Waste representing 8%-10% of * . . Chemical: t global
Slide 26: Steelmaking Methods and Required Supply Chain
MARKET DYNAMICS CHAMPION IRON 2s STEELMAKING METHODS AND REQUIRED SUPPLY CHAIN METHOD INPUTS PROCESS CHAMPION’S IMPACT iA\ aa aX BF-BOF Lower grades ———p sintering jg | 86.2%] *Bloom Lake's iron Blast Furnace o = Fe ore concentrate Basic Oxygen Furnace . & aA -2.2t CO,e/t Iron ore concentrate* Pelle
Slide 27: DR Quality Iron Ore Demand Will Increase Across Steelmaking Methods
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF DR QUALITY IRON ORE DEMAND WILL INCREASE ACROSS STEELMAKING METHODS 1.5°C PATHWAY CRUDE STEEL PRODUCTION BY TECHNOLOGY MIX > (MTPA AND MARKET SHARE) 2022 30 35 40 45 2050 MM ori-cAF Ml Scrap-EAF MM SAF-30F! Ml BF-B0F BF-BOF CCUS2 So
Slide 28: Significant DRI Demand Growth Is Expected
MARKET DYNAMICS CHAMPION IRON 2s SIGNIFICANT DRI DEMAND GROWTH IS EXPECTED METAL DEMAND GROWTH BY 2050 EXPECTED UNDER A GLOBAL ENERGY TRANSITION (AET 2.0°C SCENARIO)! Copper ff 7% Aluminum | | 9% Molybdenum [ff 11% Lead J 18% Neodymium [RS 37% Silver [I sow Nickel i sox. Vanadium Es 159% 231% OR! ET
Slide 29: DRI-EAF Steelmaking Will Increase Demand for Pellets and High-Purity Iron
MARKET DYNAMICS CHAMPION IRON Zs DRI-EAF STEELMAKING WILL INCREASE DEMAND FOR PELLETS AND HIGH-PURITY IRON CUMULATIVE HISTORICAL FORECAST DEMAND PRODUCTION! (2023-2050) 6x More demand for DR ee pellets by 2050 than the cumulative historical eee production to support the steel industry's transition t
Slide 30: Significant Deficit of DR Grade Iron Ore Expected
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF SIGNIFICANT DEFICIT OF DR GRADE IRON ORE EXPECTED AS A RESULT OF DRI DEMAND GROWTH DR GRADE IRON ORE SUPPLY/DEMAND BALANCE BY 2031 DEMAND SUPPLY* BALANCE (Mtpa) OR iron ore demand’ [IE] Brazil Sweden 7 Canada 15 Russia ll Ukraine 1
Slide 31: DR Quality Iron Ore Supply Growth Is Required for Green Steel Transition
CHAMPION IRON 29 MARKET DYNAMICS TSK: CIA | ASK: CIA | OTCOX: CIAFF DR QUALITY IRON ORE SUPPLY GROWTH IS REQUIRED FOR THE GREEN STEEL TRANSITION WHY IS HIGHER GRADE AND LOWER IMPURITY IRON ORE IMPORTANT? GLOBAL IRON ORE SUPPLY > Reduces energy consumption and coal in traditional steelmaking -15% HPI
Slide 32: Market Leading High-Purity DR Quality Product in a Growing Market
MARKET DYNAMICS CHAMPION IRON Zs MARKET LEADING HIGH-PURITY DR QUALITY PRODUCT IN A GROWING MARKET SUMMARY OF IRON AND GANGUE CONTENTS . . . Primarily Brazil, Canada, © (wy) « Primarily Australia ro) y i Ukraine and Russia = t 1 f A 1 12% x 10% 66.2% Fe DRPF e e e e Project 8% Cc } e- Project BF QUA
Slide 33: Project and portfolio comparison table
⎪ ⎪ Spare Port Project / Renewable Distance to # Capacity Portfolio Energy Port (Km) (Mtpa)6 MetalloInvest 1 (Russia) Rest of 2 Canada4 3 S11D Champion 4 Iron 7 5 Simandou2,5 6 Iron Bridge 7 Central Eyre3 8 Minas Rio 9 Samarco LKAB 10 (Sweden) 11 CSN (Brazil) 12 Sino Iron
Slide 34: Canadian Iron Ore Produced with One of the Lowest Carbon Intensity Globally
MARKET DYNAMICS CHAMPION IRON 2s CANADIAN IRON ORE IS PRODUCED WITH ONE OF THE LOWEST CARBON INTENSITY GLOBALLY pene cee senses cee eneeeseenec ee snneeceeeceecenenessecee cee scenennneeseeneeansneeeeneseneenenessenenanssceeeeneesseaneeansanenenneseseeneensnnenenessnee H EMISSION INTENSITY PER TONNE
Slide 35: Extracting HPI in Canada Will Help Reduce Steelmaking Emissions Globally
MARKET DYNAMICS CHAMPION IRON 2s EXTRACTING HPI IN CANADA WILL HELP REDUCE STEELMAKING EMISSIONS GLOBALLY <8, 0.018t of CO;e emitted by HPI production in Canada? 1.96t of COze/t steel-related emissions! abated with DRI-EAF steel produced with HPI in Canada A transition of Bloom Lake’s 15 Mtpa namepl
Slide 36: Champion's 66.2% Fe Concentrate Attracts a Premium over the P62 Index
MARKET DYNAMICS CHAMPION IRON 2s CHAMPION’S 66.2% FE IRON ORE CONCENTRATE ATTRACTS A PREMIUM OVER THE P62 INDEX CHAMPION’S GROSS REALIZED PRICE VS P65 AND P62 INDEX (US$/DMT) $240 $180 $120 $60 2019-91 2020-01 2021-01 2022-01 2023-91 2024-91 ——P65% Fe - Quarterly Average P62% Fe - Quarterly Average
Slide 37: Long-Term Iron Ore Consensus Prices Well Below Historical Average
MARKET DYNAMICS CHAMPION IRON 2s LONG-TERM IRON ORE CONSENSUS PRICES ARE WELL BELOW HISTORICAL AVERAGE +> P62 and P65 index consensus prices are 25% and 18% below their respective historical averages! > Iron ore supply growth is limited by low price expectations, inflationary pressures, rising cost
Slide 38: High-Purity Iron Captures Premiums Across the Green Steel Supply Chain
MARKET DYNAMICS CHAMPION IRON Zs HIGH-PURITY IRON OFFERS THE OPPORTUNITY TO CAPTURE PREMIUMS ACROSS THE GREEN STEEL SUPPLY CHAIN STEEL VALUE CHAIN AVERAGE PRICES (2021-2023 YTD)! 2 (US$/T CFR CHINA) od = 58% Iron Ore 62% IronQre «65% Iron Ore Total 67.5% DR Total Scrap DRI/HBI Total Pig Iron Steel (
Slide 39: Rising Demand and Emerging Premiums for Green Steel
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF RISING DEMAND AND EMERGING PREMIUMS FOR GREEN STEEL > Recent acceleration in announcements related to green steel supply agreements > Prominent steelmakers and commodity index providers recently introduced green steel premium mechan
Slide 40: Carbon Costs Adjustments
MARKET DYNAMICS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF CARBON COSTS ADJUSTMENTS > Carbon Border Adjustment Mechanism (CBAM) implemented by the EU aims to address the issue of carbon leakage and encourage decarbonization practices globally > CBAM will be implemented in 2026, and reach it
Slide 41: Carbon Costs Adjustments Case Studies: EU and China
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF CARBON COSTS ADJUSTMENTS CASE STUDIES: EU AND CHINA > > Post-2034, all EU steel producers will be exposed to carbon cost obligations BOF producers carbon costs are forecasted to be nearly 16 times higher than their EAF peers once CB
Slide 42: Industry Insights
- INDUSTRY INSIGHTS CiX. Continuous Improvement Experts Disclaimer: This section of the Presentation (included in slides 43 to 77) (the “CIX Presentation”) is a presentation by CIX Inc. (Continuous Improvement Experts). The CIX Presentation has been prepared by CIX Inc. The CIX Presentation contains
Slide 43: Presenter Bio
PRESENTER BIO > Jeremy was born in Tonbridge, England in 1961 and emigrated to Canada in 1966. Jeremy grew up in Ottawa and attended Queen's University in Kingston, Canada, earning a BSc in Chemical Engineering in 1983 followed by an MSc in Chemical Engineering in 1985. Jeremy is a founding partner
Slide 44: Steelmaking Processes
Continuous Improvement Experts STEELMAKING PROCESSES
Slide 45: Historical Steelmaking Production by Process
HISTORICAL STEELMAKING PRODUCTION BY PROCESS Cix.. 100% Puddling Bessemer-Thomas Open Hearth 80% 60% 40% 20% Global Steel Prodcution by Process 0% 1860 1880 1900 1920 1940 1960 1980 2000 2020 Sources: Holappa,L. (2019). Historical overview an the development of converter steelmaking from Bessemer to
Slide 46: Current Annual Steelmaking Production by Process
CURRENT ANNUAL STEELMAKING PRODUCTION BY PROCESS CRUDE STEEL PRODUCTION IN 2022 Other Europe Other Asia 2.4% 8.1% Russia & other CIS + Ukraine Japan 4.6% 47% North America 5.9% Source: WorldStee! CRUDE STEEL PRODUCTION BY PROCESS IN 2022 =BF BEAF 0% 20% 40% 60% 80% 100% China India Japan South Korea
Slide 47: Future Steelmaking Production by Process
FUTURE STEELMAKING PRODUCTION BY PROCESS mC ramon nororenert Ea 1400 115 157 1200 1000 800 1278 600 1182 400 200 ° 2019 2030 2040 2050 2060 2070 = Commercial BF tInnovative BF with CCUS = Commercial DRI = Commercial DRI with CCUS ™ 100% H, DRI Commercial SR Innovative SR with CCUS Source: IEA Energy
Slide 48: Overview of the Steelmaking Process
OVERVIEW OF THE STEELMAKING PROCESS Source: World Stee! Association
Slide 49: EAF vs Integrated Steel Plant
EAF VS INTEGRATED STEEL PLANT ix. Metal integrated steel works plant INTEGRATED STEEL PLANT cai ame Process gas Fcieaes — Huge associated ono RSE Pose infrastructure - high cost of —— \ investment Coking plant — Several environmental concerns — Utilizes 70-85 % hot metal in Steel scrap —— (depends o
Slide 50: H2-DRI-EAF: Preferred Solution to Decarbonize Steel
H2-DRI-EAF: PREFERRED SOLUTION TO DECARBONIZE STEEL @ COKE/COAL BASED BF and BOF route (80% hot metal and 20% scrap in BOF) 6) DR and EAF route NUR ACRS (80% hot DRI and 20% scrap in EAF) t) DR and EAF route HYDROGEN (80% hot DRI from green hydrogen and ai 20% scrap in EAF) @ HYDROGEN BASED DR and E
Slide 51: Use of BF Pellets and Intermediate Electric Smelting
USE OF BF PELLETS AND INTERMEDIATE ELECTRIC SMELTING > Apotential solution for the use of lower grade BF pellets as DRI feedstock is an intermediate smelting/melting step between DR plant and steel plant. This technology is already offered by suppliers and plant builders (Tenova, Primetals, Metso Ou
Slide 52: Intermediate Electric Smelting
INTERMEDIATE ELECTRIC SMELTING Cix.. USING AN INTERMEDIATE STEP TO ENABLE THE USE OF LOW-GRADE IRON ORE IN DRI-EAF IS SIGNIFICANTLY MORE COMPLEX AND COSTLY Hot DRI transport connects direct Electrical energy supplied by three ff reduction plant with Smelters transformers — energy is required ; for m
Slide 53: Scrap picture
Scrap picture from Jeremy (see from training, pictures of scrap)
Slide 54: Proportion of Scrap Used in Steelmaking
O) PROPORTION OF SCRAP USED IN STEELMAKING CiX.. DEVELOPED ECONOMIES HAVE ALREADY OPTIMIZED SCRAP COLLECTION WHILE EMERGING ECONOMIES WILL FACE CHALLENGES IN SCRAP COLLECTION Source: WorldStee! 54
Slide 55: Scrap Supply Challenges
SCRAP SUPPLY CHALLENGES Cix.. > Rising residual levels - copper, tin, nickel, molybdenum/chrome > &xtraneous materials - dirt, oil, grease fluff, coatings > Proximity of scrap to steelmaking hubs - logistics of collection/transportation and associated CO; footprint > Lack of common global nomenclatu
Slide 56: A Solution Is Needed to Achieve High Scrap Recycle Rate
A SOLUTION IS NEEDED TO ACHIEVE HIGH SCRAP RECYCLE RATE > > In North America, the short-term solution is dilution; this is evidenced by the high use of ore-based materials (pig iron, DRI and HBI) in the charge mix to dilute residual levels in the recycled steel The added benefits of DRI and HBI on G
Slide 57: The Challenge with Respect to Scrap Residual Limits
THE CHALLENGE WITH RESPECT TO SCRAP RESIDUAL LIMITS mC Connas neon ne . SCRAP PRODUCTS AND RESIDUAL LIMITS FOR CERTAIN STEEL Key Drivers Residual limit for exposed auto sheet > Ashortage in prime scrap > Rising copper levels in obsolete OBMs HBI/DRI Residual limit for CQ sheet scrap Pig Iron / GPI N
Slide 58: An Example with Copper Residuals in Scrap
AN EXAMPLE WITH COPPER RESIDUALS IN SCRAP mC Cetra noeweneet pe > Currently, the average copper content of scrap recycled in North America is about 0.25-0.30 weight % > Even at this level, to make a product with 0.10 wt. % Cu max, it is necessary to blend around 65% OBM to achieve the targeted chemi
Slide 59: Various Steel Products and Scrap Residuals
VARIOUS STEEL PRODUCTS AND SCRAP RESIDUALS TYPICAL MAXIMUM RESIDUALS LEVELS FOR DIFFERENT STEEL GRADES Ss Cu N Mo Cr Sn Total Rebar. 0.05 0.40 0.35 0.08 0.15 0.08 1.06 Structural 0.03 0.40 0.15 0.08 0.15 0.03 0.81 Plating 0.03 0.20 0.10 0.02 0.10 0.02 0.44 Low quality flat 0.03 0.15 0.08 0.02 0.08 0
Slide 60: Photo showing DRI and HBI
Jeremy: Photo showing DRI and HBI
Slide 61: A Historical Perspective of OBMs
A HISTORICAL PERSPECTIVE OF OBMs PAST > Ore based metallics “OBMs" (pig iron, DRI and HBI) are > derived from iron ore as opposed to scrap > > OBMs have been utilized in EAF operations for many years +> > Inthe early days, geographical areas lacked sufficient scrap to support EAF operations turned t
Slide 62: Other Considerations for OBM Utilization
OTHER CONSIDERATIONS FOR OBM UTILIZATION mC Cetra noeweneet pe > Helps to close the loop on the circular economy > Enables utilization of more medium/low grade scrap > Greater steelmaking capacity moving to EAF based production > Consistency of EAF operations > Pacing of operations Source: Image fro
Slide 63: Example of Merchant Material Flow for HBI
EXAMPLE OF MERCHANT MATERIAL FLOW FOR HBI Cix. Iron Oxide Pellets, Lumps & Concentrate Direct Reduction Hot Briquetting Transfer | Iron & Steel a 4 Production — a is Shipping per IMO guidelines for DRI (A) Soft-loading Source: Midrex 63
Slide 64: Merchant DR Pellet Short-Term Demand Projection
MERCHANT DR PELLET SHORT-TERM DEMAND PROJECTION Cix.. > Iron ore pellet prices are largely a function of demand for the Chinese steel industry > Inthe latter part of 2021, as China reduced integrated steel production, pellet prices have dropped > However, increased demand globally for EAF based stee
Slide 65: DRI Demand Long-Term Projections
DRI DEMAND LONG-TERM PROJECTIONS DRI production in 2050 - scenario comparison - mt 900 Metallics demand BQO 796 Metalics undergo a major overhaul 700 mt— Scrap DRI Hot Metal | 600 Base (2021) 750 117 1369 596 500 549 Base (2050) 1200(1.6) @ 27924) @ 1150/0864) 400 WET1.5 (2050) 1294(17x) @ 549(47%)
Slide 66: New DRI Projects Based on Merchant Iron Ore
NEW DRI PROJECTS BASED ON MERCHANT IRON ORE Annual expected production 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 HBIS 0.3 0.6 0.6 0.6 0.6 0.9 Le Le Le Le Baosteel Zhangjiang lens} 1.0 1.0 1.0 1.0 10 1.0 10 AM Hamburg 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Salzgitter phases 16 2 0.3 15 21 2.1 21 2.6
Slide 67: Increased North American Demand for OBMs
INCREASED NORTH AMERICAN DEMAND FOR OBMs Annual capacity Clean iron units in Clean iron units in charge charge Steelmaking Units tpa Nucor North East 2721555 30 - 40 952 544 Nucor Brandenberg 1 088 622 20) 217 724 SDI Texas 2721555 30 - 40 952 544 Nucor Gallatin Phase 2 1270059 20 - 30 317 515) Nort
Slide 68: Wire Rod and Hot Rolled Coil
⎪ ⎪ → → → WIRE ROD Low Grade High grade Bearing Alloy Machine Structural Low Carbon Valve Spring Suspension Spring Cold Heading Rebar Tire Cord Piano Wire EAF (SCRAP) high DRI utilization EAF (DRI and SCRAP) HOT ROLLED COIL High grade Low Grade Can Stock Automotive (Interior Parts) Construction Auto
Slide 69: Global Merchant Pig Iron Supply
GLOBAL MERCHANT PIG IRON SUPPLY MPI pricing has traditionally been closely related to the price of iron ore pellets. In the past 2 years, it has coupled more closely to the pricing of prime scrap and even obsolete scrap. This is because flat product producers began to produce higher quality shredded
Slide 70: Global Merchant DRI/HBI Supply
GLOBAL MERCHANT DRI/HBI SUPPLY PRE-RUSSIA/UKRAINE CONFLICT MERCHANT DRI/HBI PRODUCTION BY COUNTRY Voestalpine Texas: 2.0 mt HBI 2018 exports: 1.2 mt US Source: /IMA q Bahrain Sulb 2018 production: 1.6 mt ORI 2018 exports: 0.4 mt Venezuela Total HBI nameplate capacity: 6.9 mt * FMO: 1.0 mt * Comsigua
Slide 71: Global Granulated Pig Iron (GPI) Supply
GLOBAL GRANULATED PIG IRON (GPI) SUPPLY GRANULATED PIG IRON PRODUCTION BY COUNTRY Sweden ar SSAB Oxelosund: Ea ~ mK = * Use in own BOF * Use in US EAF * Some local external sales fy 2 India Two suppliers: * Tata Steel KPO (Ferroshots) * JSPL Angul (Panther shots) Two others for internal use: * JSW T
Slide 72: Value-in-Use (VIU) Concept
s OO Ke } Continuous Improvement Experts VALUE-IN-USE C"VIU") CONCEPT 72
Slide 73: Value-in-Use Model Input Parameters
VALUE-IN-USE MODEL INPUT PARAMETERS LOW IS GOOD HIGH IS GOOD > % ACID GANGUE (Si0,, Al,0,) - Higher gangue results > %Fe TOTAL - As high as possible in increased kWh, higher yield losses, higher flux > % METALLIZED Fe (PURE Fe) - Want this as high as requirements, higher slag generation possible > %
Slide 74: Impact of Acid Gangue Content in EAF Explained
IMPACT OF ACID GANGUE CONTENT IN EAF EXPLAINED mC Conomanus neroenent be > The higher the gangue content, the greater the flux requirement in the EAF > Fluxes combine to form calcium silicate, di-calcium silicate - consumes about 740 kWh per tonne of slag > Larger slag quantity results in greater yi
Slide 75: DR Pellet VIU Calculation Inputs
DR PELLET VIU CALCULATION INPUTS DR pellet provenance Bloom Lake Lead competitor 1 Lead competitor 2 Lead competitor 3 Assumed purchase cost (US$/t) 400 400 400 400 Fe Tot 93.1% 92.1% 92.0% 92.4% Fe Met 87.5% 86.6% 86.5% 86.8% Metallization 94.0% 94.0% 94.0% 94.0% c 2.0% 2.0% 2.0% 2.0% siO, 1.5% 1.7
Slide 76: DR Pellet VIU Calculation Outputs
DR PELLET VIU CALCULATION OUTPUTS OMP OR OMP OR OMP OR BLOOM LA Assumed DRI purchase cost US$/t 400 400 400 400 (+) ADJUSTMENTS Change C us$ -0.03 -0.03 -0.02 Dolo Lime us$ 2.48 2.32 2.47 Lime us$ -0.41 0.83 -0.52 Kwh us$ 0.7 1.03 0.66 Productivity us$ 0.38 0.56 0.36 (+) Fe YIELD Kg Fe/Kg DR pellet
Slide 77: Conclusion
CONCLUSION STEELMAKING > DRI and HBI have evolved into a high-quality charge material for the EAF with multiple benefits > Benefits are highly dependent on practices and local plant parameters > Benefits are best quantified using a VIU model > Roof feeding gives considerable benefits SCRAP vs. OBMs
Slide 78: a re
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Slide 79: A Rare Solution to Decarbonize Steelmaking
A RARE SOLUTION TO DECARBONIZE STEELMAKING CHAMPION IRON A
Slide 80: Operational and Financial Performance
OPERATIONAL AND/FINANCIAL STP inae oe PE R F O R MAN C E TSX: CIA | ASX: CIA 7 pi ae
Slide 81: Operational Performance: Bloom Lake a World Class Asset
OPERATIONAL PERFORMANCE CHAMPION IRON 2s BLOOM LAKE A WORLD CLASS ASSET BLOOM LAKE PRODUCTION 15.0 > Significant investments completed to recommission the Bloom (M WMT/YEAR) I7 7 Lake Phase | in 2018 and complete the Phase II expansion in 79.8079 12) =| ao 20ee 8.0 Previous owners I E g I > Q2/FY24
Slide 82: Production and Operations
OPERATIONAL PERFORMANCE CHAMPION IRON 2s PRODUCTION AND OPERATIONS > Since 2018 restart: Bloom Lake mine consistently exceeded mining tonnage targets set out in the Phase | restart study, demonstrating bulk mining expertise, while ore grades reconciled with expectations > Recent performance: Materia
Slide 83: Production and Operations
OPERATIONAL PERFORMANCE CHAMPION IRON 2s PRODUCTION AND OPERATIONS > Since 2018 restart: Iron ore concentrate production in line with Phase | restart study, including low variability quarter over quarter > Recent performance: Record quarterly iron ore production of 3.45M wmt in Q2/FY24, representing
Slide 84: Recently Commissioned Equipment
CHAMPION IRON 29 OPERATIONAL PERFORMANCE TSX: CIA | ASX: CIA | OTCQX: CIAFF RECENTLY COMMISSIONED EQUIPMENT HAUL TRUCKS LOCOMOTIVES STACKER-RECLAIMER Il — Dy.
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Slide 87: Phase II Ramp Up
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⎪ ⎪ ⎪ ⎪
Slide 98: ⎪ ⎪
⎪ ⎪
Slide 99: ⎪ ⎪ → → → → → →
⎪ ⎪ → → → → → →
Slide 100: ⎪ ⎪
⎪ ⎪
Slide 101: ⎪ ⎪
⎪ ⎪
Slide 102: ⎪ ⎪ → → → → →
⎪ ⎪ → → → → →
Slide 103: ⎪ ⎪ ❷ ❶ → ❸ ❹ → ❺ → ❻ ❼ → →
⎪ ⎪ ❷ ❶ → ❸ ❹ → ❺ → ❻ ❼ → →
Slide 104: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 105: ⎪ ⎪ → → → → →
⎪ ⎪ → → → → →
Slide 106: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 107: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 108: ⎪ ⎪ → → → →
⎪ ⎪ → → → →
Slide 109: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 110: ⎪ ⎪
⎪ ⎪
Slide 111: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 112: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 113: See with Vincent for 5 yr perspective
⎪ ⎪ → → See with Vincent for 5 yr perspective →
Slide 114: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 115: ⎪ ⎪
⎪ ⎪
Slide 116: ⎪ ⎪
⎪ ⎪
Slide 117: ⎪ ⎪
⎪ ⎪
Slide 118: ⎪ ⎪
⎪ ⎪
Slide 119: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 120: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 121: ⎪ ⎪
⎪ ⎪
Slide 122: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 123: ⎪ ⎪
⎪ ⎪
Slide 124: ⎪ ⎪
⎪ ⎪
Slide 125: ⎪ ⎪
⎪ ⎪
Slide 126: ⎪ ⎪
⎪ ⎪