CHAMPION IRON PRODUCES DR QUALITY IRON ORE FROM ITS DRPF PROJECT AND ENTERS INTO COMMERCIAL AGREEMENT

About this update from Champion Iron Ltd.

MONTRÉAL, June 28, 2026 /CNW/ - SYDNEY, June 29, 2026 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") is pleased to announce having produced direct reduction ("DR") quality iron ore from its direct reduction pellet feed project (the "DRPF Project") at the Bloom Lake mine (the "Bloom Lake"). An inaugural commercial sale of a Capesize vessel, expected to carry at least 160,000 wet metric tonnes of DR quality iron ore is anticipated in the third calendar quarter of 2026. The DRPF Project was completed within the recently estimated $500 million budget and is expected to gradually increase in capacity to reach commercial production toward the end of the Company's current financial year. In tandem with the commissioning of the DRPF Project, the Company has entered into a commercial agreement covering a portion of its expected near-term capacity and is actively advancing discussions with several prospective customers globally to secure agreements for its remaining volumes. Champion's CEO, Mr. David Cataford, said: "The initial production of DR quality iron ore represents a defining milestone in the commissioning of the DRPF Project and, once again, highlights our team's ability to deliver sizeable construction projects. By leveraging the exceptional quality of the resources in the Labrador Trough, our commercial agreement with a globally recognized group confirms the growing demand for DR quality iron ore. As we progress toward commercial production, we seek to build long-term partnerships with steelmakers, while strengthening Québec's and Canada's position as a key player in the low-carbon steelmaking supply chain." The DRPF Project is designed to upgrade half of Bloom Lake's capacity to a DR quality pellet feed iron ore grading up to 69% Fe, with combined silica and alumina content below 1.2. The DRPF Project is expected to position Bloom Lake among the highest-purity iron ore producers globally, and could attract a considerable pricing premium over its currently produced high-purity 66.2% Fe iron ore concentrate. Demand and pricing premiums for DR quality iron ore are supported by the steel industry's transition toward lower-carbon production pathways, including an increasing adoption of direct reduced iron ("DRI") and electric arc furnaces ("EAF") steelmaking. These processes require higher-purity iron ore...

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