CHAMPION IRON ANNOUNCES ITS FY2027 SECOND QUARTER PRELIMINARY RESULTS AND NOTICE OF FINAL RESULTS, CONFERENCE CALL AND WEBCAST DETAILS

Champion Iron Limited (CIA) issued a preliminary, unaudited operational update for the second quarter of fiscal year 2027, covering the period ended September 30, 2026, alongside a notice for its full results conference call. The company produced 3.9 million wet metric tonnes (wmt) of iron ore concentrate, combining output from its Bloom Lake and Rana Gruber operations. Sales reached 4.5 million dry metric tonnes (dmt), marking the highest quarterly sales figure in the company’s provided news history.

The company reported a net average realized selling price of $89.9/dmt, generating revenues of $403.9 million. Unless otherwise specified, all dollar figures are in Canadian dollars, with the realized price defined as revenue divided by dmt, resulting in approximately C$89.8/dmt. Management explicitly noted that these numbers are preliminary and unaudited, have not been reviewed by the company’s auditors, and that final results may differ. Full financial statements and the Management’s Discussion and Analysis (MD&A) will be released prior to the October 29, 2026, conference call.

The release omitted several metrics typically included in prior practice, including C1 cash costs, all-in sustaining costs (AISC), EBITDA, cash balance, net debt, a split between Bloom Lake and Rana Gruber output, inventory levels, and DRPF/DR-grade premium disclosures. Additionally, the DRPF project was mentioned only in the boilerplate "About" section and was not referenced in the results, despite being central to the company’s investment thesis and with first commercial shipments guided into this quarter. No quotes from the CEO were included in this release, contrasting with the substantive commentary found in nearly every prior operating release.

Champion Iron Limited (CIA) released partial production data for the second quarter, reporting sales of 4.5 million dry metric tonnes (dmt). The company did not disclose C1 cash costs, all-in sustaining costs (AISC), or cash balances in this update, marking a departure from its April 29, 2026 preliminary production release, which had included C1 cash cost and cash balance figures.

Management had previously indicated during the Q1 call that Q2 volumes would increase as stockpiles were shipped. An inventory of 2.0 million wet metric tonnes (wmt) of saleable concentrate, combined with approximately 0.6 million wmt of stockpiled direct shipping iron ore (DRPF) material, supported the reported sales volume.

The realized price for the period was approximately C$89.8/dmt, down from C$108.2/dmt in Q1 FY2027 and C$120.0/dmt in Q4 FY2026. This represents a year-on-year decline of approximately 29% from the C$126.4/dmt realized in Q2 FY2026.

The release also omitted any footnote regarding DRPF premiums or volume, despite an inaugural DR-grade cargo loading at premiums over P65 just three weeks prior.

On the release date, Champion Iron’s stock hit a fresh 52-week low, having fallen 31.6% since the last earnings print.

Champion Iron Limited (TSX: CIA / ASX: CIA / OTCQX: CIAFF) is a high-purity iron ore producer with operations in Canada and Norway. Its primary asset is the Bloom Lake Mining Complex, located approximately 13 km north of Fermont, Québec, in the Labrador Trough. The 100%-owned complex, held via Quebec Iron Ore Inc., is an open-pit operation featuring two concentrators with a combined nameplate capacity of 15 million wmt per year. Powered primarily by renewable hydroelectricity, the facility produces a low-contaminant 66.2% Fe concentrate with demonstrated capability to produce direct reduction (DR) grade material. The concentrate is transported by rail to a ship-loading port at Sept-Îles, Québec.

The company is advancing the DRPF project, which is designed to upgrade up to half of Bloom Lake's capacity to DR-grade pellet feed of up to 69% Fe with combined silica and alumina below 1.2%. The project is complete within the $500 million budget, with cumulative costs of $493.7 million. This initiative serves as the core growth and premium-pricing thesis for the company.

In April 2026, Champion Iron acquired Rana Gruber AS for approximately US$300 million plus fees. Based in Mo i Rana, Nordland, the Norwegian producer has maintained continuous production since the 1960s. It generates approximately 1.8 million dmt per year of hematite and magnetite concentrates and has access to renewable power.

Additionally, Champion Iron holds a 51% interest in the Kami Iron Mine Partnership, with Nippon Steel and Sojitz holding the remaining 49%. The Kami Project is situated approximately 21 km southeast of Bloom Lake and benefits from access to existing infrastructure. A Definitive Feasibility Study (DFS) is guided for the second half of 2026. The company also holds Cluster II exploration properties and other Labrador Trough exploration and development holdings. Its customer base spans China, Japan, the Middle East, Europe, South Korea, India, Southeast Asia, North Africa, and Canada.