CHAMPION IRON FORMS A PARTNERSHIP FOR THE KAMI PROJECT WITH NIPPON STEEL AND SOJITZ

Executive Summary

• Champion Iron completed the Initial Closing of its framework agreement with Nippon Steel and Sojitz, receiving $68.6 million in cash contributions to the newly formed Kami Iron Mine Partnership.
• Champion now holds a 51% equity interest in the Partnership, while Nippon Steel and Sojitz hold 30% and 19%, respectively.
• The agreement outlines a Second Closing contingent on a definitive feasibility study (DFS) by end‑2026, after which an additional $176.4 million will be contributed by the Partners.

Key Details

• Initial Cash Contribution: $68.6 million from Nippon Steel and Sojitz to the Kami Iron Mine Partnership.
• Equity Structure Post‑Closing: Champion – 51%; Nippon Steel – 30%; Sojitz – 19%.
• Framework Agreement Structure: Two‑step closing; Second Closing dependent on DFS completion, interim investment decision (IID), and other customary conditions.
• Second Closing Funding Commitment: Additional $176.4 million to be contributed by the Partners after DFS approval (expected end of calendar 2026).
• Kami Project Overview: 25‑year life of mine; average annual production ~9.0 million wet metric tonnes of DR‑grade iron ore (>67.5% Fe); capital cost estimate $3,864 million; NPV $541 million (conservative) or $2,195 million (higher price scenario); IRR 9.8%–14.8% after tax.
• Project Timeline: Construction period ~48 months post‑FID; DFS expected by end of 2026.
• Strategic Rationale: Leverages Champion’s existing Bloom Lake infrastructure and proximity to the Kami deposit; partners bring steel‑making expertise and global market access.

Notable Quotes

• “This partnership with Nippon Steel and Sojitz provides a strong foundation for advancing the Kami Project toward commercial production, leveraging our proven operating model at Bloom Lake,” – David Cataford, CEO, Champion Iron Limited.