Powderhorn1

Projects

Champion Iron Limited (ASX: CIA ǀ TSX: CIA) is an iron ore exploration and development company with projects located in Canada’s premier iron ore mining district at the southern end of the Labrador Trough.

Bloom Lake and related rail assets

On April 11, 2016, the Company, through its subsidiary, Quebec Iron Ore (QIO), acquired the Bloom Lake mine and related rail assets (“Bloom Lake”) from affiliates of Cliffs Natural Resources Inc. that were subject to restructuring proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).

The Bloom Lake mine is located approximately 13 km north of Fermont, Quebec, in the Labrador Trough and consists of Mining Lease BM877 and 114 mining claims. The Bloom Lake Mine is an open pit truck and shovel mine, a concentrator that utilizes single-stage crushing and an autogenous mill and gravity separation to produce iron concentrate. From the site, concentrate can be transported by rail, initially on the Bloom Lake Railway, to a ship loading port in Sept-Îles, Québec. The Bloom Lake mine is currently in a care and maintenance mode.

The Bloom Lake rail assets consist of the provincially regulated short-line railway comprising a 32 km rail spur contained wholly within Newfoundland and Labrador that connects the Bloom Lake mine to the railway owned by Northern Land Company.

Subsequent to the acquisition of Bloom Lake, QIO is currently employing 44 workers in care and maintenance of the property.

In June of 2016, QIO began a feasibility study (“Feasibility Study”) to investigate the potential re-start of the Bloom Lake mine and concentrator. The completion of the Feasibility Study in anticipated to occur in Q1 of 2017.

Quinto Claims

On April 11, 2016, the Company, through its wholly-owned subsidiary, Champion Iron Mines Limited, acquired certain mineral claims (“Quinto Claims”) from affiliates of Cliffs Natural Resources Inc. that were subject to restructuring proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).

The Quinto Claims (458 claims), which encompass the Peppler Property (129 claims), the Lamelee Property (236 claims) and the Hobdad Property (93 claims), are located approximately 50 km southwest of the Bloom Lake mine.

Fermont Property Holdings

The Company owns a 100% interest in 8 properties (each a “Property”), covering approximately 707 square kilometres (collectively, the “Fermont Holdings”) located in the Fermont Iron Ore District of northeastern Quebec, which is 300 km north of the St. Lawrence River port town of Sept-îles, and ranging from 6 to 80 kilometres southwest of Fermont.

The Fermont Holdings are subject to a 1.5% Royalty payable to an arm’s length party.

The Fermont Holdings are grouped into three clusters from north to south, termed Clusters 1, 2 and 3. The Fermont Holdings are located in proximity to and locally contiguous to an operating iron mine and a number of former operating iron mines and projects currently being developed for iron mining. The Fermont Holdings include the following properties: Moire Lake, CFLN, Harvey-Tuttle, O’Keefe-Purdy, Aubertin-Tougard, Jeannine Lake, Round Lake, and Silicate Brutus.