Champion Iron Limited enters into a joint exploration agreement with Supreme Metals Corp. to evaluate iron ore and cobalt potential on the Bloom Lake east property, Labrador

January 22, 2019

Montreal, January 22, 2019 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (“Champion”) is pleased to announce that a joint exploration agreement (the “Agreement”) has been reached with Supreme Metals Corp. (CSE: ABJ) (FSE: A68) (“Supreme”) in order to access the claims located on the Bloom Lake East Property (“Bloom East”).

Magnetic survey work, conducted by Supreme in 2018, identified iron ore prospects at Bloom East, which could be of strategic importance to Champion and its subsidiary Quebec Iron Ore Inc. (“QIO”), as it could potentially be considered as a source of iron ore feed for the Bloom Lake Mine (“Bloom Lake”) concentration plant owned and operated by QIO. The southern part of Bloom East is geologically continuous with the Bloom Lake orebody and is located east of the Quebec-Labrador Boundary, less than 3 km from the Bloom Lake mill. Furthermore, Champion will evaluate the northern section of Bloom East, which hosts iron ore according to the Newfoundland and Labrador Geoscience Atlas.

Pursuant to the Agreement, Champion will grant Supreme access to the Walsh Prospect located on QIO’s Bloom Lake Mining Lease. The Walsh Prospect, located 1.3 km away from current mining operations, was discovered in 1951 and yielded results “running to better than 11% Cobalt”1.

In addition to accelerating exploration on the Walsh Prospect, the one-year Agreement allows Champion to evaluate further mineralization outside of QIO’s current claims and lease and could potentially increase the resources in the vicinity of Bloom Lake operations. Champion will dedicate CAD$50,000 of its exploration budget to acquire geological data on the Walsh Prospect and will further commit to a minimum spend of CAD$100,000 on exploration of Bloom East. Supreme will provide its expertise on cobalt deposits and share data and findings emanating from its exploration to date. Further to such commitments, a long-term agreement will subsequently be considered, assuming the potential for one or both commodities is deemed positive by either company. Champion will retain a right of first refusal to partner with Supreme on Bloom East for a period of 3 years following this Agreement.

Hugues Longuépée, P.Geo, Geology Manager, commented, “The Champion team has been tracking the results of Supreme’s exploration program. Partnering with them at this juncture is a natural progression to evaluate prospects near our operations. Not only will it give Champion and QIO the opportunity to add resources to the Bloom Lake Mine, it will also increase the potential for cobalt by combining underexplored occurrences into a single project. I am confident that this agreement will lead to great gain for both companies and we are looking forward to this collaboration with Supreme.”

Qualified Person

In accordance with National Instrument 43-101, Dr. Hugues Longuépée, P.Geo. is the Qualified Person responsible for the technical data reported in this press release. He is a Professional Geologist registered in Québec and in Newfoundland and Labrador. He is the Geology Manager at Champion Iron Mines Limited and has several years of experience in iron ore in Québec and Labrador.

1 Quebec Department of Mines Mineral Deposits Branch Report # GM-1689, Report on Walsh Cobalt Group, Mount Wright Area. April 22, 1952.

About Champion Iron Limited
Champion is a producing iron development and exploration company, focused on developing its significant iron resources in the south end of the Labrador Trough in the province of Quebec. Following the acquisition of its flagship asset, the Bloom Lake iron ore property, the Company implemented upgrades to the mine and processing infrastructure and has partnered in projects associated with improving access to global iron markets, including rail and port infrastructure initiatives with government and other key industry and community stakeholders. Champion’s management team includes professionals with mine development and operations expertise, who also have vast experience from geotechnical work to green field development, brown field management including logistics development and financing of all stages in the mining industry.

About Quebec Iron Ore Inc.
Founded in 2016 by the mining development company Champion Iron Limited, Quebec Iron Ore Inc. is a 100% Quebec-based entity managed by experts from Quebec. The company was mandated to direct the relaunch of the Bloom Lake Mine, a Champion Iron flagship project in Fermont, in northern Quebec.

About Supreme Metals Corp.
Supreme Metals Corp. (CSE: ABJ) (FSE: A68) is a Canadian based exploration company with a focused approach in the area of green and energy metals in the Western World adjacent to anticipated downstream manufacturing projects that will have a significant need for these metals.

For further information please contact:

Michael Marcotte, Vice‐President, Investor Relations 514‐316‐4858, Ext. 128
info@championironmines.com

For additional information on Champion Iron Limited, please visit our website at www.championiron.com

Forward-Looking information
This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this news release that address the expected restart date of Bloom Lake as well as future activities, events, developments or financial performance constitute forward- looking information. The use of any of the words “will”, “expect”, “anticipate”, “intend”, “believe”, “plan”, “potential”, “outlook”, “forecast”, “estimate” and similar expressions are intended to identify forward-looking information. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Champion’s final short form prospectus relating to a completed equity Offering, annual information form, management’s discussion and analysis and other securities regulatory filings made by Champion on SEDAR (including under the heading “Risk Factors” therein). There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward- looking information. Accordingly, readers should not place undue reliance on forward-looking information. All of Champion’s forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of Champion’s management and information available to management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of its forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.