Strategic Alliance to Develop Canadian Iron Ore Resources

Champion Iron announces a groundbreaking partnership with Nippon Steel and Sojitz for the further development of the prestigious Kami Project in Canada. This project, located southeast of the renowned Bloom Lake Mine, features DR-grade iron ore. Nippon Steel and Sojitz are initially contributing USD 245 million to drive the project forward in collaboration with Champion Iron, which retains a 51% majority stake. The partners' financial contribution is proportional to their respective shares and could reach up to USD 490 million before Champion requires additional capital. Completion of a definitive feasibility study is expected by mid-2026, after which a 48-month construction schedule is planned following a final investment decision. Upon completion of the transaction, the ownership distribution will be 51% for Champion, 30% for Nippon, and 19% for Sojitz. Ryuichi Nagai, managing director at Nippon, underscores the strategic importance of securing iron ore resources at DR quality level, especially in the context of emission reductions in steel production. He highlights that the Kami Project possesses outstanding resources and ranks among the most advanced projects globally. Champion Iron is pleased to continue its role as the operator and emphasizes the high quality and sustainability of the resources. David Cataford, CEO of Champion Iron, stresses the high regard enjoyed by the Labrador Trough region for its ability to sustainably realize large-scale high-purity iron ore projects. The contribution of the industry partners marks significant progress in optimizing the project towards a potential investment decision. The transaction is expected to be completed in the first half of 2025, subject to the negotiation and finalization of relevant agreements.