Champion Announces Final Closing of Prospectus Offering

MONTRÉAL, QC--(Marketwired - September 29, 2017) - Champion Iron Limited (ASX: CIA) (TSX: CIA) (the "Corporation", or "Champion") announces that it has closed the balance of its previously announced public offering (the "Offering") of subscription receipts (the "Subscription Receipts"), pursuant to which 8,027,508 additional Subscription Receipts were issued at a price of $0.90 per Subscription Receipt (the "Offering Price") for additional gross proceeds of $7,224,757.20.

Together with the partial closing of the Offering which was completed on September 25, 2017, the Corporation has issued 21,033,508 Subscription Receipts for aggregate gross proceeds of $18,930,157.20.

The Offering was conducted through a syndicate of dealers led by RBC Capital Markets, as sole bookrunner, and Sprott Capital Partners, as co-lead dealer, that includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Desjardins Capital Markets and Macquarie Capital Markets Canada Ltd. (collectively, the "Dealers").

The Subscription Receipts will begin trading on the Toronto Stock Exchange under the symbol "CIA.R" on September 29, 2017.

As previously announced on July 12, 2017, August 1, 2017, August 28, 2017, September 7, 2017 and September 25, 2017, Québec Iron Ore Inc. ("QIO"), a subsidiary of the Corporation, has received conditional commitments of US$180 million (the "QIO Debt Financing") to partially fund the costs of resuming the operations of the Bloom Lake Iron Ore Mine ("Bloom Lake"). One of the conditions of the QIO Debt Financing requires the Corporation and QIO to secure all financing requirements for the Bloom Lake restart. In connection therewith, QIO's equity shareholders, namely Champion and Ressources Québec Inc. are required to contribute financially to support the resumption of operations at Bloom Lake by making capital contributions to QIO of approximately $44.8 million and $26.2 million, respectively. The Corporation intends to use the proceeds from the non-brokered sale of US$25 million (approximately $31 million) principal amount of subordinated unsecured mandatory convertible debenture (the "Debenture") to Glencore International AG, as well as the net proceeds of the Offering to make such capital contribution to QIO, further to which any remaining amount received from the Offering and the sale of the Debenture would be used for general corporate purposes.