MONTREAL, QC--(Marketwired - October 16, 2017) -

Not for distribution to U.S. news wire services or dissemination in the United States

Champion Iron Limited (ASX: CIA) (TSX: CIA) (the "Corporation" or "Champion") is pleased to announce that it has completed a series of previously announced financing arrangements, raising approximately CDN$300 million towards the restart of the operations of the Bloom Lake iron ore mine located near Fermont, Québec ("Bloom Lake").

Debt Financings

As previously disclosed, the Corporation, through its subsidiary Québec Iron Ore Inc. ("QIO"), recently entered into definitive agreements in connection with (i) a 5-year senior secured loan in the aggregate amount of US$80 million provided by Sprott Private Resource Lending (Collector), LP ("Sprott") and carrying interest at a rate of 7.5% plus the greater of US dollars 3 month LIBOR and 1% per annum; and (ii) a 7-year subordinated loan in the aggregate amount of US$100 million provided by CDP Investissements Inc., a wholly-owned subsidiary of Caisse de dépôt et placement du Québec ("Caisse") and carrying interest at a rate of 12% for the first year and thereafter at an interest rate linked to the price of iron ore for subsequent years (collectively, the "Debt Financings"). As of October 16, 2017, all of the precedent conditions to the funding of the proceeds under the Debt Financings have been met.

In connection with the Debt Financings, the Corporation issued, as of the date hereof, an aggregate of 3,000,000 ordinary share purchase warrants to Sprott and an aggregate of 21,000,000 ordinary share purchase warrants to Caisse, each warrant entitling its holder to purchase one ordinary share of Champion at a price of CA$1.125, as approved by the shareholders of Champion on August 18, 2017.

Fonds Capital Mines Hydrocarbures (CMH)

Concurrently with the closing of the Debt Financing, the Fonds Capital Mines Hydrocarbures ("CMH"), managed by Ressources Québec Inc., funded its CDN$26.2 million equity contribution to QIO.

Subscription Receipt Offering

Further to the previously announced non-brokered sale of a CDN$31.2 million subordinated unsecured mandatory convertible debenture to Glencore International AG, the completion of the Debt Financing and the funding of the contribution of CMH, the conditions precedent to the release of the net proceeds of the public offering of subscription receipts (the "Subscription Receipts") completed in September 2017 (the "Offering") have been met. Accordingly, the net proceeds of the Offering, in an amount of CDN$18,312,980.97 have been released to the Corporation and the 21,033,508 Subscription Receipts issued by the Corporation will be automatically exchanged in accordance with their terms on a one-for-one basis for ordinary shares of Champion, effective as of the date hereof. Trading in the Subscription Receipts (TSX: CIA.R) will be halted effective immediately and the Subscription Receipts will be delisted at the close of business today.