Champion Iron Subsidiary Enters Into Settlement Agreement Providing for the Conditional Settlement of a Contractual Dispute with the Port of Sept-Iles

Champion Iron (ASX: CIA) (TSX: CIA) (the “Company” or “Champion”) is pleased to announce that its subsidiary Champion Iron Mines (“CIML”) has entered into a settlement agreement providing for the conditional settlement, without admission, of its dispute with the Port of Sept-Îles concerning the July 13, 2012 agreement entered into between the parties (the “2012 Agreement”).

The settlement of the dispute is conditional upon the closing of the financing transactions disclosed by the Company on July 13, 2017. The dispute with the Port of Sept-Îles concerning the 2012 Agreement is disclosed and detailed by the Company in its latest audited financial statements.
The settlement agreement provides for, among other considerations, the immediate payment of a certain sum of money to the Port of Sept-Îles as well as the making by CIML or by another subsidiary of the Company, Québec Iron Ore Inc. (“QIO”), of certain additional payments in tranches to settle in full the Port’s original $19,581,000 claim on account of the buy-in payment under the 2012 Agreement, as well as certain ancillary amounts.

Such payments will be advances on QIO’s future shipping, wharfage and equipment fees under the 2012 Agreement. The additional tranche payments are, like the settlement itself, conditional to the closing of the financing transactions disclosed by the Company on July 13, 2017.
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