EXECUTION COPY CLIFFS QUÉBEC IRON MINING ULC QUINTO MINING CORPORATION BLOOM LAKE GENERAL PARTNER LIMITED BLOOM LAKE RAILWAY COMPANY LIMITED THE BLOOM LAKE IRON ORE MINE LIMITED PARTNERSHIP - and - QUÉBEC IRON ORE INC. - and - CHAMPION IRON LIMITED ASSET PURCHASE AGREEMENT DATED DECEMBER 11, 2015 22790308.17 TABLE OF CONTENTS Page ARTICLE 1 INTERPRETATION 1.1 Definitions ...................................................................................................................... 2 1.2 Actions on Non-Business Days......................................................................................13 1.3 Currency and Payment Obligations ...............................................................................13 1.4 Calculation of Time ........................................................................................................13 1.5 Tender ...........................................................................................................................13 1.6 Additional Rules of Interpretation ...................................................................................13 1.7 Exhibits and Schedules .................................................................................................14 ARTICLE 2 PURCHASE OF ASSETS AND ASSUMPTION OF LIABILITIES 2.1 Purchase and Sale of Purchased Assets .......................................................................15 2.2 Assumed Liabilities ........................................................................................................15 2.3 Assignment of Contracts ...............................................................................................15 2.4 Transfer and Assignment of Permits and Licenses ........................................................16 ARTICLE 3 CONSIDERATION & TAXES 3.1 Consideration ................................................................................................................17 3.2 Satisfaction of Consideration .........................................................................................17 3.3 Allocation of Consideration ............................................................................................17 3.4 Taxes ............................................................................................................................18 3.5 Tax Elections. ................................................................................................................18 ARTICLE 4 REPRESENTATIONS AND WARRANTIES 4.1 Representations and Warranties of the Purchaser ........................................................18 4.2 Representations and Warranties of Champion Iron .......................................................19 4.3 Representations and Warranties of the Vendors ...........................................................20 4.4 As is, Where is ..............................................................................................................21 ARTICLE 5 EMPLOYEES AND EMPLOYEE BENEFITS 5.1 Unionized Employees ....................................................................................................22 5.2 Continuation of Employment of Non-Unionized Employees ...........................................23 5.3 Past Service & Ongoing Terms .....................................................................................23 22790308.17 TABLE OF CONTENTS (continued) Page 5.4 Vendors to Pay Pre-Closing Wages ..............................................................................23 5.5 Provision of Information .................................................................................................24 5.6 Other Benefit Matters ....................................................................................................24 5.7 Service Credit and Pre-existing Conditions ....................................................................24 ARTICLE 6 COVENANTS 6.1 Target Closing Date .......................................................................................................24 6.2 Motion for Approval and Vesting Order ..........................................................................24 6.3 Access During Interim Period ........................................................................................25 6.4 Transaction Personal Information ..................................................................................25 6.5 Risk of Loss and Casualty .............................................................................................25 6.6 Interim Period ................................................................................................................26 6.7 Indemnity .......................................................................................................................26 6.8 Books and Records .......................................................................................................26 6.9 Vendor Surety Bonds ....................................................................................................27 6.10 Transfer of Assumed Employee Plans ...........................................................................27 6.11 Certain Information Technology Assets .........................................................................27 6.12 Trademarked and Branded Assets. ...............................................................................27 6.13 Competition Act, Rail Service Act and Mining Act ..........................................................28 6.14 Cooperation and Consultation with Governmental Authorities .......................................28 6.15 Guarantee .....................................................................................................................28 6.16 Private Placement Regulatory Approvals .......................................................................30 6.17 Peppler and Lamelee Claims Information ......................................................................30 ARTICLE 7 CLOSING ARRANGEMENTS 7.1 Closing ..........................................................................................................................30 7.2 Vendors’ Closin g Deliveries ...........................................................................................31 7.3 Purchaser’s Closing Deliveries ......................................................................................31 ARTICLE 8 CONDITIONS OF CLOSING 8.1 Purchaser’s Conditions ..................................................................................................32 8.2 Vendors’ Conditions ......................................................................................................33 22790308.17 -ii- TABLE OF CONTENTS (continued) Page 8.3 Monitor’s Certificate .......................................................................................................34 ARTICLE 9 TERMINATION 9.1 Grounds for Termination ................................................................................................34 9.2 Effect of Termination .....................................................................................................35 9.3 Treatment of Deposit .....................................................................................................36 ARTICLE 10 GENERAL 10.1 Survival .........................................................................................................................36 10.2 Expenses ......................................................................................................................36 10.3 Public Announcements ..................................................................................................37 10.4 Notices ..........................................................................................................................37 10.5 Time of Essence ............................................................................................................39 10.6 Further Assurances .......................................................................................................39 10.7 Entire Agreement ..........................................................................................................39 10.8 Amendment ...................................................................................................................40 10.9 Waiver ...........................................................................................................................40 10.10 Severability ....................................................................................................................40 10.11 Remedies Cumulative ...................................................................................................40 10.12 Governing Law ..............................................................................................................40 10.13 Dispute Resolution ........................................................................................................40 10.14 Attornment .....................................................................................................................40 10.15 Successors and Assigns ...............................................................................................41 10.16 Assignment ...................................................................................................................41 10.17 Monitor’s Capacity .........................................................................................................41