The Coal Resource Estimate (CRE) is located in Hopkins and McLean County, Kentucky, within the Carbondale Formation. The WK No.9 and WK No, 11 Seams associated with the Buck Creek Complex have been identified as exhibiting potential underground mineable resource tonnage.

The primary coal-bearing formations on the Buck Creek Complex are situated in the Western Kentucky Coal Field of the Illinois Basin (or Eastern Interior Basin) of the USA and are of middle Pennsylvanian-age. These strata include conglomerate, sandstone, siltstone, shale, limestone, and coal that were deposited primarily in coastal deltaic settings. Coal rank in this area is high volatile bituminous C, with higher rank coals sometimes found along major structural fault systems. Coal in the West Kentucky Coal Field is generally medium to high sulfur, exhibiting average sulfur contents of more than 3.0 percent and averaging more than 5.0 pounds of SO2 per million Btu.

The strata on the Buck Creek Complex generally exhibit a regional northeast-southwest strike, and a regional northwestward dip towards the center of the Illinois Basin, with offsets along the fault zone. As the strata bend around the nose of the basin, strike rotates from northeast to north to northwest, along with an associated change in dip direction. Depth of cover increases gradually to the northwest towards the center of the basin. Depth of cover to the WK No. 9 seam ranges from approximately 240 feet (76 metres)-) in the east in the vicinity of the Green River to in excess of 1,100 feet (335 metres) near the town of Slaughters in the west. The WK No.9 Seam across the Project is generally continuous and noncomplex but may vary in thickness. The WK No. 11 seam occurs on average approximately 70 feet (21.3 metres) above the WK No. 11 seam and is not continuous, occurring in pods throughout the west and central portions of the property until becoming absent to the east. Due to the eventual absence of the seam in the eastern portion of the property the WK No. 11 seam is slightly more complex than the WK No. 9 seam. The mineable seam thickness for the WK No. 9 seam ranges from 3.0 feet (0.91 metres) to 5.0 feet (1.5 metres) with fairly consistent coal thickness exhibiting minimal splitting and non- coal partings. The mineable seam thickness for the WK No. 11 seam ranges from 3.0 feet (0.91 metres) to 5.5 feet (1.67 metres) and frequently includes shale partings. Furthermore, as common in Western Kentucky, the seams are affected by tectonic deformation within the resource area.

The interval overlying the WK No.9 generally consists of black shale (“Turner Mine Shale” or “TMS”) that ranges in thickness from 0 to 7.0 feet (2.13 metres) with an average of about 1.5 feet (0.46 metres). The black shale is overlain by gray shale (“Canton Shale”) ranging in thickness from 0 to 55 feet (16.76 metres). Overlying the gray shale is sandstone (“Vermillionville Sandstone”) ranging in thickness from 0 to 75 feet (22.86 metres). The interval overlying the WK No. 11 seam consists of a thin black to gray shale or claystone which is generally overlain by a limestone that can range from 2.0 feet to 10 feet in thickness.

The Company commenced mining with its first continuous miner (“CM”) in March 2019. Underground mining and development significantly progressed during the June 2019 quarter, with the slope development contractor demobilised from the mine site and activities transitioned to Paringa managed operations.

The Company successfully installed and commissioned the slope conveyor and established the permanent underground ventilation system. Operations using the mine slope conveyor allowed the Company to commence a typical underground room and pillar mining sequence and enabled significantly increased production rates.

Paringa utilises room and pillar operations at Poplar Grove, an efficient and low-cost mining method widely employed in coal mines around the world. Room and pillar mining is undertaken by continuous mining units (“Unit”), with each Unit consisting of two CMs and other ancillary equipment.

Mining began utilising the two CMs which form Unit 1, with ramp-up activities progressing well and productivity increasing. Construction of the ventilation overcasts are complete and the split ventilation system is commissioned, enabling the concurrent operation of both CMs in Unit 1. Regulatory approval has also been received for an extended cut plan for Unit 1.

Unit 2 entered production in July 2019 and the split ventilation system has also been completed, enabling the concurrent operation of two continuous miners in Unit 2, taking the total number of CMs in operation to four and significantly increasing the total quantity of coal mined per shift of operation. Unit 2 will progressively ramp-up over the coming months, with testing activities for the Unit 2 extended cut plan underway.

Run of mine production from the Poplar Grove Mine will require processing in order to meet market specifications. Paringa, along with contractors and vendors who are experienced in coal processing in the Illinois Basin, has developed a preparation plant flow sheet for the Cypress Mine that allows for a portion of the minus ½” ROM coal to bypass the preparation process and to be blended back with the processed coal to produce a higher yield, lower heat product. The amount of bypassed coal can be varied to produce a range of product qualities. Since run of mine and product qualities are the same this process design will also be utilized at the Poplar Grove Mine.

The BFS assumes that 100% of the coal product from Poplar Grove Mine will be a blend of processed and bypassed coal to meet a target specification of 11,200 to 11,300 Btu/lb.

The coal preparation plant design throughput capacity will be a nominal 400 tons per hour. Following the initial ramp-up period ........