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 th ........

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 tot ........

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