The Crown Mountain Coal project lies within the Elk Valley coal field in southeast British Columbia, Canada. The property is divided into three structural domains with separate geological attributes. The domains are referred to as the North Block, South Block, and Southern Extension. The Crown Mountain thrust fault (“CMF”) separate the North Bock from the South Block and Southern Extension. Coal seams are hosted within the Jurassic to Lower Cretaceous Mist Mountain Formation. The coal bearing Mist Mountain Formation is underlain by the Morrissey Formation which includes the regional cliff forming Moose Mountain Member. Drilling has intersected three principal seams, named 8 Seam, 9 Seam and 10 Seam. The 8 and 10 Seams consist of three major plies. The term major seam has been defined to include all seven seams in order to distinguish them from other coal horizons referred to as rider seams. The seven major seams have combined average net coal zone thickness of 35.32m in the North Block, 15.04m in the South Block and 14.79m in the Southern Extension.

The mining method selected for Crown Mountain in the PFS is open pit. Mining equipment includes excavators, front end loaders, and haul trucks, supported by dozers, backhoes, and blasthole drills. This type of equipment is typical for Elk Valley mining operations and includes equipment specific to selective mining in certain thinner seams present on the property. The vast majority (90%) of overburden removal is projected to require blasting.

The mine plan has been sequenced to extract the low strip ratio North block first, followed by the smaller East block (a subset of the South block, but a distinctly higher quality and discrete mine pit) and ultimately the large South block.

Mined ROM coal is hauled from the pit to a de rocking device (rotary breaker or equivalent) where some of the larger size OSD is removed.

Washed coal will be conveyed down the mountain (3 km) and then trucked approximately 9 km to a stockpile/loadout area where the product will ultimately be loaded via 16,000 tonne capacity silo onto railcars on a new rail loop to be located adjacent to Canadian Pacific’s (“CP”) existing common-user railway. The loadout facility includes silo storage with a batch weigh bulk loading system for accurate load control and freight cost management.