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 the Southern Extension Block. The Crown Mountain thrust fault (“CMF”) separates the North Block from the South Block. The Southern Extension Block is not part of the BFS.

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 Seam 8, Seam 9 and Seam 10. The Seam 8 and 10 consist of three major plies – Upper, Middle and Lower. 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 28.0m in the North Block and 14.5m in the South Block.

Strike lengths for each of the three prospects are: North Block – 1.5km, South Block - 4.4km and Southern Extension – 4.1km.

The major seams in the North Block are structurally bound within a south plunging syncline, extending from surface to a maximum depth of 155m. Coal seams in the South Block extend from surface to a maximum depth of 150m and are structurally bound within a syncline that has been truncated by the thrust fault and only the east limb of the syncline remains.

The Southern Extension is a continuation of the South Block coal measures. Based on structural mapping, there is evidence for increased structural complexity.

All coal extraction is undertaken via open pit mining of the North, East and South pits.

The mining method selected for Crown Mountain in the BFS 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 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, from South to North. After pre-stripping, North block coal is mined.

Pit optimization was based on a strip ratio of 18.5:1 ROM tonne break.

Mined ROM coal is hauled from the pit to a rotary breaker where some of the larger size OSD is removed.

A rotary breaker is assumed to remove approximately 6-7 percent of the rock in the ROM material.

Coal processing will be by heavy media washing and froth floatation.

As with the majority of Canadian metallurgical coals, a wash plant is required.

The primary processing method is heavy media cyclone and reflux classifier, supplemented by column cell flotation for fines recovery. A hyperbaric filter is included in the plant design to reduce the product moisture of the fine coal. The CHPP design developed in the BFS has been maintained in the Yield Optimisation Study but resultant plant yields have been increased to reflect increased product recovery due to increased target product ash levels.

The estimated yields using these updated regressions for production of a 10.5% ash coking product from the North and East pits and an 11% ash coking product from the South Pit: North Pit - 57.8%, East Pit - 49.7%, South Pit - 47.1%.

Washed coal will be conveyed down the mountain (3 km) and then trucked approximately 15 km to a stockpile/loadout area wh ........