Bowen Coking Coal Ltd. has commenced mining at its Bluff Open-cut PCI Mine (Bluff) taking a significant step forward as it transitions from explorer to Australia's next independent metallurgical coal producer. Mining has started at Bluff under an early works program designed to safely and efficiently prepare the pit for mining before transitioning into a 3-year mining contract with HSE Mining (HSE). Mining operations have commenced with two excavator fleets utilising a 600t Liebherr R-996 excavator for bulk overburden removal and a 250t Hitachi EX-2500 excavator for additional overburden removal and coal mining.

Initial coal mining is occurring within the existing pit utilising the EX-2500 whilst the R-996 is removing overburden to extend the pit along strike in a southerly direction. Previous impediments on southerly mining have been removed after Bowen paid the full $9.9 million environmental bond to Queensland Treasury, in favour of the Department of Environment and Science (DES). Coal is being extracted during this ramp-up phase with steady state Run-of-Mine (ROM) production of 80kt to 100kt per month targeted by the end of July 2022, representing an annualised production rate of between 1Mtpa and 1.2Mtpa ROM.

Following recent heavy rains late last year, water management is a critical part of the process to ensure timely access to some areas containing remnant coal in the bottom of the pit. The Company has implemented comprehensive water management strategies to de-water the pit in a safe and responsible way, which includes a new temporary water storage dam within a future mining area. As part of the Early Works Program, the Company has moved the ROM pad further away from the lease boundary to reduce noise and dust impacts on the community.

HSE Mining Contract: The Company entered into a three year contract (extendable to four years at the Company's election) with HSE to operate the Bluff mine, using their own equipment, staff, systems and procedures under the strategic direction of Bowen. The agreement contains customary terms and conditions for coal mining contracts.