BOWEN COKING COAL LIMITED — Capital/Financing Update 2021

Nov 10, 2021

==> picture [215 x 106] intentionally omitted <==

11 November 2021 ASX ANNOUNCEMENT

Acquisition and financing of Bluff Mine

HIGHLIGHTS

• Option exercised and Asset Sale Agreement executed to acquire the Bluff Mine

• Bluff Mine and Broadmeadow East funded to 1[st] production through inaugural debt facility of $15m and $11m placement

• Early works at Bluff Mine have commenced with contractor mobilisation before the end of the year

• First coal expected in Q1 2022, significant interest received from end users

Bowen Coking Coal (“BCB” or “Bowen”) has exercised its call option to acquire the Bluff Mine[1] .

Bowen has successfully completed an $11m placement and signed a term sheet for $15m of debt financing from a private credit institution to support the restart operations at the Bluff Mine. The financing marks an important milestone in the Company’s transition from coal explorer to producer and follows a significant list of achievements over the past 12 months. Furthermore, Bowen has sufficient cash resources to commence mining at the Broadmeadow East Project, pending final environmental approval which is expected before the end of 2021. Broadmeadow East forms the first planned pit of the expanded Burton complex and will initially be processed through the infrastructure sharing agreement with Fitzroy while refurbishment of the Burton CHPP is undertaken.

Bluff Mine hosts a 13.5 million tonne (Mt) JORC Resource of Ultra Low Volatile PCI (ULVPCI) coal and is expected to be mined at a rate of 1.0 ‐ 1.2 Mtpa Run of Mine (ROM) over four to six years to supply the global steel industry[1] .

The company has engaged CMC Group in association with Comiskey Mining Services as contractors to execute an operational readiness program and to prepare the Bluff Mine for coal production. Off‐site work has already commenced and mobilisation to site is expected before the end of the year with first coal production from the Bluff Mine planned for Q1 2022.

Discussions with end users have commenced for the Bluff ULVPCI product following significant interest in recent weeks. The marketing of the Bluff product coal will be performed by the company’s 50:50

1 See ASX Release 26 October 2021 Option to acquire Bluff Mine. Bowen confirms all material assumptions underpinning the production target continue to apply and have not materially changed as per Listing Rule 5.19.2

Level 7, 167 Eagle Street Brisbane Queensland 4000 GPO Box 1465 Brisbane Qld 4000 ACN: 064 874 620

ACN: 064 874 620 T: +61 (0) 7 3191 8413 info@bowencokingcoal.com ASX: BCB

bowencokingcoal.com

==> picture [64 x 65] intentionally omitted <==

Marketing Joint Venture with M Resources, a specialist metallurgical coal trading company. Ultra‐low volatile PCI coal (Platts symbol MCLVA00) was trading at US$246/t on 10 November 2021 and total FOB costs (excluding royalties) are expected to range between A$120 and A$137 per tonne[1] .

Bowen Managing Director, Mr Gerhard Redelinghuys, said the acquisition and funding of Bluff were key milestones in Bowen’s journey to becoming Australia’s next metallurgical coal producer.

“We look forward to recommissioning and operating the mine in a safe and responsible way to deliver high quality ULVPCI coal to our customers in the steel industry,” Mr Redelinghuys said.

“Furthermore, we are delighted with the strong reception we received from the market for our inaugural debt facility and capital raising which positions Bowen well as it transitions from coal explorer to multi‐ mine coking coal producer.”

The equity raising was managed by Petra Capital who acted as sole lead manager and sole bookrunner. An amount of $11m was raised (before costs) through the placement of 68,750,000 shares (49,552,623 to be issued under ASX Listing Rule 7.1A and 19,197,377 to be issued under ASX Listing Rule 7.1) at an issue price of $0.16 per share, which represents an 8.6% discount to the closing share price of 17.5c on 8 November 2021.

Figure 1. Bluff Mine

==> picture [475 x 155] intentionally omitted <==

==> picture [475 x 155] intentionally omitted <==

2

==> picture [64 x 65] intentionally omitted <==

The new debt facility will be senior secured with an aggregate limit of $15 million. The facility will be utilised for rehabilitation and performance bonding, general working capital and expenses incurred in restarting the Bluff Mine. The facility is structured as term loan with a bullet repayment at maturity. Importantly the facility has no financial maintenance covenants giving Bowen financial flexibility as it restarts coal production at Bluff. The facility has an initial term of 12 months, a coupon rate of 9% and customary fees. Completion of the debt financing is subject to signing of binding transaction documents and satisfaction of standard conditions precedent.

Bowen is being advised by Grant Samuel as its financial adviser and Gilbert + Tobin as its legal counsel.

Table 1. Summary of the Resource Estimate for Bluff Mine

DEPTH	CATEGORY (Mt)	CATEGORY (Mt)
	INDICATED	INFERRED*	TOTAL
< 100m	2.6	0.1	2.7
100m to 150m	3.0	0.3	3.3
150m to 200m	3.2	0.7	3.9
200m to 250m	2.4	1.2	3.6
TOTAL RESOURCES	11.2	2.3	13.5

Note – Some rounding to the nearest significant figure has occurred and this may reflect in minor differences in the overall reported resource.

* There is a low level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised.

The Board of the Company has authorised the release of this announcement to the market.

For further information please contact:

Gerhard Redelinghuys Sam Aarons Managing Director Investor Relations +61 (07) 3191 8413 +61 418 906 621

About Bowen Coking Coal

Bowen Coking Coal Ltd is a Queensland based coking coal exploration company with advanced exploration and development assets. The company owns Broadmeadow East (100%), Isaac River (100%), Cooroorah (100%), Hillalong (90%) and Comet Ridge (100%) coking coal projects in the world‐renowned Bowen Basin in Queensland, Australia. Bowen is also a joint venture partner with Stanmore Coal Limited in the Lilyvale (15% interest) and Mackenzie (5% interest) coking coal projects. The company is currently in the process of acquiring 90% of the Lenton Joint Venture which owns the Lenton Project and the Burton Mine in the northern Bowen Basin. The highly experienced Board and management aim to grow the value of the company’s coking coal projects to benefit shareholders by leveraging innovation and maximising the assets and network of the team. An aggressive exploration and development program underpins the business strategy.

3

==> picture [64 x 65] intentionally omitted <==

Competent Person Statement

The information in this announcement that relates to the Bluff coal deposit (ML80194) and mineral resource, is based on information compiled and reviewed by Mr Troy Turner, who is a Member of the Australian Institute of Mining & Metallurgy. Mr Turner, Managing Director and a fulltime employee of Xenith Consulting Pty Ltd, has sufficient experience that is relevant to the styles of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Turner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward‐Looking Statements

Certain statements made during or in connection with this statement contain or comprise certain forward‐looking statements regarding the Company’s Mineral Resources, exploration operations and other economic performance and financial conditions as well as general market outlook. Although the Company believes that the expectations reflected in such forward‐looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward‐looking statements and no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward‐looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in coal prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of the Company, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. The Company undertakes no obligation to update publicly or release any revisions to these forward‐looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly, you should not place undue reliance on any forward‐looking statement.

4