BOWEN COKING COAL LIMITED — M&A Activity 2020

Sep 29, 2020

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30 September 2020

Acquisition of Broadmeadow East Coking Coal Project Completed

Highlights

• Acquisition of the Broadmeadow East Coking Coal Project is now completed

• The project includes the granted but undeveloped Mining Lease 70257 (“Broadmeadow East”), which contains a Resource Estimate of 33Mt in accordance with the JORC Code

• Acquisition includes rights to the New Lenton Joint Venture Coal Handling and Preparation Plant, mine haulroad and the Train Load Out facility for 1.0 Mtpa with a potential further 1.0 Mtpa, subject to agreement

• Mine planning and environmental approval process are underway to fast track the start up of operations

• Exploration program planned to test potential resource extension along with large diameter drill holes to provide detailed coal quality data for marketing purposes

Bowen Coking Coal Ltd (ASX: BCB, “Company ”) is pleased to advise that the acquisition of the Broadmeadow East coking coal project, located within the undeveloped Mining Lease 70257 (“Project” or “Broadmeadow East”), is now completed, following the satisfaction and/or waiver of all conditions precedent.

As announced on the 24 June 2020, the Company’s independent resource consultancy, Xenith Consulting, was commissioned to review all available and relevant data and have concluded with a Resource Estimate of 33Mt, in accordance with the JORC Code (2012), as per Table 1 below.

The transaction includes access rights to both the New Lenton Joint Venture Coal Handling and Preparation Plant (“CHPP”) and the Train Load Out Facility (“TLO”), which are connected by an established haul road passing immediately adjacent to ML 70257 as shown in Figure 2. The Company has secured throughput capacity of a minimum of 1 Mtpa, with the ability to potentially increase this capacity to a total of 2 Mtpa subject to agreement.

Commenting on the completion of the acquisition, the Company’s Managing Director, Mr Gerhard Redelinghuys said, “We are genuinely excited about having completed the Broadmeadow East acquisition well ahead of schedule. As the project sits on a granted mining lease, Broadmeadow East now becomes our most advanced open pit coking coal project. We have already commenced the necessary planning and regulator submissions to determine the optimal mine plan and associated environmental authorisations, with a view to being shovel ready as soon as practically possible. Alongside Hillalong and Isaac River, we now have three open pit coking coal projects which we are driving towards production. This reflects our intention to become a significant producer of high quality coking coal from Queensland ‘s premier Bowen Basin in the near term.”

Table 1. Summary of the Resource Estimate for Broadmeadow East

SEAM		RESOURCE CATEGORY (MT)	RESOURCE CATEGORY (MT)
	MEASURED	INDICATED	INFERRED	TOTAL
< 100m	6.4	1.9	3	11
> 100m	0.1	2.2	20	22
TOTAL RESOURCES	6.5	4.1	23	33

*Note – Some rounding to the nearest significant figure has occurred and this may reflect in minor differences in the overall reported resource. See ASX Release of 24 June 2020 for further details.

Location

Broadmeadow East is covered by ML 70257 and is located about 25km northeast of the township of Moranbah, within the Central Bowen Basin in Queensland. It is approximately 30km north west of BCB’s Isaac River project and 45km south of the Company’s Hillalong Coking Coal Project. The Project is abutting Fitzroy’s Ironbark No 1 project in the North East, Broadlea pit in the South and Peabody’s Broadmeadow West mine to the West – see Figure 1.

Infrastructure Access

As part of the transaction, the Company has secured access to the New Lenton Joint Venture CHPP and associated TLO. The CHPP is located approximately 20km north of Broadmeadow East, whereas the TLO is located 10km to the south. The CHPP and TLO are currently on care and maintenance, however the re‐commissioning process is well understood. The TLO links into the Goonyella Rail System and is about 170 km by rail from the Dalrymple Bay Coal Terminal.

Both the CHPP and TLO are owned by the New Lenton Joint Venture (New Hope Corporation Ltd & Formosa Plastics Corporation), who acquired adjoining mining leases and associated infrastructure from Peabody as part of the proposed development of their New Lenton Project. In that transaction, Peabody retained certain access rights to the CHPP and TLO, part of which are now being assigned on to BCB as part of this transaction. A number of wash plants exist in close proximity to Broadmeadow East providing additional near term processing options to tie in with the Company’s rapid development schedule. The acquisition also includes land access for the purposes of exploration, development and mining.

Figure 1 – Regional Location

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Figure 2 Project Location

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Next steps

The Company has engaged Xenith Consulting to conduct mine planning and design work and also Nitro Solutions to manage the environmental approval processes while the final transfer of title is underway.

The Company is also designing a mini exploration program which will test the potential extension of the resource towards the South. Relevant environmental impact assessment data will also be collected during this program.

Initial analysis of the washability data has determined that the coal can be washed at lower density levels (albeit at lower primary yields) to create a higher quality coking coal at ~8.7% ash with CSN as high as 7 whilst still producing a high energy secondary thermal coal. Therefore, the exploration plan will include large diameter drill holes to provide detail coal quality analysis which will be used for marketing purposes.

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

For further information please contact:

Gerhard Redelinghuys Blair Sergeant Managing Director Executive Director – Corporate Development +61 (07) 3360 0837 +61 413 677 110

COMPETENT PERSONS STATEMENT:

The information in this announcement that relates to the Broadmeadow East coal deposit (ML 70257), 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.

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 the Isaac River (100%), Cooroorah (100%), Hillalong (90%) and Comet Ridge (100%) coking coal Projects in the world‐renowned Bowen Basin in Queensland, Australia. Bowen Coking Coal is also a joint venture partner with Stanmore Coal Limited in the Lilyvale (15% interest) and Mackenzie ( 5 % interest) coking coal Projects.

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 underpin the business strategy.

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