JAMESON RESOURCES LIMITED — Capital/Financing Update 2021

Nov 10, 2021

ASX Announcement – 11 November 2021

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UPDATE – Steelmaking Coal Market and Price Forecasts

• Jameson Resources Limited (ASX: JAL) is pleased to provide an update on global steelmaking coal markets. Pricing for global seaborne steelmaking coal has risen throughout 2021 and is now at unprecedented record high prices levels.

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Global Premium Hard Coking Coal Prices - 2010 to Present
$500
$400
$300
$200
$100
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coal Price USD/tonne
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Figure 1 - Global Premium Low Volatile (LV) Hard Coking Coal (HCC) Price Source: IHS Markit (2021)

• The key drivers that are influencing this record pricing are:

• Continued high global steel demand and production rates as steel is the key building block for post-Covid global commodity economy

• Declining production and reducing reserves in existing mines in all major producer locations

• o Declining production and increasing cost of domestic steelmaking coal in China

• New supply delayed due to approval delays and financing challenges for new projects.

• Global crude steel production Jan-Sep 21 increased 7.8% to 1,461 Mt on the corresponding period in 2020. Total Steel Production is forecast to reach 1,961 Mt for the full 2021 year.

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Global Crude Steel Production - 2000 to 2021
2,500
2,000
1,500
1,000
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Figure 2 - Global Crude Steel Production (2000-2021) (Source: World Steel Association 2021)
Production (Mt/yr)
Global Annual Crude Steel
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Jameson Resources Limited I ABN 89 126 398 294

Registered Office | Level 4, Deutsche Bank Place 126 Phillip Street, Sydney NSW 2000

Postal Address | PO Box 274, Ashgrove West, Brisbane QLD 4060

Email | admin@jamesonresources.com.au

Phone |+61 8 9200 4473

www.jamesonresources.com.au

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• In parallel with increased steel production, supply of steelmaking coal has been impacted with production issues, declining reserves and delayed development of new projects in all supplier markets. For example, in the Sep-21 quarter steelmaking coal production from both BHP and Anglo fell 25% and 17% respectively.

• Wood Mackenzie forecast that to meet continued demand for steel, seaborne steelmaking coal demand will increase from 302Mtpa in 2021 to 346 Mtpa in 2030. To meet that demand, Wood Mackenzie forecasts increased supply from all key producer locations but predicts the biggest relative increase from Canada, with supply increasing 41% from 29 Mtpa in 2021 to 41 Mtpa in 2030.

• Canadian and US steelmaking coal exports to China are the biggest beneficiaries of the Chinese ban on Australian coal. In the period Jan-Sep 21, Canadian coal exports to China have increased by 92% to 6.6 million tonnes.

• Pricing of Canadian and US steelmaking coal into China remains at a substantial premium to that of Australian export coals. Current spot price for Canadian Premium (P) Low-Volatile (LV) Hard Coking Coal (HCC), like that to be produced at Crown Mountain Hard Coking Coal Project (Crown Mountain), is US$613/tonne (CFR basis).

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Premium Lov-Vol HCC: Australian Export Price Vs China Market Price
700
600
500
400
300
200
100
0
Australian PLV HCC (FOB) China Market PLV HCC (CFR)
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21Mar-21 Apr-21May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21
Coking Coal Price USD/tonne
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• Figure 3: Australian Export Price Vs China Market Price

(Source: IHS Markit 2021)

• The attractiveness of premium low-volatile hard coking coal (PLV HCC) such as that from Crown Mountain is confirmed by the high premium price received and by the strategy of global producers such as the head of BHP’s Minerals Australia business who noted: “As the world decarbonises, BHP is sharpening its focus on producing higher quality metallurgical coal sought after by global steelmakers to help increase efficiency and lower emissions.”

• A number of market analysts have increased short, medium and long term price forecasts to reflect the increased risk on supply to meet demand. Credit Suisse has increased its price forecasts as follows:

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HCC	(FOB)	Q4-21	2022	2023	2024	2025	LT(real)
New	US$/t	385	300	200	180	180	160
Old	US$/t	180	165	160	160	170	160
Change	%	114%	82%	25%	13%	6%	0%

Source: Credit Suisse Oct 2021

• Jameson Resources Limited (Jameson or Company) considers that these increased pricing forecasts more accurately reflect the risk on new supply and that the progress being made on Crown Mountain continues to confirm its position as the most advanced steelmaking coal development project in Canada[1] . The macroeconomic environment supports the Company’s view on the fundamentals of the steelmaking coal market - that growth in demand continues to exceed the growth in supply, a situation that provides an excellent platform for development of Crown Mountain.

This announcement is authorised for release to the market by the Board of Jameson Resources Limited.

For further information, please contact: Michael Gray Managing Director Email: michaelgray@jamesonresources.com.au Phone: +61 417 736 461

An independent, growth oriented metallurgical coal developer focused on delivering sustainable outcomes

About Jameson Resources Limited

Jameson Resources Limited (ASX:JAL) is a junior resources company focused on the acquisition, exploration and development of strategic coal projects in western Canada. The Company has an 77.8% equity interest in NWP Coal Canada Limited (NWP) which holds a 90% interest in the Crown Mountain Coal Project, and a 100% direct interest in the Dunlevy coal project located in British Columbia. Jameson’s tenement portfolio in British Columbia is positioned in coalfields adjacent to existing mines responsible for the majority of Canada’s metallurgical coal exports and are close to railways connecting to export facilities.

To learn more, please contact the Company at +61 8 9200 4473, or visit: www.jamesonresources.com.au

About Bathurst Resources Limited

In July 2018, a subsidiary of Bathurst Resources Limited (ASX:BRL) acquired an 8% interest in NWP, with option to increase that interest to 50% subject to certain milestones and additional payments. Bathurst exercised the Tranche One Option in September 2019 and now holds a 20% interest in NWP with an additional 2.2% held as Class B Preference shares.

Bathurst is the largest coal company operating in New Zealand with over 2.2 million tonnes per annum of coal under management. More than 70% of the coal sold is used for steel making, both domestically and for export to Asian coke makers and steel mills. The remainder is sold to domestic users in the agricultural and energy sectors. Bathurst is focussed on low cost, sustainable mining with a strong focus on the local communities and environmental management.

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1 Coal 2020, International Energy Agency

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Forward Looking Statements

This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to commodity prices and foreign exchange rate movements; estimates of future production and sales; estimates of future cash flows, the sensitivity of cash flows to commodity prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of resources and statements regarding future exploration results; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to commodity price volatility, currency fluctuations, increased production costs and variances in resource or reserve rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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