JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 28, 2021

ASX RELEASE

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29 October 2021

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 30 SEP 2021

HIGHLIGHTS

• The Yield Optimisation Study was completed during the quarter and confirmed increased production and substantial improved economic outcomes by increasing product ash levels from 9.5% to 10.5% for North and East pits product and from 9.5% to 11.0% for South Pit product with a resulting increase in yield and product export sales.

• The increased product and export sales provided an overall 4% reduction in cash operating costs (FOB Vancouver) to US$89.41/t, further enhancing the project’s attractive position on the cost curve. The reduced production cost and increased sales volume resulted in an overall 25% increase in pre-tax NPV10 to US$469m compared with that in the BFS.

• Further progress was made in the quarter towards the Environmental Assessment Application (“EA Application”) for the Crown Mountain Hard Coking Coal (“HCC”) Project. All technical assessment required for the EA has now been completed and a number of site visits and engagement was undertaken with First Nations groups and other stakeholders. It is expected the EA Application will be submitted to Provincial and Federal Regulators in late December. Regulators will then review the EA Application and subject to provision of any required information, the formal public Application Review process will commence in the March 22 quarter. The time taken for the initial Application Review process is allowed for in the previously disclosed timeline to first production.

• In conjunction with the drafting of the EA Application, the Company continued its regular EA Application pre-submittal meetings with all levels of Government.

• As part of the company’s strategic objective to become an ESG leader in the steelmaking coal sector as part of our Sustainable Growth and Engaged Stakeholder strategic goals, work was undertaken to identify offsets and remediation opportunities for both wildlife and fish habitat in the Elk Valley region. Future optimisation studies for the BFS will also consider potential pathways to reduce Scope 1 and 2 emissions as well as ways we can work on being a valued community partner in the areas we operate.

• During the quarter, Jameson progressed identification and assessment of potential opportunities that have been sufficiently progressed up the value curve in steelmaking coal in developed countries, with an initial focus on Canada and Australia. Discussion with parties in relation to some of these assets is ongoing.

OVERVIEW

The primary focus of Jameson Resources Limited (“Jameson” or “the Company”) during the reporting period was to continue advancing towards environmental approvals and permitting, for development of the Crown Mountain Hard Coking Coal Project (“Crown Mountain” or the “Project”).

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

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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The Company’s two projects are located in British Columbia, Canada which are shown in Figure 1 Location Plan below.

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Figure 1 – Project Location Plan

SAFETY PERFORMANCE

During the June quarter and for the year to date, there have been no recordable injuries at Jameson’s projects and licences. The 12-month rolling Total Recordable Injury Frequency Rate (“TRIFR”) and Lost Time Injury Frequency Rate (“LTIFR”) at the end of the June March 2021 quarter was 0 and 0 respectively.

PROJECT SUMMARY

1. CROWN MOUNTAIN HARD COKING COAL PROJECT ELK VALLEY COAL FIELD, BRITISH COLUMBIA

The Crown Mountain HCC Project is a potential low-cost, high-quality, open cut steelmaking coal mine located adjacent to two existing hard coking coal mines within the Elk Valley in British Columbia. A Bankable Feasibility Study (“BFS”) completed in July 2020 confirmed that Crown Mountain represents a compelling high quality hard coking coal development opportunity with a competitive operating and capital cost structure and access to existing common user rail and port infrastructure.

The Project is 90% owned by Jameson’s Canadian Subsidiary, NWP Coal Canada Ltd (“NWP”) that is 77.8% owned by Jameson and 22.2% by Bathurst Resources Limited (ASX:BRL).

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The Project is currently in the final stages of the evaluation phase, which is comprised of completing optimisation of the BFS and submitting an EA Application. Following the EA Application submittal and in parallel with the public review of the EA, work will commence on the additional approvals and permits required to develop and operate the Project.

The Crown Mountain EA Application team, coordinated by Dillon Consulting (Vancouver), is a joint effort of several specialised environmental consultants. The team is developing the EA to meet the requirements detailed in the Application Information Requirements (“AIR”). The key milestones this quarter were progressing the finalisation of drafting of the EA and further close engagement with First Nations groups and other key stakeholders.

NWP views stakeholder engagement as integral to its strategy of operating in an open and transparent manner to achieve one of its three strategic goals of Engaged Stakeholders. During the quarter, NWP representatives undertook extensive engagement with key project stakeholders including First Nations groups, Government representatives, community and recreational groups and the regional community.

The Company continues to monitor the COVID-19 situation in both British Columbia and neighbouring Alberta and is pleased to note that the situation has improved considerably during the quarter. As a result, the Company was able to host site visits with a number of First Nations groups, key stakeholders and Regulators during the September quarter.

YIELD OPTIMISATION STUDY

During the quarter, the Yield Optimisation Study, the first optimisation opportunity of the 2020 Crown Mountain BFS, was completed. The study has confirmed increased production and substantial improved economic outcomes by increasing product ash levels from 9.5% to 10.5% for North and East pits product and from 9.5% to 11.0% for South Pit product.

Increased product ash levels enable increased processing yield which results in a direct increase in product coal and export sales. The study determined an increased Life-of-Mine product yield of 52.9% compared with 48.8% in the BFS, resulting in an 8.4% increase in average annual product coal sales from 1.8 to 1.96Mtpa.

The increased yield and consequent increase in saleable export product results in a 4% reduction in cash operating costs (FOB Vancouver) to US$89.41/t, further enhancing the Project’s attractive position on the cost curve. The reduced production cost and increased sales volume resulted in an overall 25% increase in pre-tax NPV10 to US$469m compared with that in the BFS.

Completion of the yield optimisation work further improves Crown Mountain’s attractive business case from that of the BFS. Jameson will continue to progress other opportunities to optimise the Project in parallel with progressing approval of the Environmental Assessment. The Project’s attractive economics and progress of the Environmental Assessment are confirmed by the International Energy Agency’s view that Crown Mountain is the most advanced steelmaking coal project in Canada[1] ”.

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1 Coal 2020, IEA

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CROWN MOUNTAIN PROJECT SCHEDULE

All technical assessment required for the EA Application has now been completed and following completion of a regulatorily required step in the ongoing engagement with key First Nations groups, it is expected the EA Application will be submitted to Provincial and Federal Regulators in the December Quarter.

Once submitted, Regulators will undertake a preliminary review of the EA Application to confirm it meets the requirements of the BC Environmental Assessment Office’s AIR and the Federal Government EIS guidelines. Subject to the provision of any further required information, the EA will then be subject to a formal Application Review phase involving a public comment period and technical review by Regulators, First Nations groups and other key stakeholders. The duration of the assessment and review process is dependent upon the extent of any subsequent Information Requests and ongoing engagement with stakeholders.

Jameson is committed to being an ESG Leader among steelmaking coal developers and that commitment includes ensuring a thorough transparent assessment process and deep engagement with Regulators and stakeholders. Delays have been experienced in relation to finalising pre-submission engagement with relevant stakeholders due to COVID and other unforeseen circumstances.

1. DUNLEVY PROJECT – NORTH EAST BRITISH COLUMBIA

No activity occurred at Dunlevy, which remains in good standing with the Province, and represents a future opportunity for Jameson. Annual rental fees were paid in December 2020. Dunlevy is not part of NWP and remains 100% owned by Jameson.

MARKET UPDATE – STEELMAKING COAL

Demand for seaborne steelmaking coal has continued to strengthen due to record global steel production in 2021 year-to-date. In particular, demand for Canadian premium low volatile hard coking coal from British Columbia such as that from the Project is in high demand.

Canadian and US coal producers’ exports to China have increased by more than 110% year-to-date and are on track to export 16.9 Mt to China in 2021 compared to 7.3 Mt in 2020. Prices for coal that has access to China remain significantly higher than that obtained by Australian exporters without access to Chinese markets. Current spot price for Canadian Premium Low-Volatile Hard Coking Coal, like that to be produced at Crown Mountain, is US$613/tonne (CFR basis).

CORPORATE

Jameson has 303.3 million fully paid ordinary shares on issue, A$1.7 million in cash and equivalents at quarter’s end, and no debt. NWP, of which Jameson owns 77.8%, holds A$0.3 million of this cash balance.

During the quarter Bathurst Resources Limited (“BRL”) and Jameson contributed to furthering the Crown Mountain Hard Coking Coal Project in proportion to their common shareholding in NWP, being 20% and 80% respectively. BRL and Jameson are continuing to fund the Project up until the receipt of permits and Final Investment Decision, in proportion to common equity shareholdings.

The quantum of funding required for Crown Mountain before the Tranche Two Option is exercised or expires, will depend upon the timing of spend and may result in alternate timing to production should this funding not be available.

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As outlined in the Appendix 5B for the quarter ending 30 Sep 2021 (section 6.1), during the quarter approximately $147k in payments were made to related parties and/or their associates including director fees, gross salaries and superannuation.

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

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 steelmaking 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

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

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.

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

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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 .

Schedule of Mineral Tenements

Jameson Resources Limited provides details of the Company’s consolidated interests in mineral tenements/licenses at the end of the quarter in accordance with Listing Rule 5.3.3 and their relevant percentage change in ownership ending 30 June 2021, which reflects Jameson’s 77.8% interest in NWP Coal Canada Limited which holds a 90% interest and 100% interest in various licences that form part of the Crown Mountain Coal Project, and a 100% direct interest in the Dunlevy coal project located in British Columbia.

Project	Tenement	JAL ownership %	Interest at beginning of Quarter	Acquired/ Disposed	Interest at end of Quarter
Crown Mountain – North Block	418150	77.8%	90%	-	90%
Crown Mountain – South Block	418151	77.8%	90%	-	90%
Crown Mountain – West Crown	418152	77.8%	90%	-	90%
Crown Mountain – Southern Extension	418153	77.8%	90%	-	90%
Crown Mountain – Crown East	418154	77.8%	90%	-	90%
Crown Mountain – Northwest Extension	418966	77.8%	100%	-	100%
Crown Mountain – Northern Extension	419273	77.8%	100%	-	100%
Crown Mountain – Grave Creek	419272	77.8%	100%	-	100%
Crown Mountain – Alexander Creek	419274	77.8%	100%	-	100%
Crown Mountain – Grave Creek West	419275	77.8%	100%	-	100%
Dunlevy	418441	100%	100%	-	100%
Dunlevy	418442	100%	100%	-	100%

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