JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2020

Jan 27, 2021

ASX RELEASE

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28 January 2021

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 31 DECEMBER 2020

Highlights

• Drafting of the Environmental Assessment Application (“EA Application”) progressed during the quarter, furthering the write up of existing conditions and effects assessments, which are critical components of the EA Application. The Company now expects the EA Application to be lodged during June quarter 2021 due to the impact of the COVID-19 situation in British Columbia, and neighbouring Alberta, which has hindered the Company’s ability to engage in a timely manner with a number of relevant stakeholders

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

• An additional sample was blended from the remaining 2018-19 South Pit bulk coal sample at Birtley labs to a 10.9% ash specification and shipped to Canmet for sole heated oven testwork to confirm CSR (coke strength after reaction) for an increased ash specification

• Sedgman commenced work on BFS optimisation including quantification of the potential yield improvement available from each of the individual pits through increase of the ash specification of the coal to be sold

• NWP Coal Canada Ltd, Jameson’s Canadian subsidiary, appointed David (“Dave”) Baines, Manager of Engagement and Environment during the quarter. Dave will be integral to improving and furthering engagement with stakeholders and the permitting activities associated with the Crown Mountain Coking Coal Project

• Jameson progressed identification and assessment of potential opportunities that have been progressed up the value curve beyond exploration in metallurgical coal in developed countries, with an initial focus on Canada and Australia

• As of 31 December 2020, the top 20 shareholders held approximately 68.6% of the capital of the Company and the Company held A$5.1 million in cash (A$4.0 million in Jameson and A$1.1 million NWP). Jameson remains debt free.

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

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 Coking Coal Project (“Crown Mountain” or the “Project”).

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

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

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Figure 1 – Project Location Plan

SAFETY PERFORMANCE

During the December quarter and 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”) at the end of the December 2020 quarter was 0.

PROJECT SUMMARY

CROWN MOUNTAIN PROJECT – ELK VALLEY COAL FIELD, BRITISH COLUMBIA

The Crown Mountain Project is a potential low-cost, high-quality, open cut metallurgical coal mine currently in the final stages of the evaluation phase, which is comprised of completing optimisation of the Bankable Feasibility Study (“BFS”) and submitting an Environmental Assessment Application (“EA Application”). Following the EA Application submittal, work will commence on the additional approvals and permits required to develop and operate the Crown Mountain 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 Application to meet the requirements detailed in the Application Information Requirements (“AIR”). The key milestones this quarter were the completion of the groundwater modelling, final archaeology assessment of the offsite infrastructure, completion of the noise modelling, along with drafting of the existing conditions and furthering effects assessments sections of the EA Application.

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The Company continues to monitor the COVID-19 situation in both British Columbia and neighbouring Alberta where the situation is concerning. The Company has not seen any direct impact on the safety or wellbeing of its staff, however a number of occurrences have impacted both the communities in which NWP operates and its stakeholders. Whilst the Company is confident of completing the vast majority of the EA Application prior to the end of the March quarter 2021, there is some risk to having a fully complete EA Application due to delays that have been experienced with relevant decision makers within stakeholder groups as a result of COVID-19. The Company is required to submit its EA Application under the Provincial guidelines by 26 April 2021, however, has been in ongoing communication with the relevant Regulator in relation to this matter and has recently been granted an extension to 26 October 2021 as a contingency measure, should it be required, due to delays encountered as a result of COVID-19.

NWP Coal Canada Limited’s (“NWP”) views stakeholder engagement as integral to its strategy of operating in an open and transparent manner to achieve engaged stakeholders. To this end, NWP appointed Mr David (“Dave”) Baines as Manager, Engagement and Environment during the quarter. Mr Baines is a passionate environment and engagement practitioner, with 20 years of major project experience spanning industry, consulting, and government, most recently within industry in the Elk Valley where he resides. His expertise includes environmental assessment, developing and implementing Environmental Management Systems (“EMS”) and Health, Safety and Environment (“HSE”) programs, community engagement, indigenous relations and diversity and inclusion. Mr Baines will be responsible for leading the engagement side of the environmental approvals and permitting process (both pre- and post-submission), followed by building the EMS and HSE Programs for the construction and operation of the Crown Mountain Coking Coal Mine.

BFS OPTIMISATION

During the quarter, optimisation work on the BFS continued with the focus on coal quality impacts from higher ash product specification and the opportunity a higher ash specification has on Coal Handling and Preparation Plant (“CHPP”) yield. The work undertaken included preparation of one additional sample from the 2018-19 exploration program’s South Pit bulk sample . This sample was sent to Canmet in addition to the two samples sent at the end of the September quarter for Sole Heated Oven (“SHO”) analysis. The sample sent during the December quarter was blended at the Birtley lab in Canada to a 10.9% ash specification (BFS coal quality was completed in the range of 9 to 9.5% ash) and sent to Canmet to undertake SHO analysis. The samples were blended to a higher ash than that in the BFS to better understand if the higher ash has any impact on the coking characteristics of the Crown Mountain product. The results of the SHO analysis at higher ash specification will be used as part of the initial work Sedgman has commenced to quantify the opportunity to further optimise ash yield (washability) curves. As outlined in the BFS optimisation opportunities there is potential to increase the overall CHPP yield by producing a higher ash specification product.

Hard Coking Coals with a higher ash than benchmark specification may incur a penalty on the price received from end users. There are a number of premium benchmarked hard coking coals sold globally that have published[1] ash specification of up to 10.5%. The results from the coal quality test work will be compared to other higher ash benchmarks and products to determine the value of the Crown Mountain 10%, and potentially up to 10.9% ash product.

Additional optimisation work has been scoped, however has not been committed to at this stage.

1 Specifications guide Metallurgical Coal, S&P Global Platts, April 2020

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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 the Bathurst deal and remains 100% owned by Jameson.

CORPORATE

Jameson has 303.3 million fully paid ordinary shares on issue, A$5.1 million in cash and equivalents at quarter’s end, and no debt. NWP, of which Jameson owns 77.8%, holds A$1.1 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 (“FID”), in proportion to common equity shareholdings as set out in the Investment Agreement entered into between the parties.

The workstream for the Front End Engineering and Design (“FEED”) and Detailed Engineering Design will be dependent on the continuation of funding from both BRL and JAL. The quantum of funding required 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 pre-development funding not be available as outlined below by the blue boxes.

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As outlined in the Appendix 5B for the quarter ending 31 December 2020 (section 6.1), during the quarter approximately $59k 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:

Joel Nicholls Executive Director joelnicholls@jamesonresources.com.au.

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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 Coking 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 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

An independent, growth oriented metallurgical 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 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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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 31 March 2020, 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.

located in British Columbia.
Project	Location British Columbia, Canada	Jameson Resources Limited 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	418430	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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