COAL

Barnett Metallurgical Coal Mine Project

A surface metallurgical coal mine, with 18 million tons of reserves, is currently in operation in the state of Virginia in the United States. An additional 100 million tons of reserves is available for surface and underground mining on the property for a potential total reserve of 118 million tons.

This mine started its operation in 2008 and approximately 10,000 tons of coal were mined and sold every month until this year.

An annual production volume of 700,000 tons of saleable metallurgical coal can be reached by deploying more production staff and equipment.

The weight-averaged quality of the in-place coal seam, that is raw coal on a dry basis, is projected as follows:

Ash4.22%
Volatile matter 29.23%
Sulfur0.63%
Fixed Carbon 65.67
G value 101
Y value 26mm

The environmental and production permits are in place and valid.

The general location of the coal leases is shown below: