# EDGAR Filing Document

**Accession Number:** 0001770561
**File Stem:** 0001562762-23-000044
**Filing Date:** 2023-2
**Character Count:** 1413124
**Document Hash:** 56cb37cb048c539adebf5eac0236a869
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001562762-23-000044.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0001562762-23-000044

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 297

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Coronado Global Resources Inc.
- **CENTRAL INDEX KEY:** 0001770561
- **STANDARD INDUSTRIAL CLASSIFICATION:** BITUMINOUS COAL & LIGNITE MINING [1220]
- **IRS NUMBER:** 831780608
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56044
- **FILM NUMBER:** 23647621

**BUSINESS ADDRESS:**
- **STREET 1:** 100 BILL BAKER WAY
- **CITY:** BECKLEY
- **STATE:** WV
- **ZIP:** 25801
- **BUSINESS PHONE:** (681) 207-7263

**MAIL ADDRESS:**
- **STREET 1:** 100 BILL BAKER WAY
- **CITY:** BECKLEY
- **STATE:** WV
- **ZIP:** 25801

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

# FORM 10-K

(Mark One)

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______
Commission File Number: 000-56044

# Coronado Global Resources Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of
incorporation or organization)

83-1780608

(I.R.S. Employer
Identification No.)

Level 33, Central Plaza One, 345 Queen Street
Brisbane, Queensland, Australia,

(Address of principal executive offices) (Zip Code)

4000

(61) 7 3031 7777

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| --- | --- | --- |
| None | None | None |

Securities registered pursuant to Section 12(g) of the Act:

| Title of each class | Name of each exchange on which registered |
| --- | --- |
| Common stock, par value $0.01 per share | None |

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑
Non-accelerated filer ☐

Accelerated filer ☐
Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

The registrant's common stock is publicly traded on the Australian Securities Exchange in the form of CHESS Depository Interests, or CDIs, convertible at the option of the holders into shares of the registrant's common stock on a 10-for-1 basis. The aggregate market value of the registrant's common stock, par value $0.01 per share, in the form of CDIs, held by non-affiliates of the registrant (without admitting that any person whose shares are not included in such calculation is an affiliate), computed by reference to the price at which the CDIs were last sold on June 30, 2022, the last business day of the registrant's most recently completed second fiscal quarter, as reported on the Australian Securities Exchange, was $945,033,096.

The total number of shares of the registrant's common stock, par value $0.01 per share, outstanding on December 31, 2022, including shares of common stock underlying the issued and outstanding CDIs, was 167,645,373.

# DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's proxy statement to be filed with the Securities and Exchange Commission in connection with the registrants 2023 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Documents incorporated by reference in this report are listed in the Exhibit Index of this Annual Report on Form 10-K.

![book icon]() c561202210Kp3i1

## Steel starts here.

Annual Report on Form 10-K for the year ended December 31, 2022.

![book icon]() c561202210Kp3i0

# TABLE OF CONTENTS

|  |  | Page Number |
| --- | --- | --- |
| PART I |  |  |
| Item 1. | Business | 8 |
| Item 1A. | Risk Factors | 42 |
| Item 1B. | Unresolved Staff Comments | 75 |
| Item 2. | Properties | 76 |
| Item 3. | Legal Proceedings | 96 |
| Item 4. | Mine Safety Disclosures | 97 |
| PART II |  |  |
| Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 98 |
| Item 6. | (Reserved) | 99 |
| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 100 |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 116 |
| Item 8. | Financial Statements and Supplementary Data | 119 |
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 161 |
| Item 9A. | Controls and Procedures | 162 |
| Item 9B. | Other Information | 164 |
| Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 164 |
| PART III |  |  |
| Item 10. | Directors, Executive Officers and Corporate Governance | 165 |
| Item 11. | Executive Compensation | 165 |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 165 |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence | 165 |
| Item 14. | Principal Accountant Fees and Services | 165 |
| PART IV |  |  |
| Item 15. | Exhibits, Financial Statement Schedules | 166 |
| Item 16. | Form 10-K Summary | 170 |
| SIGNATURES |  | 171 |

Table of Contents

## EXPLANATORY NOTE

Unless otherwise noted, references in this Annual Report on Form 10-K to 'we,' 'us,' 'our,' 'Company,' or 'Coronado' refer to Coronado Global Resources Inc. and its consolidated subsidiaries and associates, unless the context indicates otherwise.

All production and sales volumes contained in this Annual Report on Form 10-K are expressed in metric tons, or Mt, millions of metric tons, or MMt, or millions of metric tons per annum, or MMtpa, except where otherwise stated. One Mt (1,000 kilograms) is equal to 2,204.62 pounds and is equivalent to 1.10231 short tons. A net ton is equivalent to a short ton, or 2,000 pounds. In addition, all dollar amounts contained herein are expressed in United States dollars, or US$, except where otherwise stated. References to 'A$' are references to Australian dollars, the lawful currency of the Commonwealth of Australia, or the Commonwealth. Some numerical figures included in this Annual Report on Form 10-K have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not equal the sum of the figures that precede them.

## CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, concerning our business, operations, financial performance and condition, the coal, steel and other industries, as well as our plans, objectives and expectations for our business, operations, financial performance and condition. Forward-looking statements may be identified by words such as 'may,' 'could,' 'believes,' 'estimates,' 'expects,' 'intends,' 'plans,' 'anticipate,' 'forecast,' 'outlook,' 'target,' 'likely,' 'considers' and other similar words.

Any forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause actual results, performance, events or outcomes to differ materially from the results, performance, events or outcomes expressed or anticipated in these statements, many of which are beyond our control. Such forward-looking statements are based on an assessment of present economic and operating conditions on a number of best estimate assumptions regarding future events and actions. These factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our announced plans or an investment in our securities include, but are not limited to:

- • the prices we receive for our coal;
- • uncertainty in global economic conditions, including the extent, duration and impact of the Russia and Ukraine war, as well as risks related to government actions with respect to trade agreements, treaties or policies;
- • a decrease in the availability or increase in costs of key suppliers, capital equipment or commodities, such as diesel fuel, steel, explosives and tires;
- • the extensive forms of taxation that our mining operations are subject to, and for future tax regulations and developments. For example, the amendments to the coal royalty regime implemented by the Queensland State Government in Australia introducing higher tiers to the coal royalty rates applicable to our Australian Operations;
- • severe financial hardship, bankruptcy, temporary or permanent shut downs or operational challenges, due to future public health crisis (such as COVID-19 pandemic) of one or more of our major customers, including customers in the steel industry, key suppliers/contractors, which among other adverse effects, could lead to reduced demand for our coal, increased difficulty collecting receivables and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us;
- • our ability to generate sufficient cash to service our indebtedness and other obligations;
- • our indebtedness and ability to comply with the covenants and other undertakings under the agreements governing such indebtedness;
- • our ability to collect payments from our customers depending on their creditworthiness, contractual performance or otherwise;
- • the demand for steel products, which impacts the demand for our metallurgical, or Met, coals;

Coronado Global Resources Inc. Form 10-K December 31, 2022 5

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- • risks inherent to mining operations could impact the amount of coal produced, cause delay or suspend coal deliveries, or increase the cost of operating our business;
- • the loss of, or significant reduction in, purchases by our largest customers;
- • risks unique to international mining and trading operations, including tariffs and other barriers to trade;
- • unfavorable economic and financial market conditions;
- • our ability to continue acquiring and developing coal reserves that are economically recoverable;
- • uncertainties in estimating our economically recoverable coal reserves;
- • transportation for our coal becoming unavailable or uneconomic for our customers;
- • the risk that we may be required to pay for unused capacity pursuant to the terms of our take-or-pay arrangements with rail and port operators;
- • our ability to retain key personnel and attract qualified personnel;
- • any failure to maintain satisfactory labor relations;
- • our ability to obtain, renew or maintain permits and consents necessary for our operations;
- • potential costs or liability under applicable environmental laws and regulations, including with respect to any exposure to hazardous substances caused by our operations, as well as any environmental contamination our properties may have or our operations may cause;
- • extensive regulation of our mining operations and future regulations and developments;
- • our ability to provide appropriate financial assurances for our obligations under applicable laws and regulations;
- • assumptions underlying our asset retirement obligations for reclamation and mine closures;
- • concerns about the environmental impacts of coal combustion, including possible impacts on global climate issues, which could result in increased regulation of coal combustion and requirements to reduce greenhouse gas, or GHG, emissions in many jurisdictions, which could significantly affect demand for our products or our securities and reduced access to capital and insurance;
- • any cyber-attacks or other security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us, our customers or other third parties;
- • the risk that we may not recover our investments in our mining, exploration and other assets, which may require us to recognize impairment charges related to those assets;
- • risks related to divestitures and acquisitions;
- • the risk that diversity in interpretation and application of accounting principles in the mining industry may impact our reported financial results; and
- • other risks and uncertainties described in Item 1A. 'Risk Factors.'

We make many of our forward-looking statements based on our operating budgets and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results.

See Item 1A, 'Risk Factors' and elsewhere in this Annual Report on Form 10-K for a more complete discussion of the risks and uncertainties mentioned above and for discussion of other risks and uncertainties we face that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

Coronado Global Resources Inc. Form 10-K December 31, 2022 6

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All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements, as well as others made in this Annual Report on Form 10-K and hereafter in our other filings with the Securities and Exchange Commission, or SEC, and public communications. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties.

We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to you. You should not interpret the disclosure of any risk to imply that the risk has not already materialized. Furthermore, the forward-looking statements included in this Annual Report on Form 10-K are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by applicable law.

Forward-looking and other statements in this Annual Report on Form 10-K regarding our GHG reduction plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current and forward-looking GHG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future.

Coronado Global Resources Inc. Form 10-K December 31, 2022 7

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# PART I

# ITEM 1. BUSINESS.

# Overview

We are a leading producer, global marketer and exporter of a full range of Met coals. We own a portfolio of operating mines and development projects in Queensland in Australia, and in Virginia, West Virginia and Pennsylvania in the United States. We are one of the largest Met coal producers globally by export volume, serving customers on five continents.

Our operations in Australia, or our Australian Operations, consist of the 100%-owned Curragh producing mining property located in the Bowen Basin of Australia. Our operations in the United States, or our U.S. Operations, consist of two producing mining properties (Buchanan and Logan), one temporarily idled mining property (Greenbrier) and two development mining properties (Mon Valley, and Russell County), primarily located in the Central Appalachian region of the United States, or CAPP, all of which are 100%-owned. Our U.S. Operations and Australian Operations are strategically located for access to transportation infrastructure. In addition to Met coal, our Australian Operations sell thermal coal under a long-term legacy contract assumed in the acquisition of Curragh, which is used to generate electricity, to Stanwell Corporation Limited, or Stanwell, a Queensland government-owned entity and the operator of the Stanwell Power Station located near Rockhampton, Queensland, and some thermal coal in the export market. Our U.S. Operations also produce and sell some thermal coal that is extracted in the process of mining Met coal.

Location of Australian Operations

c561202210Kp8i1

Location of U.S. Operations

c561202210Kp8i0

Our core business strategy focuses on the production of Met coal for the North American and seaborne export markets. Met coal is a key ingredient in the production of steel using blast furnaces, and approximately 770 kilograms of Met coal is required to produce one ton of steel.

We have a geographically diverse customer base across a range of global markets. Major consumers of our seaborne Met coal in 2022 were located in high-growth Asian markets, Brazil and Europe. These consumers are all major global steel or Met coke producers. We are well-positioned in the key high-growth Asian markets (Japan, South Korea and India) as sales to direct end users in the region represented 56.9% of our total revenue, including Tata Steel Limited, or Tata Steel, which accounted for 19.4% of total revenue, in 2022.

The charts below show our direct sales by geographic region in 2022 and our sales volume by export and domestic coal sales in 2020, 2021 and 2022.

Coronado Global Resources Inc. Form 10-K December 31, 2022 8

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![img-0.jpeg](img-0.jpeg)

Sales volume by export and domestic coal sales

![img-1.jpeg](img-1.jpeg)

To support our operations, we have proven and probable coal reserves totaling 539 MMt as of December 31, 2022, 205 MMt and 334 MMt of which are in Australia and the United States, respectively. For more information regarding our coal reserves, see Item 2, 'Properties.'

#### History and Australian Public Offering

We were founded in 2011 by our current Chief Executive Officer, Mr. Garold Spindler, our then President and Chief Operating Officer, Mr. James Campbell and a private equity fund affiliated with The Energy & Minerals Group, or EMG, with the intention of evaluating, acquiring and developing Met coal mining properties.

Prior to the initial public offering, Coronado Global Resources Inc., was a wholly-owned subsidiary of Coronado Group LLC, which is currently owned by funds managed by EMG, which we refer to, collectively, as the EMG Group, and certain members of our management.

On October 23, 2018, we completed an initial public offering on the Australian Securities Exchange, or ASX, which we refer to as the Australian IPO.

As of December 31, 2022, the EMG Group and management beneficially owned approximately 50.4% of the issued and outstanding shares of our common stock through their ownership of Coronado Group LLC. The remaining 49.6% was owned by public investors in the form of CDIs traded on the ASX. In addition, Coronado Group LLC holds one share of preferred stock Series A, par value $0.01 per share, of the Company, or the Series A Share, which is the only share of preferred stock issued and outstanding. The holder of the Series A

Coronado Global Resources Inc. Form 10-K December 31, 2022 9

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Share is permitted to nominate and elect members of our Board of Directors in relation to the amount of the holder's aggregate beneficial ownership of shares of our common stock.

## Organizational Structure

The following chart shows our current organizational structure:

![document icon]() c561202210Kp10i0

\* Coronado Global Resources Inc. holds 100% ownership interest in its subsidiaries, unless otherwise stated.

## Overview of Operations

### Met Coal

Met coal is primarily used in the manufacture of coke, which is used in the steel-making process, as well as direct injection into a blast furnace as a replacement for coke.

Sales of Met coal represented approximately 95.3% of our total coal revenues for the year ended December 31, 2022. Most of the Met coal that we produce is sold, directly or indirectly, to steel producers. The steel industry's demand for Met coal is affected by several factors, including the cyclical nature of that industry's business, geopolitical stability, general economic conditions affecting demand for steel, tariffs on steel and steel products, technological developments in the steelmaking process and the availability and cost of substitutes for steel, such as aluminum, composites and plastics. We compete based on coal quality and characteristics, price, customer service and support and reliability of supply. Seaborne Met coal import demand, which is most of our business, can be significantly impacted by the availability of indigenous coal production, particularly in the leading Met coal import countries of China and India, among others, and the competitiveness of seaborne Met coal supply, including from the leading Met coal exporting countries of Australia, the United States, Russia, Canada and Mongolia, among others. In 2022, the seaborne Met coal market was considerably volatile, driven by supply concerns in key Met coal markets and continued trade flow disruptions due to sanctions imposed on Russian coal imports following the Russian invasion of Ukraine.

### Thermal Coal

Sales of thermal coal represented approximately 4.7% of our total coal revenues for the year ended December 31, 2022. The thermal coal we produce is predominantly a byproduct of mining Met coal. The thermal coal we

Coronado Global Resources Inc. Form 10-K December 31, 2022 10

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produce is sold, directly or indirectly, to power stations, predominantly Stanwell, as an energy source in the generation of electricity. Demand for our thermal coal products is impacted by economic conditions, environmental regulations, demand for electricity, including the impact of energy efficient products, and the cost of electricity generation from alternative fuels. Our thermal coal products primarily compete with producers of other forms of electric generation, including natural gas, oil, nuclear, hydro, wind, solar and biomass, that provide an alternative to coal use. The Russian invasion of Ukraine impacted global supply dynamics resulting in Met coal crossover trades into the thermal market caused by increased thermal coal pricing.

### **Segments**

In accordance with Accounting Standards Codification, or ASC, Topic 280, *Segment Reporting*, we have adopted the following reporting segments:

- Australia; and

In addition, 'Other and Corporate' is not determined to be a reporting segment but is disclosed for the purposes of reconciliation to our Consolidated Financial Statements.

These segments are grouped based on geography and reflect how we currently monitor and report the results of the business to the Chief Executive Officer who is our chief operating decision maker, or CODM. Factors affecting and differentiating the financial performance of each of these two reportable segments generally include coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. We believe this method of segment reporting reflects the way our business segments are currently managed, resources are allocated and the way the performance of each segment is evaluated. The two segments consist of similar operating activities as each segment produces similar products.

### **Diversification**

We have 100% ownership over all of our operating mines, allowing us full control over all operating decisions. This control is critical during times of crisis and allows us to react swiftly and decisively to changes in global market demands.

We benefit from a geographically diverse asset base, in Australia and the United States, with access to multiple transportation infrastructure options, including key rail and port infrastructure, providing access to both seaborne export and domestic markets. We have access to the key major markets in both the Atlantic and Pacific basins, and our wide footprint provides flexibility to respond quickly to changes in global market demands.

Sanctions and bans on Russian coal resulted in European countries seeking alternative sources which also resulted in Met coal cross trades in the thermal markets, as producers looked to benefit from the price arbitrage.

The low cost nature of our assets is a function of the quality of the assets and the available mine infrastructure to extract our reserves efficiently. Being geographically diverse allows us to sell products to our customers in a number of countries. This allows the sales team to leverage these relationships to provide value added solutions such as blends with third parties, which is margin accretive.

Our Met coal production is diversified across high quality products, such as hard coking coal, or HCC, semi coking coals, or SCC, and pulverized coal injection, or PCI, coal from our Australian Operations, and significant production of HCC, comprising high volatile content, or High-Vol, (including sub-category A of High-Vol, or HVA, and sub-category B of High-Vol, or HVB), coal with medium volatile content, or Mid-Vol, and coal with low volatile content, or Low-Vol, coals from our U.S. Operations. This broad product range supports a wide variety of customer requirements and various blending opportunities, being valued for its attractive coke-making characteristics.

The below charts show Met product ranges for our Australian Operations and our U.S. Operations for the year ended December 31, 2022.

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![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

We have a dedicated global marketing team that generates direct sales for our Met coal. Our customer base spans across a full spectrum of key global markets. We sell directly to a number of large, high-quality and well-known companies in the steel industry globally. Many of our core customers have been our longstanding customers for over 20 years, and source our products as essential base load, which translates into a long history of contract renewal for such customers. We are a major supplier to tier one steel mills in Japan, South Korea, Taiwan, India, Europe, Brazil, North America and China. Given the quality of our diverse customer base, we believe the demand for our products is fundamentally insulated across all stages of the commodity cycle. This flexibility provides us the ability to take advantage of favorable market pricing as and where it arises.

#### 2022 Coronado's coal trade flows

![img-2.jpeg](img-2.jpeg)

#### Overview of Australian Operations-Curragh

Curragh is located in Queensland's Bowen Basin, one of the world's premier Met coal regions. Curragh has been operating since 1983, and produces a variety of high-quality, low-ash Met coal products. We believe our HCC product is recognized by steelmakers for its low-ash content, consistency of quality and favorable coking attributes. We believe that our SCC products are similarly valued, in particular for their low wall pressure, which makes them suitable for stamp charging coke ovens, and our PCI coal at Curragh is recognized by steelmakers for its low phosphorus and sulphur content. These Met coal products are exported globally to a diverse customer base located primarily in Asia. Curragh also produces thermal coal, which is primarily sold domestically under a long-term contract with Stanwell, with a limited amount being exported.

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Revenues from our Australian Operations represented 59.3% of our total revenue for the year ended December 31, 2022. See Item 2, 'Properties' for more information regarding Curragh.

# **FY22 Coal revenue mix - Australian Operations**

![img-3.jpeg](img-3.jpeg)

• Met • Thermal

For the year ended December 31, 2022, 65.3% of the total volume of coal sold by our Australian Operations was Met coal and 34.7% of the total volume of coal sold by our Australian Operations was thermal coal, the majority of which is sold to Stanwell. For the year ended December 31, 2022, Curragh sold 6.3 MMt of Met coal into the seaborne coal markets. The majority of customers purchase multiple grades or products and have purchased Curragh coal continuously through all stages of the coal/commodity pricing cycle. Curragh's Met coal is typically sold on annual contracts negotiated by our Australian Operations' sales managers, with pricing agreed to bilaterally or with reference to benchmark indices or spot indices. Our Australian Operations have maintained a high level of contract coverage against planned production. In 2022, substantially all of Curragh's Met coal export sales were made under term contracts.

# **Overview of U.S. Operations-Buchanan and Logan**

Our producing mining properties in the United States are located in the CAPP region, specifically in Virginia and West Virginia, which is a highly-developed, active, coal-producing region. Met coal produced by our U.S. Operations is consumed regionally by North American steel producers or exported by seaborne transportation to steel producers (primarily in Asia, Europe and South America). The U.S. Operations also produce small quantities of thermal coal that is extracted in the process of mining Met coal, which is sold predominantly to global export markets, as well as within North America. We believe that many regard Met coal from the CAPP region (where our U.S. Operations are located) to be of the highest quality in the world owing to its generally low-ash and sulphur content. Our U.S. Operations offer a range of Met coal products, with significant production of HCC, comprising coal with High-Vol (including HVA and HVB), coal with Mid-Vol, and coal with Low-Vol.

Sales from our U.S. Operations to export markets are typically priced with reference to a benchmark index. We generally sell our seaborne coal through intermediaries Free on Rail (Incoterms 2010), or FOR, and, therefore, our realized price on FOR sales does not include transportation to the seaborne port or costs to transload into a vessel. Consistent with seaborne sales, sales to North American customers are generally sold on a FOR basis where the customer arranges for and incurs the cost of transportation to their facility.

A portion of our sales is sold to North American steel and coke producers on annual contracts at fixed prices that do not fluctuate with the benchmark index. The fixed-price nature of these annual contracts provides us with visibility on our future revenues, as compared to spot sales or sales priced with reference to a benchmark index. For 2023, we have entered into annual contracts to sell approximately 1.6 MMt Met coal to North American steel and coke producers. During periods of stable and rising prices, we strive to take advantage of the spot market. Spot export contracts are negotiated throughout the year. Revenues from our U.S. Operations, in the aggregate, represented 40.7% of our total revenue for the year ended December 31, 2022. See Item 2, 'Properties' for more information regarding Buchanan, Logan and the other mining properties that compose our U.S. Operations.

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# FY22 Coal revenue mix -U.S.  
Operations

![img-4.jpeg](img-4.jpeg)

For the year ended December 31, 2022, 95.7% of the total volume of coal sold by our U.S. Operations was Met coal and 4.3% was thermal coal. We sold 61.7% of total Met coal from our U.S. Operations into the seaborne Met coal markets for the year ended December 31, 2022.

# **Customers**

We sell most of our coal to steel producers, either directly or through intermediaries, such as brokers. We also sell thermal coal to electricity generators either directly or through intermediaries such as brokers. Major consumers of our seaborne Met coal in 2022 were located in India, China, Japan, South Korea, Taiwan, Brazil and Europe. These consumers are all major global steel or Met coke producers. The majority of our sales are made under contracts with terms of typically one year or on a spot basis.

# Top Customers by coal revenues

![img-5.jpeg](img-5.jpeg)

# **Tata Steel**

Our U.S. Operations and Australian Operations are parties to Long Term Coal Sale and Purchase Agreements with TS Global Procurement Company Pte Ltd, or Tata Steel, with ending March 31, 2025. These Long Term Agreements provide for the sale of a minimum aggregate total of 2.25 MMt of coal per contract year across the Group, consisting of certain specific quantities of HCC, and pulverized coal injection, or PCI, Coal. The coal is sold Free on Board (Incoterms 2020), or FOB, priced with reference to benchmark indices and the agreements contain industry standard terms and conditions with respect to delivery, transportation, inspection, assignment, taxes and performance failure.

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# Xcoal

In 2022, we sold 1.9 MMt of coal to Xcoal Energy Resources LLC, or Xcoal, from our U.S. Operations. Coal revenues from Xcoal represented 28.4% of coal revenues from our U.S. Operations. Purchase orders with Xcoal are entered into primarily on an ad hoc (shipment-by-shipment) basis. Xcoal, as well as most other customers, typically take ownership of coal upon loading into the rail car (FOR) and are responsible for handling transportation logistics to the port and beyond.

# Stanwell

We are party to contractual arrangements with Stanwell, including a Coal Supply Agreement, or the CSA, and the Curragh Mine New Coal Supply Deed, dated August 14, 2018, or the Supply Deed.

Under the CSA, we deliver thermal coal from Curragh to Stanwell at an agreed price and quantity. Stanwell may vary the quantity of thermal coal purchased each year so the total quantity to be delivered to Stanwell each year cannot be precisely forecast. The coal that we supply to Stanwell constitutes the majority of the thermal coal production from Curragh. Our cost of supplying coal to Stanwell has been greater than the contracted price paid by Stanwell during the year ended December 31, 2022 and for prior years.

Under the CSA, we also share part of the revenue earned from export Met coal sales (from particular Tenements (as defined below)) with Stanwell through various rebates. The most material rebate is the export price rebate, which is linked to the realized export coal price for a defined Met coal product, as follows:

- For the first 7.0 MMtpa of export coal sales: when the 12-month trailing, weighted-average realized export coal price of Reference coal exceeds the Tier 1 Rebate Coal Floor Price, we pay a rebate of 25% of the difference between the realized export coal price and the Tier 1 Rebate Coal Floor Price.
- For export coal sales above 7.0 MMtpa: when the 12-month trailing, weighted-average realized export coal price of Reference coal exceeds the Tier 2 Rebate Coal Floor Price, we pay a rebate of 10% of the difference between the realized export coal price and the Tier 2 Rebate Coal Floor Price.

The CSA also provides for:

- a tonnage rebate to Stanwell per Mt on the first 7.0 MMtpa of export coal sales and on export coal sales above 7.0 MMtpa; and
- a rebate on run-of-mine, or ROM, coal mined in the Curragh "Pit U East Area."

The total Stanwell rebate for the year ended December 31, 2022, was $166.0 million and has been included in the Consolidated Statements of Operations and Comprehensive Income included elsewhere in this Annual Report on Form 10-K.

The Supply Deed grants us the right to mine the coal reserves in the Stanwell Reserved Area, or the SRA. In exchange, we agreed to certain amendments to the CSA and to enter into a New Coal Supply Agreement, or the NCSA upon the expiration of the CSA (which is expected to occur in 2027). On July 12, 2019, we entered into the NCSA with Stanwell. From the earlier of the expiry of the CSA, the date of termination of the CSA, and January 1, 2029, we will continue to supply thermal coal to Stanwell under the NCSA. The term of the NCSA is expected to be 10 years, and Coronado will supply to Stanwell 2 million 'Tonnes Equivalent' of thermal coal per annum (based on a nominal gross calorific value of 25.6GJ) at a fixed contract price that varies in accordance with agreed formulae, inclusive of all statutory charges and royalties in respect of coal sold and delivered under the NCSA. The export rebates which were payable under the CSA are not payable during the term of the NCSA. The supply term, the contract tonnage and the contract price under the NCSA are subject to adjustment in accordance with a financial model agreed between Stanwell and us. In summary, we have agreed that the total value of the discount received by Stanwell on coal supplied to it under the NCSA should (by the expiry date of the NCSA) be equal to the net present value of $155.2 million (A$210.0 million) as at the date of the Supply Deed, using a contractual pre-tax discount rate of 13% per annum. The net present value of the deferred consideration was $243.2 million as of December 31, 2022. On January 18, 2021, the Option Coal Supply Agreement, or the OCSA, contemplated by clause 5 of the NCSA was entered into, in respect of the supply of certain additional coal to Stanwell during the term of the NCSA.

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See Item 1A. 'Risk Factors-Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations.'

## Transportation

Coal produced at our mining properties is transported to customers by a combination of road, rail, barge and ship. See Item 2. 'Properties' for descriptions of the transportation infrastructure available to each of our mining properties. Rail and port services are typically contracted on a long-term, take-or-pay basis in Australia, while these contracts are typically negotiated on a quarterly basis in the United States. See Item 7. 'Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources' for additional information on our take-or-pay obligations.

## Australian Operations

Our Australian Operations typically sell export coal FOB, with the customer paying for transportation from the outbound shipping port. The majority of Curragh's export Met coal is railed approximately 300 kilometers to the Port of Gladstone for export via two main port terminals, RG Tanna Coal Terminal, or RGTCT, and Wiggins Island Coal Export Terminal, or WICET. Curragh also has capacity available to stockpile coal at the Port of Gladstone. For sales of thermal coal to Stanwell, Stanwell is responsible for the transport of coal to the Stanwell Power Station.

## Rail Services

Curragh is linked to the Blackwater rail line of the Central Queensland Coal Network, or CQCN, an integrated coal haulage rail system owned and operated by Aurizon Network Pty Ltd., or Aurizon Network. Curragh has secured annual rail haulage capacity of up to 12.0 MMtpa (plus surge capacity) under long-term rail haulage agreements with Aurizon Operations Limited, or Aurizon Operations, and Pacific National Holdings Pty Limited, or Pacific National.

The RGTCT Coal Transport Services Agreement with Aurizon Operations is for 8.5 MMtpa of haulage capacity to RGTCT. Curragh pays a minimum monthly charge (components of which are payable on a take-or-pay basis), which is calculated with reference to the below-rail access charges, haulage/freight charges, a minimum annual tonnage charge and other charges. The RGTCT Coal Transport Services Agreement terminates on June 30, 2030.

The Coal Transport Services Agreement with Pacific National is for 1.0 MMtpa of haulage capacity to RGTCT. Curragh pays a minimum monthly charge (components of which are payable on a take-or-pay basis), which is calculated with reference to the below-rail access charges, haulage/freight charges, a minimum annual tonnage charge and other charges. The Coal Transport Services Agreement with Pacific National terminates on July 31, 2029.

The Wiggins Island Rail Project, or WIRP, Transport Services Agreement with Aurizon Operations is for 2.5 MMtpa of capacity to WICET. This contract is effectively 100% take-or-pay (for a portion of the rail haulage and all capacity access charges). This agreement expires on June 30, 2030.

## Port Services

Curragh exports coal through two terminals at the Port of Gladstone, RGTCT and WICET. At RGTCT, Curragh and Gladstone Port Corporation Limited, or GPC, are parties to a coal handling agreement that expires on June 30, 2030. The agreement may be renewed at our request and, subject to certain conditions, GPC is required to agree to the extension if there is capacity at RGTCT to allow the extension. We currently have the right to export between 7.7 MMtpa and 8.7 MMtpa at our nomination on a take-or-pay basis.

We have a minority interest in WICET Holdings Pty Ltd, whose wholly-owned subsidiary, Wiggins Island Coal Export Terminal Pty Ltd, or WICET Pty Ltd, owns WICET. Other coal producers who export coal through WICET also hold shares in WICET Holdings Pty Ltd. In addition, we and the other coal producers (or shippers) have take-or-pay agreements with WICET Pty Ltd and pay a terminal handling charge to export coal through WICET, which is calculated by reference to WICET's annual operating costs, as well as finance costs associated with WICET Pty Ltd's external debt facilities. Our take-or-pay agreement with WICET Pty Ltd, or the WICET

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Take-or-Pay Agreement, provides Curragh with export capacity of 1.5 MMtpa. The WICET Take-or-Pay Agreement is an 'evergreen' agreement, with rolling ten-year terms. If we inform WICET Pty Ltd that we do not wish to continue to roll the term of the WICET Take-or-Pay Agreement, the term would be set at nine years and the terminal handling charge payable by us would be increased so that our proportion of WICET Pty Ltd's debt is amortized to nil by the end of that nine-year term.

Under the WICET Take-or-Pay Agreement, we are obligated to pay for that capacity via terminal handling charges, whether utilized or not. The terminal handling charge payable by us can be adjusted by WICET Pty Ltd if our share of WICET Pty Ltd's operational and finance costs increases, including because of increased operational costs or because another shipper defaults and has its capacity reduced to nil. The terminal handling charge is subject to a financing cap set out in the terminal handling charge methodology and has already been reached and is in force. If another shipper defaults under its take-or-pay agreement, each remaining shipper is effectively proportionately liable to pay that defaulting shipper's share of WICET Pty Ltd's costs going forward, in the form of increased terminal handling charges.

If we default under the WICET Take-or-Pay Agreement, we would be obligated to pay a termination payment to WICET Pty Ltd. The termination payment effectively represents our proportion of WICET Pty Ltd's total debt outstanding, based on the proportion of our contracted tonnage to the total contracted tonnage of shippers at WICET at the time the payment is triggered. Shippers can also become liable to pay the termination payment where there is a permanent cessation of operations at WICET. Since WICET began shipping export tonnages in April 2015, four WICET Holdings Pty Ltd shareholders have entered into administration and Take-or-Pay Agreements subsequently terminated, resulting in the aggregate contracted tonnage of shippers decreasing from 27 MMtpa to 15.5 MMtpa.

Under the WICET Take-or-Pay Agreement, we are required to provide security (which is provided in the form of a bank guarantee). The amount of the security must cover our estimated liabilities as a shipper under the WICET Take-or-Pay Agreement for the following twelve-month period. If we are in default under the WICET Take-or-Pay Agreement and are subject to a termination payment, WICET Pty Ltd can draw on the security and apply it to amounts owing by us. See Item 1A, 'Risk Factors-Risks related to our investment in WICET may adversely affect our financial condition and results of operations' and Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources' for additional information on our take-or-pay obligations.

#### **U.S. Operations**

Our U.S. Operations' domestic contracts are generally priced FOR at the mine with customers bearing the transportation costs from the mine to the applicable end user. For direct sales to export customers, we hold the transportation contract and are responsible for the cost to the export facility, and the export customer is responsible for the transportation/freight cost from the export facility to the destination. A portion of our U.S. export sales are made through Xcoal and other intermediaries. For these sales, Xcoal or the intermediary typically take ownership of the coal as it is loaded into the railcar. The intermediary is responsible for the rail transportation and port costs.

#### **Rail Services**

Our U.S. Operations are served by Northfork Southern and CSX Transportation railroads. In 2022, we shipped approximately 94.7% of our total shipments via rail from our U.S. mining properties.

Northfork Southern railroad serves our Buchanan mining property and transports Buchanan's coal to Lamberts Point Coal Terminal Pier 6 and to CNX Marine Terminal for export customers and to our domestic customers either directly or indirectly via inland river dock facilities where the coal is transloaded on to barges and then transported to the customer's facilities.

CSX Transportation railroad serves our Logan and Greenbrier mining properties. CSX transports Logan and Greenbrier's coal to Kinder Morgan Pier IX Terminal or CNX Marine Terminal or Dominion Terminal Associates (DTA) for export customers and either directly to the customers or to inland river dock facilities for domestic customers.

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## Port Services

Norfolk Southern's Lamberts Point Coal Terminal Pier 6 is the largest coal loading facility in the Northern Hemisphere with 48 million tons of annual export capacity and is the main terminal at Lamberts Point located in Norfolk, Virginia. Kinder Morgan's Pier IX is a coal export terminal with an annual export capacity of 16 million tons located in the Port of Hampton Roads in Newport News, Virginia.

Our U.S. Operations have dedicated inventory capacity and a take-or-pay obligation to transload one million net tons per year through Kinder Morgan's Pier IX Terminal to the end of March 2024. On March 1, 2022, we re-assigned 700,000 net tons per year to Xcoal for a consideration, reducing our dedicated capacity at Kinder Morgan's Pier IX Terminal to 300,000 net tons per year to March 2024. On November 1, 2022, we extended our arrangement with Kinder Morgan from April 2024 to March 2027, with an option to extend for an additional three years, for a dedicated inventory capacity and take-or-pay obligation to transload 650,000 net tons per year. Our U.S. Operations also have alternate port access through CNX Marine Terminal which is a transshipping terminal at the Port of Baltimore owned by CONSOL Energy.

## Suppliers

The principal goods we purchase in support of our mining activities are mining equipment, replacement parts, diesel fuel, natural gas, ammonium-nitrate and emulsion-based explosives, off-road tires, steel-related products (including roof control materials), lubricants and electricity. As a general matter, we have many well-established, strategic relationships with our key suppliers of goods and do not believe that we are dependent on any of our individual suppliers.

We also depend on several major pieces of mining equipment and facilities to produce and transport coal, including, but not limited to, longwall mining systems, continuous miners, draglines, dozers, excavators, shovels, haul trucks, conveyors, coal preparation plants, or CPPs, and rail loading and blending facilities. Obtaining and repairing these major pieces of equipment and facilities often involves long lead times. We strive to extend the lives of existing equipment and facilities through maintenance practices and equipment rebuilds in order to defer the requirement for larger capital purchases. We use our global leverage with major suppliers to support security of supply to meet the requirements of our active mines. See Item 2. 'Properties' for more information about operations at our mining properties.

We use contractors and other third parties for exploration, mining and other services, generally, and rely on a number of third parties for the success of our current operations and the advancement of our development projects. See Item 1A. 'Risk Factors-Our profitability could be affected adversely by the failure of suppliers and/or outside contractors to perform.'

## Competition

We operate in a competitive environment. We compete with domestic and international coal producers, traders and brokers. We compete on price, coal quality, transportation, optionality, reputation and reliability. Demand for Met coal and the prices that we will be able to obtain for our Met coal are highly competitive and are determined predominantly by world markets, which are affected by numerous factors beyond our control, including but not limited to:

- • general global, regional and local economic activity;
- • changes in demand for steel and energy;
- • industrial production levels;
- • short-term constraints, including weather incidents;
- • changes in the supply of seaborne coal;
- • technological changes;
- • changes in international freight or other transportation infrastructure rates and costs;
- • the costs of other commodities and substitutes for coal;
- • market changes in coal quality requirements;

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- government regulations which restrict, or increase the cost of, using coal;
- tariffs imposed by countries, including the United States and Australia, on the import of certain steel products and any retaliatory tariffs by other countries; and
- tax impositions on the resources industry, all of which are outside of our control;

In addition, coal prices are highly dependent on the outlook for coal consumption in large Asian economies, such as China, Japan, South Korea and India, as well as any changes in government policy regarding coal or energy in those countries.

In developing our business plan and operating budget, we make certain assumptions regarding future Met coal prices, coal demand and coal supply. The prices we receive for our Met coal depend on numerous market factors beyond our control. Accordingly, some underlying coal price assumptions relied on by us may materially change and actual coal prices and demand may differ materially from those expected. Our business, operating and financial performance, including cash flows and asset values, may be materially and adversely affected by short- or long-term volatility in the prevailing prices of our products.

Competition in the coal industry is based on many factors, including, among others, world supply price, production capacity, coal quality and characteristics, transportation capability and costs, blending capability, brand name and diversified operations. We are subject to competition from producers in Australia, the United States, Canada, Russia, Mongolia and other coal producing countries. See Item 1A. "Risk Factors-We face significant competition, which could adversely affect profitability."

# Environmental Sustainability

We are focused on extracting high quality Met coal in an environmentally responsible way. Coal mining is one of the most environmentally regulated industries in the world, and it is vital that we consistently meet or exceed relevant regulatory standards.

We are subject to various environmental laws, regulations and public policies in Australia and the United States. Managing our environment and climate change risks is a key component of our corporate strategy and it is integrated into all stages and areas or our daily operations. We seek to minimize our environmental impact and ensure we meet or exceed our legislative and regulatory environmental obligations.

Coronado's environmental sustainability initiatives and strategy are discussed further in our 2021 Sustainability Report published on May 10, 2022, which can be found on our website at www.coronadoglobal.com/sustainability/. Nothing on our website, including our 2021 Sustainability Report or sections thereof, shall be deemed incorporated by reference into this Annual Report on Form 10-K. Our 2022 Sustainability Report is expected to be available in May 2023.

# Climate change

We believe that climate change is a complex challenge that requires action at all levels of society. Climate change can heighten existing physical and non-physical impacts and risks and introduce new ones that can affect business performance in the near and long-term.

While our operations are recognized as vital contributors to the communities and economies in which we operate, we acknowledge that our mining activities create Greenhouse Gas (GHG) emissions. Climate change is one of the most significant issues for the steel industry and the industry has made significant reductions in GHG emissions by improving energy efficiency and using new technologies. Where possible, we are continuing to identify and implement GHG emissions and energy reduction opportunities across our business, whilst monitoring climate related risks and the sustainability of our operations. We are committed to working with other industry partners to support, develop and introduce new coal production and energy-generation technologies, that help reduce the environmental impact while continuing to meet global energy and steel demands.

Our Australian Operations operate under an Environmental Management System, or EMS, in accordance with ISO 14001 that contains set plans and procedures to ensure all environmental commitments are met. The EMS is used as a tool to uphold our Australian Operations' Environmental Policy and integrate environmental compliance into all facets of the business. Our Australian Operations disclose GHG Scope 1 and 2 emissions annually to the Clean Energy Regulator under the National Greenhouse and Energy Reporting Scheme.

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Our U.S. Operations undergo detailed internal inspections as well as rigorous evaluations by both state and federal inspectors on a regular basis. Our U.S. Operations disclose GHG Scope 1 and 2 emissions, including fugitive emissions (methane), for the facilities required to report their emissions annually to the United States Environmental Protection Agency.

Our operations are currently focused on implementing reporting improvements, identifying opportunities for reducing emissions on a per ton of production basis and benchmarking ourselves against our peer group. Coronado launched its first set of GHG targets in 2022 and has committed to targeting reductions in its Scope 1 and 2 emissions by 30% by 2030.

Emissions reduction estimates to 2030 have been evaluated based on improvements that can reasonably be expected using technologies currently available. Detailed analysis to determine economic viability of available technologies has not been considered.

The target reduction of 30% by 2030 is based in the current mine plans for Coronado's Curragh and U.S. mines and is not expected to be a linear reduction. As we address our material areas of impact including emission reductions and opportunities, the need for mitigation technologies are likely to increase.

We are also evaluating a range of potential projects that could have a positive impact on our emissions profile including options for energy generation from solar, wind and gas along with on-grid solutions. For example, we began a project to understand and define gas reservoirs at Curragh with gas production drilling that commenced in the fourth quarter of 2022. This project will continue into 2023 with well completion and an anticipated downstream trial of running gas converted haul trucks using the incidental coal seam gas from our operations as a diesel substitute.

Similarly, on July 27, 2022, we officially commissioned the Buchanan Ventilation Air Methane, or VAM, abatement project on vent shaft 16 at our U.S. Operations. The project utilizes the latest technology to convert fugitive methane gas emissions to carbon dioxide. The goal of this project is to reduce the Buchanan mine methane emissions by approximately 22 times and reduce total emissions from the mine by 61% by 2030. The initial performance from the VAM unit is encouraging with the project achieving 94% emission reduction efficiency. While Coronado is also exploring other projects to reduce its carbon footprint, if the VAM projections are achieved, it may alone result in the Company meeting their target reduction by 2030.

Increased public concern may result in additional regulatory risks as new laws and regulations aimed at reducing GHG emissions come into effect in the jurisdictions in which we operate. Any legislation that limits or taxes GHG emissions could adversely impact our growth, increase our operating costs, or reduce demand for our coal.

With respect to physical climate risks, our operations may be impacted by weather-related events potentially resulting in lost production, supply chain disruptions and increased operating costs, which could have a material adverse impact on our financial results of operations.

Increasingly, both foreign and domestic banks, insurance companies and large investors are curtailing or ending their financial relationships with fossil fuel-related companies. This has or is likely to continue to have adverse impacts on the liquidity and operations of coal producers.

Additionally, federal, state and international GHG and climate change initiatives, associated regulations or other voluntary commitments to reduce GHG emissions could significantly increase the cost of coal production and consumption, increase costs as a result of regulations requiring the installation of emissions control technologies, increase expenses associated with the purchase of emissions reduction credits to comply with future emissions trading programs, or significantly reduce coal consumption through implementation of a future clean energy standard. Such initiatives and regulations could further reduce demand or prices for our coal in both domestic and international markets, could adversely affect our ability to produce coal and to develop our reserves, could reduce the value of our coal and coal reserves, and may have a material adverse effect on our business, financial condition and results of operations.

On November 20, 2022, the Sharm el-Sheik Conference of Parties 27, or COP27, maintained language around fossil fuels from Glasgow Conference of Parties 26, which called on governments to accelerate the dissemination of technologies, and the adoption of policies, to transition toward a low-emission energy system, including by accelerating the phasedown of unabated coal power, that is coal power that does not include the capture and storage of carbon dioxide emission and phase-out inefficient fossil fuel subsidies.

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## Human Capital Disclosures

Our ability to attract and retain skilled, motivated and engaged employees is an essential part of our business. Investing in the skill and capabilities of our people will underwrite our long-term growth and sustainability. In both Australia and United States, we operate in regional locations with highly competitive labor markets. In each location, we are creating a high-performing workforce with a talent pipeline for future leaders, including succession planning for critical roles. To achieve this, we continue to create a culture that welcomes and values all people and where our core values of collaboration, accountability, respect and excellence are demonstrated in everything that we do.

In 2022, a number of initiatives were undertaken to enhance our culture, increase our ability to attract and retain the workforce we need, and to continue to drive our desire to build safe, high-performing teams. This has included extensive efforts to gather feedback from our employees and contracting partners through surveys, focus groups and team empowerment sessions. Following analysis of the feedback, priorities were identified, and cultural programs designed to bridge gaps between current and desired cultural states were developed and implemented.

Worldwide we had 1,735 employees as of December 31, 2022. In addition, as of December 31, 2022, there were 2,326 contractors supplementing the permanent workforce, primarily at Curragh.

As of December 31, 2022, approximately 11.5% of our total employees, all at our Australian Operations, were covered by a single, federally-certified collective Enterprise Agreement, or the EA, for specified groups of mining and maintenance employees. In May 2019, the Australian Fair Work Commission approved the Curragh Mine Enterprise Agreement 2019. This EA has a nominal expiration date of May 26, 2022 and will remain in place until replaced or terminated by the Fair Work Commission. We have been negotiating with employee bargaining representatives for a replacement EA since March 2022. Those negotiations continue in good faith with the intent of reaching an agreement as soon as practicable. Our U.S. Operations employ a 100% non-union labor force.

### Safety

Our employees and contractors are our most valuable assets and we consider their safety our number one priority. Safety is essential to all business functions and is never to be compromised, under any circumstance. The health and safety of our people is reinforced every day through our culture, behaviors, training, communication and procedures.

We manage safety and health through continuous improvement efforts and the implementation of practices and procedures that address safety risks in full compliance with the legal and regulatory frameworks of both the United States and Australia. We empower our people to consistently strive to have a safety mindset, and act by applying, managing and monitoring effective controls to prevent adverse outcomes with all activities and operations. Our programs are intended to reinforce our position that safety and health should always be front of mind for all employees and contractors.

Safety performance is monitored through physical observations from both internal and external parties and through the reporting of key metrics. Safety performance is assessed monthly against internal goals and on a quarterly basis is benchmarked against our peers within the mining industry.

We set targets for safety interactions which is a process where employees observe a risk behavior and provide immediate feedback if it is deemed, or has the potential to be, unsafe. This is monitored by management daily through safety meetings, site visits, employee discussions, and management observations. The process allows for greater empowerment, innovation and employee input into the mining process.

The 12-month rolling average Total Reportable Injury Frequency Rate ('TRIFR') as of December 31, 2022 for our Australian Operations was 3.92 and the Total Reportable Incident Rate ('TRIR') for 12-month rolling average as of December 31, 2022 for our U.S. Operations was 2.42. As indicated in the graphs below, our Australian Operations outperformed the Queensland industry average in 2021 and 2022 and our U.S. Operations outperformed the U.S. national average in 2021 and 2022. We strive to ensure that we continue to provide a safe operating environment for all employees and contractors.

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![img-0.jpeg](img-0.jpeg)

# Workforce composition and diversity

Our values (CARE - Collaboration, Accountability, Respect, Excellence) guide our policies, processes and actions as they relate to all workforce interactions and people related initiatives. As part of these values and to enable our people to excel within the workplace we are building a diverse and inclusive workforce, where unique viewpoints are heard, valued and respected. We believe this directly impacts the safety and productivity of our people. Our employees are trained to recognize and mitigate potential biases towards others.

We invest in training and development programs for both our new and long-serving employees. Investing in graduate recruitment, traineeships and internship programs through partnerships with leading education institutions has been central to accessing talent and building our brand. Further, our internal leadership development enhances succession planning and the transfer of skills and knowledge across our business.

As at December 31, 2022:

- in the United States, just over 6% of Senior Managers were female.
- in Australia, almost 30% of employees at a General Manager, Senior Manager and Senior Professional level were female, an increase of approximately 2% from December 31, 2021.
- 7% of our global workforce was female.
- 58.8% of all employees were between the ages of 30 and 50 years old.

# Attracting and retaining the right people

We continued to focus our efforts on recruiting trainees and other entry level roles. We have also implemented the following initiatives:

- Comprehensive training, performance and leadership development programs.
- Competitive and flexible remuneration structure.

In 2022, our total rolling turnover rate was 16.0% and 16.7% in Australia and the U.S., respectively, and our voluntary departure rolling turnover rate was 14.5% in both Australia and the U.S. In 2021, our total rolling turnover rate was 27.9% and 18.4% and our voluntary departure rolling turnover rate was 17.3% and 15.4%, in Australia and the U.S., respectively.

# Regulatory Matters-Australia

Our Australian Operations are regulated by the laws and regulations of the Commonwealth of Australia, or Cth, the State of Queensland, or Qld, and local jurisdictions. Most environmental laws are promulgated at the state level, but the Australian federal government has a role in approval of actions which have national environmental

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significance. In Queensland, the environmental laws relevant to coal mining include development legislation, pollution, waste, ecosystem protection, cultural heritage and native title land contamination and rehabilitation legislation. In addition, the Australian federal government regulates foreign investment and export approvals.

# Tenements

We control the coal mining rights at Curragh under 14 coal and infrastructure mining leases, or MLs, and three mineral development licenses, or MDLs, granted pursuant to the Mineral Resources Act 1989 (Qld). See Item 2. "Properties" for more information regarding the Tenements.

# Mineral Resources Act 1989 (Qld)

The Mineral Resources Act 1989 (Qld) and the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld), together, provide for the assessment, development and utilization of mineral resources in Queensland to the maximum extent practicable, consistent with sound economic and land use management. The Mineral Resources Act 1989 (Qld) vests ownership of minerals, with limited exceptions, in the Crown (i.e., the state government). A royalty is payable to the Crown for the right to extract minerals. The Mineral Resources Act 1989 (Qld) creates different tenures for different mining activities, such as prospecting, exploring and mining. A ML is the most important tenure, as it permits the extraction of minerals in conjunction with other required authorities. The Mineral Resources Act 1989 (Qld) imposes general conditions on a ML.

A person who is the holder of a ML must keep the records necessary to enable the royalty payable by the person to be ascertained. In 2022, the Queensland State Government in Australia amended the Mineral Resources Regulation 2013 (Qld) introducing additional higher tiers to the coal royalty rates effective from July 1, 2022, increasing the royalty payable by our Australian Operations.

The new tiers applicable in calculating the royalty payable for our Australian Operations from July 1, 2022 are as set out below:

- 7% for average coal price per Mt sold up to and including A$100 per Mt;
- 12.5% for average coal price per Mt sold from A$100 to A$150 per Mt;
- 15% for average coal price per Mt sold from A$150 to A$175 per Mt;
- 20% for average coal price per Mt sold from A$175 to A$225 per Mt;
- 30% for average coal price per Mt sold from A$225 to A$300 per Mt; and
- 40% for average coal price per Mt sold above A$300 per Mt.

The royalty payable for coal sold, disposed of or used in a return period is then calculated by multiplying the royalty rate by the value of the coal. Queensland Revenue Office Royalty Ruling MRA001.1 contains details on the costs that can (and cannot) be deducted when calculating the applicable royalty and the method for determining the value of the coal. Where there is a change in legislation or case law that affects the content of a royalty ruling, the change in the law overrides the royalty ruling-i.e., the Commissioner will determine the royalty liability in accordance with the changed law. See Item 2. "Properties" for a discussion of the royalties currently applicable to Curragh.

# Mining Rehabilitation (Reclamation)

Mine closure and rehabilitation risks and costs are regulated by Queensland state legislation.

Amongst other things, an Environmental Authority Holder, or EA Holder, must provide the Queensland State Government with financial assurance for the purpose of drawing upon in the event that an EA Holder defaults on its obligations to rehabilitate the mine site.

The Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld), or the Financial Provisioning Act establishes a financial provisioning scheme, or the Scheme, from which the Department of Environment and Science, or the DES, sources funds to rehabilitate and remediate land subject to mining.

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Under the Financial Provisioning Act, all mine operators are required to make a submission to the DES in respect of an Estimated Rehabilitation Cost, or ERC, for the mine site. The ERC is determined using the DES-approved ERC calculator. Using this information, the DES sets the ERC for the mine. The DES provides the ERC to the manager of the Scheme, or the Scheme Manager. The Scheme Manager undertakes a risk assessment of the mine, which is based upon independent advice from a Scheme risk advisor. It includes detail on the mine operator's financial soundness and credit rating, characteristics of the mining operation (e.g., life of mine, or LOM, and off-take agreements), rehabilitation history, environmental compliance history and the submission made by the Company. Risk categories include high, moderate, low and very low. If the ERC and risk categories are set at moderate, low or very low for a mine, then there is a need to pay an annual contribution based on a small percentage of the ERC to the Scheme. If the category is high, then the operation provides a surety for the whole ERC and possibly a contribution to the Scheme. The risk assessment of the mine and, therefore, the amount of the contribution to the fund is assessed and paid annually in perpetuity, or until a clearance certificate is obtained.

Each year, the Scheme Manager is required to make an Annual Review Allocation to determine whether the mine will provide surety or pay a contribution to the Scheme depending on the value of the ERC relating to applicable environmental authorities, as follows:

1) ERC < A$100,000 - cash surety or bank guarantees
2) ERC > A$100,000 - A$450 million - pay a cash contribution into the Scheme
3) ERC > A$450 million - pay a cash contribution into the Scheme and provide bank guarantees.

Curragh has 2 environmental authorities, or EAs, which are covered by the Scheme, namely EA number EPML00643713 and EA number EPVX00635313. In October 2022, the Scheme Manager completed the assessment of the Annual Review Allocation for environmental authority number EPML00643713 and issued an Annual Review Allocation of "Moderate". The moderate rating resulted in Curragh being obliged to make a financial contribution to the Scheme of 2.75% of the ERC. In January 2023, the Scheme Manager completed an assessment of the Annual Review Allocation for Environmental Authority Number EPVX00635313 and issued an Annual Review Allocation of "High" in respect of MDL162 requiring Curragh to maintain its historical financial assurance in respect of 100% of the ERC for Environmental Authority Number EPVX00635313.

The Financial Provisioning Act also requires for a Progressive Rehabilitation and Closure Plan, or a PRCP, with respect to mined land. This requirement will be integrated into the existing EA processes for new mines, minimizing the regulatory burden on government and industry. All mining projects carried out under a ML that make a site-specific EA application will be required to provide a PRCP. If approved by the administering authority, a stand-alone PRCP schedule will be given to the applicant together with the EA. The PRCP schedule will contain milestones with completion dates for achieving progressive rehabilitation of the mine site. The Financial Provisioning Act provided transitional arrangements for three years for the application of the PRCP requirement to existing mines. The requirement for a PRCP commenced on November 1, 2019, or the PRCP start date, however all existing mining operations only transition into the PRCP framework once a transition notice is issued by the relevant government department. Curragh was issued with a transition notice with respect to its PRCP. Its application for a proposed PRCP was received by the administering authority on October 20, 2022. The administering authority has requested the Company provide further information to assess the application by August 28, 2023.

#### Environmental Protection Act 1994 (Qld)

The primary legislation regulating environmental management of mining activities in Queensland is the Environmental Protection Act 1994 (Qld), or the EP Act. Its objective is to protect Queensland's environment while allowing for development that improves the total quality of life, both now and in the future, in a way that maintains ecologically sustainable development. Under the EP Act, it is an offense to carry out a mining activity unless the person holds or is acting under an EA for the activity. The EA imposes conditions on a project. It is an offense to contravene a condition of an EA. In addition to the requirements found in the conditions of an EA, the holder must also meet its general environmental duty and duty to notify of environmental harm and otherwise comply with the provisions of the EP Act and the regulations promulgated thereunder. For example, the following are offenses under the EP Act:

- causing serious or material environmental harm;
- causing environmental nuisance;

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- placing contaminants where environmental harm or nuisance may be caused.

The EA holder must also be a registered suitable operator under the EP Act. We are a registered suitable operator.

We hold EA EPML00643713, which authorizes the mining of black coal, mineral processing, chemical storage, waste disposal and sewage treatment over the 14 MLs at Curragh on certain conditions. Those conditions include requirements in relation to air and water quality, regulated structures (e.g., dams), noise and vibration, waste, land use, rehabilitation and watercourse diversion.

We also hold a range of subsidiary EAs for our Australian Operations. See “-Mining Rehabilitation (Reclamation)” above for more information regarding the Financial Provisioning Act.

#### ***Aboriginal Cultural Heritage Act 2003 (Qld)***

The Aboriginal Cultural Heritage Act 2003 (Qld) imposes a duty of care on all persons to take all reasonable and practicable measures to ensure that any activity conducted does not harm Aboriginal cultural heritage. Its object is to provide effective recognition, protection and conservation of Aboriginal cultural heritage.

We have obligations relating to Aboriginal cultural heritage with respect to a number of cultural heritage objects and areas located within the area of the Tenements. We work closely with the Aboriginal people to manage the cultural heritage objects, areas or evidence of archaeological significance, within our mining operations. We are party to a Cultural Heritage Management Plan (and associated Cultural Services Agreement) with the Gaangalu Nation People that applies to all of the Tenements. The plan establishes a coordinating committee and sets out the steps to be followed to manage activities that may impact Aboriginal cultural heritage.

#### ***Native Title Act 1993 (Cth)***

The Native Title Act 1993 (Cth), or NTA, sets out procedures under which native title claims may be lodged and determined and compensation claimed for the extinguishment or impairment of the native title rights or interests of Aboriginal peoples. Its object is to provide for the recognition and protection of native title, to establish ways in which future dealings affecting native title may proceed and to set standards for those dealings, to establish a mechanism for determining claims to native title and to provide for, or permit, the validation of past acts, and intermediate period acts, invalidated because of the existence of native title.

With respect to MLs and MDLs granted under the Mineral Resources Act 1989 (Qld) on state land where native title has not been extinguished, a principle known as the non-extinguishment principle governs. Broadly, under this principle, native title rights are suspended while the mining tenure, as renewed from time to time, is in force. The grant (or renewal) of a mining tenure in respect of land where native title may exist must comply with the NTA to ensure the validity of the tenure. Registered native title claimants have certain notification, consultation and negotiation rights relating to mining tenures. Where native title is extinguished (i.e., freehold land), the NTA does not apply.

#### ***Regional Planning Interests***

The Regional Planning Interests Act 2014 (Qld), or the RPI Act manages the impact of resource activities and other regulated activities in areas of the state that contribute, or are likely to contribute, to Queensland’s economic, social and environmental prosperity (e.g., competing land use activities on prime farming land). The RPI Act identifies areas of Queensland that are of regional interest, including strategic cropping areas and strategic environmental areas. Under the RPI Act, conducting a resource activity in an area of regional interest requires a regional interest development approval, unless operating under an exemption. Importantly, pre-existing mining activities being undertaken at the date of the introduction of the legislation are exempt.

We have been granted a regional interest development approval for the “Curragh Expansion Project” (for ML700006, ML 700007 and ML700008), which is subject to regional interest conditions, such as mitigation. Certain protection conditions are also imposed on us with respect to ML 80171, which includes an obligation to provide mitigation in the event that strategic cropping land is impacted by future operations.

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### ***Environmental Protection and Biodiversity Conservation Act 1999 (Cth)***

The Environment Protection and Biodiversity Conservation Act 1999 (Cth), or the EPBC Act, provides a federal framework to protect and manage matters of national environmental significance, such as listed threatened species and ecological communities and water resources. In addition, the EPBC Act confers jurisdiction over actions that have a significant impact on the environment where the actions affect, or are taken on, Commonwealth land, or are carried out by a Commonwealth agency.

Under the EPBC Act, 'controlled actions' that have or are likely to have a significant impact on a matter of national environmental significance are subject to a rigorous assessment and approval process. A person must not take a 'controlled action' unless approval is granted under the EPBC Act. Any person proposing to carry out an 'action' that may be a 'controlled action' must refer the matter to the Commonwealth Minister for a determination as to whether the proposed action is a controlled action.

On November 2, 2016, the Commonwealth Minister for the Department of the Environment and Energy administering the EPBC Act approved the extension of the existing Curragh mining area to include mining four additional Tenements-ML 700006, ML 700007, ML 700008 and ML 700009 (EPBC Act referral 2015/7508)-as a 'controlled action,' on certain conditions. The conditions include requirements in relation to offsets and groundwater.

### ***Mine Health and Safety***

The primary health and safety legislation that applies to Curragh are the Coal Mining Safety and Health Act 1999 (Qld) and the Coal Mining Safety and Health Regulation 2001 (Qld), which we refer to, together, as the Coal Mining Safety Legislation.

Additional legislative requirements apply to operations that are carried on off-site or which are not principally related to coal mining (e.g., transport, rail operations, etc.). The Coal Mining Safety Legislation imposes safety and health obligations on persons who operate coal mines or who may affect the safety or health of others at coal mines. Under the Coal Mining Safety Legislation, the operator of a coal mine must, among other things:

- • ensure that the risk to coal mine workers while at the operator's mine is at an acceptable level;
- • audit and review the effectiveness and implementation of the safety and health management system to ensure the risk to persons is at an acceptable level;
- • provide adequate resources to ensure the effectiveness and implementation of the safety and health management system;
- • ensure the operator's own safety and health and the safety and health of others is not affected by the way the operator conducts coal mining operations;
- • not carry out an activity at the coal mine that creates a risk to a person on an adjacent or overlapping petroleum authority if the risk is higher than an acceptable level of risk;
- • appoint a site senior executive for the mine;
- • ensure the site senior executive develops and implements a safety and health management system for all people at the mine;
- • ensure the site senior executive develops, implements and maintains a management structure for the mine that helps ensure the safety and health of persons at the mine; and
- • not operate the coal mine without a safety and health management system for the mine.

We recognize that health and safety are imperative to the ongoing success of our Australian Operations. As the operator at Curragh, we have in place a comprehensive safety and health management system, which includes an emergency response team, to address these legislative requirements. In accordance with the Coal Mining Safety Legislation we have also established an occupational hygiene baseline for dust exposure at Curragh.

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### **Water Act 2000 (Qld)**

In Queensland, all entitlements to the use, control and flow of water are vested in the state and regulated by the Water Act 2000 (Qld). Allocations under the Water Act 2000 (Qld) can be managed by a water supply scheme operator, such as SunWater Ltd, which is a Government-owned corporation regulated by the Queensland Competition Authority. We have purchased the required water allocations for Curragh and entered into a suite of related channel and pipeline infrastructure agreements and river supply agreements with SunWater Ltd to regulate the supply of water pursuant to these allocations. See Item 1A, 'Risk Factors-in times of drought and/or shortage of available water, our operations and production, particularly at Curragh, could be negatively impacted if the regulators impose restrictions on our water offtake licenses that are required for water used in the CPPs.'

### **National Greenhouse and Energy Reporting Act 2007 (Cth)**

The National Greenhouse and Energy Reporting Act 2007 (Cth) imposes requirements for both foreign and local corporations whose carbon dioxide production, greenhouse gas, or GHG, emissions and/or energy consumption meets a certain threshold to register and report GHG emissions and abatement actions, as well as energy production and consumption as part of a single, national reporting system. The Clean Energy Regulator administers the National Greenhouse and Energy Reporting Act 2007 (Cth), and the Department of Climate Change, Energy, the Environment and Water is responsible for related policy developments and review.

In accordance with Safeguard Mechanism under this legislation, Curragh has been assigned a baseline for its covered emissions (Scope 1) and we must take steps to keep our emissions at or below the baseline or face penalties. The Australian federal government is currently reviewing the Safeguard Mechanism and proposed reforms are under public consultation.

### **Labor Relations**

Minimum employment entitlements, embodied in the National Employment Standards, apply to all private-sector employees and employers in Australia under the federal Fair Work Act 2009 (Cth). These standards regulate employment conditions and paid leave. Employees who are associated with the day-to-day operations of a local mine or mines and who are not located in head office or corporate administration offices are also covered by the Black Coal Mining Industry Award 2010 which regulates conditions including termination arrangements, pay and hours of work.

Unfair dismissal, enterprise bargaining, bullying claims, industrial actions and resolution of workplace disputes are also regulated under state and federal legislation. Some of the workers at Curragh are covered by the EA, which was approved by the Fair Work Commission, Australia's national workplace relations tribunal. See '-Human Capital Disclosures' above.

### **Regulatory Matters-United States**

Federal, state and local authorities regulate the U.S. coal mining industry with respect to matters such as employee health and safety, protection of the environment, permitting and licensing requirements, air quality standards, water pollution, plant and wildlife protection, the reclamation and restoration of mining properties after mining has been completed, the discharge of materials into the environment, surface subsidence from underground mining and the effects of mining on groundwater quality and availability. In addition, the industry is affected by significant requirements mandating certain benefits for current and retired coal miners. Numerous federal, state and local governmental permits and approvals are required for mining operations. Because of extensive and comprehensive regulatory requirements, violations during mining operations occur from time to time in the industry. The summary below is a non-exhaustive summary of material legislation that applies to our U.S. Operations. Although this summary focuses on federal laws, most states (including Virginia, West Virginia and Pennsylvania) have their own regulatory schemes that either mirror federal laws or create additional layers of regulation.

### **Clean Air Act of 1970**

The U.S. Clean Air Act of 1970, or the CAA, regulates airborne pollution that may be potentially detrimental to human health, the environment or natural resources. The CAA and comparable state laws that govern air emissions affect U.S. coal mining operations both directly and indirectly.

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Direct impacts on coal mining and processing operations may occur through the CAA permitting requirements and/or emission control requirements relating to particulate matter, or PM, nitrogen dioxide, ozone and sulfur dioxide, or SO$_{2}$. For example, the U.S. Environmental Protection Agency, or the EPA, pursuant to the CAA, administers rules that apply PM emissions limits to emissions from coal preparation and processing plants constructed or modified after April 28, 2008. In addition, in recent years, the EPA has adopted more stringent national ambient air quality standards, or NAAQS for PM, nitrogen oxide, ozone and SO$_{2}$. It is possible that these modifications as well as future modifications to NAAQS could directly or indirectly impact our mining operations in a manner that includes, but is not limited to, the EPA designating new areas of the country as being in nonattainment of applicable NAAQS or expanding existing nonattainment areas, and prompting additional local control measures pursuant to state implementation plans, or SIPs, required to address such revised NAAQS. SIPs may be state-specific or regional in scope. Under the CAA, individual states have up to 12 years from the date of designation of attainment/nonattainment areas to secure reductions from emission sources.

The CAA also indirectly, but significantly, affects the U.S. coal industry by extensively regulating the SO$_{2}$, nitrogen oxides, mercury, PM, greenhouse gases, and other substances emitted by coal-burning facilities, such as steel manufacturers, coke ovens and coal fired electric power generating facilities. Over time, the EPA has promulgated or proposed CAA regulations to impose more stringent air emission standards for a number of these coal-burning industries, especially the power generation sector. While the EPA under the Trump Administration moved toward repealing or loosening some of those regulations, the Biden Administration has moved to restore some regulations, such as those governing mercury emissions. This is particularly the case for greenhouse gas emissions from coal-fired electric generating facilities, as President Biden has called for bringing the U.S. power sector to zero greenhouse gas emissions by 2035. However, in 2022, the United States Supreme Court limited the ability of EPA to regulate air emissions through 'beyond the fence line' regulations. Collectively, CAA regulations and uncertainty around future CAA requirements could reduce the demand for coal and, depending on the extent of such reduction, could have a material adverse effect on our business, financial condition and operations.

**NAAQS Revisions.** The CAA requires the EPA to periodically review and, if appropriate, revise the NAAQS to ensure protection of public health. In recent years, the EPA has reviewed the NAAQS for PM, ozone and SO$_{2}$. The PM NAAQS was last revised and made more stringent in 2012. Individual states have developed SIPs, which detail the PM emission reductions their sources must meet in order for the state to maintain or achieve the 2012 PM NAAQS. On April 14, 2020, the EPA announced its intention to retain, without changes, the 2012 PM NAAQS. This action was finalized by EPA on December 18, 2020. On June 10, 2021, EPA announced that it would reconsider this decision in light of scientific evidence pointing to health issues caused by exposure to PM. EPA expects to issue a proposed rule with more stringent standards for PM in Summer 2022 and a final rule in Spring 2023.

In 2015, the EPA issued a final rule reducing the primary ozone NAAQS from 75 to 70 parts per billion but retaining the existing secondary ozone NAAQS. States with moderate or high nonattainment areas must submit SIPs for the 2015 ozone NAAQS by October 2021. Environmental and industry groups challenged the 2015 ozone NAAQS in the U.S. Court of Appeals for the D.C. Circuit. On August 23, 2019, the court denied all the petitions for review against the 2015 primary NAAQS but concluded that the EPA had not provided a sufficient rationale for its decision on the 2015 secondary NAAQS and remanded that standard to the EPA. Prior to the court's decision, EPA initiated another periodic review of the ozone NAAQS. This most recent review culminated in a final rule by the EPA on December 31, 2020 to retain all aspects of the 2015 ozone NAAQS, including the secondary standard with additional rationale in response to the court's 2019 decision. It remains to be seen whether there will be legal challenges to the December 2020 final rule, or whether the EPA will reconsider the rule under the new administration. More stringent ozone or PM NAAQS, if promulgated, would require new SIPs to be developed and filed with the EPA and may trigger additional control technology for mining equipment or coal-burning facilities, or result in additional challenges to permitting and expansion efforts. This could also be the case with respect to the implementation of any new requirements triggered by any future, more stringent NAAQS for nitrogen oxide and SO$_{2}$, although the EPA promulgated a final rule on March 18, 2019 that retains, without revision, the existing NAAQS for SO$_{2}$ of 75 parts per billion average over an hour.

**Cross State Air Pollution Rule, or CSAPR.** The CAA includes a so-called Good Neighbor Provision that requires upwind states to eliminate their significant contributions to downwind states' nonattainment of the NAAQS. On July 6, 2011, the EPA finalized the CSAPR, which was meant to satisfy this Good Neighbor Provision. CSAPR requires the District of Columbia and 27 states from Texas eastward (not including the New England states or Delaware) to reduce power plant emissions that cross state lines and significantly contribute to ozone and/or fine

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particle pollution in downwind states. Following litigation in the D.C. Circuit and U.S. Supreme Court, the first phase of the nitrogen oxide and SO2 emissions reductions required by CSAPR commenced in January 2015; further reductions of both pollutants in the second phase of CSAPR became effective in January 2017.

EPA subsequently published the CSAPR Update Rule in 2016, seeking to impose nitrogen oxide emissions reductions in 22 upwind states subject to CSAPR. Subsequently, in 2018, EPA published the CSAPR Close-Out, which found that it would not be feasible to impose cost-effective emissions on twenty upwind states before 2023, which was two years after the CAA-mandated 2021 deadline for states to bring their areas of 'severe' nonattainment into compliance with the 2008 NAAQS. Both the CSAPR Update Rule and CSAPR Close-Out were subject to legal challenges and each was ultimately vacated by the United States Court of Appeals for the D.C. Circuit.

On March 15, 2021, EPA finalized a rule update that requires additional emissions reduction of nitrogen oxides from power plants in twelve states. Additional emission reduction requirements in these states could adversely affect the demand for coal.

On April 30, 2021, EPA finalized the Revised CSAPR Update Rule, which fully addressed twenty-one states' outstanding interstate pollution transport obligations for the 2008 NAAQS for ozone. For nine states, EPA found that their projected 2021 emissions do not significantly contribute to non-attainment and/or maintenance problems in downwind states. The remaining twelve states were found to contribute to the non-attainment and/or maintenance problems in downwind states. EPA indicated that it would issue new or amended Federal Implementation Plans requiring additional emissions reductions from electricity generating units in those states beginning in the 2021 ozone season.

*Mercury and Air Toxic Standards, or MATS.* The EPA published the final MATS rule in the Federal Register on February 16, 2012. The MATS rule revised the New Source Performance Standards, or NSPS, for nitrogen oxides, SO2 and PM for new and modified coal-fueled electricity generating plants, and imposed Maximum Achievable Control Technology, or MACT, emission limits on hazardous air pollutants, or HAPs, from new and existing coal-fueled and oil-fueled electricity generating plants. MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs. The rule provided three years for compliance with MACT standards and a possible fourth year if a state permitting agency determined that such was necessary for the installation of controls. Although the MATS rule has been and continues to be the subject of EPA review and litigation, it remains in effect and has contributed to the need for many coal-fired power plants to install addition pollution controls, convert to natural gas, or retire.

Following issuance of the final MATS rule, numerous petitions for review were filed. After proceedings before the U.S. Court of Appeals for the D.C. Circuit, the U.S. Supreme Court on June 29, 2015 held that EPA interpreted the CAA unreasonably when it deemed cost irrelevant to the decision to regulate HAPs from new and existing coal-fueled and oil-fueled power plants. The Supreme Court remanded the case to the D.C. Circuit, which ultimately allowed the rule to remain in effect while EPA promulgated a series of supplemental findings on the costs and benefits of the rule in response to the Supreme Court's ruling.

Most recently, on May 22, 2020, the EPA finalized a supplemental finding, or Supplemental Cost Finding, that health and environmental benefits not directly related to mercury pollution should not be included in the benefit portion of the analysis. Using this framework EPA found that the costs of the MATS rule 'grossly outweigh' any possible benefits and, therefore, that that regulating HAPs from coal-fired and oil-fired power plants is not 'appropriate and necessary' under the CAA. However, EPA determined that while it could revise the cost-benefit analysis for the MATS rule, it could not remove coal-fired plants from HAPs regulation. The MATS rule therefore remains in effect. EPA also determined in the Supplemental Cost Finding that the MATS rule is adequately protective of public health, as required by the CAA's residual risk and technology review provisions. Westmoreland Mining Holdings, a coal company, filed a petition with the D.C. Circuit in May 2020 challenging the legality of the MATS rule. Health and medical groups and other industry groups filed a petition of review opposing the Supplemental Cost Finding, and its reversal of the previous finding that it was 'appropriate and necessary' to regulate HAPs. Environmental groups also challenge the EPA's residual risk and technology review of the MATS rule, arguing that more stringent standards are necessary. This litigation remains ongoing. While the vast majority of coal-fired power producers have already complied with the 2012 MATS rule standards, any future reductions in the standards due to the ongoing litigation or additional EPA action could increase the cost of coal-fired electric power generation and negatively impact the demand for coal.

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*Clean Power Plan and Affordable Clean Energy, or ACE.* In 2014, the EPA proposed a sweeping rule, known as the “Clean Power Plan,” to cut carbon emissions from existing electricity generating units, including coal-fired power plants. A final version of the Clean Power Plan was adopted in August 2015. The Clean Power Plan aimed to reduce carbon dioxide emissions from electrical power generation by 32% by 2030 relative to 2005 levels through the reduction of emissions from coal-burning power plants and increased use of renewable energy and energy conservation methods. Under the Clean Power Plan, states were free to reduce emissions by various means and were to submit emissions reduction plans to the EPA by September 2016 or, with an approved extension, September 2018. If a state had not submitted a plan by then, the Clean Power Plan authorized the EPA to impose its own plan on that state. In order to determine a state’s goal, the EPA divided the country into three regions based on connected regional electricity grids. States were to implement their plans by focusing on (i) increasing the generation efficiency of existing fossil fuel plants, (ii) substituting lower carbon dioxide emitting natural gas generation for coal-powered generation and (iii) substituting generation from new zero carbon dioxide emitting renewable sources for fossil fuel powered generation. States were permitted to use regionally available low carbon generation sources when substituting for in-state coal generation and to coordinate with other states to develop multi-state plans.

Following adoption, in 2015 twenty-seven states sued the EPA in the D.C. Circuit, claiming that the EPA overstepped its legal authority in adopting the Clean Power Plan. In February 2016, the U.S. Supreme Court ordered the EPA to halt enforcement of the Clean Power Plan until the lower court ruled on the lawsuit and until the Supreme Court determined whether or not to hear the case.

In a parallel litigation, twenty-five states and other parties filed lawsuits challenging the EPA’s final NSPS rules for carbon dioxide emissions from new, modified, and reconstructed power plants under the CAA. One of the primary issues in these lawsuits was the EPA’s establishment of standards of performance based on technologies including carbon capture and sequestration, or CCS. New coal plants could not meet the new standards unless they implement CCS. In conjunction with the EPA’s proposal to rescind the Clean Power Plan, the EPA also requested a stay of the NSPS litigation. The D.C. Circuit granted the request.

In October 2017, the EPA commenced rulemaking proceedings to rescind the Clean Power Plan, and in December 2017, the EPA published an Advanced Notice of Proposed Rulemaking announcing its intent to commence a new rulemaking to replace the Clean Power Plan with an alternative framework for regulating carbon dioxide. The rulemaking would culminate in the EPA replacing the Clean Power Plan with ACE. On September 17, 2019, the U.S. Court of Appeals for the D.C. Circuit dismissed the Clean Power Plan litigation and NSPS litigation as moot in light of the ACE rule.

On June 19, 2019, the EPA finalized the ACE rule as a replacement for the Clean Power Plan. The ACE rule establishes emission guidelines for states to develop plans to address greenhouse gas emissions from existing coal-fired power plants. The ACE rule has several components: a determination of the best system of emission reduction for greenhouse gas emissions from coal-fired power plants, a list of “candidate technologies” states can use when developing their plans, and new implementing regulations for emission guidelines under Section 111(d) of the CAA. Unlike the Clean Power Plan, the ACE rule only includes as candidate technologies those that increase the efficiency of individual emission units, also referred to as heat rate improvement measures; the ACE rule does not include other methods such as co-firing with natural gas or adding renewable generation facilities.

Upon finalization of the ACE rule, the rule was subject to a challenge in the D.C. Circuit in American Lung Association et al. v. EPA, et al. On January 19, 2021, the D.C. Circuit vacated the ACE rule and remanded the question of the “best system of emission reduction” for carbon dioxide emissions from existing power plants to EPA for further consideration. In reaching its decision, the court found that ACE would not be the most effective means of reducing emissions, and further rejected the idea that EPA is limited under the Clean Air Act to only regulate emissions reductions at the source. On February 22, 2021, the D.C. Circuit granted EPA’s motion to stay issuance of the mandate to repeal until EPA could respond to the remand in a new rulemaking action.

In addition to potential CAA regulatory changes, it is possible that other future international, federal and state initiatives to control greenhouse gas emissions could increase costs associated with coal production and consumption, such as costs for additional controls to reduce carbon dioxide emissions or costs to purchase emissions reduction credits to comply with future emissions trading programs. Future regulation in the United States could occur pursuant to future treaty commitments, new domestic legislation or regulation by the EPA. On February 19, 2021, the United States rejoined the international climate agreement reached at the United

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Nations Framework Convention on Climate Change in Paris, France during December 2015, also known as the Paris Agreement. President Trump previously withdrew the United States from the Paris Agreement, beginning a four-year exit process. In an executive order, President Biden directed that federal agencies review recent actions that the President believes may interfere with the United States' participation in the Paris Agreement. While the Paris Agreement sets only voluntary pledges for reducing greenhouse gas emissions, the recent executive actions signal a shift toward consideration of new or more stringent federal regulations to further reduce greenhouse gas emissions in the United States. In addition, many states, regions and governmental bodies have already adopted their own greenhouse gas emission reduction initiatives and have or are considering the imposition of fees or taxes based on the such emission by certain facilities, including coal-fired electric generating facilities. Others have announced their intent to increase the use of renewable energy sources, with the goal of displacing coal and other fossil fuels. Federal legislation along these lines is also a possibility. Depending on the particular regulatory programs or new laws enacted at the federal and state levels, the demand for coal could be negatively impacted, which would have an adverse effect on our operations.

There have also been numerous challenges to the permitting of new coal-fired power plants by environmental organizations and state regulators for concerns related to greenhouse gas emissions. For instance, various state regulatory authorities have rejected the construction of new coal-fueled power plants based on the uncertainty surrounding the potential costs associated with greenhouse gas emissions under future laws. In addition, several permits issued to new coal-fueled power plants without greenhouse gas emission limits have been appealed to the EPA's Environmental Appeals Board. A federal appeals court allowed a lawsuit pursuing federal common law claims to proceed against certain utilities on the basis that they may have created a public nuisance due to their emissions of carbon dioxide, while a second federal appeals court dismissed a similar case on procedural grounds. The United States Supreme Court overturned that decision in June 2011, holding that federal common law provides no basis for public nuisance claims against utilities due to their carbon dioxide emissions. The United States Supreme Court did not, however, decide whether similar claims can be brought under state common law. As a result, tort-type liabilities remain a concern. To the extent that these risks affect our current and prospective customers, they may reduce the demand for coal-fired power, and may affect long-term demand for coal.

*Regional Haze.* The EPA promulgated a regional haze program designed to protect and to improve visibility at and around Class I Areas, which are generally national parks, national wilderness areas and international parks. This program may restrict the construction of new coal-fired power plants, the operation of which may impair visibility at and around the Class I Areas. Additionally, the program requires certain existing coal-fired power plants to install additional control measures designed to limit haze-causing emissions, such as SO2, nitrogen oxide and PM. States were required to submit Regional Haze SIPs to the EPA in 2007; however, many states did not meet that deadline. In 2016, the EPA finalized revisions to the Regional Haze Rule which addresses requirements for the second planning period. In September 2019, the EPA issued final regional haze guidance that indicates that a re-evaluation of sources already subject to best available retrofit technologies is likely unnecessary. The guidance also encourages states to balance visibility benefits against other factors in selecting the measures necessary to make 'reasonable progress' toward natural visibility conditions. Finally, when comparing various control options to determine which ones may be 'cost-effective', the final guidance recommends comparing cost to visibility benefits. SIPs were required by July 31, 2021. On August 30, 2022 EPA issued a final action finding that 15 states had failed to meet the July 31, 2021 deadline. Such failure triggers a two year deadline for EPA to promulgate a Federal Implementation Plan unless the states submits and EPA approves a SIP that meets the applicable requirements. If states adopt SIPs with more stringent requirements, demand for coal could be affected.

*New Source Review, or NSR.* Pursuant to NSR regulations, stationary sources of air pollution must obtain an NSR permit prior to beginning construction of a new 'major' source of emissions or a 'major' modification of an existing major source. If a project is determined to trigger NSR, Prevention of Significant Deterioration regulations require the project to implement Best Available Control Technology and/or Non-Attainment New Source Review Lowest Achievable Emission Rate control technology.

Beginning in the late 1990s, the EPA filed lawsuits against owners of many coal-fired power plants in the eastern U.S. alleging that the owners performed non-routine maintenance, causing increased emissions that should have triggered the application of these NSR standards. Some of these lawsuits have been settled with the owners agreeing to install additional emission control devices in their coal-fired power plants.

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The remaining litigation and uncertainty around the NSR program rules could impact demand for coal. In recent years, EPA proposed and promulgated several revisions to its NSR regulations and policies concerning NSR permitting. For example, one such change, known as the Project Emissions Accounting Rule on October 22, 2020, revises the NSR regulations to clarify that recent emission decreases can be considered in part of the NSR applicability test. In addition, the EPA on November 14, 2018 issued a final rule that clarified the appropriate test for determining whether two nominally separate modifications to existing facilities should be considered in a single NSR applicability analysis. While these changes have the potential to reduce NSR permitting burdens for coal-fired power plants and other coal-burning facilities, the Biden Administration has reversed some policies adopted by the Trump Administration and may seek to tighten NSR regulations and guidance.

**Coke Ovens.** Coke Oven Batteries and Coke Ovens: Pushing, Quenching, and Battery Stacks are two source categories regulated by the CAA. The initial technology-based standards for Coke Oven Batteries were promulgated by EPA in 1993. In 2003, EPA issued technology-based standards for Coke Ovens: Pushing, Quenching, and Battery Stacks. In 2005, EPA revised the technology-based standards and issued risk-based standards following a residual risk review. On June 26, 2020, the United States District Court for the Northern District of California found EPA had violated its statutory duty to perform a technology review of its initial technology-based standards for Coke Ovens: Pushing, Quenching, and Battery Stacks and a residual risk review of those standards. The court also found that EPA had violated its statutory duty to conduct a follow-up technology review and second residual risk review of the standards for Coke Oven Batteries. The court held that EPA has 30 months to comply with its statutory duty for these two source categories. To the extent that EPA ultimately promulgates more stringent technology-based standards as a result of the court-ordered technology and residual risk reviews, it could affect our current and prospective customers and may affect long-term demand for coal.

On January 21, 2021, President Biden issued an executive order that ordered the review of certain environmental regulations promulgated under the Trump administration. Those environmental regulations include ozone and particulate matter NAAQS, the ACE rule, and other air emission rules potentially affecting coal-fired power plants and other coal-burning facilities. It is unclear what affect this order will have on the demand for coal.

#### **Clean Water Act of 1972**

The U.S. Clean Water Act of 1972, or the CWA, and corresponding state law governs the discharge of toxic and non-toxic pollutants into the waters of the United States. CWA requirements may directly or indirectly affect U.S. coal mining operations.

**Water Discharge.** The CWA and corresponding state laws affect coal mining operations by imposing restrictions on discharges of wastewater into waters of the United States through the National Pollutant Discharge Elimination System, or NPDES, or an equally stringent program delegated to a state agency. The EPA and states may develop standards and limitations for certain pollutants, including through the technology-based standard program and water quality standard program. These restrictions often require us to pre-treat the wastewater prior to discharging it. NPDES permits require regular monitoring, reporting and compliance with effluent limitations. New requirements under the CWA and corresponding state laws may cause us to incur significant additional costs that could adversely affect our operating results.

**Dredge and Fill Permits.** Many mining activities, such as the development of refuse impoundments, fresh water impoundments, refuse fills, and other similar structures, may result in impacts to waters of the United States, including wetlands, streams and, in certain instances, man-made conveyances that have a hydrologic connection to such streams or wetlands. Under the CWA, coal companies are also required to obtain a Section 404 permit from the USACE prior to conducting certain mining activities, such as the development of refuse and slurry impoundments, fresh water impoundments, refuse fills and other similar structures that may affect waters of the United States, including wetlands, streams and, in certain instances, man-made conveyances that have a hydrologic connection to streams or wetlands. The USACE is authorized to issue general 'nationwide' permits for specific categories of activities that are similar in nature and that are determined to have minimal adverse effects on the environment. Permits issued pursuant to Nationwide Permit 21, or NWP 21, generally authorize the disposal of dredged and fill material from surface coal mining activities into waters of the United States, subject to certain restrictions. Since March 2007, permits under NWP 21 were reissued for a five-year period with new provisions intended to strengthen environmental protections. There must be appropriate mitigation in accordance with nationwide general permit conditions rather than less restricted state-required mitigation requirements, and permit holders must receive explicit authorization from the USACE before proceeding with

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proposed mining activities. The USACE may also issue individual permits for mining activities that do not qualify for Nationwide Permit 21.

The CWR/Navigable Waters Protection, or NWPR. Recent regulatory actions and court decisions have created some uncertainty over the scope of CWA jurisdiction. On June 29, 2015, the EPA and the USACE jointly promulgated final rules, collectively known as the Clean Water Rule, or the CWR, redefining the scope of waters protected under the CWA, revising regulations that had been in place for more than 25 years. These rules expanded the scope of CWA jurisdiction, making discharges into more bodies of water subject to the CWA's permitting and other requirements. Following the CWR's promulgation, numerous industry groups, states, and environmental groups challenged the CWR. On October 9, 2015, the U.S. Court of Appeals for the Sixth Circuit stayed the CWR's implementation nationwide, pending further action in court. Further, on February 28, 2017, President Trump signed an executive order directing the relevant executive agencies to review the CWR, and on July 27, 2017, the EPA and the USACE published a proposed rule to rescind the CWR. On January 22, 2018, the Supreme Court reversed the Sixth Circuit's decision, ruling that jurisdiction over challenges to the CWR rests with the federal district courts and not with the appellate courts, which was followed by the dissolution of the stay by the Sixth Circuit, and on February 6, 2018, in response to the January 2018 Supreme Court decision, the EPA and USACE published a final rule to postpone the adoption of CWR and maintain the status quo (the pre-2015 rule) through February 6, 2020 pending the agencies' review of the CWR. Multiple states and environmental groups have filed challenges to this delay. On August 16, 2018, the federal court in South Carolina enjoined the February 6, 2018 rule, effectively reinstating the CWR in Virginia and Pennsylvania (where we have operations) and in 24 other states.

On April 21, 2020, the EPA and the USACE published the Navigable Waters Protection Rules, or the NWPR. The NWPR revises the definition of waters of the United States, replacing the CWR. The NWPR shrinks the agencies' jurisdiction, particularly as it relates to tributaries and adjacent waters. The NWPR went into effect on June 22, 2020. The NWPR was enjoined in Colorado, but this decision was overturned by the Tenth Circuit Court of Appeals. On January 18, 2023, the EPA and the USACE published a final rule redefining 'waters of the United States.' The new definition reflects certain aspects of the pre-2015 definition as well as consideration of recent Supreme Court decisions. It enlarges the agencies' jurisdiction over waters as compared to the NWPR.

On April 22, 2020, in an unrelated case the Supreme Court ruled that provisions of the CWA require an NPDES permit when there is a direct discharge from a point source to navigable waters or the functionally equivalent discharge to groundwater. The NWPR, however, had excluded groundwater from the agencies' jurisdiction. On January 21, 2021, EPA issued guidance applying the ruling of the Supreme Court to the NPDES permitting program. Under the Biden Administration, the EPA rescinded this guidance memorandum, thus eliminating a new factor that likely would have reduced clean water protections.

On January 24, 2022, the United States Supreme Court agreed to hear a case that could undermine key provisions of the January 18, 2023 final rule. A decision is expected by June 2023. Litigation of the definition of waters of the United States is likely to continue. Uncertainty surrounding the definition of waters of the United States remains, including what impact it may have on our operations.

Effluent Limitations Guidelines for the Steam Electric Power Generating Industry. On September 30, 2015, the EPA published a final rule setting new or additional requirements for various wastewater discharges from steam electric power plants. The rule set zero discharge requirements for some waste streams, as well as new, more stringent limits for arsenic, mercury, selenium and nitrogen applicable to certain other waste streams. On April 12, 2019, the U.S. Court of Appeals for the Fifth Circuit agreed with environmental groups that the portions of the rule regulating legacy wastewater and residual combustion leachate are unlawful and vacated those portions of the rule.

On August 31, 2020, the EPA finalized a rule to revise the guidelines and standards for the steam electric power generating point source category applicable to two categories of wastewater streams regulated by the 2015 rule: flue gas desulfurization wastewater, or FGD, and bottom ash transport water, or BA. With respect to FGD, selenium standards are less stringent than under the 2015 rule, and certain types of facilities, such as facilities with high FGD flow, low utilization boilers and those set to retire coal combustion units, are subject to less stringent effluent limits. The compliance deadline for FGD technology-based wastewater limits was extended from December 31, 2023 to December 31, 2025. With respect to BA, the EPA, among other things, eliminated a strict no-discharge requirement and implemented a not-to-exceed ten-percent volumetric purge. We cannot at this time predict how this rule will be enforced by the new Biden administration or if it will seek a revision.

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The Biden Administration's January 20, 2021 executive order for review of environmental regulations indicated the Biden Administration would review the NWPR amongst other CWA-related regulations.

### Surface Mining Control and Reclamation Act of 1977

The Surface Mining Control and Reclamation Act of 1977, or the SMCRA, which is administered by the U.S. Office of Surface Mining Reclamation and Enforcement, or OSM, establishes operational, reclamation and closure standards for all aspects of surface mining and many aspects of underground mining in the United States. Unlike the CAA and the CWA, SMCRA is primarily concerned with the holistic regulation of coal mining as an industry. Its general environmental standards require surface operations to mine in such a way as to "maximize the utilization and conservation" of coal while using the best technology currently available to minimize land disturbance and adverse impacts on wildlife, fish, and environmental values. SMCRA requires operators to accomplish these goals by restoring the land to its approximate pre-mining condition and contour.

The SMCRA implements its environmental standards through "cooperative federalism." Under the SMCRA, a state may submit a qualifying surface mining regulatory scheme to the OSM, and request to exert exclusive jurisdiction over surface mining activities within its territory. If OSM finds that the state's scheme meets SMCRA's requirements and gives approval, the state becomes the primary regulatory authority with oversight from OSM. If a state has a surface mining regulatory scheme that is less stringent than the surface mining standards under SMCRA and OSM regulations, or if mining on federal lands is involved, the OSM will impose federal regulations on surface mining in that state. Each of Virginia, West Virginia and Pennsylvania, where our Buchanan, Logan, Greenbrier and Mon Valley operations are based, has adopted qualifying surface mining regulatory schemes and has primary jurisdiction over surface mining activities within their respective territories. However, even if a state gains approval for its surface mining regulatory program, the OSM retains significant federal oversight, including the ability to perform inspections of all surface mining sites to ensure state program and mine operator compliance with federal minimum standards. The OSM and its state counterparts also oversee and evaluate standards of:

- performance (both during operations and during reclamation);
- permitting (applications must describe the pre-mining environmental conditions and land use, the intended mining and reclamation standards, and the post-mining use);
- financial assurance (SMCRA requires that mining companies post a bond sufficient to cover the cost of reclaiming the site, and the bond is not released until mining is complete, the land has been reclaimed and the OSM has approved the release);
- inspection and enforcement (including the issuance of notices of violation and the placement of a mining operation, its owners and controllers on a federal database known as the Applicant Violator System, meaning that such person or entity is blocked from obtaining future mining permits); and
- land restrictions (SMCRA prohibits surface mining on certain lands and also allows citizens to challenge surface mining operations on the grounds that they will cause a negative environmental impact).

Regulations under the SMCRA and its state analogues provide that a mining permit or modification can, under certain circumstances, be delayed, refused or revoked if we or any entity that owns or controls us or is under common ownership or control with us have unabated permit violations or have been the subject of permit or reclamation bond revocation or suspension.

Under the SMCRA and its state law counterparts, all coal mining applications must include mandatory "ownership and control" information, which generally includes listing the names of the operator's officers and directors, and its principal stockholders owning 10% or more of its voting shares, among others. Ownership and control reporting requirements are designed to allow regulatory review of any entities or persons deemed to have ownership or control of a coal mine, and bar the granting of a coal mining permit to any such entity or person (including any "owner and controller") who has had a mining permit revoked or suspended, or a bond or similar security forfeited within the five-year period preceding a permit application or application for a permit revision. Similarly, regulatory agencies also block the issuance of permits to applicants, their owners or their controlling persons, who have outstanding permit violations that have not been timely abated.

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These regulations define certain relationships, such as owning over 50% of stock in an entity or having the authority to determine the manner in which the entity conducts mining operations, as constituting ownership and control. Certain other relationships are presumed to constitute ownership or control, including among others, the following:

- being an officer or director of an entity;
- being the operator of the coal mining operation;
- having the ability to commit the financial or real property assets or working resources of the permittee or operator; and
- owning of record 10% or more of the mining operator.

This presumption, in some cases, can be rebutted where the person or entity can demonstrate that it in fact does not or did not have authority directly or indirectly to determine the manner in which the relevant coal mining operation is conducted.

We must file an ownership and control notice each time an entity obtains a 10% or greater interest in us. If we or entities or persons deemed to have ownership of control of us have unabated violations of SMCRA or its state law counterparts, have a coal mining permit suspended or revoked, or forfeit a reclamation bond, we and our owners and controllers may be prohibited from obtaining new coal mining permits, or amendments to existing permits, until such violations or other matters are corrected. This is known as being "permit-blocked." Additionally, if an owner or controller of us is deemed an owner or controller of other mining companies, we could be permit-blocked based upon the violations of, or permit-blocked status of, an owner or controller of such other mining companies. If our owner or controller were to become permit blocked, this could adversely affect production from our properties.

In recent years, the permitting required for coal mining has been the subject of increasingly stringent regulatory and administrative requirements and extensive activism and litigation by environmental groups. After a permit application is prepared and submitted to the regulatory agency, it goes through a completeness and technical review. Public notice of the proposed permit is given for a comment period before a permit can be issued. Regulatory authorities have considerable discretion in the timing of the permit issuance and the public has the right to comment on and otherwise engage in the permitting process, including public hearings and through intervention in the courts. Monetary sanctions and, in certain circumstances, even criminal sanctions may be imposed for failure to comply with the SMCRA permits. Before a SMCRA permit is issued, a mine operator must submit a bond or other form of financial security to guarantee the performance of reclamation bonding requirements.

SMCRA provides for three categories of bonds: surety bonds, collateral bonds and self-bonds. A surety bond is an indemnity agreement in a sum certain payable to the regulatory authority, executed by the permittee as principal and which is supported by the performance guarantee of a surety corporation. A collateral bond can take several forms, including cash, letters of credit, first lien security interest in property or other qualifying investment securities. A self-bond is an indemnity agreement in a sum certain executed by the permittee or by the permittee and any corporate guarantor made payable to the regulatory authority. For our U.S. Operations, we meet our reclamation bonding requirements by posting surety bonds and participation in the Commonwealth of Virginia bond pool. Our total amount of reclamation surety bonds outstanding was approximately $28.5 million as of December 31, 2022. The surety bond requirements for a mine represent the calculated cost to reclaim the current operations if it ceased to operate in the current period. The cost calculation for each surety bond must be completed according to the regulatory authority of each state.

The SMCRA Abandoned Mine Land Fund requires a fee on all coal produced in the United States. The proceeds are used to rehabilitate lands mined and left unreclaimed prior to August 3, 1977 and to pay health care benefit costs of orphan beneficiaries of the Combined Fund created by the Coal Industry Retiree Health Benefit Act of 1992. The fee amount can change periodically based on changes in federal legislation. Pursuant to the Tax Relief and Health Care Act of 2006, from October 1, 2012 through September 30, 2021, the fee is $0.31 and $0.13 per Mt of surface-mined and underground-mined coal, respectively. See Item 2. "Properties" for information regarding reclamation and other taxes applicable to our U.S. mining properties.

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While SMCRA is a comprehensive statute, SMCRA does not supersede the need for compliance with other major environmental statutes, including the Endangered Species Act of 1973, or the ESA, CAA, CWA, the Resource Conservation and Recovery Act of 1976, or the RCRA, and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, or CERCLA.

#### ***National Environmental Policy Act of 1969***

The National Environmental Policy Act of 1969, or NEPA, applies to mining operations or permitting requirements that require federal approvals, NEPA requires federal agencies to evaluate the environmental impact of all 'major federal actions' significantly affecting the quality of the human environment. NEPA requires federal agencies, such as the EPA or the OSM, to incorporate environmental considerations in their planning and decision-making. The federal agency carrying out the requirements of NEPA must prepare a detailed statement assessing the environmental impact of and alternatives to the particular action requiring agency approval. These statements are referred to as Environmental Impact Statements or Environmental Assessments. NEPA also defines the processes for evaluating and communicating environmental consequences of federal decisions and actions, such as the permitting of new mine development on federal lands. U.S. coal mining companies must provide information to agencies with respect to proposed actions that will be under the authority of the federal government. The NEPA process involves public participation and can involve lengthy timeframes. Ultimately, federal agencies may require mitigation measures pursuant to their NEPA review.

On July 16, 2020, the White House Council on Environmental Quality, or the CEQ finalized a proposed rule, which went into effect on September 14, 2020. The new rule made it easier to obtain approval for new projects, including by eliminating the need to evaluate so-called cumulative impacts which could ultimately limit agencies' consideration of climate change and greenhouse gas emissions. However, pursuant to Executive Order 13990, CEQ began a comprehensive review of the 2020 rule and announced a phased approach to amending NEPA regulations. An Interim Final Rule was issued June 29, 2021 which extended the deadline for Federal agencies to develop or update their NEPA implementing procedures to conform to the CEQ regulations by two years.

#### ***Solid Waste Disposal Act of 1995 and Resource Conservation and Recovery Act of 1976***

The Solid Waste Disposal Act of 1965, or SWDA, was the first federal act to target waste disposal technology. The SWDA governs disposal of both municipal and industrial waste, promotes advancement of waste management technology and sets waste management standards. The SWDA was amended by the Resource Conservation and Recovery Act of 1976, or RCRA. RCRA affects U.S. coal mining operations by establishing 'cradle to grave' requirements for the generation, transportation, treatment, storage and disposal of solid and hazardous wastes. The RCRA also addresses the environmental effects of certain past hazardous waste treatment, storage and disposal practices, and may require a current or past site owner or operator to remove improperly disposed hazardous wastes. The RCRA also sets forth a framework for managing certain non-hazardous solid wastes. Part or all of the RCRA program may be delegated to a state pursuant to a state implementation plan if the state standards are at least as stringent as federal standards.

Subtitle C of the RCRA exempted fossil fuel combustion wastes from hazardous waste regulation until the EPA completed a report to Congress and made a determination on whether the wastes should be regulated as hazardous. On December 19, 2014, the EPA announced the final rule on disposal of coal combustion residuals, or CCR or coal ash, by electric utilities and independent power producers. As finalized, the rule continues the exemption of CCR from regulation as a hazardous waste, but does impose new requirements at existing CCR surface impoundments and landfills that will need to be implemented over a number of different time-frames in the coming months and years, as well as at new surface impoundments and landfills. On August 24, 2018, the U.S. Court of Appeals for the D.C. Circuit held that certain provisions of the EPA's CCR rule were not sufficiently protective, and it invalidated those provisions. Since then, the EPA has finalized changes to its CCR regulations in response to some aspects of the court's ruling, primarily to regulate unlined ponds but extend certain deadlines for initiating their closure, and allowing site-specific alternate liner determinations.

The Biden Administration's January 20, 2021 executive order for review of environmental regulations indicated that the Biden Administration will review environmental regulations affecting the management and disposal of CCR. On January 11, 2022, the EPA announced that it was taking steps to protect groundwater from coal ash contamination, including plans to finalize a federal permitting program for the disposal of coal ash and establishing regulations for legacy coal ash surface impoundments. We cannot predict at this time if and/or when such rules will go into effect.

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The EPA regulations on CCR management and disposal exempt coal ash that is disposed of at mine sites and reserve any regulation thereof to the Office of Surface Mining Reclamation and Enforcement or 'OSMRE.' After proposing CCR regulations in 2007, the OSMRE suspended all rulemaking actions on CCRs, but could re-initiate them in the future. In addition, while many mining wastes such as overburden and coal cleaning wastes are exempt from RCRA hazardous waste regulations, certain wastes may be subject to the RCRA's requirements. The RCRA also governs underground storage tanks containing hazardous substances and petroleum products, which are used in some coal mining operations, although we do not have underground storage tanks associated with our U.S. Operations.

The Biden Administration's January 20, 2021 executive order for review of environmental regulations indicated that the Biden Administration will review environmental regulations affecting the management and disposal of CCR. It is unclear what effect this order will have on the demand for coal.

#### ***Comprehensive Environmental Response, Compensation, and Liability Act of 1980***

Comprehensive Environmental Response, Compensation and Liability Act of 1980, or CERCLA, authorizes the federal government and private parties to recover costs to address threatened or actual releases of hazardous substances (broadly defined) that may endanger public health or the environment. Current owners and operators of contaminated sites, past owners and operators of contaminated sites at the time hazardous substances were disposed, parties that arranged for the disposal or transport of the hazardous substances and transporters of hazardous substances could be potentially responsible parties, or PRPs, under CERCLA. PRPs may be liable for costs related to contaminated sites, including, but not limited to, site investigation and cleanup costs incurred by the government or other parties, damages to natural resources and costs of certain health assessments or studies. In addition, CERCLA authorizes the federal government to order PRPs to conduct investigation and cleanup of releases of hazardous substances at certain contaminated sites.

CERCLA requires that a list of contaminated sites, referred to as the National Priorities List, be compiled by EPA using certain criteria to evaluate the potential relative risk to the public health and the environment from releases or threatened releases of hazardous substances. Strict, joint and several and retroactive liability may be imposed on hazardous substance generators and facility owners and operators, regardless of fault or the legality of the original disposal activity. The failure to comply with a federal government order under CERCLA may result in civil penalties, including fines and/or punitive damages, in addition to the costs incurred by the federal government due to the party's failure to comply with an order.

We could face liability under CERCLA and similar state laws for properties that (1) we currently own, lease or operate, (2) we, our predecessors, or former subsidiaries have previously owned, leased or operated, (3) sites to which we, our predecessors or former subsidiaries, sent waste materials, and (4) sites at which hazardous substances from our facilities' operations have otherwise come to be located.

#### ***Federal Mine Safety and Health Act of 1977***

The Mine Act, which was amended by the Mine Improvement and New Emergency Response Act of 2006, or the MINER Act, governs federal oversight of mine safety and authorizes the U.S. Department of Labor's Mine Safety and Health Administration, or MSHA, to regulate safety and health conditions for employees working in mines within the United States, and to enforce various mandatory health and safety requirements. The Mine Act mandates four annual inspections of underground coal mines, two annual inspections of all surface coal mines, and permits inspections in response to employee complaints of unsafe working conditions. The statute and its regulations also mandate miner training, mine rescue teams for all underground mines, and involvement of miners and their representatives in health and safety activities. MSHA has also promulgated regulations governing a wide range of activities, including roof support, ventilation, combustible materials, electrical equipment, fire protection, explosives and blasting, and mine emergencies. MSHA has the statutory authority to issue civil penalties for non-compliance, to set the period for abatement of violations, and to seek injunctive relief requiring a company to cease operations until certain conditions are corrected. The MINER Act requires mine specific emergency response plans in underground coal mines, implemented new regulations regarding mine rescue teams and sealing of abandoned areas, requires prompt notification of mine accidents, and imposes enhanced civil and criminal penalties for violations. Various states also have enacted their own new laws and regulations addressing many of these same subjects. MSHA continues to interpret and implement various provisions of the MINER Act, along with introducing new proposed regulations and standards. For example, the second phase of MSHA's respirable coal mine dust rule went into effect in February 2016 and requires increased sampling

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frequency and the use of continuous personal dust monitors. In August 2016, the third and final phase of the rule became effective, reducing the overall respirable dust standard in coal mines from 2.0 to 1.5 milligrams per cubic meter of air. In the last several years, MSHA has also proposed regulations governing respirable silica, and the exposure of miners to underground diesel exhaust fumes, and testing, evaluation, and approval of electric motor-driven mine equipment and accessories. MSHA has issued guidance for employers and workers regarding how to mitigate the risks of COVID-19 rather than mandatory standards. During a September 29, 2021 stakeholder call, MSHA leadership indicated that it would not issue an Emergency Temporary Standard requiring COVID-19 vaccinations or testing at mine sites.

#### **Black Lung (Coal Worker's Pneumoconiosis)**

The Mine Act amended the Federal Coal Mine Health and Safety Act of 1969, which is the legislation that mandates compensation for miners who were totally and permanently disabled by the progressive respiratory disease caused by coal workers' pneumoconiosis, or black lung. Under current federal law, a U.S. coal mine operator must pay federal black lung benefits and medical expenses to claimants who are current employees, and to claimants who are former employees who last worked for the operator after July 1, 1973, and whose claims for benefits are allowed. Coal mine operators must also make payments to a trust fund for the payment of benefits and medical expenses to claimants who last worked in the coal industry prior to July 1, 1973. The trust fund is funded by an excise tax on sales of U.S. production, excluding export sales, of up to $1.21 per Mt for deep-mined coal and up to $0.61 per Mt for surface-mined coal, each limited to 4.4% of the gross sales price. In 2019, these tax rates were cut in half compared to the pre-2019 level, falling to $0.61 per Mt of underground-mined coal or $0.31 per Mt of surface-mined coal, limited to 2% of the sales price. Our total excise taxes paid to this trust fund in 2020 were $0.9 million. In December 2019, President Trump signed into law a provision that restored the rate to its pre-2019 level through December 31, 2020. On December 27, 2020, then-President Trump extended the trust fund excise tax through December 31, 2021 at the pre-2019 rate. Historically, very few of the miners who sought federal black lung benefits were awarded these benefits; however, the approval rate has increased following implementation of black lung provisions contained in the Patient Protection and Affordable Care Act of 2010, or the Affordable Care Act. The Affordable Care Act introduced significant changes to the federal black lung program, including an automatic survivor benefit paid upon the death of a miner with an awarded black lung claim, and established a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition. These changes could have a material impact on our costs expended in association with the federal black lung program. In addition to possibly incurring liability under federal statutes, we may also be liable under state laws for black lung claims. See Note 20 to the accompanying audited Consolidated Financial Statements for further information of applicable insurance coverage.

#### **National Labor Relations Act of 1935**

The National Labor Relations Act of 1935, or the NLRA, governs collective bargaining and private sector labor and management relations. While we do not have a unionized workforce in the United States, to the extent that non-supervisory employees decide to seek representation or engage in other protected concerted labor activities, the NLRA and the rules promulgated by the National Labor Relations Board, or NLRB, set the parameters for employees' and union activity and our response. The NLRA applies to both unionized and non-union workforces. Any employee complaints related to the pandemic and any related labor actions, if they are tied to terms and conditions of employment that affect the workforce generally, will be governed by the NLRA. In addition, recent NLRB- promulgated rules regarding joint employer status under the NLRA clarified the basis upon which contractors and vendors, as well as their employees (and the unions representing them), could allege that we are jointly and severally liable for any unfair labor practices or bargaining obligations of the third-party employer. While the rules made the joint employer test generally more employer-friendly, there is always the possibility of claims that we are a joint employer with a contractor or vendor.

#### **Patient Protection and Affordable Care Act of 2010**

The United States Patient Protection and Affordable Care Act, or the Affordable Care Act, was enacted in March 2010 and included substantial reforms to the U.S. health care system intended to increase affordability of health insurance, expand the Medicaid program and support innovative health care delivery methods designed to lower costs. The Affordable Care Act included a number of provisions designed to reduce Medicare expenditures and the cost of health care generally, to reduce fraud and abuse, and to provide access to increased health coverage. For example, the law prohibits insurers from refusing to cover preexisting conditions, requires coverage for certain

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types of care, and can subject certain large employers to a shared responsibility payment if they do not offer health coverage to their full-time employees. The Affordable Care Act also created government-run, taxpayer-funded health insurance marketplaces (known as “Exchanges”).

The Affordable Care Act impacts the coal mining industry’s costs of providing health care benefits to its eligible active employees, with both short term and long term implications. It affects health care costs by, among other things, setting the maximum age for covered dependents to receive benefits at 26, requiring certain benefits for occupational disease related illnesses, and eliminating lifetime dollar limits on essential benefits per covered individual and restrictions on annual dollar limits on essential benefits per covered individual. The Affordable Care Act also included significant changes to the federal black lung program, including an automatic survivor benefit paid upon death of a miner with an awarded black lung claim and the establishment of a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition. The Affordable Care Act also provides lifetime benefits to certain dependents who survive the death of a miner, if the miner had been receiving the benefits before death. For additional information, please see above “-Black Lung (Coal Worker’s Pneumoconiosis).”

The Affordable Care Act has faced ongoing legal challenges, including litigation and legislation seeking to invalidate or modify some or all of the law or the manner in which it has been implemented. For example, the Further Consolidated Appropriations Act of 2020 repealed the “Cadillac tax,” which would have imposed a 40% tax on high-cost employer plans starting in 2022. The constitutionality of the individual mandate, and the entire Affordable Care Act, was challenged in the Fifth Circuit Court of Appeals, and is currently under review by the Supreme Court. The outcome of these cases is uncertain, and any change they make to the Affordable Care Act could have a significant impact on the U.S. health care industry and employers providing health coverage to their workers. Further, the fact that implementation of certain aspects of the Affordable Care Act can be affected by Executive Orders and regulations promulgated by federal governmental agencies that may change when a new President takes office also contributes to the uncertainty as to how the law will affect the U.S. health care industry and employers providing health coverage to their workers.

#### ***Safe Drinking Water Act of 1974***

The Safe Drinking Water Act of 1974, or SDWA, is the federal law that protects public drinking water supplies throughout the United States. Under the SDWA, the EPA sets federal health-based standards for drinking water quality and implements technical and financial programs to ensure drinking water safety. The SDWA requires regular monitoring and reporting of water quality. The SDWA is applicable to public water systems that have at least 15 service connections or serve at least 25 people per day for 60 days of the year. Further, SDWA standards apply to water systems based on their type and size. There are four categories: i) community water systems, ii) non-community water systems, iii) non-transient, non-community water systems and iv) transient non-community water systems.

The SDWA requires the EPA to establish National Primary Drinking Water Regulations for contaminants that may cause adverse public health effects. These regulations include mandatory requirements and non-enforceable health goals. The EPA sets regulations for drinking water system concentrations of certain organic contaminants, inorganic contaminants, microbiological contaminants, disinfection byproducts, residual disinfectant levels, and radionuclide levels. The EPA also sets filtration requirements for drinking water systems that vary depending on the size of the population served by the system.

The SDWA also regulates the underground injection of fluids into porous formations or rocks through wells and similar conveyance systems, and regulates the construction, operation, permitting and closure of such wells.

The SDWA can impact coal mining operations in the United States to the extent that the operations could impact drinking water supplies.

#### ***National Historic Preservation Act of 1966***

The National Historic Preservation Act of 1966, or NHPA, governs the preservation of historical properties throughout the United States. The NHPA requires the Department of the Interior’s National Park Service to implement the national policy to preserve for public use historic sites, buildings and objects of national significance for the inspiration and benefit of the people of the United States. Alternatively, a state may carry out this program with oversight from the Department of the Interior if the Department of the Interior approves the

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state's historic preservation program. In executing this policy, the National Park Service identifies National Historic Landmarks and places them on a National Register of Historic Places. The NHPA requires that each federal agency prior to authorizing expenditure of federal funds on a federal or federally assisted undertaking, or prior to issuing a federal license for such an undertaking, consider the effect of the undertaking on historic resources and to provide the Advisory Council on Historic Preservation with a reasonable opportunity to comment on the undertaking. Accordingly, the NHPA could create an additional level of scrutiny on a coal mining operation, particularly during the permitting process, to the extent that a mining operation could come within the scope of a historical site. The SMCRA also provides protection for historic resources that would be adversely affected by mining operations by requiring the OSM to comply with the NHPA. If a property is listed on the National Register of Historic Places, SMCRA requires consideration of the property's historic values in determining issuance of a surface coal mining permit.

#### ***Endangered Species Act of 1973***

The Endangered Species Act of 1973, or ESA, governs the protection of endangered species in the United States and requires the U.S. Department of the Interior's Fish and Wildlife Service and the National Oceanic and Atmospheric Administration's National Marine Fisheries Service to formally review any federally authorized, funded or administered action that could negatively affect endangered or threatened species. Under the ESA, the responsibilities of these agencies include listing and delisting species, designating critical habitats, developing recovery plans and conducting five-year reviews of listed species.

The Fish and Wildlife Service studies projects for possible effects to endangered species and then can recommend alternatives or mitigation measures. The OSM and state regulators require mining companies to hire a government-approved contractor to conduct surveys for potential endangered species, and the surveys require approval from state and federal biologists who provide guidance on how to minimize mines' potential effects on endangered species. Certain endangered species are more typically at issue under the ESA with respect to mining, including the long-eared bat and Guyandotte crayfish, which are found in the Central Appalachian region, including parts of Virginia and West Virginia. Mitigation methods can cause increased costs to coal mining operators. Changes in listings or requirements under these regulations could have a material adverse effect on our costs or our ability to mine some of our properties in accordance with our current mining plans. The ESA allows landowners to receive a special permit to take listed species in some circumstances, provided they have developed a Habitat Conservation Plan approved by the Fish and Wildlife Service.

The U.S. Department of the Interior issued three proposed rules in July 2018 aiming to streamline and update the ESA, and they became effective on September 26, 2019. The rules weaken the protections afforded species listed as threatened, and make it more difficult to add species to the threatened and endangered species lists and easier to delist species. However, on June 4, 2021, the Fish and Wildlife Service and the National Oceanic and Atmospheric Administration's National Marine Fisheries Service announced a plan to strengthen the ESA and revise or rescind regulations passed under the Trump Administration.

#### ***Migratory Bird Treaty Act of 1918***

The Migratory Bird Treaty Act of 1918, or MBTA, as modified by the Migratory Bird Treaty Reform Act of 2004, makes it unlawful without a waiver to pursue, hunt, take, capture, kill or sell migratory birds, or any part, nest or egg of any migratory bird. A migratory bird species is included on the list of species protected by the MBTA if it meets one or more of the following criteria: i) it occurs in the United States or U.S. territories as the result of natural biological or ecological processes and is currently, or was previously listed as, a species or part of a family protected by certain international treaties, or their amendments, entered into by the United States and Canada, Mexico, Japan or Russia; ii) revised taxonomy results in it being split from a species that was previously on the list, and the new species occurs in the United States or U.S. territories as the result of natural biological or ecological processes; or iii) new evidence exists for its natural occurrence in the United States or U.S. territories resulting from natural distributional changes and the species occurs in a protected family. The Migratory Bird Treaty Reform Act of 2004 requires the Fish and Wildlife Service to publish an informational list of all nonnative, human-introduced bird species to which MBTA does not apply. The most recent list of all nonnative, human-introduced bird species was published on April 16, 2020.

Since coal mining is seen as an industry that can threaten bird populations, coal operators are required to ensure that their operations do not negatively impact migratory birds, or to take mitigation measures. Violations of the

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MBTA are either misdemeanor or felonies punishable by a fine or imprisonment. Efforts in 2020 and 2021 to narrow the applicability of the MBTA were unsuccessful.

### **Regulation of explosives**

Our surface mining operations are subject to numerous regulations relating to blasting activities, including the Federal Safe Explosives Act, or SEA. SEA applies to all users of explosives. Knowing or willful violations of the SEA may result in fines, imprisonment, or both. In addition, violations of SEA may result in revocation of user permits and seizure or forfeiture of explosive materials. Pursuant to federal regulations, we incur costs to design and implement blast schedules and to conduct pre-blast surveys and blast monitoring. In addition, the storage of explosives is subject to strict regulatory requirements established by four different federal regulatory agencies. For example, pursuant to a rule issued by the Department of Homeland Security in 2007, facilities in possession of chemicals of interest, including ammonium nitrate at certain threshold levels, must complete a screening review in order to help determine whether there is a high level of security risk such that a security vulnerability assessment and site security plan will be required. The Bureau of Alcohol, Tobacco and Firearms and Explosives, or ATF, regulates the sale, possession, storage and transportation of explosives in interstate commerce. In addition to ATF regulation, the U.S. Department of Homeland Security is evaluating a proposed ammonium nitrate security program rule. In 2015, the OSM also proposed a rulemaking addressing nitrogen oxide clouds from blasting; on July 30, 2019, however, the OSM withdrew the proposed rulemaking.

### **Available Information**

We file annual, quarterly and current reports and other documents with the SEC under the Exchange Act. The public can obtain any documents that we file with the SEC at www.sec.gov. We also make available free of charge our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after filing such materials with, or furnishing such materials to, the SEC, on or through our internet website, https://coronadoglobal.com.au/. We are not including the information contained on, or accessible through, any website as a part of, or incorporating it by reference into, this Annual Report on Form 10-K, unless expressly noted.

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## ITEM 1A. RISK FACTORS.

An investment in our securities is speculative and involves a number of risks. We believe the risks described below are the material risks that we face. However, the risks described below may not be the only risks that we face. Additional unknown risks or risks that we currently consider immaterial, may also impair our business operations. You should carefully consider the specific risk factors discussed below, together with the information contained in this Annual Report on Form 10-K, including Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and our Consolidated Financial Statements and the related notes to those statements included elsewhere in this Annual Report on Form 10-K. If any of the events or circumstances described below actually occurs, our business, financial condition or results of operations could suffer, and the trading price of our securities could decline significantly.

Some of these risks include:

- • Concerns about the environmental impacts of coal combustion, including possible impacts on global climate issues, are resulting in increased regulation of coal combustion and coal mining in many jurisdictions, which could significantly affect demand for our products or our securities and reduce access to capital and insurance;
- • Demand for our Met coal is significantly dependent on the steel industry;
- • We are subject to extensive health and safety laws and regulations that could have a material adverse effect on our reputation and financial condition and results of operations;
- • In times of drought and/or shortage of available water, our operations and production, particularly at Curragh, could be negatively impacted if the regulators impose restrictions on our water offtake licenses that are required for water used in the CPPs;
- • Our business may be adversely affected by the impact on the global economy due to, among other events, the ongoing military conflict between Russia and Ukraine or other significant geopolitical tensions;
- • Our business, financial condition and results of operations may be adversely impacted by global pandemics, including the COVID-19 pandemic, or other widespread public health concerns;
- • Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and can fluctuate widely based upon a number of factors beyond our control;
- • We face increasing competition, which could adversely affect profitability;
- • We may face restricted access to international markets in the future;
- • If transportation for our coal becomes unavailable or uneconomic for our customers, our ability to sell coal could suffer;
- • Take-or-pay arrangements within the coal industry could unfavorably affect our profitability;
- • A decrease in the availability or increase in costs of key supplies, capital equipment, commodities and purchased components, such as diesel fuel, steel, explosives and tires could materially and adversely affect our financial condition and results of operations;
- • Defects in title or loss of any leasehold interests in our properties could limit our ability to mine these properties or result in significant unanticipated costs;
- • We may be unable to obtain, renew or maintain permits necessary for our operations, which would reduce coal production, cash flows and profitability;
- • A shortage of skilled labor in the mining industry could pose a risk to achieving improved labor productivity;
- • The existence (or claimed existence) of native title on land within our Australian tenements may impose restrictions on the construction of our expansion activities and our continued operations;
- • Risks inherent to mining operations could impact the amount of coal produced, cause delay or suspend coal deliveries, or increase the cost of operating our business;
- • Our long-term success depends upon our ability to continue discovering, or acquiring and developing assets containing, coal reserves that are economically recoverable;
- • We rely on estimates of our recoverable resources and reserves, which are complex due to geological characteristics of the properties and the number of assumptions made;

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- • *Our profitability could be affected adversely by the failure of suppliers and/or outside contractors to perform;*
- • *Our inability to replace or repair damaged or destroyed equipment or facilities in a timely manner could materially and adversely affect our financial condition and results of operations;*
- • *Our ability to operate effectively could be impaired if we lose key personnel or fail to attract qualified personnel;*
- • *We may not have adequate insurance coverage for some business risks;*
- • *Cybersecurity attacks, natural disasters, terrorist attacks and other similar crises or disruptions may negatively affect our business, financial condition and results of operations;*
- • *Mining in the CAPP is more complex and involves more regulatory constraints than mining in other areas of the U.S., which could affect our mining operations and cost structures in these areas;*
- • *The loss of, or significant reduction in, purchases by our largest customers could adversely affect our revenues;*
- • *If a substantial number of our customers fail to perform under our contracts with them, our revenues and operating profits could suffer;*
- • *If our ability to collect payments from customers is impaired, our revenues and operating profits could suffer;*
- • *Our existing and future indebtedness may limit cash flow available to invest in the ongoing needs of our businesses, which could prevent us from fulfilling our obligations under our senior secured notes, senior secured asset-based revolving credit agreement in an initial aggregate principal amount of \$100.0 million, or the ABL Facility (more fully discussed in the Management Discussion & Analysis Section at Item 7, 'Liquidity and Capital Resources'), and other debt, and we may be forced to take other actions to satisfy our obligations under our debt, which may not be successful;*
- • *We adjust our capital structure from time to time and may need to increase our debt leverage, which would make us more sensitive to the effects of economic downturns;*
- • *Our business may require substantial ongoing capital expenditures, and we may not have access to the capital required to reach full productive capacity at our mines;*
- • *Risks related to our investment in WICET may adversely affect our financial condition and results of operations;*
- • *Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations;*
- • *We could be adversely affected if we fail to appropriately provide financial assurances for our obligations;*
- • *Mine closures entail substantial costs. If we prematurely close one or more of our mines, our operations and financial performance would likely be affected adversely;*
- • *If the assumptions underlying our provision for reclamation and mine closure obligations prove to be inaccurate, we could be required to expend greater amounts than anticipated;*
- • *We could be negatively affected if we fail to maintain satisfactory labor relations;*
- • *Our operations may impact the environment or cause exposure to hazardous substances, which could result in material liabilities to us; and*
- • *We are subject to extensive forms of taxation, which impose significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal competitively;*

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## Environmental and Sustainability Risks

***Concerns about the environmental impacts of coal combustion, including possible impacts on global climate issues, are resulting in increased regulation of coal combustion and coal mining in many jurisdictions, which could significantly affect demand for our products or our securities and reduce access to capital and insurance.***

Global concerns about climate change continues to attract considerable attention, particularly in relation to the coal industry. Emissions from coal consumption, both directly and indirectly, and emissions from coal mining itself are subject to pending and proposed regulation as part of initiatives to address global climate change. A number of countries, including Australia and the United States, have already introduced, or are contemplating the introduction of, regulatory responses to GHGs, including the extraction and combustion of fossil fuels, to address the impacts of climate change.

There are three primary sources of GHGs associated with the coal industry. First, the end use of our coal by our customers in coal-fired electricity generation, coke plants, and steelmaking. Second, combustion of fuel by equipment used in coal production and to transport our coal to our customers. Third, coal mining itself can release methane, which is considered to be a more potent GHG than carbon dioxide, directly into the atmosphere. These emissions from coal consumption, transportation and production are subject to pending and proposed regulation, in the jurisdictions in which we operate as part of initiatives to address global climate change.

As a result, numerous proposals have been made and are likely to continue to be made at the international, national, regional and state levels of government to monitor and limit emissions of GHGs. In November 2014, an agreement was announced between the United States and China to cut GHGs by more than 25% below 2005 levels by 2025. This agreement was followed by the UNFCCC, conference in Paris, France, in which an agreement was adopted calling for voluntary emissions reductions contributions, or the Paris Agreement. The Paris Agreement was entered into force on November 4, 2016 after ratification and execution by more than 55 countries, which account for at least 55% of global GHG emissions. The Paris Agreement was signed by representatives from 195 countries and aims to hold back the increase in global temperatures, increase the ability of countries to adapt to the adverse impacts of climate change and provide channels to finance projects that lead to GHG reductions.

On November 20, 2022, the Sharm el-Sheik Conference of Parties 27, or COP27, continued discussions around fossil fuels from Glasgow Conference of Parties 26, which called on governments to accelerate the dissemination of technologies, and the adoption of policies, to transition toward a low-emission energy system, including by accelerating the phasedown of unabated coal power, that is coal power that does not include the capture and storage of carbon dioxide emission and phase-out of inefficient fossil fuel subsidies.

In addition, the growth of alternative energy options, such as renewables and disruptive power generation technologies, changes in community or government attitudes to climate change, government measures to subsidize renewable energy production while reducing subsidies for the fossil fuel industry, efforts to promote divestment of fossil fuel equities and pressure from lenders to limit funding to fossil fuel companies could result in further development of alternative energy industries and broader mainstream acceptance of alternative energy options which could result in a material reduction in the demand for coal. It could also result in reduced access to capital to fund our activities as lenders and investors divert capital to low emission sectors of the economy.

The absence of regulatory certainty, global policy inconsistencies and direct regulatory impacts (such as carbon taxes or other charges) each have the potential to adversely affect our operations-either directly or indirectly, through suppliers and customers. Collectively, these initiatives and developments could result in higher electricity costs to us or our customers or lower the demand for coal used in electricity generation, which could in turn adversely impact our business.

At present, we are principally focused on Met coal production, which is not used in connection with the production of coal-fired electricity generation. The market for our coal may be adversely impacted if comprehensive legislation or regulations focusing on GHG emission reductions are adopted, particularly if they directly or indirectly impact the Met coal industry, or if our ability to obtain capital for operations is materially reduced.

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We and our customers may also have to invest in carbon, capture, usage and storage technologies in order to burn thermal coal and comply with future GHG emission standards. The potential direct and indirect financial impact on us from future laws, regulations, policies and technology developments may depend upon the degree to which any such laws, regulations and developments force reduced reliance on coal as a fuel source. Such developments could result in adverse impacts on our financial condition or results of operations. See Item 1. 'Business-Regulatory Matters-Australia' and 'Business-Regulatory Matters-United States.'

# ***Demand for our Met coal is significantly dependent on the steel industry.***

The majority of the coal that we produce is Met coal that is sold, directly or indirectly, to steel producers and is used in blast furnaces for steel production. Met coal, specifically high-quality HCC and low-volatile PCI, which is produced at most of our assets, has specific physical and chemical properties, which are necessary for efficient blast furnace operation. Therefore, demand for our Met coal is correlated to demands of the steel industry. The steel industry's demand for Met coal is influenced by a number of factors, including: the cyclical nature of that industry's business; general economic and regulatory conditions and demand for steel; and the availability, cost and preference for substitutes for steel, such as aluminum, composites and plastics, all of which may impact the demand for steel products. Similarly, if new steelmaking technologies or practices are developed that can be substituted for Met coal in the integrated steel mill process, then demand for Met coal would be expected to decrease.

Although conventional blast furnace technology has been the most economic large-scale steel production technology for a number of years, there can be no assurance that over the longer term, competitive technologies not reliant on Met coal would not emerge, which could reduce the demand and price premiums for Met coal. A significant reduction in the demand for steel products would reduce the demand for Met coal, which could have a material adverse effect on our financial condition and results of operations.

Additionally, tariffs imposed by the United States on the import of certain steel products may impact foreign steel producers to the extent their production is imported into the United States. Future tariffs could further reduce imports of steel and increase U.S. Met coal demand. This additional U.S. Met coal demand could be met by reducing exports of Met coal and redirecting that volume to domestic consumption.

The tariffs established by the United States have prompted retaliatory tariffs from key trading partners, notably Europe and China. Any further retaliatory tariffs by these or other countries to these tariffs may limit international trade and adversely impact global economic conditions. We cannot ascertain the impact, if any, that similar tariffs may have on demand for our Met coal. See '-We may face restricted access to international markets in the future.'

# ***We are subject to extensive health and safety laws and regulations that could have a material adverse effect on our reputation and financial condition and results of operations.***

We are subject to extensive laws and regulations governing health and safety at coal mines in the United States and Australia. As a result of increased stakeholder focus on health and safety issues (such as black lung disease or coal workers' pneumoconiosis), there is a risk of legislation and regulatory change that may increase our exposure to claims arising out of current or former activities or result in increased compliance costs (e.g., through requiring improved monitoring standards or contribution to an industry-pooled fund). Regulatory agencies also have the authority, following significant health and safety incidents, such as fatalities, to order mining operations to be temporarily suspended or the facility be permanently closed. For example, on January 12, 2020, operations at our Curragh mine were temporarily suspended after a contractor was fatally injured during a tire change activity in the main workshop on site and on November 21, 2021, operations at our Curragh mine were temporarily suspended after an employee was fatally injured while working in the dragline operations. If further serious safety incidents were to occur at any of our mining facilities in the future, it is possible that a regulator might impose a range of conditions on re-opening of a facility, including requiring capital expenditures, which could have an adverse effect on our reputation, financial condition and results of operations.

For additional information about the various regulations affecting us, see Item 1. 'Business-Regulatory Matters-Australia' and 'Business-Regulatory Matters-United States.'

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# ***Failure to comply with applicable anti-corruption and trade laws, regulations and policies could result in fines and criminal penalties, causing a material adverse effect on our business, operating and financial prospects or performance.***

Any fraud, bribery, misrepresentation, money laundering, violations of applicable trade sanctions, anti-competitive behavior or other misconduct by our employees, contractors, customers, service providers, business partners and other third parties could result in violations of relevant laws and regulations by us and subject us or relevant individuals to corresponding regulatory sanctions or other claims, and could also result in an event of default under our financing arrangements. These unlawful activities and other misconduct may have occurred in the past and may occur in the future and may result in civil and criminal liability under increasingly stringent laws relating to fraud, bribery, sanctions, competition and misconduct or cause serious reputational or financial harm to us. In addition, failure to comply with environmental, health or safety laws and regulations, privacy laws and regulations, U.S. trade sanctions, the U.S. Foreign Corrupt Practices Act and other applicable laws or regulations could result in litigation, the assessment of damages, the imposition of penalties, suspension of production or distribution, costly changes to equipment or processes due to required corrective action, or a cessation or interruption of operations.

We have policies and procedures to identify, manage and mitigate legal risks and address regulatory requirements and other compliance obligations. However, there can be no assurance that such policies, procedures and established internal controls will adequately protect us against fraudulent or corrupt activity and such activity could have an adverse effect on our reputation, financial condition and results of operations.

# ***In times of drought and/or shortage of available water, our operations and production, particularly at Curragh, could be negatively impacted if the regulators impose restrictions on our water offtake licenses that are required for water used in the CPPs.***

In Queensland, all entitlements to the use, control and flow of water are vested in the state and regulated by the Water Act 2000 (Qld). Allocations under the Water Act 2000 (Qld) can be managed by a water supply scheme operator, such as SunWater Ltd. We have purchased the required water allocations for Curragh and entered into a suite of related channel and pipeline infrastructure agreements and river supply agreements with SunWater Ltd to regulate the supply of water pursuant to these allocations.

The amount of water that is available to be taken under a water entitlement will vary from year to year and is determined by water sharing rules of the relevant catchment area. These rules will, for example, state a procedure for water supply scheme holders to calculate the water available to an allocation holder, based on available and predicted supply. In situations of severely constrained supply (such as during a drought), supply contracts with the scheme operator generally provide for a reduced apportionment, with certain uses (e.g., domestic use) being given higher priority. It is possible that during times of drought our water offtake entitlements in Australia could be reduced. If our water offtake entitlement was reduced, the operations would have to recycle more of the water collected in on-site dams and former mining pits, from rainfall and dewatering activities, for use in the Curragh CPP. This may impact our ability to maintain current production levels without incurring additional costs, which could adversely impact our operations and production.

# ***Decreases in demand for coal-fired electricity and changes in thermal coal consumption patterns of the United States and Australian electric power generators could adversely affect our business.***

In addition to Met coal, our Australian Operations and U.S. Operations produce some thermal coal. Sales of thermal coal represented 34.7% of tons sold and 5.3% of the total revenues of our Australian Operations for the year ended December 31, 2022. The majority of the thermal coal produced by our Australian Operations is sold on a long-term supply arrangement to Stanwell. Sales of thermal coal by our Australian Operations to domestic and export buyers are exposed to fluctuations in the global demand for thermal coal or electricity. However, coal sold to Stanwell is not directly exposed to fluctuations in the global demand for electricity or thermal coal. Under the Stanwell supply contract, Stanwell can set volumes, and pricing is set at significantly below-market rates. Our cost of supplying coal to Stanwell has been and may continue to be greater than the price paid by Stanwell. See '-Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations.'

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For the year ended December 31, 2022, sales of thermal coal represented 4.3% of tons sold and 3.7% of the total revenues our U.S. Operations for the year ended December 31, 2022. As such, any changes in coal consumption by electric power generators in the United States could impact our business over the long term.

While power generation from thermal coal remains a cost-effective form of energy, the increasing focus on renewable energy generation, competition from alternative fuel sources, such as natural gas, environmental regulations and the consequential decline in electricity generation from fossil fuels, is expected to result in the further decline of coal-fired electricity generation due to retirement of coal-fired capacity in favor of alternative energy. The low price of natural gas has resulted in some U.S. electric power generators increasing natural gas consumption while decreasing coal consumption.

Further reductions in the demand for coal-fired electricity generation and the growth of alternative energy options, such as renewables, and alternate power generation technologies, as well as any reduction in demand for electricity could materially reduce the demand for thermal coal, which may have a material adverse effect on our financial condition and results of operations.

## Economic, Competitive and Industry Risks

***Our business may be adversely affected by the impact on the global economy due to, among other events, the ongoing military conflict between Russia and Ukraine or other significant geopolitical tensions.***

Global markets are experiencing volatility and disruption following the geopolitical tensions and the military invasion of Ukraine by Russia. This military conflict has led to, and may lead to additional, sanctions and other penalties being levied by the United States, the European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine and the two separatist republics in the Donetsk and Luhansk regions of Ukraine, including expansive bans on imports and exports of products to and from Russia.

We are unable to predict the extent and duration of the ongoing military conflict, which could lead to further market disruptions, including significant volatility in commodity prices, including the coal we sell and fuel we purchase, instability in the financial markets, higher inflation, supply chain interruptions, political and social instability as well as an increase in cyberattacks and espionage. Further, sanctions, and any other measures, as well as the existing and potential further responses from Russia or other countries to such sanctions, could adversely affect the global economy and financial markets, which could in turn have an adverse impact on our financial condition and results of operations or heighten other risks described in this Item 1A, 'Risk Factors'.

***Our business, financial condition and results of operations may be adversely impacted by global pandemics, including the COVID-19 pandemic, or other widespread public health concerns.***

Global pandemics, including the COVID-19 pandemic, or other widespread public health concerns could have an adverse effect on our business, financial condition and results of operations.

International, federal, state and local public health and governmental authorities' mandates in response to global pandemics could require forced shutdowns of our mines and other facilities in Australia and the U.S. for extended periods, restrict movement and the implementation of social distancing protocols and restrict travelling overseas or across borders (including interstate), affecting a number of our normal business practices and operations. These restrictions could cause disruptions to mining operations, manufacturing operations and supply chains around the world.

The extent and duration of the impact that global pandemics, including the COVID-19 pandemic, and other public health concerns could have in our business and results of operations will depend on numerous factors out of our control that we may not be able to accurately predict and could also heighten other risks described in this 'Item 1A. Risk Factors' section, which could have a material adverse impact in our business and results of operations.

***Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and can fluctuate widely based upon a number of factors beyond our control.***

We generate revenue from the sale of coal and our financial results are materially impacted by the prices we receive. Prices and quantities under Met coal sales contracts in North America are generally based on expectations of the next year's coal prices at the time the contract is entered into, renewed, extended or re-opened. Pricing in the global seaborne market is typically set on a rolling quarterly average benchmark price.

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Sales by our U.S. Operations to the export market are typically priced with reference to a benchmark index. Sales by our Australian Operations have typically been contracted on an annual basis and are priced with reference to benchmark indices or bilaterally negotiated term prices and spot indices. As a result, a significant portion of our revenue is exposed to movements in coal prices and any weakening in Met or thermal coal prices would have an adverse impact on our financial condition and results of operations.

The expectation of future prices for coal depends upon many factors beyond our control, including the following:

- the current market price of coal;
- overall domestic and global economic conditions, including inflationary conditions and the supply of and demand for domestic and foreign coal, coke and steel;
- the consumption pattern of industrial consumers, electricity generators and residential users;
- weather conditions in our markets that affect the ability to produce Met coal or affect the demand for thermal coal;
- competition from other coal suppliers;
- technological advances affecting the steel production process and/or energy consumption;
- the costs, availability and capacity of transportation infrastructure; and
- the impact of domestic and foreign governmental policy, laws and regulations, including the imposition of tariffs, environmental and climate change regulations and other regulations affecting the coal mining industry, including regulations and measures introduced in response to the COVID-19 pandemic.

Met coal has been a volatile commodity over the past ten years. Recently, in the second quarter of 2022, seaborne prices reached record levels with both the Australian and U.S. Met coal price indices exceeding $600 per Mt, largely as result of supply concerns in key Met coal markets and continued trade flow disruptions due to sanctions imposed on Russia's coal imports following Russian invasion of Ukraine. The demand and supply in the Met coal industry changes from time to time. There are no assurances that oversupply will not occur, that demand will not decrease or that overcapacity will not occur, which could cause declines in the prices of coal, which could have a material adverse effect on our financial condition and results of operations.

In addition, coal prices are highly dependent on the outlook for coal consumption in large Asian economies, such as China, India, South Korea and Japan, as well as any changes in government policy regarding coal or energy in those countries. Seaborne Met coal import demand can also be significantly impacted by the availability of local coal production, particularly in the leading Met coal import countries of China and India, among others, and the competitiveness of seaborne Met coal supply, including from the leading Met coal exporting countries of Australia, the United States, Russia, Canada and Mongolia, among others.

We face increasing competition, which could adversely affect profitability.

Competition in the coal industry is based on many factors, including, among others, world supply, price, production capacity, coal quality and characteristics, transportation capability and costs, blending capability, brand name and diversified operations. We are subject to competition from Met coal producers from Australia, the United States, Russia, Canada, Mongolia and other Met coal producing countries. Should those competitors obtain a competitive advantage in comparison to us (whether by way of an increase in production capacity, higher realized prices, lower operating costs, export/import tariffs, being comparatively less impacted as a result of global pandemics or otherwise), such competitive advantage may have an adverse impact on our ability to sell, or the prices at which we are able to sell coal products. In addition, some of our competitors may have more production capacity as well as greater financial, marketing, distribution and other resources than we do and may be subject to less stringent environmental and other regulations than we are.

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The consolidation of the global Met coal industry in recent years has contributed to increased competition, and our competitive position may be adversely impacted by further consolidation among market participants or by further competitors entering into and exiting bankruptcy proceedings under a lower cost structure. Similarly, potential changes to international trade agreements, trade concessions or other political and economic arrangements may benefit coal producers operating in countries other than the United States and Australia. Other coal producers may also develop or acquire new projects to increase their coal production, which may adversely impact our competitiveness. Some of our global competitors have significantly greater financial resources, such that increases in their coal production may affect domestic and foreign Met coal supply into the seaborne market and associated prices and impact our ability to retain or attract Met coal customers. In addition, our ability to ship our Met coal to non-U.S. and non-Australian customers depends on port and transportation capacity. Increased competition within the Met coal industry for international sales could result in us not being able to obtain throughput capacity at port facilities, as well as transport capacity, and could cause the rates for such services to increase to a point where it is not economically feasible to export our Met coal.

Increased competition, or a failure to compete effectively, in the markets in which we participate may result in a loss of market share and could adversely affect our financial condition and results of operations.

***We may face restricted access to international markets in the future.***

Access to international markets may be subject to ongoing interruptions and trade barriers due to policies and tariffs of individual countries, and the actions of certain interest groups to restrict the import or export of certain commodities. For example, the current imposition of tariffs and import quota restrictions by China on U.S. and Australian coal imports respectively, including the ongoing suspension of imports of Australian coal into China, may in the future have a negative impact on our profitability. The timing of any change to these measures remains uncertain, and there can be no guarantee that other tariffs, import quota restrictions, bans or other trade barriers will not be imposed (whether as a result of geopolitical tensions or for other reasons), either by China or in other markets for our products. We may or may not be able to access alternate markets for our coal should additional interruptions and trade barriers occur in the future. An inability for Met coal suppliers to access international markets, including China, would likely result in an oversupply of Met coal and may result in a decrease in prices or the curtailment of production, which could have a material adverse effect on our financial condition and results of operations.

***If transportation for our coal becomes unavailable or uneconomic for our customers, our ability to sell coal could suffer.***

Our mining operations produce coal, which is transported to customers by a combination of road, rail, barge and ship. The delivery of coal produced by our mining operations is subject to potential disruption and competition from other network users, which may affect our ability to deliver coal to our customers and may have an impact on productivity and profitability. Such disruptions to transportation services may include, among others:

- disruptions due to weather-related problems;
- key equipment or infrastructure failures;
- industrial action;
- rail or port capacity congestion or constraints;
- commercial disputes;
- failure to obtain consents from third parties for access to rail or land, or access being removed or not granted by regulatory authorities;
- changes in applicable regulations;
- failure or delay in the construction of new rail or port capacity; and
- terrorist attacks, natural disasters, the impact from global pandemics, including the COVID-19 pandemic, or other events.

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Any such disruptions, or any deterioration in the reliability of services provided by our transportation service providers, could impair our ability to supply coal to our customers, result in decreased shipments and revenue and adversely affect our results of operations.

Typically, we sell coal at the mine gate and/or loaded into vessels at the port. While ordinarily our coal customers arrange and pay for transportation of coal from the mine or port to the point of use, we have entered into arrangements with third parties to gain access to transportation infrastructure and services where required, including road transport organizations, rail carriers and port owners. Where coal is exported or sold other than at the mine gate, the costs associated with these arrangements represent a significant portion of both the total cost of supplying coal to customers and of our production costs. As a result, the cost of transportation is not only a key factor in our cost base, but also in the purchasing decision of customers. Transportation costs may increase and we may not be able to pass on the full extent of cost increases to our customers. For example, where transportation costs are connected to market demand, costs may increase if usage by us and other market participants increases. Significant increases in transport costs due to factors such as fluctuations in the price of diesel fuel, electricity and demurrage or environmental requirements could make our coal less competitive when compared to coal produced from other regions and countries. As the transportation capacity secured by our port and rail agreements is based on assumed production volumes, we may also have excess transportation capacity (which, in the case of take-or-pay agreements, we may have to pay for even if unused) if our actual production volumes are lower than our estimated production volumes. Conversely, we may not have sufficient transportation capacity if our actual production volumes exceed our estimated production volumes, if we are unable to transport the full capacity due to contractual limitations or if any deterioration in our relationship with brokers and intermediaries results in a reduction in the proportion of coal purchased FOR from our U.S. Operations (and a corresponding increase in the proportion of coal purchased FOB).

# ***Take-or-pay arrangements within the coal industry could unfavorably affect our profitability.***

Our Australian Operations generally contract port and rail capacity via long-term take-or-pay contracts for transport, currently with Aurizon Operations Limited and Pacific National Pty Ltd, to and export from the Port of Gladstone via two main port terminals, RGTCT and WICET. At our U.S. Operations, we also have a take-or-pay agreement in connection with the Kinder Morgan Pier IX Terminal in Hampton Roads, Virginia. We may enter into other take-or-pay arrangements in the future.

Where we have entered into take-or-pay contracts, we will generally be required to pay for our contracted port or rail capacity, even if it is not utilized by us or other shippers. Although the majority of our take-or-pay arrangements provide security over minimum port and rail infrastructure availability, unused port or rail capacity can arise as a result of varying unforeseen circumstances, including insufficient production from a given mine, a mismatch between the timing of required port and rail capacity for a mine, or an inability to transfer the used capacity due to contractual limitations, such as required consent of the provider of the port or rail services, or because the coal must emanate from specified source mines or be loaded onto trains at specified load points. Paying for unused transport capacity could materially and adversely affect our cost structures and financial performance. See Item 7. 'Management's Discussion and Analysis of Financial Condition and Results of Operations' for a summary of our expected future obligations under take-or-pay arrangements as of December 31, 2022.

# ***A decrease in the availability or increase in costs of key supplies, capital equipment, commodities and purchased components, such as diesel fuel, steel, explosives and tires could materially and adversely affect our financial condition and results of operations.***

Our mining operations require a reliable supply of large quantities of fuel, explosives, tires, steel-related products (including roof control materials), lubricants and electricity. The prices we pay for commodities are strongly impacted by the global market. In situations where we have chosen to concentrate a large portion of purchases with one supplier, it has been to take advantage of cost savings from larger volumes of purchases and to support security of supply. If the cost of any of these key supplies or commodities increased significantly, or if a source for these supplies or mining equipment was unavailable to meet our replacement demands, including as a result of the COVID-19 pandemic or otherwise, our profitability could be reduced or we could experience a delay or halt in our production.

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Prices for equipment, materials, supplies and employee labor contractor services increased during 2022, and could continue to increase in 2023 and beyond. Long-term inflationary pressures may result in such prices continuing to increase more quickly than expected. Inflation increases costs for materials, labor and services, and we may be unable to secure these resources on economically acceptable terms or offset such costs with increased revenues, operating efficiencies, or cost savings, which may adversely impact our financial condition, results of operations, liquidity, and cash flows.

Our coal production and production costs can be materially and adversely impacted by unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment. For example, operation of the thermal dryer located at the CPP at Buchanan is dependent upon the delivery of natural gas and there is currently only one natural gas supplier in the area, an affiliate of CONSOL Energy. Although we have entered into a gas purchase agreement with CONSOL Energy, this agreement can be terminated by CONSOL Energy on 30 days' notice and any delay or inability to negotiate a replacement agreement would impact our costs of production as we would need to change our processing method at Buchanan.

# ***Defects in title or loss of any leasehold interests in our properties could limit our ability to mine these properties or result in significant unanticipated costs.***

In Queensland, where all of our Australian Operations are carried out, exploring or mining for coal is unlawful without a tenement granted by the Queensland government. The grant and renewal of tenements are subject to a regulatory regime and each tenement is subject to certain conditions. There is no certainty that an application for the grant of a new tenement or renewal of one of the existing Tenements at Curragh will be granted at all or on satisfactory terms or within expected timeframes. Further, the conditions attached to the Tenements may change at the time they are renewed. There is a risk that we may lose title to any of our granted Tenements if we fail to comply with the Tenement conditions and other applicable legislative requirements (including payment of State royalties) or if the land that is subject to the title is required for public purposes. The Tenements have expiration dates ranging from May 31, 2023 to July 31, 2044 and, where renewal is required, there is a risk that the Queensland government may change the terms and conditions of such Tenement upon renewal.

In the United States, title to a leased property and mineral rights is generally secured prior to permitting and developing a property. In some cases, we rely on title information or representations and warranties provided by our lessors, grantors or other third parties. Our right to mine some of our reserves may be adversely affected if defects in title or boundaries exist or if a lease expires. Any challenge to our title or leasehold interests could delay the exploration and development of the property and could ultimately result in the loss of some or all of our interest in the property and, accordingly, require us to reduce our estimated coal reserves. In addition, if we mine on property that we do not own or lease, we could incur civil damages or liability for such mining and be subject to conversion, negligence, trespass, regulatory sanction and penalties. Some leases have minimum production requirements or require us to commence mining operations in a specified term to retain the lease. Failure to meet those requirements could result in losses of prepaid royalties and, in some rare cases, could result in a loss of the lease itself.

In the United States, we predominantly access our mining properties through leases with a range of private landholders. If a default under a lease for properties on which we have mining operations resulted in the termination of the applicable lease, we may have to suspend mining or significantly alter the sequence of such mining operations, which may adversely affect our future coal production and future revenues.

To obtain leases or mining contracts to conduct our U.S. Operations on properties where defects exist or to negotiate extensions or amendments to existing leases, we may in the future have to incur unanticipated costs. In addition, we may not be able to successfully negotiate new leases or mining contracts for properties containing additional reserves or maintain our leasehold interests in properties where we have not commenced mining operations during the term of the lease.

A defect in our title or the loss of any lease or Tenement upon expiration of its term, upon a default or otherwise, could adversely affect our ability to mine the associated reserves or process the coal we mine.

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# ***We may be unable to obtain, renew or maintain permits necessary for our operations, which would reduce coal production, cash flows and profitability.***

Our performance and operations depend on, among other things, being able to obtain on a timely basis, and maintain, all necessary regulatory approvals, including any approvals arising under applicable mining laws, environmental regulations and other laws, for our current operations, expansion and growth projects. Examples of regulatory approvals that we must obtain and maintain include mine development approvals, environmental permits and, in Australia, tenure and approvals relating to native title and indigenous cultural heritage. In addition, our operations depend on our ability to obtain and maintain consents from private land owners and good relations with local communities.

The requirement to obtain and maintain approvals and address potential and actual issues for former, existing and future mining projects is common to all companies in the coal sector. However, there is no assurance or guarantee that we will obtain, secure, or be able to maintain any or all of the required consents, approvals and rights necessary to maintain our current production profile from our existing operations or to develop our growth projects in a manner which will result in profitable mining operations and/or achieve our long-term production targets. The permitting rules, and the interpretations of these rules, are complex, change frequently and are often subject to the interpretation of the regulators that enforce them, all of which may make compliance more difficult or impractical, and may possibly preclude the continuance of ongoing operations or the development of future mining operations. Certain laws, such as the SMCRA, require that certain environmental standards be met before a permit is issued. The public, including non-governmental organizations, anti-mining groups and individuals, have certain statutory rights to comment upon and submit objections to requested permits and environmental impact statements. These comments are prepared in connection with applicable regulatory processes, and the public may otherwise engage in the permitting process, including bringing lawsuits to challenge the issuance of permits, the validity or adequacy of environmental impact statements or performance of mining activities. In states where we operate, applicable laws and regulations also provide that a mining permit or modification can, under certain circumstances, be delayed, refused or revoked if we or any entity that owns or controls or is under common ownership or control with us have unabated permit violations or have been the subject of permit or reclamation bond revocation or suspension. Thus, past or ongoing violations of federal and state mining laws by us or such entity could provide a basis to revoke existing permits and to deny the issuance of additional permits or modification or amendment of existing permits. In recent years, the permitting required for coal mining has been the subject of increasingly stringent regulatory and administrative requirements and extensive activities and litigation by environmental groups. If this trend continues, it could materially and adversely affect our mining operations, development and expansion and cost structures, the transport of coal and our customers' ability to use coal produced by our mines, which, in turn, could have a material adverse effect on our financial condition and results of operation.

In particular, certain of our activities require a dredge and fill permit from the USACE under Section 404 of the CWA. In recent years, the Section 404 permitting process has been subject to increasingly stringent regulatory and administrative requirements and a series of court challenges, which have resulted in increased costs and delays in the permitting process. In addition, in 2015, the EPA and the USACE issued the CWR, under the CWA that would further expand the circumstances when a Section 404 permit is needed. The CWR is the subject of extensive ongoing litigation and administrative proceedings, as a result of which the CWR has been enjoined in certain states (including West Virginia) and reinstated in others (including Virginia and Pennsylvania), and its current and future impact on our operations are the subject of significant uncertainty. On April 21, 2020, the EPA and the USACE published the NWPR, replacing the CWR. The NWPR revises the definition of waters of the United States and replaces the CWR. The NWPR shrinks the agencies' jurisdiction, particularly as it relates to tributaries and adjacent waters, such as wetlands, that were previously covered by the definition under the CWR. The NWPR went into effect on June 22, 2020. States and environmental groups have filed challenges to the NWPR in various federal district courts. We cannot at this time predict how this rule will be enforced in the future.

Additionally, we may rely on nationwide permits under the CWA Section 404 program for some of our operations. These nationwide permits are issued every five years, and the 2017 nationwide permit program was recently reissued in January 2017. If we are unable to use the nationwide permits and require an individual permit for certain work, that could delay operations.

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If we are unable to obtain and maintain the approvals, consents and rights required for our current and future operations, or if we obtain approvals subject to conditions or limitations, the economic viability of the relevant projects may be adversely affected, which may in turn result in the value of the relevant assets being impaired, which could have a material adverse effect on our financial condition and results of operations.

# ***A shortage of skilled labor in the mining industry could pose a risk to achieving improved labor productivity.***

Efficient coal mining using modern techniques and equipment requires skilled laborers, preferably with at least a year of experience and proficiency in multiple mining tasks. Any reduced availability or future shortage of skilled labor in the Australian and U.S. mining industries (including, but not limited to, ongoing labor shortage at the Logan operations which has impacted production at our U.S. Operations and as a result of the impact of COVID-19 pandemic) could result in our having insufficient personnel to operate our business, or expand production, particularly in the event there is an increase in the demand for our coal, which could adversely affect our financial condition and results of operations.

# ***The existence (or claimed existence) of native title on land within our Australian tenements may impose restrictions on the construction of our expansion activities and our continued operations.***

In Australia, mineral exploration and mining tenure (and many other forms of tenure or interests in land) may cover land that is subject to a claim for native title or land where native title has already been determined to exist. Native title is the communal, group or individual rights and interests of Aboriginal or Torres Strait Islander people in relation to their traditional land or waters. The existence of native title in Australia is recognized and protected in accordance with the Native Title Act 1993 (Cth), or the Native Title Act, and legislation in each State and Territory. The common law of Australia recognizes a form of native title that, in circumstances where it has not been extinguished, reflects the entitlement of the appropriate traditional owners to their lands, in accordance with their traditional law and custom.

If native title is either determined to exist or there are registered, but undetermined, native title claims over any part of the tenements and native title has not otherwise been extinguished with respect to that part, we may be required to negotiate with, and pay compensation to, the native title holders for impairment, loss or diminution or other effect of the proposed activities on their native title rights and interests. Compensation obligations may also arise pursuant to agreements with native title claimants or native title holders in relation to any tenements we acquire. The existence of native title or a registered native title claim may preclude or delay the granting of exploration and mining tenements pending resolution of the statutory procedures imposed by the Native Title Act and considerable expenses may be incurred in negotiating and resolving native title issues.

The risk of unforeseen native title claims also could affect existing operations as well as development projects. Although native title will not prevent the exercise of any validly granted rights and interests under our tenements, the Native Title Act and applicable State and Commonwealth legislation, together with the recognition of native title at common law, may impact the continued operations under our tenements, development projects and the construction of our expansion activities and/or give rise to liability for compensation.

The Aboriginal Cultural Heritage Act 2003 (Qld) and the Torres Strait Islander Cultural Heritage Act 2003 (Qld) provide a framework for the protection of Aboriginal and Torres Strait Islander cultural heritage. The main mechanism through which each act operates is a list of places and artifacts of heritage significance. The acts also create offenses such as breach of the cultural heritage duty of care. This duty of care requires a person carrying out an activity to take all reasonable and practicable measures to ensure the activity does not harm Aboriginal cultural heritage.

In addition, it may also be necessary for us to enter into separate arrangements with the traditional owners of the sites. This could be costly for us and potentially cause delays in our continued operational and expansion activities.

Although the failure to resolve any issues associated with sites of indigenous heritage significance could adversely impact our expansion activities and our continuing operations, there are no such current or anticipated issues.

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# Operational and Technology Risks

***Risks inherent to mining operations could impact the amount of coal produced, cause delay or suspend coal deliveries, or increase the cost of operating our business.***

Our mining operations, including exploration, development, preparation, product handling and accessing transport infrastructure, may be affected by various operational difficulties that could impact the amount of coal produced at our coal mines, cause delay or suspend coal deliveries, or increase the cost of mining for a varying length of time. Our financial performance is dependent on our ability to sustain or increase coal production and maintain or increase operating margins. Our coal production and production costs are, in many respects, subject to conditions and events beyond our control, which could disrupt our operations and have a significant impact on our financial results. Adverse operating conditions and events that we may have experienced in the past or may experience in the future include:

- a failure to achieve the Met coal qualities or quantities anticipated from exploration activities;
- variations in mining and geological conditions from those anticipated, such as variations in coal seam thickness and quality, and geotechnical conclusions;
- operational and technical difficulties encountered in mining, including equipment failure, delays in moving longwall equipment, drag-lines and other equipment and maintenance or technical issues;
- adverse weather conditions or natural or man-made disasters, including hurricanes, cyclones, tornadoes, floods, droughts, bush fires, seismic activities, ground failures, rock bursts, structural cave-ins or slides and other catastrophic events (such as the COVID-19 pandemic that has caused significant disruption across nearly all industries and markets, including global supply chain shortages, the impact of which, continues to be uncertain);
- insufficient or unreliable infrastructure, such as power, water and transport;
- industrial and environmental accidents, such as releases of mine-affected water and diesel spills (both of which have affected our Australian Operations in the past);
- industrial disputes and labor shortages;
- mine safety accidents, including fatalities, fires and explosions from methane and other sources;
- competition and conflicts with other natural resource extraction and production activities within overlapping operating areas, such as natural gas extraction or oil and gas development;
- unexpected shortages, or increases in the costs, of consumables, spare parts, plant and equipment;
- cyber-attacks that disrupt our operations or result in the dissemination of proprietary or confidential information about us to our customers or other third parties; and
- security breaches or terrorist acts.

If any of the foregoing conditions or events occurs and is not mitigated or excusable as a force majeure event under our coal sales contracts, any resulting failure on our part to deliver coal to the purchaser under such contracts could result in economic penalties, demurrage costs, suspension or cancellation of shipments or ultimately termination of such contracts, which could have a material adverse effect on our financial condition and results of operations.

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Our U.S. Operations are concentrated in a small number of mines in the CAPP and our Australian Operations include one mine in the Bowen Basin of Australia. As a result, the effects of any of these conditions or events may be exacerbated and may have a disproportionate impact on our results of operations and assets. Any such operational conditions or events could also result in disruption to key infrastructure (including infrastructure located at or serving our mining activities, as well as the infrastructure that supports freight and logistics). These conditions and events could also result in the partial or complete closure of particular railways, ports or significant inland waterways or sea passages, potentially resulting in higher costs, congestion, delays or cancellations on some transport routes. Any of these conditions or events could adversely impact our business and results of operations.

***Our long-term success depends upon our ability to continue discovering, or acquiring and developing assets containing, coal reserves that are economically recoverable.***

Our recoverable reserves decline as we produce coal. Our long-term outlook depends on our ability to maintain a commercially viable portfolio of coal reserves that are economically recoverable. Failure to acquire or discover new coal reserves or develop new assets could negatively affect our financial condition and results of operations. Exploration activity may occur adjacent to established assets and in new regions. These activities may increase land tenure, infrastructure and related political risks. Failure to discover or acquire new coal reserves, replace coal reserves or develop new assets or operations in sufficient quantities to maintain or grow the current level of reserves could negatively affect our financial condition and results of operations.

Potential changes to our portfolio of assets through acquisitions and divestments may have an adverse effect on future results of operations and financial condition. From time to time, we may add assets to, or divest assets from, our portfolio. There are a number of risks associated with historical and future acquisitions or divestments, including, among others:

- adverse market reaction to such acquisitions and divestments or the timing or terms on which acquisitions and divestments are made;
- imposition of adverse regulatory conditions and obligations;
- political and country risk;
- commercial objectives not being achieved as expected;
- unforeseen liabilities arising from changes to the portfolio;
- sales revenues and operational performance not meeting expectations;
- anticipated synergies or cost savings being delayed or not being achieved; and
- inability to retain key staff and transaction-related costs being more than anticipated.

These factors could materially and adversely affect our financial condition and results of operations.

***We rely on estimates of our recoverable resources and reserves, which are complex due to geological characteristics of the properties and the number of assumptions made.***

We rely on estimates of our recoverable resources and reserves. In this Annual Report on Form 10-K, we report our estimated resources and reserves in accordance with subpart 1300 of Regulation S-K under the Exchange Act. See Item 2, "Properties." Subpart 1300 of Regulation S-K requires us to disclose our mineral resources, in addition to our mineral reserves. In addition, as an ASX-listed company, our ASX disclosures follow the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012, or the JORC Code. Accordingly, our estimates of resources and reserves in this Annual Report on Form 10-K and in other reports that we are required to file with the SEC may be different than our estimates of resources and reserves as reported in our ASX disclosures.

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Coal is economically recoverable when the price at which it can be sold exceeds the costs and expenses of mining and selling the coal. The costs and expenses of mining and selling the coal are determined on a mine-by-mine basis, and as a result, the price at which our coal is economically recoverable varies based on the mine. We base our resource and reserve information on geologic data, coal ownership information and current and proposed mine plans, and mining cost assumptions may be affected by changes in mine planning or scheduling over time. There are numerous uncertainties inherent in estimating quantities and qualities of coal and costs to mine recoverable reserves, including many factors beyond our control. There are inherent uncertainties and risks associated with such estimates, including:

- geologic and mining conditions, which may not be fully identified by available exploration data and may differ from our experience and assumptions in areas we currently mine;
- current and future market prices for coal, contractual arrangements, operating costs and capital expenditures;
- severance and excise taxes, unexpected governmental taxes, royalties, stamp duty and development and reclamation costs;
- future mining technology improvements;
- the effects of regulation by governmental agencies;
- the ability to obtain, maintain and renew all required permits;
- employee health and safety; and
- historical production from the area compared with production from other producing areas.

Except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Even if a mineral resource exists, there can be no assurance that any part of such mineral resource will ever be converted to mineral reserves.

In addition, estimates of coal resources and reserves are revised based on actual production experience, and/or new exploration information and therefore the estimates of coal resources and reserves are subject to change. Should we encounter geological conditions or qualities different from those predicted by past drilling, sampling and similar examinations, estimates of coal resources and reserves may have to be adjusted and mining plans, coal processing and infrastructure may have to be altered in a way that might adversely affect our operations. As a result, our estimates may not accurately reflect our actual future coal resources and reserves.

As a result, the quantity and quality of the coal that we recover may be less than the resource and reserve estimates included in this Annual Report on Form 10-K. If our actual coal resources and reserves are less than current estimates, or the rate at which they are recovered is less than estimated or results in higher than estimated cost, our financial condition and results of operations may be materially adversely affected.

***Our profitability could be affected adversely by the failure of suppliers and/or outside contractors to perform.***

We use contractors and other third parties for exploration, mining and other services generally, and are reliant on several third parties for the success of our current operations and the development of our growth projects. While this is normal for the mining industry, problems caused by third parties may arise, which may have an impact on our performance and operations. In particular, the majority of workers at our Australian Operations are employed by contractors, including Thiess Pty Ltd, Golding Contractors Pty Ltd, and Wolff Mining Pty Ltd.

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Operations at our mines may be interrupted for an extended period in the event that we lose any of our key contractors (because their contract is terminated or expires) and are required to replace them. There can be no assurance that skilled third parties or contractors will continue to be available at reasonable rates. As we do not have the same control over contractors as we do over employees, we are also exposed to risks related to the quality or continuation of the services of, and the equipment and supplies used by, our contractors, as well as risks related to the compliance of our contractors with environmental and health and safety legislation and internal policies, standards and processes. Any failure by our key contractors to comply with their obligations under our operating agreements with them (whether as a result of financial, safety or operational difficulties or otherwise), any termination or breach of our operating agreements by our contractors, any protracted dispute with a contractor, any inability to perform due to global pandemics or other health concerns, including the COVID-19 pandemic, any material labor dispute between our contractors and their employees or any major labor action by those employees against our contractors, could have a material adverse effect on our financial condition and results of operations.

Further, in periods of high commodity prices, demand for contractors may exceed supply resulting in increased costs or lack of availability of key contractors. Disruptions of operations or increased costs also can occur as a result of disputes with contractors or a shortage of contractors with particular capabilities. To the extent that any of the foregoing risks were to materialize, our operating results and cash flows could be adversely affected.

# ***Our inability to replace or repair damaged or destroyed equipment or facilities in a timely manner could materially and adversely affect our financial condition and results of operations.***

We depend on several major pieces of mining equipment and facilities to produce and transport coal, including, but not limited to, longwall mining systems, continuous miners, draglines, dozers, excavators, shovels, haul trucks, conveyors, CPPs and rail loading and blending facilities. Obtaining and repairing these major pieces of equipment often involves long lead times. If any of these pieces of equipment and facilities suffers major damage or is destroyed by fire, abnormal wear and tear, flooding, incorrect operation or otherwise, we may be unable to replace or repair them in a timely manner or at a reasonable cost, which would impact our ability to produce and transport coal and could materially and adversely affect our financial condition and results of operations. Our ability to replace or repair damaged or destroyed equipment or facilities may also be dependent on suppliers or manufacturers remaining operational and having the relevant equipment, work force or services available for us. Suppliers and manufacturers may be unable to provide such equipment, work force or service for a range of reasons, including but not limited to their business suffering adverse effects as a result of global pandemics, including the COVID-19 pandemic.

Additionally, regulatory agencies sometimes make changes with regard to requirements for pieces of equipment. Such changes can impose costs on us and can cause delays if manufacturers and suppliers are unable to make the required changes in compliance with mandated deadlines.

# ***Our ability to operate effectively could be impaired if we lose key personnel or fail to attract qualified personnel.***

The loss of key personnel and the failure to recruit sufficiently qualified staff could affect our future performance. We have entered into employment contracts with a number of key personnel in Australia and the United States, including our Managing Director and Chief Executive Officer, Garold Spindler, our Chief Operating Officer, Australia, Douglas Thompson, our Group Chief Financial Officer, Gerhard Ziems, and Chief Operating Officer U.S., Jeffrey Bitzer. On January 17, 2023, Coronado announced that Mr. Spindler will retire from his role as Chief Executive Officer and transition to the position of Executive Chair of the Board of Directors, and the Company also announced that Mr. Thompson will be appointed as Chief Executive Officer of the Company. Mr. Spindler's and Mr. Thompson's new positions will be effective immediately following the Company's 2023 Annual General Meeting of Stockholders.

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Mr. Spindler's, Mr. Thompson's, Mr. Ziems' and Mr. Bitzer's expertise and experience in the mining industry are important to the continued development and operation of our mining interests. However, there is no assurance that such personnel will remain with us for the term of their employment contracts or beyond. In the United States, we have not entered into employment contracts with any of our key personnel (other than Mr. Spindler and his direct reports), meaning that we do not have the benefit of notice provisions or non-compete restraints with these employees. There may be a limited number of persons with the requisite experience and skills to serve in our senior management positions. We may not be able to locate or employ qualified executives on acceptable terms. In addition, as our business develops and expands, we believe that our future success will depend greatly on our continued ability to attract and retain highly skilled personnel with coal industry experience in Australia and the United States. We may not be able to continue to employ key personnel or attract and retain qualified personnel in the future. The loss of such key personnel or the failure to recruit sufficiently qualified employees may affect our business and future performance.

# ***We may not have adequate insurance coverage for some business risks.***

We have insurance coverage for certain operating risks that provide limited coverage for some potential liabilities associated with our business. As a result of market conditions, premiums and deductibles for certain insurance policies can increase substantially, and in some instances, certain insurance may become unavailable or available only for reduced amounts of coverage. As a result, we may not be able to renew our existing insurance policies or procure other desirable insurance on commercially reasonable terms, if at all. In addition, we may become subject to liability (including in relation to pollution, occupational illnesses or other hazards), or suffer loss resulting from business interruption, for which we are not insured (or are not sufficiently insured) or cannot insure, including liabilities in respect of past activities.

Should we suffer a major uninsured loss, future financial performance could be materially adversely affected. In addition, insurance may not continue to be available at economically acceptable premiums or coverage may be reduced. As a result, the insurance coverage may not cover the full scope and extent of claims against us or losses we may incur. The occurrence of a significant adverse event not fully or partially covered by insurance could have a material adverse effect on our financial condition and results of operations.

# ***Cybersecurity attacks, natural disasters, terrorist attacks and other similar crises or disruptions may negatively affect our business, financial condition and results of operations.***

Our business may be impacted by disruptions such as cybersecurity attacks or failures, threats to physical security, and extreme weather conditions or other natural disasters. Strategic targets, such as energy-related assets, may be at greater risk of future terrorist or cybersecurity attacks than other targets in the United States or Australia. These disruptions or any significant increases in energy prices that follow could result in government-imposed price controls. Our insurance may not protect us against such occurrences. It is possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition and results of operations.

In addition, a disruption in, or failure of, our information technology systems could adversely affect our business operations and financial performance. We rely on the accuracy, capacity and security of our information technology, or IT, systems for the operations of many of our business processes and to comply with regulatory, legal and tax requirements. While we maintain some of our critical IT systems, we are also dependent on third parties to provide important IT services relating to, among other things, human resources, electronic communications and certain finance functions. Despite the security measures that we have implemented, including those related to cybersecurity, our systems could be breached or damaged by computer viruses, natural or man-made incidents or disasters or unauthorized physical or electronic access. Though we have controls in place, we cannot provide assurance that a cyber-attack will not occur.

Furthermore, we may have little or no oversight with respect to security measures employed by third-party service providers, which may ultimately prove to be ineffective at countering threats. Failures of our IT systems, whether caused maliciously or inadvertently, may result in the disruption of our business processes, the unauthorized release of sensitive, confidential or otherwise protected information or the corruption of data, which could adversely affect our business operations and financial performance. We may be required to incur significant costs to protect against and remediate the damage caused by such disruptions or system failures in the future.

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# ***Mining in the CAPP is more complex and involves more regulatory constraints than mining in other areas of the U.S., which could affect our mining operations and cost structures in these areas.***

Mining in the CAPP is more complex and involves more regulatory constraints than mining in other areas of the United States, which could affect our mining operations and cost structures in these areas. The geological characteristics of coal reserves in the CAPP, such as depth of overburden and coal seam thickness, make them complex and costly to mine. As mines become depleted, replacement reserves may not be available or, if available, may not be able to be mined at costs comparable to those of the depleting mines. In addition, compared to mines in the other areas of the United States, permitting, licensing and other environmental and regulatory requirements are more costly and time consuming to satisfy. These factors could materially adversely affect the mining operations and cost structures of, and our customers' ability to use coal produced by, our mining properties in the CAPP.

# **Financial and Strategic Risks**

# ***The loss of, or significant reduction in, purchases by our largest customers could adversely affect our revenues.***

For the year ended December 31, 2022, our top ten customers comprised 73.1% of our total revenue and our top five customers comprised 52.6% of our total revenue. For the year ended December 31, 2022, sales to Tata Steel and Xcoal represented 19.4% and 11.7%, respectively, of our total revenue. The majority of our sales are made on a spot basis or under contracts with terms of typically one year. The failure to obtain additional customers or the loss of all or a portion of the revenues attributable to any customer as a result of competition, creditworthiness, inability to negotiate extensions, replacement of contracts or the impact of the global pandemics, including the COVID-19 pandemic, or otherwise, may adversely affect our business, financial condition and results of operations.

# ***If a substantial number of our customers fail to perform under our contracts with them, our revenues and operating profits could suffer.***

A significant portion of the sales of our Met coal is to customers with whom we have had long-term relationships. The success of our business depends on our ability to retain our current customers, renew our existing customer contracts and solicit new customers. Our ability to do so generally depends on a variety of factors, including having our mines operational, having the type and quantity of coal available, the quality and price of our products, our ability to market these products effectively, our ability to deliver on a timely basis and the level of competition that we face.

In addition, our sales contracts generally contain provisions that allow customers to suspend or terminate if we commit a material breach of the terms of the contract, a change in law restricts or prohibits a party from carrying out its material obligations under the contract or a material adverse change occurs in our financial standing or creditworthiness. If customers suspend or terminate existing contracts, or otherwise refuse to accept shipments of our Met coal for which they have an existing contractual obligation, our revenues will decrease, and we may have to reduce production at our mines until our customers' contractual obligations are honored.

If our customers do not honor contract commitments, or if they terminate agreements or exercise force majeure provisions allowing for the temporary suspension of performance during specified events beyond the parties' control, including the COVID-19 pandemic and we are unable to replace the contract, our financial condition and results of operations could be materially and adversely affected.

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# ***If our ability to collect payments from customers is impaired, our revenues and operating profits could suffer.***

Our ability to receive payment for coal sold and delivered will depend on the continued creditworthiness and contractual performance of our customers and counterparties. For certain customers, we require the provision of a letter of credit as security for payment. The inability of key customers to procure letters of credit (due to general economic conditions or the specific circumstances of the customer) may restrict our ability to contract with such customers or result in fewer sales contracts being executed, which could materially adversely affect our financial condition and results of operations. For certain of our large customers in Australia who have not provided letters of credit or other form of security, we maintain an insurance policy to cover for any failure in payment. This insurance coverage, however, may not cover the full scope and extent of losses we may incur as the result of a payment default or otherwise.

If a customer does not pay amounts due in a timely manner, we may decide to sell the customer's coal on the spot market, which may be at prices lower than the contracted price, or we may be unable to sell the coal at all. If our customers' or counterparties' creditworthiness deteriorates, our business could be adversely affected.

# ***Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely affect our cost of financing and the market price of our securities.***

Credit rating agencies could downgrade our ratings due to factors specific to our business, a prolonged cyclical downturn in the mining industry or macroeconomic trends (such as global or regional recessions) and trends in credit and capital markets more generally. Any decline in our credit ratings would likely result in an increase to our cost of financing, limit our access to the capital markets, significantly harm our financial condition and results of operations, hinder our ability to refinance existing indebtedness on acceptable terms and have an adverse effect on the market price of our securities.

# ***Our existing and future indebtedness may limit cash flow available to invest in the ongoing needs of our businesses, which could prevent us from fulfilling our obligations under our senior secured notes, senior secured asset-based revolving credit agreement in an initial aggregate principal amount of \$100.0 million, or the ABL Facility, and other debt, and we may be forced to take other actions to satisfy our obligations under our debt, which may not be successful.***

As of December 31, 2022, we had $242.3 million aggregate principal amount of our senior secured notes outstanding. As of December 31, 2022, no amounts were outstanding, and no outstanding letters of credit issued under the ABL Facility. As of December 31, 2022, the available borrowing capacity under this facility was $100.0 million.

We dedicate a portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund capital expenditures, acquisitions or strategic development initiatives and other general corporate purposes. Our ability to make scheduled payments on or to refinance our debt obligations depends on our ability to generate cash in the future and our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control. There can be no assurance that we will maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our debt. In addition, any failure to comply with covenants in the instruments governing our debt could result in an event of default that, if not cured or waived, would have a material adverse effect on us.

Our level of indebtedness could have further consequences, including, but not limited to, increasing our vulnerability to adverse economic or industry conditions, placing us at a competitive disadvantage compared to other businesses in the industries in which we operate that are not as leveraged and that may be better positioned to withstand economic downturns, limiting our flexibility to plan for, or react to, changes in our businesses and the industries in which we operate, and requiring us to refinance all or a portion of our existing debt. We may not be able to refinance on commercially reasonable terms or at all, and any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, making it more difficult to obtain surety bonds, letters of credit or other financial assurances that may be demanded by our vendors or regulatory agencies, particularly during periods in which credit markets are weak.

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If we are unable to service our debt obligations, we could face substantial liquidity problems and we may be forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital, including additional secured or unsecured debt, or restructure or refinance our debt, and we may be unable to continue as a going concern. We may be unable to consummate any proposed asset sales or recover the carrying value of these assets, and any proceeds may not be adequate to meet any debt service obligations then due. Any of these examples potentially could have a material adverse impact on our results of operations, profitability, stockholders' equity and capital structure.

**We adjust our capital structure from time to time and may need to increase our debt leverage, which would make us more sensitive to the effects of economic downturns.**

It is possible that we may need to raise additional debt or equity funds in the future. Our ABL Facility and operating cash flows may not be adequate to fund our ongoing capital requirements, for any future acquisitions or projects or to refinance our debt. There is no guarantee that we will be able to refinance our existing debt, or if we do, there is no guarantee that such new funding will be on terms acceptable to us.

Global credit markets have been severely constrained in the past, such as during a global financial crisis and the European sovereign debt crisis, and during the COVID-19 pandemic, and the ability to obtain new funding or refinance in the future may be significantly reduced. If we are unable to obtain sufficient funding, either due to banking and capital market conditions, generally, or due to factors specific to our business, we may not have sufficient cash to meet our ongoing capital requirements, which in turn could materially and adversely affect our financial condition. Failure to obtain sufficient financing could cause delays or abandonment of business development plans and have a material adverse effect on our business, operations and financial condition.

In recent years, certain financial institutions, investment managers and insurance companies globally have responded to pressure to take actions to limit or divest investments in, financing made available to, and insurance coverage provided for, the development of new coal-fired power plants and coal miners that derive revenues from thermal coal sales. For example, in 2017, some financial institutions publicly announced that they would stop funding new thermal coal projects or would otherwise reduce their overall lending to coal producers. These or similar policies may adversely impact the coal industry generally, our ability to access capital and financial markets in the future, our costs of capital and the future global demand for coal.

**Our business may require substantial ongoing capital expenditures, and we may not have access to the capital required to reach full productive capacity at our mines.**

Maintaining and expanding mines and related infrastructure is capital intensive. Specifically, the exploration, permitting and development of Met coal reserves, mining costs, the maintenance of machinery, facilities and equipment and compliance with applicable laws and regulations require ongoing capital expenditures. Any decision to increase production at our existing mines or to develop the high-quality Met coal recoverable reserves at our development properties in the future could also affect our capital needs or cause future capital expenditures to be higher than in the past and/or higher than our estimates. We cannot assure that we will be able to maintain our production levels or generate sufficient cash flow, or that we will have access to sufficient financing to continue our production, exploration, permitting and development activities at or above our present levels and on our present levels or levels achieved prior to the COVID-19 pandemic and on our current or projected timelines, and we may be required to defer all or a portion of our capital expenditures. Our results of operations, business and financial condition may be materially adversely affected if we cannot make such capital expenditures.

To fund our capital expenditures, we will be required to use cash from our operations, incur debt or raise new equity. Our ability to obtain bank financing or our ability to access the capital markets for future equity or debt offerings, on the other hand, may be limited by our financial condition at the time of any such financing or offering and the covenants in our existing debt agreements, as well as by general economic conditions, contingencies and uncertainties that are beyond our control. If cash flow generated by our operations or available borrowings under our bank financing arrangements are insufficient to meet our capital requirements and we are unable to access the capital markets on acceptable terms or at all, we could be forced to curtail the expansion of our existing mines and the development of our properties which, in turn, could lead to a decline in our production and could materially and adversely affect our business, financial condition and results of operations.

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# ***We may not recover our investments in our mining, exploration and other assets, which may require us to recognize impairment charges related to those assets.***

Our balance sheet includes a number of assets that are subject to impairment risk, particularly long-lived assets, including property, plant and equipment, mining tenements, exploration and evaluation assets and intangible assets (including goodwill). The values of these assets are generally derived from the fundamental valuation of the underlying mining operations and, as such, are subject to many of the same risks to which our operations are exposed, including decreases in coal prices, foreign currency exchange risks, operational and geological risks, changes in coal production and changes in estimates of proven and probable coal reserves. Adverse changes in these and other risk factors could lead to a reduction in the valuation of certain of our assets and result in an impairment charge being recognized.

# ***Risks related to our investment in WICET may adversely affect our financial condition and results of operations.***

We have a minority interest in WICET Holdings Pty Ltd, whose wholly owned subsidiary, Wiggins Island Coal Export Terminal Pty Ltd, or WICET Pty Ltd, owns WICET. Other coal producers who export coal through WICET also hold shares in WICET Holdings Pty Ltd. In addition, we and the other coal producers (or shippers) have evergreen, ten year take-or-pay agreements with WICET Pty Ltd and pay a terminal handling charge to export coal through WICET, which is calculated by reference to WICET's annual operating costs, as well as finance costs associated with WICET Pty Ltd's external debt facilities.

Under our take-or-pay agreement with WICET Pty Ltd, or the WICET Take-or-Pay Agreement, Curragh's export capacity is 1.5 MMtpa and we are obligated to pay the terminal handling charge for this capacity, whether utilized or not. The terminal handling charge calculation is based on total operating and finance costs of WICET Pty Ltd being charged to contracted shippers in proportion to each shipper's contracted capacity. Under the terms of the WICET Take-or-Pay Agreement the terminal handling charge payable by us can be adjusted (increased or decreased) by WICET Pty Ltd if WICET Pty Ltd's operating and finance costs change, or if a contracted shipper defaults on its take-or-pay agreement obligations and has its contracted capacity reduced to nil. Under the terms of the WICET Take-or-Pay Agreement there is a limit of how much WICET Pty Ltd can charge us for recovery of its finance costs, referred to as a finance cap. Since WICET began operating in April 2015, four WICET Holdings Pty Ltd shipper-shareholders have defaulted on their obligations under their respective take-or-pay agreements and subsequently had those agreements terminated. The result of these terminations is a decrease in the aggregate contracted tonnage at WICET from 27 MMtpa to 15.5 MMtpa.

Given the operation of the finance cap (which has been reached, subject to further adjustment for Consumer Price Index, or CPI) there is a limit to the recovery by WICET of its financing costs from shippers. Accordingly, prior defaults referred to above have resulted in only minor increases to the terminal handling charges payable by the remaining shipper shareholders (including us). These increases have related to higher A$/ton (or US$/ton) charge for operating costs resulting from a lower contract base. If any of the remaining shipper shareholders becomes insolvent and/or defaults under its take-or-pay agreement, the terminal handling charges for the remaining shipper shareholders, including us, may increase proportionately to pay the defaulting shipper's share of WICET's operating and financing costs going forward (noting that the finance cap applies in respect of the financing costs component of the terminal handling charges).

In addition, if we default under the WICET Take-or-Pay Agreement and that default is not remedied, then we will be obligated to pay a termination payment. The termination payment is equal to the lesser of our proportion of WICET Pty Ltd's total external debt (which is based on the proportion that our contracted tonnage bears to the total contracted tonnage at WICET when the payment obligation is triggered) and ten years equivalent terminal handling charges at the prevailing rate at the time that the termination payment falls due. We have provided security to WICET Pty Ltd in the form of a bank guarantee, the amount of which is required to cover our estimated liabilities as a shipper under the WICET Take-or-Pay Agreement for the following twelve-month period.

In the event of WICET Pty Ltd defaulting on its external debt obligations, external lenders to WICET Pty Ltd may enforce their rights to the security over the assets of WICET and appoint a receiver to take steps to recover outstanding debt. The external lenders do not have direct recourse to the shippers to recover outstanding debt and shipper take-or-pay agreements would remain on foot and access to the port would continue to be available to us.

In the event of a permanent cessation of operations at WICET, we may be required to procure additional port capacity elsewhere, as well as be liable for a termination payment under the WICET Take-or-Pay Agreement.

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# **Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations.**

Curragh has a CSA, as amended from time to time, with Stanwell to supply thermal coal to the Stanwell Power Station. The CSA restricted Curragh from mining the SRA which was reserved for the benefit of Stanwell and could not be mined without Stanwell's consent. Under the CSA, in addition to supplying thermal coal at a price below the cost to Curragh of mining and processing the coal, Curragh pays certain rebates to Stanwell on Met coal exported from certain parts of Curragh, which represents the deferred purchase cost of the right to mine some areas at Curragh. Our cost of supplying coal to Stanwell has been and may continue to be greater than the price paid by Stanwell.

On August 14, 2018, Curragh entered into the Supply Deed with Stanwell. The Supply Deed grants Curragh the right to mine the coal reserves in the SRA. In exchange for these rights, Curragh has agreed to certain amendments to the CSA and to enter into the NCSA, which will commence on or around the expiration of the CSA (currently expected to expire in 2027). On July 12, 2019, Curragh entered into the NCSA with Stanwell. Curragh agreed that the total value of the discount received by Stanwell on coal supplied to it under the NCSA should (by the expiry date of the NCSA) be equal to the net present value of A$210 million as at the date of the Supply Deed. No export rebates are payable during the term of the NCSA. The amortized cost of the deferred consideration was $243.2 million (A$359.0 million) as of December 31, 2022.

# **We could be adversely affected if we fail to appropriately provide financial assurances for our obligations.**

Australian laws and U.S. federal and state laws require us to provide financial assurances related to requirements to reclaim lands used for mining, to pay federal and state workers' compensation, to provide financial assurances for coal lease obligations and to satisfy other miscellaneous obligations. The primary methods we use to meet those obligations in the United States are to provide a third-party surety bond or provide a letter of credit. As of December 31, 2022, we provided $34.9 million of third-party surety bonds in connection with our U.S. Operations. There are no cash collateral requirements to support any of the outstanding bonds.

Our financial assurance obligations may increase due to a number of factors, including the size of our mining footprint and new government regulations, and we may experience difficulty procuring or renewing our surety bonds. In addition, our bond issuers may demand higher fees or additional collateral, including letters of credit or other terms less favorable to us upon those renewals. Because we are required by federal and state law to have these bonds or other acceptable security in place before mining can commence or continue, any failure to maintain surety bonds, letters of credit or other guarantees or security arrangements would adversely affect our ability to mine coal. That failure could result from a variety of factors, including lack of availability of surety bond or letters of credit, higher expense or unfavorable market terms, the exercise by third-party surety bond issuers of their right to refuse to renew the surety and the requirement to provide collateral for future third-party surety bond issuers under the terms of financing arrangements. If we fail to maintain adequate bonding, our mining permits could be invalidated, which would prevent mining operations from continuing, and future operating results could be materially adversely affected.

In Australia, the Financial Provisioning Act amended the financial assurance provisions of the EP Act, and impacted the way that our Australian Operations provide for and manage associated costs of providing financial assurances related to mine rehabilitation obligations.

The Financial Provisioning Act:

- amended the financial assurance arrangements for resource activities under the EP Act with a new financial provisioning scheme, and changed how the ERC for an environmental authority is calculated; and
- amended the EP Act to introduce new requirements for the progressive rehabilitation and closure of mined land.

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Since April 1, 2019, any financial assurance currently held for environmental approvals already held in Australia are treated as surety under the Financial Provisioning Act. There was a transition period of three years that commenced in early 2019 during which all miners in Queensland were assessed and received an initial risk allocation decision based on a formulaic calculation of their ERC. Our ERC is the cost estimated by the government department of rehabilitating the land on which our operation is carried out. This allocation put our resource activity at Curragh into a risk category under the Financial Provisioning Act based on the regulator's assessment of both the amount of our ERC and our financial capacity to carry out and discharge the rehabilitation liability and obligation at the time our mining operations cease. This risk assessment is reviewed annually, and assessment fees are payable each time there is an allocation decision for our operations in Queensland.

The financial provisioning scheme is managed by the Scheme Manager and financial assurance is provided by paying a contribution to the Scheme and/or the giving of surety to the Scheme Manager. Our contribution is calculated as the prescribed percentage (dependent on risk allocation decision) of Curragh's ERC. The prescribed percentages for each category are: (1) Very low: 0.5%; (2) Low: 1.0%; and (3) Moderate: 2.75%. In the event Curragh's ERC is allocated a high risk allocation, we are required to negotiate the percentage of surety to be provided with the Scheme Manager. The Scheme Manager is a statutory officer and manages the Scheme contributions and the sureties on behalf of the Queensland State Government.

In October 2022, the Scheme Manager completed the assessment of the Annual Review Allocation for environmental authority number EPML00643713 and issued an Annual Review Allocation of "Moderate". The moderate rating results in Curragh being obliged to make a financial contribution to the Scheme of 2.75% of the ERC. In January 2023, the Scheme Manager completed an assessment of the Annual Review Allocation for Environmental Authority Number EPVX00635313 and issued an Annual Review Allocation of "High" in respect of MDL162 requiring Curragh to maintain its historical financial assurance in respect of 100% of the ERC for Environmental Authority Number EPVX00635313.

There can be no assurance that our risk category allocation will not change in future years.

Our financial assurance obligations may increase due to a number of factors, including but not limited to:

- any change that increases ERC or area of disturbance;
- any major Environmental Authority amendment;
- compliance with existing Environmental Authority obligations; and
- major changes to financial soundness of the EA Holder.

For more information on the Financial Provisioning Act, see item 1, "Business-Regulatory Matters-Australia-Environmental Protection Act 1994 (Qld)."

***Mine closures entail substantial costs. If we prematurely close one or more of our mines, our operations and financial performance would likely be affected adversely.***

Federal and state regulatory agencies have the authority following significant health and safety incidents, such as fatalities, to order mining operations to be temporarily suspended or a facility be permanently closed. For example, on January 12, 2020, operations at our Curragh mine were temporarily suspended after a contractor was fatally injured during a fire change activity in the main workshop on site and on November 21, 2021, operations at our Curragh mine were temporarily suspended after an employee was fatally injured while working in the dragline operations. We could also be required to close or discontinue operations at particular mines before the end of their mine life due to environmental, geological, geotechnical, commercial, leasing or other issues. Such closure or discontinuance of operations could result in significant closure and rehabilitation expenses, employee redundancy costs, contractor demobilization costs and other costs or loss of revenues. If and when incurred, these closure and rehabilitation costs could exceed our current estimates. If one or more of our mines is closed earlier than anticipated, we would be required to fund the reclamation and closure costs on an expedited basis and potentially lose revenues and, for some of our operations, pay for take-or-pay arrangements that we no longer use, which would have an adverse impact on our operating and financial performance. Many of these costs could also be incurred if a mine was unexpectedly placed on care and maintenance before the end of its planned mine life such as our mines in the U.S. Operations, which were temporarily idled in 2020 as a result of the COVID-19 pandemic.

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# ***If the assumptions underlying our provision for reclamation and mine closure obligations prove to be inaccurate, we could be required to expend greater amounts than anticipated.***

The Environmental Protection Act 1994 (Qld) and the SMCRA establish operational, reclamation and closure standards for all aspects of surface mining as well as deep mining. We accrue for the costs of current mine disturbance and final mine closure, including the cost of treating mine water discharge where necessary. Estimates of our total reclamation and mine-closing liabilities totaled $138.5 million as of December 31, 2022, based upon permit requirements and the historical experience at our operations, and depend on a number of variables involving assumptions and estimation and therefore may be subject to change, including the estimated future asset retirement costs and the timing of such costs, estimated proven reserves, assumptions involving third-party contractors, inflation rates and discount rates. If these accruals are insufficient or our liability in a future year is greater than currently anticipated, our future operating results and financial position could be adversely affected. See Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates.'

# ***We are subject to foreign exchange risks involving certain operations in multiple countries.***

Loss sustained from adverse movements in currency exchange rates can impact our financial performance and financial position and the level of additional funding required to support our businesses. Our financial results are reported in US$ and certain parts of our liabilities, earnings and cash flows are influenced by movements in exchange rates, especially movements in A$ to US$ exchange rate. For example, costs relating to our Australian Operations are generally denominated in A$. In addition, foreign currency exposures arise in relation to coal supply contracts, procurement of plant and equipment and debt, which may be priced in A$ or other foreign currencies other than US$.

The impact of currency exchange rate movements will vary depending on factors such as the nature, magnitude and duration of the movements, the extent to which currency risk is hedged under forward exchange contracts or other hedging instruments and the terms of these contracts. We may enter into forward exchange contracts to hedge a portion of our foreign currency exposure of our Australian Operations from time to time. The unhedged portion of our non-US$ exposures against exchange rate fluctuations will be at the risk of any adverse movement in exchange rates, which may affect our operating results, cash flows and financial condition.

# ***Interest rates could change substantially and have an adverse effect on our profitability.***

We are exposed to interest rate risk in relation to variable-rate bank balances and variable-rate borrowings. Our interest rate risk primarily arises from fluctuations in LIBOR and the Australian Bank Bill Swap Yield, or BBSY, in relation to US$- and A$-denominated borrowings, respectively. Our lending rates may increase in the future as a result of factors beyond our control and may result in an adverse effect on our financial condition and results of operations.

In addition, national and international regulators and law enforcement agencies have conducted investigations into a number of rates or indices, which are deemed to be 'reference rates.' Actions by such regulators and law enforcement agencies may result in changes to the manner in which certain reference rates are determined, their discontinuance, or the establishment of alternative reference rates. For example, after 2021, the United Kingdom's Financial Conduct Authority, which regulates LIBOR, no longer compelled banks to submit rates for the calculation of non-U.S.-dollar LIBOR. U.S.-dollar LIBOR must be replaced before June 30, 2023. The Alternative Reference Rates Committee has proposed SOFR as its recommended alternative to LIBOR. At this time, it is not possible to predict the effect that these developments, any discontinuance, modification or other reforms to LIBOR or any other reference rate, or the establishment of alternative reference rates, including SOFR, may have on LIBOR or other benchmarks, including LIBOR-based borrowings under our variable-rate bank balances and variable-rate borrowings. Furthermore, the use of alternative reference rates or other reforms could cause the market value of, the applicable interest rate on and the amount of interest paid on our benchmark-based borrowings to be materially different than expected and could materially adversely impact our ability to refinance such borrowings or raise future indebtedness on a cost effective basis.

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**We may be unsuccessful in integrating the operations of acquisitions with our existing operations and in realizing all or any part of the anticipated benefits of any such acquisitions.**

From time to time, we may evaluate and acquire assets and businesses that we believe complement our existing assets and business. Acquisitions may require substantial capital or the incurrence of substantial indebtedness. Our capitalization and results of operations may change significantly as a result of future acquisitions. Acquisitions and business expansions involve numerous risks, including the following:

- difficulties in the integration of the assets and operations of the acquired businesses;
- inefficiencies and difficulties that arise because of unfamiliarity with new assets and the businesses associated with them and new geographic areas;
- the diversion of management's attention from other operations; and
- timing, and whether the acquisition or business expansion is occurring during adverse economic, social and regulatory periods.

Further, unexpected costs and challenges may arise whenever businesses with different operations or management are combined, and we may experience unanticipated delays in realizing the benefits of an acquisition. Entry into certain lines of business may subject us to new laws and regulations with which we are not familiar and may lead to increased litigation and regulatory risk. Also, following an acquisition, we may discover previously unknown liabilities associated with the acquired business or assets for which we have no recourse under applicable indemnification provisions. If a new business generates insufficient revenue or if we are unable to efficiently manage our expanded operations, our results of operations may be adversely affected.

**Coronado Global Resources Inc. is a holding company with no operations of its own and, as such, it depends on its subsidiaries for cash to fund its operations and expenses, including future dividend payments, if any.**

As a holding company, our principal source of cash flow is distributions from our subsidiaries. Therefore, our ability to fund and conduct our business, service our debt, and pay dividends, if any, in the future will depend on the ability of our subsidiaries to generate sufficient cash flow to make upstream cash distributions to us. Our subsidiaries are separate legal entities, and although they are wholly-owned and controlled by us, they have no obligation to make any funds available to us, whether in the form of loans, dividends, or otherwise. The ability of our subsidiaries to distribute cash to us will also be subject to, among other things, restrictions that may be contained in our subsidiary agreements (as entered into from time to time), availability of sufficient funds in such subsidiaries and applicable laws and regulatory restrictions. Claims of any creditors of our subsidiaries generally will have priority as to the assets of such subsidiaries over our claims and claims of our creditors and stockholders. To the extent the ability of our subsidiaries to distribute dividends or other payments to us is limited in any way, our ability to fund and conduct our business, service our debt, and pay dividends, if any, could be harmed.

**Legal, Compliance and Sustainability Risks**

**We could be negatively affected if we fail to maintain satisfactory labor relations.**

Relations with our employees and, where applicable, organized labor are important to our success. Enterprise bargaining and other disputes between us and our employees or disputes affecting our contractors may result in strikes or uncompetitive work practices.

As of December 31, 2022, we had 1,735 employees. In addition, as of December 31, 2022, there were 2,326 contractors supplementing the permanent workforce, primarily at Curragh. As of December 31, 2022, approximately 11.5% of our total employees, all at our Australian Operations, were represented by organized labor unions and covered by the EA. In May 2019, the Australian Fair Work Commission approved the Curragh Mine Enterprise Agreement 2019. This EA has a nominal expiration date of May 26, 2022 and but remains in place by operation of the Fair Work Act 2009 (Cth) until replaced or terminated by the Fair Work Commission. We have been negotiating with employee bargaining representatives for a replacement EA since March 2022. Those negotiations continue in good faith with the intent of reaching an agreement as soon as practicable. Our U.S. Operations employ a 100% non-union labor force.

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Future industrial action by our employees or mining contractors' employees or involving trade unions could disrupt operations and negatively impact mine productivity, production and profitability.

# ***Our operations may impact the environment or cause exposure to hazardous substances, which could result in material liabilities to us.***

We are subject to extensive environmental laws and regulations, and our operations may substantially impact the environment or cause exposure to hazardous materials to our contractors, our employees or local communities. We use hazardous materials and generate hazardous or other regulated waste, which we store in our storage or disposal facilities. We may become subject to statutory or common law claims (including damages claims) as a result of our use of hazardous materials and generation of hazardous waste. A number of laws, including, in the United States, the CERCLA or Superfund, and the RCRA, and in Australia, the Environmental Protection Act 1994 (Qld), impose liability relating to contamination by hazardous substances. Furthermore, the use of hazardous materials and generation of hazardous and other waste may subject us to investigation and require the clean-up of soil, surface water, groundwater and other media.

Mining operation process, including blasting and processing ore bodies, can also generate environmental impacts. These impacts include, but are not limited to, leakages of polluting substances, explosions, flooding, fires, accidental mine water discharges, and excessive dust and noise. Such risks could result in damage to the applicable mine site, personal injury to our employees and contractors, environmental damage, decreased coal production and possible legal liability under environmental regulations. Employee or strict liability claims under common law or environmental regulations in relation to these matters may arise, for example, out of current or former activities at sites that we own, lease or operate and at properties to which hazardous substances have been sent for treatment, storage, disposal or other handling. Our liability for such claims may be strict, joint and several with other miners or parties or with our contractors, such that we may be held responsible for more than our share of the contamination or other damages, or even for the entire amount of damages assessed. Additionally, any violations of environmental laws by us could lead to, among other things, the imposition on us of substantial fines, penalties, other civil and criminal sanctions, the curtailment or cessation of operations, orders to pay compensation, orders to remedy the effects of violations and take preventative steps against possible future violations, increased compliance costs, or costs for environmental remediation, rehabilitation or rectification works.

We maintain extensive Met coal refuse areas and slurry impoundments at our mining properties. At Curragh, coal slurry is disposed of by pumping into an impoundment area where particles are allowed to settle. We have procedures in place that the Curragh slurry impoundments remain below the surrounding topography so that there is minimal likelihood of failure and/or spills. At our U.S. Operations, refuse areas and impoundments are frequently inspected and subject to extensive governmental regulation. Slurry impoundments have been known to fail, releasing large volumes of coal slurry into the surrounding environment. Structural failure of an impoundment can result in extensive damage to the environment and natural resources, such as bodies of water that the coal slurry reaches, as well as create liability for related personal injuries, property damages and injuries to natural resources and plant and wildlife. Of the five refuse areas among our U.S. mining properties, only two impound slurry, the other facilities are combined refuse and do not impound slurry. Two of our impoundments in the U.S. overlie mined out areas, which can pose a heightened risk of failure and the assessment of damages arising out of such failure. If one of our impoundments were to fail, we could be subject to substantial claims for the resulting environmental contamination and associated liability, as well as for related fines and penalties.

# ***Changes in and compliance with government policy, regulation or legislation may adversely affect our financial condition and results of operations.***

The coal mining industry is subject to regulation by federal, state and local authorities in each relevant jurisdiction with respect to a range of industry specific and general matters. Any future legislation and regulatory change imposing more constraints or more stringent requirements may affect the coal mining industry and may adversely affect our financial condition and results of operations. Examples of such changes are, future laws or regulations that may limit the emission of GHGs, attach a cost to GHG emissions, or limit the use of thermal coal in power generation, more stringent workplace health and safety laws, more rigorous environmental laws, and changes to existing taxation and royalty legislation.

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Compliance with applicable federal, state and local laws and regulations may become more costly and time-consuming and may delay commencement or interrupt continuation of exploration or production at our operations. We have incurred, and may in the future incur, significant expenditures to comply with such regulation and legislation. These laws are constantly evolving and may become increasingly stringent. The ultimate impact of complying with existing laws and regulations is not always clearly known or determinable due in part to the fact that certain implementation of the regulations for these laws have not yet been promulgated and in certain instances are undergoing revision. These laws and regulations, particularly new legislative or administrative proposals (or judicial interpretations of existing laws and regulations), could result in substantially increased capital, operating and compliance costs and could have a material adverse effect on our operations and our customers' ability to use our products. Due in part to the extensive and comprehensive regulatory requirements, along with changing interpretations of these requirements, violations of applicable federal, state and local laws and regulations occur from time to time in the coal industry and minor violations have occurred at our Australian Operations and our U.S. Operations in the past.

Moreover, changes in the law may impose additional standards and a heightened degree of responsibility for us and our stockholders, directors and employees; may require unprecedented compliance efforts; could divert our management's attention; and may require significant expenditures. For example, we may also be subject to unforeseen environmental liabilities resulting from coal-related activities, which may be costly to remedy or adversely impact our operations. In particular, the acceptable level of pollution and the potential abandonment costs and obligations for which we may become liable as a result of our activities may be difficult to assess under the current legal framework. To the extent that required expenditures, as with all costs, are not ultimately reflected in the prices of coal, our operating results will be detrimentally impacted. The costs and operating restrictions necessary for compliance with safety and environmental laws and regulations, which is a major cost consideration for our Australian Operations and U.S. Operations, may have an adverse effect on our competitive position relative to foreign producers and operators in other countries which may not be required to incur equivalent costs in their operations.

We are also affected by various other international, federal, state, local and tribal or indigenous environmental laws and regulations that impact our customers. To the extent that such environmental laws and regulations reduce customer demand for or increase the price of coal, we will be detrimentally impacted. For additional information about the various regulations affecting us, see Item 1. 'Business-Regulatory Matters-Australia' and 'Business-Regulatory Matters-United States.'

*We are subject to extensive forms of taxation, which imposes significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal competitively.*

Federal, state or local governmental authorities in nearly all countries across the global coal mining industry impose various forms of taxation on coal producers, including production taxes, sales-related taxes, royalties, stamp duty, environmental taxes and income taxes.

For example, on September 27, 2022, we received from the Queensland Revenue Office, or QRO, an assessment of the stamp duty payable on our acquisition of the Curragh mine in March 2018. The QRO assessed the stamp duty on this acquisition at an amount of $55.4 million (A$82.2 million) plus unpaid tax interest of $8.2 million (A$12.1 million). On November 23, 2022, the Company filed an objection to the assessment and is currently awaiting the outcome of this objection. The outcome of this objection is uncertain.

We have reviewed the assessment received and based on legal and valuation advice the Company continues to maintain its position regarding the estimated accrual of $29.0 million (A$43.0 million) stamp duty payable on the Curragh acquisition. During the period we made a partial payment reducing the estimated accrual to $11.7 million (A$17.3 million) as at December 31, 2022, which is included within 'Accrued Expenses and Other Current Liabilities' in its Consolidated Balance sheet.

We cannot guarantee that the steps we take to defend our position on this matter will be successful, in which case the amount assessed by the QRO and unpaid tax interest on the amount outstanding may become due and payable.

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Additionally, in 2022, the Queensland State Government in Australia amended the Mineral Resources Regulation 2013 (Qld) introducing additional higher tiers to the coal royalty rates effective from July 1, 2022, increasing the royalty payable by our Australian Operations.

The new tiers applicable in calculating the royalty payable for our Australian Operations from July 1, 2022, are as set out below:

- 7% for average coal price per Mt sold up to and including A$100 per Mt;
- 12.5% for average coal price per Mt sold from A$100 to A$150 per Mt;
- 15% for average coal price per Mt sold from A$150 to A$175 per Mt;
- 20% for average coal price per Mt sold from A$175 to A$225 per Mt;
- 30% for average coal price per Mt sold from A$225 to A$300 per Mt; and
- 40% for average coal price per Mt sold above A$300 per Mt.

If new legislation or regulations related to various forms of coal taxation or income or other taxes generally, which increase our costs or limit our ability to compete in the areas in which we sell coal, or which adversely affect our key customers, are adopted, or if the basis upon which such duties or taxes are assessed or levied, changes or is different from that provided by us, our business, financial condition or results of operations could be adversely affected.

We may be subject to litigation, the disposition of which could negatively affect our profitability and cash flow in a particular period, or have a material adverse effect on our business, financial condition and results of operations.

Our profitability or cash flow in a particular period could be affected by an adverse ruling in any litigation that may be filed against us in the future. In addition, such litigation could have a material adverse effect on our business, financial condition and results of operations. See Item 3. "Legal Proceedings."

We have no registered trademarks for our Company name used by us in the United States or any other countries, and failure to obtain those registrations could adversely affect our business.

Although we have filed a trademark application for use of the stylized mark "CORONADO STEEL STARTS HERE" in the United States and Australia, our applications are still pending and the corresponding mark has not been registered in the United States or Australia. We have not filed for this or other trademarks in any other country. During trademark registration proceedings, we may receive rejections. If so, we will have an opportunity to respond, but we may be unable to overcome such rejections. In addition, Intellectual Property Australia and the United States Patent and Trademark Office and comparable agencies in many foreign jurisdictions may permit third parties to oppose pending trademark applications and to seek to cancel registered trademarks. If opposition or cancellation proceedings are filed against our trademark application, our trademark may not survive such proceedings, and/or we may be required to expend significant additional resources in an effort to defend ourselves in the proceedings or identify a suitable substitute mark for future use.

# Risks Specific to Our Common Stock

Our certificate of incorporation and bylaws include provisions that may discourage a change in control.

Provisions contained in our amended and restated certificate of incorporation, or certificate of incorporation, and amended and restated bylaws, or bylaws, and Delaware law could make it more difficult for a third-party to acquire us, even if doing so might be beneficial to our stockholders. Provisions of our bylaws and certificate of incorporation impose various procedural and other requirements that could make it more difficult for stockholders to effect certain corporate actions.

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We have elected not to be governed by Section 203 of the General Corporation Law of the State of Delaware, or the DGCL (or any successor provision thereto), until immediately following the time at which the EMG Group no longer beneficially owns in the aggregate shares of our common stock representing at least 10% of our voting stock, in which case we shall thereafter be governed by Section 203 if and for so long as Section 203 by its terms would apply to us. Section 203 provides that an interested stockholder, along with its affiliates and associates (i.e., a stockholder that has purchased greater than 15%, but less than 85%, of a company's outstanding voting stock (with some exclusions)), may not engage in a business combination transaction with the company for a period of three years after buying more than 15% of a company's outstanding voting stock unless certain criteria are met or certain other corporate actions are taken by the company.

These provisions could limit the price that certain investors might be willing to pay in the future for shares of our common stock and may have the effect of delaying or preventing a change in control.

# ***Our certificate of incorporation limits the personal liability of our directors for certain breaches of fiduciary duty.***

Our certificate of incorporation and bylaws include provisions limiting the personal liability of our directors for breaches of fiduciary duty under the DGCL. Specifically, our certificate of incorporation contains provisions limiting a director's personal liability to us and our stockholders to the fullest extent permitted by the DGCL. Furthermore, our certificate of incorporation provides that no director shall be liable to us and our stockholders for monetary damages resulting from a breach of fiduciary duty as a director, except to the extent that such exemption from liability or limitation thereof is not permitted under the DGCL. The principal effect of this limitation on liability is that a stockholder will be unable to prosecute an action for monetary damages against a director unless the stockholder can demonstrate a basis for liability that cannot be eliminated under the DGCL. These provisions, however, should not limit or eliminate our right or any stockholder's right to seek non-monetary relief, such as an injunction or rescission, in the event of a breach of a director's fiduciary duty. These provisions do not alter a director's liability under U.S. federal securities laws. The inclusion of these provisions in our certificate of incorporation may discourage or deter stockholders or management from bringing a lawsuit against directors for a breach of their fiduciary duties, even though such an action, if successful, might otherwise have benefited us and our stockholders.

# ***Coronado Group LLC and the EMG Group have substantial control over us and are able to influence corporate matters.***

Coronado Group LLC and the EMG Group have significant influence over us, including control over decisions that require the approval of stockholders, which could limit the ability of other stockholders to influence the outcome of stockholders votes.

As of December 31, 2022, the EMG Group indirectly held 50.4% of our outstanding shares of common stock. Therefore, the EMG Group has effective control over the outcome of votes on all matters requiring approval by stockholders. There is a risk that the interests of the EMG Group could conflict with or differ from our interests or the interests of other stockholders. In addition, pursuant to the terms of the Stockholder's Agreement, dated as of September 24, 2018, between us and Coronado Group LLC, or the Stockholder's Agreement, so long as it beneficially owns in the aggregate at least 25% of the outstanding shares of our common stock, the EMG Group will have the ability to exercise substantial control over certain of our transactions, including change of control transactions, such as mergers and capital and debt raising transactions. See Item 5. 'Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities' for a description of the Stockholder's Agreement.

Further, pursuant to the terms of the Series A Share, Coronado Group and the EMG Group or its successors or permitted assigns, as the beneficial owner of the Series A Share, at its option, will have the ability to elect a specified number of directors, or the Series A Directors, based on the EMG Group's aggregate level of beneficial ownership of shares of our common stock. For more details on the ability of Coronado Group and the EMG Group to elect Series A Directors, as well as the rights of stockholders to participate in the removal of any such Series A Directors, see Item 5. 'Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.'

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Moreover, the EMG Group's beneficial ownership of shares of our common stock may also adversely affect the price of our common stock to the extent equity investors perceive disadvantages in owning common stock of a company with a controlling stockholder. In addition, the EMG Group is in the business of making investments in companies and may, from time to time, acquire interests in businesses that directly or indirectly compete with us, as well as businesses of our existing or potential significant customers. The EMG Group may acquire or seek to acquire assets that we seek to acquire and, as a result, those acquisition opportunities may not be available to us or may be more expensive for us to pursue, and as a result, the interests of the EMG Group may not align with the interests of our other stockholders.

***The EMG Group has the right, subject to certain conditions, to require us to cooperate in a sale of shares of our common stock held by it (including in the form of CDIs) under the Securities Act.***

Pursuant to the Registration Rights and Sell-Down Agreement, dated as of September 24, 2018, between us and Coronado Group LLC, or the Registration Rights and Sell-Down Agreement, Coronado Group LLC (or its successors or permitted assigns or transferees) has the right, subject to certain conditions, to require us to cooperate in a sell-down of shares of our common stock or CDIs held by it. By virtue of its majority ownership, exercising its registration rights and selling a large number of shares or CDIs, Coronado Group LLC could cause undue volatility in the prevailing market price of our common stock. See Item 5, "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities."

***Our non-employee directors and their respective affiliates, including the EMG Group, may be able to take advantage of a corporate opportunity that would otherwise be available to us.***

The corporate opportunity and related party transactions provisions in our certificate of incorporation could enable any of our non-employee directors or their respective affiliates, including the EMG Group, to benefit from corporate opportunities that might otherwise be available to us. Subject to the limitations of applicable law, our certificate of incorporation, among other things, will:

- permit us to enter into transactions with entities in which one or more non-employee directors are financially or otherwise interested;
- permit any non-employee director or his or her affiliates to conduct a business that competes with us and to make investments in any kind of property in which we may make investments; and
- provide that if any non-employee director becomes aware of a potential business opportunity, transaction or other matter (other than one expressly offered to that non-employee director solely in his or her capacity as our director), that non-employee director will have no duty to communicate or offer that opportunity to us, and will be permitted to communicate or offer that opportunity to his or her affiliates and pursue or acquire such opportunity for himself or herself, and that non-executive director will not be deemed to have acted in a manner inconsistent with his or her fiduciary or other duties to us or our stockholders regarding the opportunity or acted in bad faith or in a manner inconsistent with our and our stockholders' best interests.

These provisions enable a corporate opportunity that would otherwise be available to us to be taken by or used for the benefit of the non-employee directors or their respective affiliates, which include the EMG Group as a result of the rights granted to it under the Stockholder's Agreement.

**General Risk Factors**

***Any failure to maintain effective internal control over financial reporting may adversely affect our financial condition and results of operations.***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the United States, or U.S. GAAP.

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During the course of the preparation of our financial statements, we evaluate and correct any deficiencies in our internal controls over financial reporting. If we fail to maintain an effective system of disclosure or internal controls over financial reporting, including satisfaction of the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, we may not be able to report accurately or timely on our financial results or adequately identify and reduce fraud. Therefore, the financial condition of our business could be adversely affected, current and potential future stockholders could lose confidence in us and/or our reported financial results, which may cause a negative effect on the trading price of our CDIs, and we could be exposed to litigation or regulatory proceedings, which may be costly or divert management attention.

***The requirements of being a public company in the United States and Australia may strain our resources, divert management's attention, and affect our ability to attract and retain executive management and qualified board members.***

Our CDIs are currently listed on the ASX and we are registered as a foreign company in Australia. As such we need to ensure continuous compliance with relevant Australian laws and regulations, including the listing rules of the ASX, as amended from time to time, or the ASX Listing Rules, and certain provisions of the Corporations Act 2001 (Cth), or the Corporations Act.

As a U.S. public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and other applicable securities laws, rules and regulations. Compliance with these laws, rules, and regulations may increase our legal and financial compliance costs, make some activities more difficult, time-consuming, or costly, and increase demand on our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly, and current reports with respect to our business and results of operations. In the absence of a waiver from the ASX Listing Rules, these SEC periodic reports will be in addition to our periodic filings required by the ASX Listing Rules. The Sarbanes-Oxley Act of 2002 requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight will be required. As a result, management's attention may be diverted from other business concerns and our costs and expenses will increase, which could harm our business and results of operations, all of which could be magnified during the COVID-19 pandemic. We may need to hire more employees in the future or engage outside consultants, which will increase our costs and expenses.

In addition, changing laws, regulations, and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from sales-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal, administrative or other proceedings against us and our business may be harmed.

***A state court located within the State of Delaware (or, if no state court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware) will be, to the extent permitted by law, the sole and exclusive forum for substantially all state law based disputes between us and stockholders.***

Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, a state or federal court within the State of Delaware will be the sole and exclusive forum for:

- any action or proceeding asserting a claim of breach of a fiduciary duty owed by any director or officer or other employee or agent of the Company to the Company or the Company's stockholders or debtholders;

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- any action or proceeding asserting a claim against the Company or any director or officer or other employee or agent of the Company arising pursuant to any provision of the DGCL or our certificate of incorporation or bylaws; or
- any action asserting a claim against the Company or any director or officer or other employee of the Company governed by the internal affairs doctrine or other "internal corporate claims" as defined in Section 115 of the DGCL.

The choice of forum provision may limit a stockholder's ability to bring a claim against us or our directors, officers, employees or agents in a forum that it finds favorable, which may discourage stockholders from bringing such claims at all. Alternatively, if a court were to find the choice of forum provision contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in another forum, which could materially adversely affect our business, financial condition and results of operations. However, the choice of forum provision does not apply to any actions arising under the Securities Act or the Exchange Act.

***The issuance of additional common stock or securities convertible into our common stock could result in dilution of the ownership interest in us held by existing stockholders.***

We may issue more CDIs in the future in order to fund future investments, acquisitions, capital raising transactions or to reduce our debt. While we will be subject to the constraints of the ASX Listing Rules regarding the percentage of our capital that we are able to issue within a 12-month period (subject to applicable exceptions), any such equity raisings may dilute the ownership of existing common stockholders.

***We are subject to general market risks that are inherent to companies with publicly-traded securities and the price of our securities may be volatile.***

We are subject to the general market risks that are inherent in all securities traded on a securities exchange. This may result in fluctuations in the trading price of our securities that are not explained by our fundamental operations and activities. There is no guarantee that the price of our securities will increase in the future, even if our earnings increase.

Our securities may trade at, above or below the price paid by an investor for those securities due to a number of factors, including, among others:

- general market conditions, including investor sentiment;
- movements in interest and exchange rates;
- fluctuations in the local and global market for listed stocks;
- actual or anticipated fluctuations in our interim and annual results and those of other public companies in our industry;
- industry cycles and trends;
- mergers and strategic alliances in the coal industry;
- changes in government regulation;
- potential or actual military conflicts or acts of terrorism;
- changes in accounting principles;
- announcements concerning us or our competitors;
- changes in government policy, legislation or regulation;
- inclusion of our securities in or removal from particular market indices (including S&P/ASX indices); and
- the nature of the markets in which we operate.

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Other factors that may negatively affect investor sentiment and influence us, specifically, or the stock market, more generally, include acts of terrorism, an outbreak of international hostilities, fires, floods, earthquakes, labor strikes, civil wars, natural disasters, outbreaks of disease, including the COVID-19 pandemic, or other man-made or natural events.

Stock markets have experienced extreme price and volume fluctuations in the past that are often disproportionate or unrelated to the operating performance of companies. There can be no guarantee that trading prices and volumes of any securities will be sustained. These factors may materially affect the market price of our securities, regardless of our operational performance. This may then significantly impact our ability to raise new equity which may be required to fund our operations if our financial performance deteriorates due to other factors.

# ***The payment of dividends and repurchases of our stock are dependent on a number of factors, and future payments and repurchases cannot be assured.***

The payment of dividends in respect of our common stock is impacted by several factors, including our profitability, retained earnings, capital requirements and free cash flow, as well as applicable covenants under the indenture governing our senior secured notes and covenants under the ABL Facility. Any future dividends will be determined by our Board of Directors having regard to these factors, among others. There is no guarantee that any dividend will be paid, or repurchases will be made, by us, or if paid, paid at previous levels. From time to time, our Board of Directors may also cancel previously announced dividends.

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# **ITEM 1B. UNRESOLVED STAFF COMMENTS**

None.

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## ITEM 2. PROPERTIES

### Summary Overview of Mining Operations

Coronado owns and controls a portfolio of operating mines and development projects in Queensland, Australia, and Virginia, West Virginia and Pennsylvania in the United States. Our Australian Operations consist of the 100%-owned Curragh producing mine complex. With respect to our U.S. Operations, Coronado owns a 100% interest in two producing mine complexes (Buchanan and Logan) and a 100% interest in one temporarily idled, production-stage mine complex (Greenbrier) and two development properties (Mon Valley Minerals (formerly called Pangburn-Shaner-Fallowfield) and Russell County). Figures 1 and 2 below show the locations of our mining properties in Australia and the United States, respectively.

**Figure 1: Australian Operations:**

![document icon]() c561202210Kp76i0

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Figure 2: U.S. Operations:

c561202210Kp77i0

The below charts show run-of-mine, or ROM, production and saleable production for our Australian Operations and our U.S. Operations for the years ended December 31, 2022, 2021 and 2020.

![img-0.jpeg](img-0.jpeg)

See the descriptions of our material mining properties under “-Curragh,” “-Buchanan,” “-Logan” and “-Mon Valley” below for more information. Table 1 below contains a summary of the key information relative to the various Coronado properties. Tables 2 and 3 provide a summary of our coal resources and reserves, respectively, as of December 31, 2022.

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Table 1. Summary Coronado Properties

| Property (Property Stage) | Mineral Rights (1) | Permit Status (2) | Mine Type(s) | Coal Type | Coal Seams of Economic Interest (Formation) | Processing Plants/ Facilities |
| --- | --- | --- | --- | --- | --- | --- |
| Curragh (Production) | 25,586 hectares leased; 6,381 hectares owned | Permitted | Surface | HCC, SCC, PCI, Thermal | Various (Rangal Coal Measures) | CPP1 - 1100 raw Mt per hour; CPP2 - 1200 raw Mt per hour; Rail Loadout |
| Buchanan (Production) | 25,852 hectares leased (3) ; 7,725 hectares owned | 1 Permit | Underground | Low-Vol | Pocahontas #3 (Pocahontas Formation) | CPP - 1270 raw Mt per hour; Rail Loadout |
| Logan (Production) | 13,183 hectares leased (3) ; 69 hectares owned | 24 Permits | Surface & Underground | HVA, HVB, Thermal | Various (Kanawha Formation) | CPP - 1088 raw Mt per hour; Rail Loadout |
| Mon Valley (Development) | 1,339 hectares leased (3) ; 40,276 hectares owned | Not Permitted | Underground (4) | High-Vol | Upper Freeport (Freeport Formation) | Future |
| Greenbrier (Production - Idled) | 18,907 hectares leased (3) | 22 Permits | Surface & Underground | Mid-Vol, PCI, Thermal | Pocahontas #6, #7, #8 (Pocahontas Formation); Various (New River Formation) | CPP - 544 raw Mt per hour; Rail Loadout |
| Russell County (Development) | 7,111 hectares leased (3) ; 378 hectares owned | Not Permitted | Underground (4) | High-Vol | Lower Castle (Norton Formation); Upper Horsepen (Middle Lee Formation) | Future |

(1) We are not aware of any significant encumbrances or defects in title with respect to any of our mining properties. Certain credit facilities of the Company are secured by a lien on substantially all of the Company's assets, including mining properties.

(2) We believe we have secured all applicable environmental licenses and permits under applicable law and have all necessary permits and licenses regarding cultural heritage, native title and various other social issues to support current mining operations.

(3) Subject to the exercise of our renewal rights thereunder, most of the leases at our U.S. mining properties expire upon exhaustion of the relevant reserves.

(4) Proposed mine type.

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Table 2. Summary Coal Resources Exclusive of Reserves at End of the Fiscal Year Ended December 31, 2022.(1)

|  | Coal Resources (In Situ, MMt) (2) |  |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Measured + Indicated | Inferred | Ash | Sulfur | Volatile Matter |
| Australia |  |  |  |  |  |  |  |
| Curragh | 328 | 184 | 512 | 142 | 19.5% | 0.5% | 18.4% |
| Total Australia | 328 | 184 | 512 | 142 |  |  |  |
| United States |  |  |  |  |  |  |  |
| Buchanan | 34 | 6 | 40 | - | 25.0% | 0.7% | 16.0% |
| Logan | 45 | 37 | 82 | 3 | 24.0% | 1.0% | 28.0% |
| Mon Valley | - | - | - | - | - | - | - |
| Greenbrier | 19 | 14 | 33 | - | 31.0% | 1.1% | 20.0% |
| Russell County | 40 | 4 | 44 | - | 29.0% | 0.7% | 23.0% |
| Total United States | 138 | 61 | 199 | 4 |  |  |  |
| Total | 466 | 245 | 711 | 147 |  |  |  |

(1) For more information regarding price assumptions used in the calculation of coal resources as of December 31, 2022, see the individual property disclosures below.
(2) Australian resources are estimated inclusive of 5.3% in-situ moisture. United States resources are estimated on a dry basis.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

Table 3. Summary Coal Reserves (Marketable Sales Basis) at End of the Fiscal Year Ended December 31, 2022.(1)

|  | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MMt) (2) |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Proven | Probable | Total | Ash | Sulfur | Volatile Matter |
| Australia |  |  |  |  |  |  |
| Curragh | 188 | 18 | 205 | 10.7% | 0.4% | 19.0% |
| Total Australia | 188 | 18 | 205 |  |  |  |
| United States |  |  |  |  |  |  |
| Buchanan | 88 | 5 | 93 | 6.0% | 0.7% | 19.0% |
| Logan | 53 | 17 | 71 | 8.0% | 0.9% | 36.0% |
| Mon Valley | 78 | 57 | 134 | 8.0% | 1.2% | 35.0% |
| Greenbrier | 4 | 2 | 7 | 8.0% | 1.0% | 26.0% |
| Russell County | 24 | 5 | 29 | 8.0% | 0.9% | 31.0% |
| Total United States | 247 | 87 | 334 |  |  |  |
| Total | 435 | 105 | 539 |  |  |  |

(1) For more information regarding price assumptions used in the calculation of coal reserves as of December 31, 2022, see the individual property disclosures below.
(2) For more information regarding moisture assumptions used in the calculation of coal reserves as of December 31, 2022, see the individual property disclosures below.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

# Curragh

Curragh is a production-stage mining property that consists of two active, open-pit, surface mines (Curragh North and Curragh Main). Coal mine development at the Curragh property is presently accomplished by surface mining methods and has been so historically since the mine's inception. Curragh coals are widely known for their low ash, low to mid volatile matter, low sulfur and low phosphorous content. Curragh Met coal products are also known for their consistent delivered quality, which supports a consistent offtake across a diversified market base. A map of Curragh is shown in Figure 3.

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Figure 3. Coronado Curragh Mine Complex Property Location Map.

![img-1.jpeg](img-1.jpeg)

The Curragh mine complex is located within the Bowen Basin coalfields, approximately 200 kilometers by road west of Rockhampton, Queensland, Australia, and approximately 14 kilometers north of the town of Blackwater, Queensland, Australia. The coordinates of CPP1, which is located within Curragh Main, are 688,561 meters East, 7,400,933 meters North in the AMG66 grid system. Curragh owns and operates the necessary CPPs and load-out system for dispatches via Blackwater rail line to the Port of Gladstone or the Stanwell Power Station. See Item 1. "Business-Transportation-Australian Operations" for additional information regarding the rail and port services available to Curragh. Curragh also has maintenance facilities for the fleet of mining equipment, as well as office buildings for the mine staff and personnel. Established sealed roads connect the mine to the town of Emerald, Queensland, Australia, to the west and the Port of Gladstone to the east. Third-party rail providers operate the Blackwater rail line and transport Curragh export coal, for sale to international customers, to the RG Tanna Coal Terminal or Wiggins Island Coal Export Terminal at the Port of Gladstone. Curragh domestic coal is loaded onto train wagons for transportation to the Stanwell Power Station for power generation.

Curragh has ready access to water, electricity and personnel to support its operations. SunWater Ltd. supplies water to the mine complex from the Fairbairn Dam via the Bedford Weir. The mine complex also recycles water from on-site dams-i.e., old open-cut pits that capture rainfall and water from dewatering activities. Curragh has a dedicated 66-kilovolt, or kV, power supply to support the mining operations with a capacity of up to 57-megawatt, or MW, sourced from the main grid power. The substation is located on the southwest corner of ML1878 with both 66kv and 22kv distribution networks to supply the draglines, shovel and CPP.

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The Mineral Resources Act 1989 (Qld), or MRA, and the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld), or MERCPA, together, provide for the assessment, development and utilization of mineral resources in Queensland to the maximum extent practicable, consistent with sound economic and land use management. The MRA vests ownership of minerals, with limited exceptions, in the 'Crown,' which in relation to Curragh, is the Queensland Government. A royalty is payable to the Queensland Government for the right to extract minerals. The MRA also creates different tenures for different mining activities, such as prospecting, exploring and mining. A ML is the most important tenure, as it permits the extraction of minerals in conjunction with other required authorities. The MRA imposes general conditions on an ML.

We control the coal mining rights at Curragh under 14 coal and infrastructure MLs and three MDLs granted pursuant to the MRA. We refer to the MLs and MDLs at Curragh, collectively, as the Tenements. Renewal of certain Tenements will be required during the mine life of Curragh and the Queensland government can vary the terms and conditions on renewal. There are a number of existing mining and petroleum tenements which overlap with the Tenements. The priority, consent and coordination requirements under the MRA, MERCPA and the Petroleum and Gas (Production and Safety) Act 2004 (Qld) (as relevant) may apply with respect to those overlaps. Extensive statutory protocols govern the relationships between co-existing mining and exploration rights and these protocols are largely focused on encouraging the overlapping tenement holders to negotiate and formulate arrangements that enable the co-existence of their respective interests. To date, we have negotiated arrangements in place with all of our overlapping tenement holders and full access to all of our Tenements. See Item 1. 'Business-Regulatory Matters-Australia-Tenements' for additional information regarding Curragh mining tenements.

Property control and mining rights at Curragh are entirely expressed in the MLs and MDLs mentioned in Item 1. 'Business-Regulatory Matters-Australia-Tenements.' An overlapping petroleum tenure exists over the southern extents of the Tenements. Under the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld), this requires annual information exchanges, including the provision and maintenance of joint information management plans with the overlapping tenement holder. Curragh is compliant with the legislation and there are no current restrictions to coal mining.

As conditions to certain of the Tenements, Curragh is subject to royalties payable to the Queensland government on a new regulated tiered structure introduced 1st July 2022. This tiered royalty payment regime is dependent on the received AUDIT revenue received from the coal sales, and varies from 7% for up to A$100M sales, up to 40% payable for sales over A$300M. These royalties are in addition to the Stanwell rebate, as described in Item 1. 'Business-Customers-Stanwell.' Additionally, if MDL 162 advances from development to production, we would be required to pay under a private royalty deed a base royalty of A$0.50 per Mt of coal and a royalty of A$0.70 for every Mt of SCC produced above 2.5 MMt per year.

A joint venture between Arco Australia Ltd., Australian Consolidated Industries Ltd., R.W. Miller & Co. and Mitsui & Co. (Australia) first began development on certain of the Tenements in 1983. Later, Arco Australia Ltd. bought out the other joint ventures and, in 2000, sold the Property to Wesfarmers Ltd. In 2014, Wesfarmers acquired MDL 162 from Peabody Budjero Pty Ltd. Coronado acquired all the Tenements from Wesfarmers Ltd. in March 2018. Production history has been approximately 12.0 MMt in 2020, 11.1 MMt in 2021 and 9.8 MMt in 2022.

Beginning in the 1960's, various tenement holders began prospecting and exploratory drilling at Curragh. We currently have an active, ongoing exploration program at Curragh that allows us to update and refine the geological model ahead of pit development.

Coal mine development at the Curragh property is presently accomplished by surface mining methods and has been so historically since the mine's inception. The mine characteristics and output levels allow it to be ranked as a large coal operation when compared to domestic producers in Australia and worldwide. Curragh operates four large electric draglines, one large electric shovel and a fleet of smaller contractor excavators. Contractors are employed for the pre strip, post strip and coal mining activities. Contract highwall mining operations has commenced at Curragh North during the 2022 calendar year.

Curragh has two coal preparation plants CPP1 and CPP2. CPP1 is the oldest of the two processing plants and has a documented nameplate capacity of 1100 tph (as received). CPP2 has a documented nameplate capacity of 1200 tph (as received) with a capability of up to 1350 tph when processing selected feed types. Curragh has a loadout facility for loading coal onto railcars, which is connected to the main Blackwater rail link.

Generally, the mining equipment and facilities at Curragh are in good operating condition. We focus on the long-term potential of the mine complex and regularly monitor developments in the mining industry for technology improvements and new equipment that could help us increase efficiency and lower our costs. Curragh's oldest mining equipment, including two draglines, began operations in 1983. All of the draglines have additional boom (stress) monitoring systems, which allow us to increase their total suspended load capacities, and still achieve over 90% mechanical availability. Prior to our taking over mining operations, Wesfarmers Ltd. made improvements to the processing facilities at Curragh, including the commissioning of the second CPP in 2012 and replacing the raw coal crushing system at Curragh Main with an updated circuit in 2016. Wesfarmers Ltd. also started a corrosion and structural repair program over ten years ago that we have continued since acquiring the mine complex. This program helps us ensure that the assets are available well into the future. From time to time, we also update and improve other equipment and facilities to maintain their usefulness and optimize our competitiveness. As of December 31, 2022, the book value of Curragh and its associated plant and equipment was $761.8 million.

We are not aware of any significant encumbrances or defects in title with respect to the Property. We believe we have secured all applicable environmental licenses and permits under both Queensland and Australian Commonwealth legislation and have all permits and licenses regarding cultural heritage, native title and various other social issues. See Item 1. 'Business-Regulatory Matters-Australia' for a discussion of the permitting conditions applicable to Curragh.

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Summaries of Curragh's coal resources and reserves as of December 31, 2022 and 2021 are shown in Tables 4 and 5, respectively.

Table 4. Curragh - Summary of Coal Resources Exclusive of Reserves at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Coal Resources (Wet Tons, In Situ, MMt) (2)(3)(4) |  |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Measured + Indicated | Inferred | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 328 | 184 | 512 | 142 | 19.5% | 0.50% | 18.4% |
| December 31, 2021 | 328 | 184 | 512 | 142 | 19.5% | 0.50% | 18.4% |

(1) Curragh splits the resource into areas that are above and below a 15:1 open cut stripping ratio and considers the lower ratio areas as suitable for open cut mining at the higher ratio areas as suitable for underground mining. The average sales price for the underground resources was estimated to be $147 per Mt (FOB). Pricing for resources is described in Section 11.5 of the Curragh TRS.
(2) There are resources suitable for open cut mining outside of reserves. Pricing for resources is described in Section 11.5 of the Curragh TRS. Based on assumed long-term average sales price of $143 per Mt (FOB) representing the long-term average price forecast for Curragh based on independent price forecasts.
(3) Table 1-1 of the Curragh TRS provides a summary of Curragh resource tons inclusive of reserve tons as of December 31, 2021.
(4) Reported on a 5.3% in-situ moisture basis.
(5) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

Table 5. Curragh - Summary of Coal Reserves (Marketable Sales Basis) at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MMt) (2) |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Proven | Probable | Total | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 188 | 18 | 205 | 10.7% | 0.4% | 19.0% |
| December 31, 2021 | 198 | 18 | 215 | 10.7% | 0.4% | 19.0% |

(1) Based on pricing data as provided by Coronado described in Section 16 of the Curragh TRS. The pricing data assumes average realized price of $141 per Mt sold over the LOM.
(2) Reported on an 11.0% moisture basis.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

From December 31, 2021 to December 31, 2022, total reserves decreased by approximately 5%, from approximately 215.0 MMt to approximately 205.0 MMt. The decrease in total reserves is attributable to mining depletion.

Barry Lay, BSc Geology (Hons); MAusIMM of Resology Pty Ltd, and Paul Wood, B. Eng.; MAusIMM(CP), who is employed full-time as the Senior Life of Mine Planner of our subsidiary, Coronado Curragh, whom we refer to as the Australian QPs, prepared the estimates of coal resources and reserves summarized in Tables 4 and 5. A copy of the Australian QPs' technical report summary, or TRS, with respect to Curragh, dated February 21, 2022, or the Curragh TRS, is filed as Exhibit 96.1 hereto. Neither Mr. Barry Lay nor Resology Pty Ltd is affiliated with Coronado.

The Australian QPs prepared the estimates of coal resources and reserves using drilling data available from exploration activities at Curragh conducted by numerous entities over time. Most of this information was obtained prior to our acquisition of the Property, using varying drilling and core-logging techniques, survey methods and testing procedures. As a result, in verifying the data, the Australian QPs made certain assumptions about the adequacy of the processes performed and comparability of the data based on their professional experience and familiarity with Curragh.

Per Section 12.1 of the Curragh TRS, coal reserves were classified as proven or probable considering "modifying factors," including mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Section 22.2 of the Curragh TRS includes a risk assessment of the key modifying factors that could potentially impact the operations and therefore the estimate of coal reserves and resources.

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As summarized in Section 7.1 of the Curragh TRS, the concentration of exploration drill holes varies slightly across the Property. The location of the drilling is shown on the maps included in Section 7. Points of observation include exploration drill holes and mine measurements, which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modelling, the interrelationship of overlying and underlying strata on seam mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. Section 11.6 of the Curragh TRS summarizes the drill hole spacings and accuracy associated with each resource category.

Coal quality is instrumental in determining the viability of a coal deposit. As per Table 11-1 of the Curragh TRS, coal quality conforms to international standards. These quality attributes aided in converting in-place tons to demonstrated coal reserves (recoverable washed tons). Pricing data as provided by Coronado is described in Table 16-1 of the Curragh TRS. These are weighted-average values across the LOM schedule.

Regarding production rates as described in Section 13 of the Curragh TRS, the mine plan and productivity expectations consider historical performance and efforts have been made to adjust the plan to reflect current technology and future conditions. Mine development and operation have not been optimized within the Curragh TRS. Additional mine-specific factors can be found in Section 13 of the Curragh TRS.

# Buchanan

Buchanan is a production-stage mining property, consisting of one active underground mine and supporting infrastructure that produces Low-Vol Met coal using the longwall mining method. The mine complex is located in Buchanan County in southwest Virginia. A map of Buchanan is shown in Figure 4.

Figure 4. Coronado Buchanan Mine Complex Property Location Map.

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The Buchanan mine complex is located approximately 6.4 kilometers southeast of Oakwood, Virginia, and 16 kilometers southeast of Grundy, Virginia. The coordinates of the Buchanan CPP are latitude 37° 09' 40" and longitude 81° 59' 13" (Easting 984,100', Northing 320,100' - in the VA State Plane South NAD 27 grid system). The nearest major population centers are Roanoke, Virginia, and Lexington, Kentucky, which are about 153 kilometers northeast and 290 kilometers northwest of the property, respectively. From U.S. Route 460, which runs through Oakwood, a well-developed network of improved and unimproved roads provides access to the property. The surface facilities at Buchanan are located along a Norfolk Southern rail line, which serves as the primary means of transport for produced coal. Norfolk Southern transports coal from the Buchanan mine complex either to domestic customers or to Lamberts Point Coal Terminal Pier 6 in Norfolk, Virginia, for overseas shipment.

Buchanan has ready access to water, electricity and personnel to support its operations. The mine complex sources water from streams that flow over Company-owned property. The mine also utilizes ground water from an old abandoned mine. Electricity is sourced from American Electric Power. Personnel have historically been sourced from the surrounding communities in Buchanan, Tazewell, McDowell and Pike Counties and have proven to be adequate in numbers to operate the mine complex. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners.

The property mineral rights are composed of approximately 33,577 total hectares, of which 25,852 are leased or subleased from private landholders under approximately 150 individual coal lease tracts, and 7,725 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, all the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2044.

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Under the terms of the relevant leases, we are required to pay royalties ranging from 4% to 6% of the selling price of coal mined from the corresponding leasehold and, for the majority, an annual minimum royalty, irrespective of production. Coal produced at Buchanan, however, is not subject to 'wheeleage fees' (i.e., fees payable on coal mined and removed from properties other than the particular leasehold and hauled across the leasehold premises).

The property was formerly controlled by Consolidation Coal Company, or CONSOL. Mine development was started by CONSOL in 1983 and longwall production began in 1987. Coronado acquired the Buchanan Mine from CONSOL in March 2016. Production history has been approximately 3.4 MMt in 2020, 4.4 MMt in 2021 and 3.9 MMt in 2022.

Our right to commercially mine and recover coal reserves at Buchanan overlaps with the right of an affiliate of CNX Resources Corporation, which we refer to as the Gas Party, to commercially recover and develop coal gas interests from the mine area. The Gas Party and we have entered into certain agreements to regulate the interaction between, and coordinate, our respective operations. In general, the combination of these overlapping interests allows for mutual benefits to the parties, namely, the degassing of our coal mining operations in the mine, which helps assure the safety of mine personnel, and the Gas Party's commercial capture and sale of the coal gas. In addition, the Gas Party's drilling activities have contributed to exploration efforts with respect to coal deposits at Buchanan. As the only natural gas supplier in the area, we purchase our requirements of natural gas for the operation of our thermal dryer at Buchanan from the Gas Party.

Before Coronado took over mining operations at Buchanan, CONSOL Energy had conducted extensive exploration of the property. We have continued exploration at the property through a program of core drilling to confirm reserves, establish additional resources and assess the geotechnical viability of mining.

Buchanan produces primarily a Low-Vol HCC, but it also produces a premium Low-Vol PCI product. The Buchanan mine extracts coal from the Pocahontas #3 seam of the Pennsylvanian-age Pocahontas Formation, which is the principal minable coal seam of that formation. The seam is situated below drainage throughout the Property and is accessed by vertical shafts. The seam thickness averages 1.58 meters within the mining area.

The Buchanan mine extracts coal using a single longwall system supported by six continuous miner sections, which develop main entries and gate roads in preparation for the longwall. Each continuous miner section is equipped with one or two continuous miners, two roof bolters and two or three coal haulage units. After extraction, a series of conveyor belts deliver raw coal to an underground storage bunker. The Buchanan mine complex uses a skip hoist system to lift raw coal to the surface. Buchanan has a CPP that processes raw coal at a rate of approximately 1,270 raw tph, as well as the other necessary support infrastructure, including loadout and portal facilities.

Generally, the mining equipment and facilities at Buchanan are in good operating condition. We focus on the long-term potential of the mine complex and regularly monitor developments in the mining industry for technology improvements and new equipment that could help us increase efficiency and lower our costs. Since acquiring the Buchanan operations, we have implemented improvements at the CPP, which have resulted in increased capacity. From time to time, we also update and improve other equipment and facilities to maintain their usefulness and optimize our competitiveness. For example, we rebuild our longwall shear, drives and cycling shields after every panel. We have also entered into life cycle management agreements for our continuous miner equipment, installed programmable logic controller, or PLC, controls on the skip hoist system, upgraded our belt drives for increased horsepower, deployed state-of-the-art Fletcher roof bolters on our continuous miner sections and switched to PLC control systems and variable frequency drive, or VFD, starters on our belt drives. As of December 31, 2022, the book value of Buchanan and its associated plant and equipment was $387.6 million.

We are not aware of any significant encumbrances or defects in title with respect to the Property. Additionally, we believe we have obtained all requisite mining and discharge permits to conduct our operations at Buchanan and expect to be able to obtain all required permits in the future. The Buchanan mine complex holds one state permit, with the associated NPDES permit.

Buchanan is subject to a federal black lung excise tax of $1.21 per ton for underground mining and a federal reclamation tax of $0.13 per ton for underground mining. However, the federal black lung excise tax applies only with respect to coal sold domestically. Additionally, Buchanan is subject to a Virginia reclamation tax of $0.05 per ton (which amount is contributed to a state-funded bond pool) and a Virginia severance tax of 2% for all coal sold. See Item 1, 'Business-Regulatory Matters-United States' for a discussion of the permitting conditions applicable to Buchanan.

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Summaries of Buchanan's coal resources and reserves as of December 31, 2022 and 2021 are shown in Tables 6 and 7, respectively.

Table 6. Buchanan - Summary of Coal Resources Exclusive of Reserves at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Coal Resources (Dry Tons, In Situ, MMt)(2)(3) |  |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Measured + Indicated | Inferred | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 34 | 6 | 40 | - | 25.0% | 0.7% | 16.0% |
| December 31, 2021 | 11 | 4 | 15 | - | 25.0% | 0.7% | 16.0% |

(1) Pricing for resources is described in Section 11.3.1 of the Buchanan TRS. Based on assumed long-term average price of $94 per Mt (FOB loaded) for Buchanan resources as of December 31, 2021 and $110 per Mt (FOB loaded) for resources at December 31, 2022, representing the long-term average price forecast for Buchanan based on independent price forecasts.
(2) Exclusive of reserve tons. Table 1-1 of the Buchanan TRS provides a summary of Buchanan resource tons inclusive of reserve tons as of December 31, 2022.
(3) Reported on a dry basis. Surface moisture and inherent moisture are excluded.
(4) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

Table 7. Buchanan - Summary of Coal Reserves (Marketable Sales Basis) at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MMt)(2) |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Proven | Probable | Total | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 88 | 5 | 93 | 6.0% | 0.7% | 19.0% |
| December 31, 2021 | 87 | 11 | 98 | 6.0% | 0.7% | 19.0% |

(1) Pricing data as provided by Coronado is described in Section 16.2 of the Buchanan TRS. For Buchanan reserves as of December 31, 2021, the pricing data assumes a weighted average domestic and international FOB-mine price of approximately $197 per Mt for calendar year 2022, the weighted average price decreases to approximately $118 to $126 per Mt through year 2026 and averages approximately $152 per Mt over the LOM. For Buchanan reserves as of December 31, 2022, the pricing data assumes a weighted average domestic and international FOB-mine price of approximately $179 per Mt for calendar year 2023, the weighted average price decreases to approximately $132 to $143 per Mt through year 2027 and averages approximately $153 per Mt over the LOM.
(2) Reported on a 6.0% moisture basis.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

From December 31, 2021 to December 31, 2022, total reserves decreased by approximately 5%, from approximately 98.0 MMt to approximately 93.0 MMt. This net reduction of 5.0 MMt of total reserves was attributable to a combination of updates to the mine plan along with one year of mining depletion. A TRS with respect to Buchanan, updating the TRS with respect to Buchanan filed with Coronado's Annual Report on Form 10-K for the year ended December 31, 2021, was prepared in February 2023 due to material differences in the key financial modifying factors, including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions underlying the reserve estimates are discussed in Sections 12 and 16 of the Buchanan TRS, while operating costs and capital costs assumptions underlying the reserve estimates are discussed in Sections 18 and 19 of the Buchanan TRS. The differences in the key financial modifying factors did not have a material impact on the reserve estimates from December 31, 2021 to December 31, 2022. From December 31, 2021 to December 31, 2022, measured and indicated resources increased significantly, by approximately 167%, due to evaluation of additional gas well data in the North where none had previously been analyzed. Updated financial inputs, including coal sales price assumptions and operating and capital costs used in estimating the resources exclusive of reserves, as discussed in Section 11.3.1 of the Buchanan TRS, did not have a material impact on the measured and indicated resource estimates as of December 31, 2022, as compared to the measured and indicated resource estimates as of December 31, 2021. Net increase resulted in an additional 25 MMt of in-place resources in the North.

Marshall Miller & Associates, Inc., a third-party firm comprising mining experts, whom we refer to as the U.S. QPs, prepared the estimates of coal resources and reserves as of December 31, 2022 summarized in Tables 6 and 7. A copy of the U.S. QPs' TRS with respect to Buchanan, dated as of February 15, 2023, or the Buchanan TRS, is filed as Exhibit 96.2 hereto. The U.S. QPs are not affiliated with Coronado.

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The U.S. QPs prepared the estimates of coal resources and reserves using core drilling data available from exploration activities at Buchanan conducted by numerous entities over time. Most of this information was obtained prior to our acquisition of the property, using varying drilling and core-logging techniques, survey methods and testing procedures. As a result, in verifying the data, the U.S. QPs made certain assumptions about the adequacy of the processes performed and comparability of the data based on their professional experience and familiarity with Buchanan.

Per Section 12.1 of the Buchanan TRS, coal reserves were classified as proven or probable considering "modifying factors," including mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Section 22.2 of the Buchanan TRS includes a risk assessment of the key modifying factors that could potentially impact the operations and therefore the estimate of coal reserves and resources.

As summarized in Section 7.1 in the Buchanan TRS, the U.S. QPs utilized 4,589 available core, rotary, channel samples, mine measurements and coalbed methane wells on and around the Buchanan property. Points of observation include exploration drill holes, degas holes, and mine measurements, which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. The U.S. QPs completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated coal resources. Historically, the United States has assumed that coal within 0.4 kilometers of a point of observation represents a measured resource, whereas coal between 0.4 kilometers and 1.2 kilometers from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. The U.S. QPs performed a geostatistical analysis of the Buchanan data set using the Drill Hole Spacing Analysis, or DHSA, method. DHSA prescribes that measured, indicated and inferred drill hole spacings be determined at the 10%, 20%, and 50% levels of relative error, respectively. Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Exponential model included in the DHSA recommends using a radius of 0.67 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources the DHSA falls in line closely with the historical standards. The Exponential and Spherical models of the DHSA recommend using a radius of 1.08 kilometers from a point of observation for indicated resources, while the Gaussian model included in the DHSA recommends a radius of 1.10 kilometers from a point of observation for indicated resources. These values line up closely with the historical radius of 1.2 kilometers. These results have led the U.S. QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

Coal quality is instrumental in determining the viability of a coal deposit. Per Section 8.2 of the Buchanan TRS, coal quality conforms to the American Society for Testing and Materials, or ASTM, standards. These quality attributes aided in converting dry, in-place tons to demonstrated coal reserves (recoverable washed tons). The reserve and resource criteria are presented in Table 11-1 of the Buchanan TRS, including assumptions related to seam density, minimum cut-off thickness, and recoveries.

Regarding production rates as described in Section 13.2 of the Buchanan TRS, the mine plan and productivity expectations reflect historical performance and efforts have been made to adjust the plan to reflect future conditions. Mine development and operation have not been optimized within the Buchanan TRS.

# Logan

Coronado's Logan property is currently in the production stage. Logan consists of four active underground mines (North Fork Winifrede, Lower War Eagle, Eagle No. 1 and Muddy Bridge) and supporting infrastructure that produce High-Volatile Met coal using the room and pillar mining method and one active surface mine (Toney Fork) and supporting infrastructure that produce both Met and thermal coal using the contour and highwall mining methods. The Logan complex life plan includes 12 proposed mines, consisting of nine underground mines and three surface mines. The property is located in Boone, Logan and Wyoming Counties in southern West Virginia. The surface facilities are located in Logan County, West Virginia. A map of Logan is shown in Figure 5.

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Figure 5. Coronado Logan Mine Complex Property Location Map.

![img-0.jpeg](img-0.jpeg)

The Logan mine complex encompasses the towns of Lorado and Pardee in Logan County, West Virginia, and Cyclone and Lacoma in Wyoming County, West Virginia. The coordinates of the Saunders CPP are latitude 37° 47' 58" and longitude 81° 40' 01" (Easting 1,806,880', Northing 291,517' - in the WV State Plane South NAD 27 grid system). The nearest major population centers are Huntington, West Virginia, and Charleston, West Virginia, which are about 145 kilometers northwest and 129 kilometers northeast of the property, respectively. From U.S. Route 119, which runs through Mingo, Logan and Boone Counties to the north, a well-developed network of improved and unimproved roads provides access to the property, including Route 16 and Route 10, which run east-west across the property in Logan County and Wyoming County, respectively. The Logan surface facilities are located approximately 21 kilometers northeast of Man, West Virginia, along a CSX Corporation, or CSX, rail line, which serves as the primary means of transport for produced coal. CSX transports coal from Logan either to domestic customers or to the Kinder Morgan Pier IX and Dominion Terminals in Norfolk, Virginia, for overseas shipment.

Logan has ready access to water, electricity and personnel to support its operations. Buffalo Creek Public Service District supplies water and American Electric Power supplies electricity to the mine complex. Mine personnel generally live in the surrounding communities of Logan, Boone, Wyoming and Mingo Counties in West Virginia.

The property mineral rights are composed of 13,183 total hectares, 13,114 of which are leased from private landholders under approximately 15 individual leases, and 69 hectares are owned by Coronado. Subject to Coronado exercising its renewal rights thereunder, a majority of the leases, covering a majority of the Logan reserves, expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2056. One lease expires in 2032; however, Coronado is projected to have previously exhausted the reserves covered thereby.

Under the terms of the leases, we are required to pay royalties ranging from 3.0% to 9.0% of revenue from sales of coal produced depending on mining method. Certain of the leases also provide for "wheelage fees" ranging from 0.25% to 1.0% of revenue from sales of coal mined and removed from properties other than the particular leasehold and hauled across the leasehold premises.

The mining of Logan was commenced in 1945 by Lorado Mining Company, or Lorado. Lorado was sold to Buffalo Mining Company in 1964 and then to Pittston Coal Company in 1971. Pittston operated the property until the early 1990's. After being idle for a period, the property was then sold to Addington Resources in 2004. Imagin Natural Resources acquired the property in 2007 and sold it to Cliffs Natural Resources Inc. (now known as Cleveland-Cliffs Inc.) in 2011, which in turn sold the property to Coronado in 2014. Production history has been approximately 1.6 MMt in 2020, 1.9 MMt in 2021 and 2.1 MMt in 2022.

Before Coronado acquired Logan, previous owners had conducted extensive exploration on the property. Coronado has continued exploration at the property through a program of core drilling to confirm reserves, establish additional resources and assess the geotechnical viability of mining.

Logan produces primarily High-Vol Met coal (HVA HCC and HVB HCC), mined from various seams of the Kanawha Formation, most of which are situated below drainage; however, several Met coal seams are situated above drainage. Logan also produces thermal coal from upper portions of the Kanawha Formation.

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Most of Logan's Met coal production is attributable to its four active underground mines, Winifrede, Lower War Eagle, Eagle No. 1 and Muddy Bridge, each of which uses the room and pillar mining method. The North Fork Winifrede mine utilizes one continuous miner section to extract coal from the Upper Winifrede seam, which is situated above drainage throughout the property and accessed by drift entry. The Lower War Eagle mine utilizes two continuous miner super sections to extract coal from the Lower War Eagle seam, which is situated below drainage throughout the property and accessed by slope. The Eagle No. 1 mine utilizes three continuous miner super sections to extract coal from the No. 2 Gas seam, which is situated above drainage throughout the property and accessed by drift entry. The Muddy Bridge mine utilizes two continuous miner super sections to extract coal from the No. 2 Gas seam, which is situated above drainage throughout the property and accessed by drift entry.

A majority of the sections of the active underground mines at Logan are configured as full super sections, with two continuous miners per section. Each section also has two or four roof bolters, three or six shuttle cars and two scoops. From the continuous miner at the production face, the shuttle cars haul extracted coal to a feeder breaker, which transfers raw coal to a conveyor belt for transport to a surface stockpile holding area. A shared overland conveyor carries raw coal from the Lower War Eagle mine to a CPP. Trucks haul raw coal from the Eagle No. 1 and North Fork Winifrede mines to the CPP and from the Muddy Bridge mine to the Logan overland conveyor. The CPP has a feed rate capacity of 1,089 raw tph. The CPP site includes raw coal storage, clean coal storage, a loadout connected to a CSX rail line and refuse disposal area.

The Toney Fork surface mine extracts Met and thermal coal using the area mining method. The current LOM plan for Toney Fork also contemplates utilizing contour and highwall mining methods at various times during the life of the mine. The mine uses a spread of front-end loaders, large tractors/dozers and rock trucks to remove overburden and expose the coal. We will deploy highwall mining when overburden volumes exceed economical stripping ratios associated with area and contour mining. Trucks haul raw coal from Toney Fork to the CPP site for cleaning or to the loading site to be shipped directly to customers.

Our current plans at Logan contemplate 12 proposed mines, consisting of nine underground mines and three surface mines, including the five mines currently in operation. The proposed underground mines would extract coal using the room and pillar mining method, and the proposed surface mines would extract coal using area, contour or highwall mining methods, or some combination thereof.

Generally, the mining equipment and facilities at Logan are in good operating condition. We focus on the long-term potential of the mine complex and regularly monitor developments in the mining industry for technology improvements and new equipment that could help us increase efficiency and lower our costs. Logan's oldest mining equipment and facilities, including the CPP and loadout facility, began operations in 2008, when the Powellton No. 1 mine started production. Since acquiring the Logan operations, we have implemented improvements at the CPP, which have resulted in increased capacity. From time to time, we also update and improve other equipment and facilities to maintain their usefulness and optimize our competitiveness. As of December 31, 2022, the book value of Logan and its associated plant and equipment was $232.1 million.

We are not aware of any significant encumbrances or defects in title with respect to the property. Additionally, we believe we have obtained all requisite mining and discharge permits to conduct our operations at Logan and expect to be able to obtain or renew all required permits in the future. The Logan mine complex holds 24 state permits with associated NPDES permits.

Logan is subject to a federal black lung excise tax of $1.21 per ton for underground mining and $0.28 per ton for surface and highwall mining; however, this tax applies only with respect to coal sold domestically. Logan is also subject to a federal reclamation fee of $0.13 per ton for underground mining and $0.31 per ton for surface and highwall mining. Additionally, Logan is subject to a West Virginia reclamation tax of $0.308 per ton and a West Virginia severance tax of 1.0% to 5.0% of revenues for all coal produced. See Item 1. "Business-Regulatory Matters-United States" for a discussion of the permitting conditions applicable to Logan.

Summaries of Logan's coal resources and reserves as of December 31, 2022 and 2021 are shown in Tables 8 and 9, respectively.

Table 8. Logan - Summary of Coal Resources Exclusive of Reserves at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Coal Resources (Dry Tons, In Situ, MMt) (2)(3) |  |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Measured + Indicated | Inferred | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 45 | 37 | 82 | 3 | 24.0% | 1.0% | 28.0% |
| December 31, 2021 | 46 | 37 | 83 | 3 | 24.0% | 1.0% | 28.0% |

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(1) Pricing for resources is described in Section 11.3.1 of the Logan TRS. For Logan resources as of December 31, 2021, based on assumed long-term average price of $130 per ton (FOB loadout) for underground-mineable resources, representing the long-term average price forecast for HVB provided by Coronado; surface resources were assessed at a sales price of $52 per Mt (FOB loadout) based on estimated historical pricing for Coronado's surface operations. For Logan resources as of December 31, 2022, based on assumed long-term average price of $154 per Mt (FOB loadout) for underground-mineable resources, representing the long-term average price forecast for HVB provided by Coronado; surface resources were assessed at a sales price of $83 per Mt (FOB loadout) based on estimated historical pricing for Coronado's surface operations.
(2) Exclusive of reserve tons. Table 1-1 of the Logan TRS provides a summary of Logan resource tons inclusive of reserve tons as of December 31, 2022.
(3) Reported on a dry basis. Surface moisture and inherent moisture are excluded.
(4) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

Table 9. Logan - Summary of Coal Reserves (Marketable Sales Basis) at the End of the Fiscal Year Ended December 31, 2022 and 2021.(1)

|  | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MMt)(2) |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Proven | Probable | Total | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 53 | 17 | 71 | 8.0% | 0.9% | 36.0% |
| December 31, 2021 | 53 | 20 | 74 | 8.0% | 0.9% | 35.0% |

(1) Pricing data as provided by Coronado is described in Section 16.2 of the Logan TRS. For Logan reserves as of December 31, 2021, the pricing data assumes respective HVA, HVB, specialty markets and thermal FOB-mine prices of approximately $224, $123, and $51 per Mt for calendar year 2022; HVA, HVB, and thermal prices decrease to approximately $145, $115, and $51 per Mt, respectively, through year 2026, and then increase to $227, $189, and $51 per Mt, respectively, through year 2050 (after which sales prices were held constant). For Logan reserves as of December 31, 2022, the pricing data assumes respective HVA, HVB and thermal FOB-mine prices of approximately $192, $170, and $227 per Mt for calendar year 2023; HVA, HVB, and thermal prices decrease to approximately $151, $132, and $83 per Mt, respectively, through year 2027, and then increase to $271, $237, and $150 per Mt, respectively, through year 2056.
(2) Reported on a 4.5% - 6.0% moisture basis.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

From December 31, 2021 to December 31, 2022, total reserves decreased by approximately 3.9%, from approximately 73.5 MMt to 70.6 MMt. This net reduction of 2.9 MMt of total reserves was attributable to a combination of updates to the mine plans along with one year of mining depletion. A TRS with respect to Logan, updating the TRS with respect to Logan filed with Coronado's Annual Report on Form 10-K for the year ended December 31, 2021, was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021, to December 31, 2022. Coal sales price assumptions underlying the reserve estimates are discussed in Sections 12 and 16 of the Logan TRS, while operating costs and capital costs assumptions underlying the reserve estimates are discussed in Sections 18 and 19 of the Logan TRS. The differences in the key financial modifying factors did not have a material impact on the reserve estimates as of December 31, 2022, as compared to the reserve estimates as of December 31, 2021. From December 31, 2021, to December 31, 2022, measured and indicated resources decreased by approximately 0.7%, from approximately 82.8 MMt to 82.2 MMt. This net reduction of 0.6 MMt of measured and mineral resources was attributable to one year of mining depletion along with changes to the mine plan. Updated financial inputs, including coal sales price assumptions and operating and capital costs used in estimating the resources exclusive of reserves, as discussed in Section 11.3.1 of the Logan TRS, did not have a material impact on the measured and indicated resource estimates as of December 31, 2022, as compared to the measured and indicated resource estimates as of December 31, 2021.

Marshall Miller & Associates, Inc., a third-party firm comprising mining experts, whom we refer to as the U.S. QPs, prepared the estimates of coal resources and reserves as of December 31, 2022 summarized in Tables 8 and 9. A copy of the U.S. QPs' TRS with respect to Logan, dated as of February 15, 2023, or the Logan TRS, is filed as Exhibit 96.3 hereto. The U.S. QPs are not affiliated with Coronado.

The U.S. QPs prepared the estimates of coal resources and reserves using core drilling data available from exploration activities at Logan conducted by numerous entities over time. Most of this information was obtained prior to our acquisition of the property, using varying drilling and core-logging techniques, survey methods and testing procedures. As a result, in verifying the data, the U.S. QPs made certain assumptions about the adequacy of the processes performed and comparability of the data based on their professional experience and familiarity with Logan. Per Section 12.1 of the Logan TRS, coal reserves were classified as proven or probable considering "modifying factors," including mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Section 22.2 of the Logan TRS includes a risk assessment of the key modifying factors that could potentially impact the operations and therefore the estimate of coal reserves and resources.

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As summarized in Section 7.1 in the Logan TRS, the U.S. QPs utilized 1,131 available core, rotary, and gas well drilling on and around the Logan property. Points of observation include exploration drill holes, degas holes, and mine measurements, which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam minerality, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. The U.S. QPs completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated coal resources. Historically, the United States has assumed that coal within 0.4 kilometers of a point of observation represents a measured resource whereas coal between 0.4 kilometers and 1.2 kilometers from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. The U.S. QPs performed a geostatistical analysis of the Logan data set using the DHSA method. DHSA prescribes measured, indicated, and inferred drill hole spacings be determined at the 10%, 20%, and 50% levels of relative error, respectively. Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Exponential and Spherical models recommend using a radius of 0.87 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources the Spherical and Exponential models recommend using a radius 1.53 kilometers. The historical radius of 1.2 kilometers is therefore also more conservative than the DHSA results for indicated resources. These results have led the U.S. QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

Coal quality is instrumental in determining the viability of a coal deposit. Per Section 8.2 of the Logan TRS, coal quality conforms to the ASTM standards. These quality attributes aided in converting dry, in-place tons to demonstrated coal reserves (recoverable washed tons). The reserve and resource criteria are presented in Table 11-1 of the Logan TRS, including assumptions related to seam density, minimum cutoff thickness, and recoveries. Pricing data as provided by Coronado is described in Section 16.2 of the Logan TRS.

Regarding production rates as described in Section 13.2 of the Logan TRS, the projected underground mines are set up similarly to the four active underground operations as of December 31, 2022. Each mine is scheduled to operate one to three production sections. A majority of the sections are configured as full super sections with two continuous miners per section. Three surface resource areas were modeled. Mining operations are projected to utilize area, as well as contour, mining methods. The three areas planned for highwall mining are assumed to be mined by a contractor; therefore, the contractor costs included in the financial model assume that the contractor is responsible for staffing those operations along with providing necessary equipment capital. Spoil for final highwall reclamation is expected to come from strategic placement of spoil on pre-existing benches by haul trucks such that they are within the push distance of the reclamation dozer. Additional information regarding mine-specific production factors can be found in Section 13.4 of the Logan TRS.

#### Mon Valley

The Mon Valley mine complex comprises three development-stage mining properties, namely, Pangburn, Shaner and Fallowfield, each consisting of a proposed underground mine that would produce High-Vol Met coal using the room and pillar mining method. The preliminary design for the properties also includes plans for surface facilities and a preparation plan for each mine. The properties reside in Allegheny, Washington and Westmoreland Counties in southwestern Pennsylvania. The proposed facilities include a barge loading dock and CSX rail loadout on the Monongahela River in Allegheny County, Pennsylvania, which would ship clean coal from all three mines to end customers. A map of Mon Valley is shown in Figure 6.

Figure 6. Coronado Mon Valley Mine Complex Property Location Map.

![img-1.jpeg](img-1.jpeg)

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Mon Valley is located approximately 22.5 kilometers southeast of Pittsburgh, Pennsylvania, near the communities of Bentleyville, Lockview, Monongahela, Elizabeth, Sutensville and Irwin, Pennsylvania. The coordinates of the proposed infrastructure are latitude 40° 15' 24' and longitude 79° 53' 50' (Easting 1,398,821', Northing 343,480' - in the PA State Plane South NAD 27 grid system). From U.S. Interstate 70 and Pennsylvania Route 51, which traverse the Fallowfield and Pangburn areas, respectively, a well-developed network of improved and unimproved roads allows general access to the property. The Monongahela and Youghiogheny Rivers also run through the property. The primary means of transport for produced coal would be by barge on the Monongahela River/Ohio River system. Additionally, a CSX rail line located along the banks of the Monongahela River would provide another option for the shipment of coal.

Mon Valley has sources of water, power, and supplies readily available for use. Personnel in the area have historically been sourced from the surrounding communities in Allegheny, Washington, and Westmoreland Counties, and have proven to be adequate in numbers to operate the mines. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners. Water is expected to be sourced locally from a nearby public water sources or rivers. Electricity is anticipated to be sourced from West Penn Power. The service industry in the areas surrounding the proposed mine complex has historically provided supplies, equipment repairs and fabrication, etc.

The property mineral rights are composed of 41,615 total hectares, of which 1,339 are leased from private landholders under two leases, and 40,276 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, both of the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2100.

A predecessor of CONSOL Energy previously controlled the properties. We acquired the properties from CONSOL Energy in March 2016 in connection with the acquisition of the Buchanan property.

Before we acquired Mon Valley, CONSOL Energy had conducted extensive exploration of Mon Valley. We have continued an exploration program focused on defining reserves and assessing the geotechnical viability of mining.

Mon Valley is capable of producing primarily a High-Vol Met coal from the Upper Freeport seam of the Pennsylvania-age Allegheny Formation. The seam is situated below drainage throughout the properties and would be accessed with slopes and shafts. The seam thickness in the projected mining areas averages 1.95 meters.

Under our current mine development plans, production would begin at the Pangburn mine in 2032, followed by the Shaner mine in 2038 and, finally, the Fallowfield mine in 2057. The proposed Mon Valley underground mines would use the room and pillar mining method with limited pilfering as to cause no subsidence. Each mine would have three continuous miner sections, with two continuous miners, two roof bolters, four shuttle cars and two scoops per section. The shuttle cars would have extracted coal from the production face to a feeder breaker-conveyor system, which would carry raw coal to a surface stockpile and CPP. The CPPs and surface facilities would have large raw and clean coal storage areas to facilitate efficient loading of clean coal into barges or rail cars for transport. We have not yet completed detailed designs of the infrastructure or surface facilities for the proposed Shaner and Fallowfield mines.

As of December 31, 2022, the book value of Mon Valley was $17.4 million.

We are not aware of any significant encumbrances or defects in title with respect to the properties. However, we will be required to obtain alternate zoning approval from the local township. Further, we will be required to submit formal permit applications to state or federal regulatory agencies. Although we have commenced the work to obtain the necessary permits and zoning variances, we are aware that the period of time necessary to obtain final authorizations, for purposes of commencing the development, construction and ultimate production at the proposed mine site, may be significant, and there can be no assurance that we can obtain the necessary zoning and permits. See Item 1. 'Business-Regulatory Matters-United States' for a discussion of the permitting conditions applicable to Mon Valley.

Coal mined from the Mon Valley mine complex would be subject to a federal black lung excise tax of $1.21 per ton for underground mining and a federal reclamation tax of $0.13 per ton for underground mining. However, the federal black lung excise tax will only apply with respect to coal sold domestically.

Mon Valley contains no resources exclusive of reserve tons as of December 31, 2022 and 2021. Table 1-1 of the Mon Valley TRS provides a summary of Mon Valley resource tons inclusive of reserve tons as of December 31, 2022.

A summary of Mon Valley's coal reserves as of December 31, 2022 and 2021 is shown in Table 10.

**Table 10. Mon Valley - Summary of Coal Reserves (Marketable Sales Basis) at the End of the Fiscal Year Ended December 31, 2022 and 2021.$^{[1]}$**

|  | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MM) [2] |  |  | Quality (Air-Dried Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Proven | Probable | Total | Ash | Sulfur | Volatile Matter |
| December 31, 2022 | 78 | 57 | 134 | 8.0% | 1.2% | 35.0% |
| December 31, 2021 | 78 | 57 | 134 | 8.0% | 1.2% | 35.0% |

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(1) Pricing data as provided by Coronado is described in Section 16.2 of the Mon Valley TRS. For Mon Valley reserves as of December 31, 2021, the pricing data assumes HVB domestic and export FOB-mine prices of approximately $137 and $120 per M, respectively, for calendar year 2027; HVB domestic and export prices increase to approximately $221 and $193 per M, respectively, through year 2050, and then increased by 1% annual inflation thereafter. For Mon Valley reserves as of December 31, 2022, the pricing data assumes HVB domestic and export FOB-mine prices of approximately $130 and $114 per M, respectively, for calendar year 2028; HVB domestic and export prices increase to approximately $204 and $178 per M, respectively, through year 2050, and then increased by 2% annual inflation thereafter.
(2) Reported on a 5.0% moisture basis.
(3) Some numerical figures in the above table have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that precede them.

Total reserves did not change from December 31, 2021, to December 31, 2022. A TRS with respect to Mon Valley, updating the TRS with respect to Mon Valley filed with Coronado's Annual Report on Form 10-K for the year ended December 31, 2021, was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021, to December 31, 2022. Coal sales price assumptions are discussed in Sections 12 and 16 of the Mon Valley TRS, while operating costs and capital costs are discussed in Sections 18 and 19 of the Mon Valley TRS.

Marshall Miller & Associates, Inc., a third-party firm comprising mining, whom we refer to as the U.S. QPs, prepared the estimates of coal reserves summarized in Tables 10. A copy of the U.S. QPs' TRS with respect to Mon Valley (Pennsylvania Upper Freeport Holdings), dated as of February 15, 2023, or the Mon Valley TRS, is filed as Exhibit 96.4 hereto. The U.S. QPs are not affiliated with Coronado.

The U.S. QPs prepared the estimates of coal resources and reserves using core drilling data available from exploration activities at Mon Valley conducted by numerous entities over time. Most of this information was obtained prior to our acquisition of the Property, using varying drilling and core-logging techniques, survey methods and testing procedures. As a result, in verifying the data, the U.S. QPs made certain assumptions about the adequacy of the processes performed and comparability of the data based on their professional experience and familiarity with Mon Valley.

Per Section 12.1 of the Mon Valley TRS, coal reserves were classified as proven or probable considering "modifying factors," including mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Section 22.2 of the Mon Valley TRS includes a risk assessment of the key modifying factors that could potentially impact the operations and therefore the estimate of coal reserves and resources.

As summarized in Section 7.1 in the Mon Valley TRS, the U.S. QPs utilized approximately 750 available core and rotary holes on and around the Mon Valley properties. Points of observation include exploration drill holes, degas holes, and mine measurements, which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam minerality, seam thickness trends, the impact of seam structure (i.e. faulting), intra-seam characteristics, etc. The U.S. QPs completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated coal resources. Historically, the United States has assumed that coal within 0.4 kilometers of a point of observation represents a measured resource whereas coal between 0.4 kilometer and 1.2 kilometers from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. The U.S. QPs performed a geostatistical analysis of the Pennsylvania data set using the DHSA method. DHSA prescribes measured, indicated, and inferred drill hole spacings be determined at the 10-percent, 20-percent, and 50-percent levels of relative error, respectively. Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Gaussian and Spherical models recommend using a radius of 0.72 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources the DHSA falls in line closely with the historical standards. The Exponential model recommends using a radius 1.43 kilometers, while the Spherical and Gaussian models recommend a radius of 1.42 kilometers, respectively. These values line up closely with the historical radius of 1.2 kilometers. These results have led the U.S. QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

Coal quality is instrumental in determining the viability of a coal deposit. Per Section 8.2 of the Mon Valley TRS, coal quality conforms to the ASTM standards. These quality attributes aided in converting dry, in-place tons to demonstrated coal reserves (recoverable washed tons). The reserve and resource criteria are presented in Table 11-1 of the Mon Valley TRS, including assumptions related to seam density, minimum cutoff thickness, and recoveries. Pricing data as provided by Coronado is described in Section 16.2 of the Mon Valley TRS.

Regarding production rates as described in Section 13.2 of the Mon Valley TRS, the Mon Valley mine complex is not yet active, with three distinct mines and CPPs planned. The mine plan and productivity expectations reflect historical performance from other similar mines with similar conditions and efforts have been made to adjust the plan to reflect future conditions. Mine development and operation have not been optimized within the Mon Valley TRS. Additional mine-specific factors can be found in Section 13.4 of the Mon Valley TRS.

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### Greenbrier (Non-Material Property)

The Greenbrier property has been idled since April 1, 2020. During the fourth quarter of 2020, the Company committed to a plan to sell Greenbrier on the basis that it does not form part of the Company's core business strategy. The Greenbrier property is not considered material to Coronado's business or financial conditions. Resources exclusive of reserves are based on assumed long-term average price of $154 per Mt (FOB loadout) for all resources, representing the Company's long-term average price forecast for Greenbrier. The pricing data assumes respective Mid-Vol/Low-Vol and thermal/PCI FOB-mine prices of approximately $152 and $80 per Mt for calendar year 2028. Mid-Vol/Low-Vol and thermal/PCI prices increase to approximately $206 and $109 per Mt, respectively, through year 2043. The Greenbrier operations are projected to be fully depleted in 2043. Marketable reserve tons are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled at 6.0%.

### Russell County (Non-Material Property)

The Russell County property is not considered material to Coronado's business or financial conditions. In addition, pursuant to the current mine plan, the property will only start generating cash flows when it commences production in 2040. Resources exclusive of reserves are based on assumed long-term average price of $143 per Mt (FOB loadout), representing the Company's long-term average price forecast for Russell County. The pricing data assumes HVA FOB-mine prices with a weighted LOM average of approximately $228 per Mt. Marketable reserve tons are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled at 6.0%.

### Internal Controls

Our staff of geologists and engineers worked with the qualified persons throughout the mineral resource and reserve estimation process and provided data from our own exploration and operating activities at the properties. We have internal control procedures, including quality assurance/quality control procedures and internal verification of input data and geological modelling, subject to multi-level review, to help ensure the validity of the data. These procedures include, but are not limited to:

- • Oversight and approval of each annual statement by responsible senior officers;
- • Independent, external review of new and materially changed estimates at regular intervals;
- • Annual reconciliation with internal planning by our staff of geologists and engineers to validate coal reserve and coal resource estimates for operating mines, including the following procedures:
  - • Assessments of drilling, sampling and quality assurance/quality control data, resource modelling, resource estimation, classification, and reporting;
  - • Assessment and benchmarking of production assumptions, mining rate and production schedules against historical production data;
  - • Assessments of capital and operating costs against other comparable projects for reasonableness;
  - • Continual identification and evaluation of material technical issues likely to impact the five-year plan and the future performance of producing properties;
- • An examination of historical information and results in respect of the technical aspects of the properties by our staff of geologists and engineers, including a review of the following key elements:
  - • Geology mapping, reports and models, including geotechnical and hydrology aspects;
  - • Coal resource and coal reserve estimates;
  - • Mining operations and proposed growth options;
  - • Coal preparation facilities;
  - • Coal handling and transport;
  - • Environmental matters and approvals;
  - • Land management, including leases and other pertinent agreements;
  - • Veracity of existing information supporting five-year plans and business plans;
  - • Identification of key project drivers; and

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- Risks and opportunities.

The pricing information used for preliminary resource valuation and to estimate our proven and probable coal reserves was based on prices under our existing contracts and price forecasts. Below is a description of some of the factors that could affect price forecasts for Met and thermal coal products on a mine-by-mine and product-by-product basis. Differences between the assumptions and analyses included in the price forecasts and realized factors could cause actual pricing to differ from the forecasts.

**Metallurgical.** Several factors can influence Met coal supply and demand and pricing. Demand is impacted by economic conditions and demand for steel and is also impacted by competing technologies used to make steel, some of which do not use coal as a manufacturing input. Competition from other types of coal is also a key price consideration and can be impacted by coal quality and characteristics, delivered energy cost (including transportation costs), customer service and support and reliability of supply.

Seaborne Met coal import demand can be significantly impacted by the availability of local coal production, particularly in leading Met coal import countries such as China and India, among others, as well as country-specific policies restricting or promoting domestic supply. The competitiveness of seaborne Met coal supply from leading Met coal exporting countries, such as Australia, the United States, Russia, Canada and Mongolia, among others, is also an important price consideration.

In addition to the factors noted above, the prices which may be obtained at each individual mine or future mine can be impacted by factors such as (i) the mine's location, which impacts the total delivered energy costs to its customers, (ii) quality characteristics, particularly if they are unique relative to competing mines, (iii) assumed transportation costs and (iv) other mine costs that are contractually passed on to customers in certain commercial relationships.

**Thermal.** Several factors can influence thermal coal supply and demand and pricing. Demand is sensitive to total electric power generation volumes, which are determined in part by the impact of weather on heating and cooling demand, inter-fuel competition in the electric power generation mix, changes in capacity (additions and retirements), inter-basin or inter-country coal competition, coal stockpiles and policy and regulations. Supply considerations impacting pricing include reserve positions, mining methods, strip ratios, production costs and capacity and the cost of new supply (new mine developments or extensions at existing mines).

The cost information that the QPs used for preliminary resource valuation and to estimate our proven and probable reserves were generally internal projected future costs based on historical costs and expected future trends. The estimated costs normally include mining, processing, transportation, royalty, tax and other mining-related costs. Our estimated mining and processing costs reflect projected changes in prices of consumable commodities (mainly diesel fuel, natural gas, explosives and steel), labor costs, geological and mining conditions, targeted product qualities and other mining-related costs. Estimates for other sales-related costs (mainly transportation, royalty and tax) are based on contractual prices or fixed rates. Specific factors that may impact the cost at our various operations include:

- **Geological settings.** The geological characteristics of each mine are among the most important factors that determine the mining cost. Our geology department conducts the exploration program and provides geological models for the life-of-mine process. Coal seam depth, thickness, dipping angle, partings and quality constrain the available mining methods and size of operations. Shallow coal is typically mined by surface mining methods by which the primary cost is overburden removal. Deep coal is typically mined by underground mining methods where the primary costs include coal extraction, conveyance and roof control.
- **Scale of operations and the equipment sizes.** For surface mines, our dragline systems generally have a lower unit cost than truck-and-shovel systems for overburden removal. The longwall operations generally are more cost effective than bord-and-pillar operations for underground mines.
- **Commodity prices.** For surface mines, the costs of diesel fuel and explosives are major components of the total mining cost. For underground mines, the steel used for roof bolts represents a significant cost. Commodity price forecasts are used to project those costs in the financial models we use to establish our reserves.
- **Target product quality.** By targeting a premium quality, product, our mining and processing processes may experience more coal losses. By lowering product quality, the coal losses can be minimized and therefore a lower cost per Mt can be achieved. In our mine plans, the product qualities are estimated to correspond to existing contracts and forecasted market demands.
- **Transportation costs.** We have entered into arrangements with third parties to gain access to transportation infrastructure and services where required, including rail carriers and port owners. Where coal is exported or sold other than at the mine gate, the costs associated with these arrangements represent a significant portion of both the total cost of supplying coal to customers and of our production costs. As a result, the cost of transportation is not only a key factor in our cost base but also in the purchasing decision of customers. Our transportation costs vary by region. See Item 1, "Business-Transportation" for more information regarding transportation arrangements for our operations.

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- Royalty costs. As conditions to certain of the Tenements, Curragh is subject to royalties payable to the Queensland government as described in Item 1. "Business-Regulatory Matters-Australia-Mineral Resources Act 1989 (Qld)". These royalties are in addition to the Stanwell rebate, as described in Item 1. "Business-Customers-Australia Sales and Marketing-Stanwell." Royalty costs at our U.S. Operations are based upon contractual agreements for the coal leased from private owners and vary from property to property and by the type of mine (i.e., surface or underground). The royalty rates under leases at our U.S. Operations range between 3% - 9% of revenues from coal sales. Under some of the leases, we are required to pay minimum royalties, regardless of production, and/or "wheelage fees" (i.e., fees payable on coal mined and removed from properties other than the particular leasehold and hauled across the leasehold premises).
- Black lung, severance and reclamation taxes. Our U.S. Operations are subject to a federal black lung excise tax on coal sold domestically.
- Exchange rates. Costs related to our Australian Operations are predominantly denominated in A$, while the coal that our Australian Operations export is sold in US$. As a result, A$-US$ exchange rates impact the U.S. dollar cost of our Australian Operations' production.

For further discussion of comprehensive risk inherent in the estimation, see Item 1A. "Risk Factors-Operational and Technology Risks-We rely on estimates of our recoverable resources and reserves, which are complex due to geological characteristics of the properties and the number of assumptions made."

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### ITEM 3. LEGAL PROCEEDINGS.

We are involved in various legal proceedings occurring in the ordinary course of business. It is the opinion of management, after consultation with legal counsel, that these matters will not materially affect our consolidated financial position, results of operations or cash flows.

The Company is subject to a wide variety of laws and regulations within the legal jurisdiction in which it operates. See “Part I, Item 1. Business-Regulatory Matters” for additional information. The Company believes that it is in substantial compliance with federal, state and local laws and regulations.

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#### ITEM 4. MINE SAFETY DISCLOSURES

Safety is the cornerstone of the Company's values and is the number one priority for all employees at Coronado Global Resources.

Our U.S. Operations include multiple mining complexes across three states and are regulated by both the U.S. Mine Safety and Health Administration, or MSHA, and state regulatory agencies. Under regulations mandated by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act.

In accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104), each operator of a coal or other mine is required to report certain mine safety results in its periodic reports filed with the SEC under the Exchange Act.

Information pertaining to mine safety matters is included in Exhibit 95.1 attached to this Annual Report on Form 10-K. The disclosures reflect the United States mining operations only, as these requirements do not apply to our mines operated outside the United States.

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## ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

### Market Information

Our CDIs, each representing one-tenth of one share of our common stock, have been listed on the ASX under the trading symbol 'CRN' since October 23, 2018. Prior to such time, there was no public market for our securities. There is no principal market in the United States for our CDIs or shares of our common stock.

### Holders

As of December 31, 2022, we had 167,645,373 shares of our common stock issued and outstanding with 7,513 holders of record. The holders included CHESS Depository Nominees Pty Limited, which held 90,337,270 shares of our common stock in the form of CDIs on behalf of the CDI holders; there were 7,512 registered owners of our CDIs on December 31, 2022.

### *Series A Preferred Share*

On September 20, 2018, we issued the Series A Preferred Share to Coronado Group LLC, at par value. The offer, sale, and issuance of the Series A Share were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act as transactions by an issuer not involving a public offering. The recipient of the Series A Share acquired the Series A Share for investment only and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the Series A Share.

### Dividends

The payment of dividends is at the discretion of the Board of Directors. The decision as to whether or not a dividend will be paid will be subject to a number of considerations including the general business environment, operating results, cash flows, future capital requirements, regulatory and contractual restrictions, as well as applicable covenants under the indenture governing our senior secured notes and covenants under the ABL Facility and any other factors the Board of Directors may consider relevant.

Our objective in setting our dividend policy is to deliver stockholder returns while maintaining flexibility to pursue our strategic initiatives within a prudent capital structure. Our dividend policy is to distribute between 60% and 100% of available free cash. Available free cash is defined as net cash from operating activities less capital expenditure, acquisition expenditure, amounts reserved for capital expenditure and acquisition expenditure and amounts required for debt servicing. In circumstances where there is surplus available free cash, at the discretion of our Board of Directors and in light of business and market conditions, we may consider the potential for additional stockholder returns through special dividends and share buy-backs as part of its broader capital management strategy.

### Summary Description of the Company's Non-Stockholder Approved Equity Compensation Plans

The Company does not have any non-stockholder approved equity compensation plans.

### Recent Sales of Unregistered Securities

Other than as previously disclosed in a Quarterly Report on Form 10-Q or in a Current Report on Form 8-K, we did not issue any shares of our common stock in a transaction that was not registered under the Securities Act during the year ended December 31, 2022.

### Purchases of Equity Securities by the Issuer and Affiliated Purchases

We had no repurchases of equity securities for the three months ended December 31, 2022.

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**ITEM 6. [Reserved]**

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## ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

*The following Management's Discussion and Analysis of our Financial Condition and Results of Operations, or MD&A, should be read in conjunction with the Consolidated Financial Statements and the related notes to those statements included elsewhere in this Annual Report on Form 10-K.*

### Overview

For the year ended December 31, 2022, we produced 16.0 MMt and sold 16.4 MMt of coal. Met coal and thermal coal sales represented 77.2% and 22.8%, respectively, of our total volume of coal sold and 95.3% and 4.7%, respectively, of total coal revenues.

During the year ended December 31, 2022, seaborne index prices reached record highs globally, driven by the continued impact of the Russian invasion of Ukraine, which removed Russian Met coal from key markets. Met coal crossover trades into thermal market due to elevated demand for thermal coal and supply constraints caused by wet weather and logistical issues.

Coronado has continued to take advantage of its unique geographical diversification as a Met coal supplier of scale to meet the requirements of steel customers across the globe. Our U.S. Operations have taken advantage of current unique market fundamentals created by the trade restrictions on Russian coal by switching coal sales from China to Europe providing higher returns for our products. In addition to geographical diversification, Coronado is well positioned to take advantage of price arbitrage between the Thermal and Met coal markets to maximize price realizations.

Our results of operations for the year ended December 31, 2022 benefited from higher averaged realized Met price per Mt sold, partially offset by (1) significant unprecedented wet weather events impacting production at our Australian Operations, (2) inflationary pressure, including the higher cost of fuel and labor costs, (3) adverse geological conditions and weather events at our U.S. Operations resulting in lower production and higher equipment maintenance costs, (4) additional fleets mobilized at our Australian Operations to improve coal recovery and (5) higher sales related costs (Stanwell rebate, royalties and freight costs).

Coal revenues of $3.5 billion for the year ended December 31, 2022, increased by 67.3% compared to the same period in 2021, was largely driven by higher market price of coal resulting in increased average realized Met coal pricing of $265.8 per Mt sold, $127.8 per Mt sold higher than 2021. Sales volumes were lower for the year ended December 31, 2022, compared to 2021 primarily due to lower production caused by significant wet weather events at our Australian Operations and adverse geological conditions at our U.S. Operations.

Operating costs for the year ended December 31, 2022, were $680.5 million, or 41.6%, higher compared to the corresponding period in 2021 driven by inflationary pressures on labor and supply costs, adverse geological conditions in certain mines of our U.S. Operations, additional contractor fleets deployed at our Australian Operations to accelerate overburden removal and increase coal availability, higher maintenance costs and higher sales related costs, resulting in mining costs of $88.4 per Mt sold for the year ended December 31, 2022, 34.5% higher than 2021.

### Dividends

During the year ended December 31, 2022, Coronado paid total dividends of $700.2 million to stockholders and CDI holders on the ASX, net of $1.4 million foreign exchange gain on payment of dividends to certain CDI holders that elected to be paid in Australian dollars.

### Liquidity

As of December 31, 2022, the Company's net cash position was $92.1 million, consisting of cash (excluding restricted cash) of $334.4 million and $242.3 million aggregate principal amount of Notes outstanding. Coronado had available liquidity of $434.4 million as of December 31, 2022, comprising cash (excluding restricted cash) and undrawn available borrowings $100.0 million under our ABL facility.

### Notes redemption

During the year ended December 31, 2022, we redeemed $72.7 million of the Notes, $37.7 million of which were in relation to offers made in connection with dividends paid during the period.

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## Safety

For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate at December 31, 2022 was 3.92 compared to 3.07 at the end of December 31, 2021. At our U.S. Operations, the twelve-month rolling average Total Reportable Incident Rate, at December 31, 2022 was 2.42 compared to 2.51 at the end of December 31, 2021. Reportable rates for our Australian Operations and U.S. Operations were below the relevant industry benchmarks.

The safety of our workforce is our number one priority and we remain focused on the safety and wellbeing of all employees and contracting parties.

## Segment Reporting

In accordance with Accounting Standards Codification, or ASC, 280, Segment Reporting, we have adopted the following reporting segments: Australia and the United States. In addition, 'Other and Corporate' is not a reporting segment but is disclosed for the purposes of reconciliation to our Consolidated Financial Statements.

## Results of Operations

### How We Evaluate Our Operations

We evaluate our operations based on the volume of coal we can safely produce and sell in compliance with regulatory standards, and the prices we receive for our coal. Our sales volume and sales prices are largely dependent upon the terms of our coal sales contracts, for which prices generally are set based on daily index averages, on a quarterly basis or on annual fixed price contracts.

Our management uses a variety of financial and operating metrics to analyze our performance. These metrics are significant factors in assessing our operating results and profitability. These financial and operating metrics include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized price per Mt sold, which we define as total coal revenues divided by total sales volume; (iv) Met coal sales volumes and average realized Met price per Mt sold, which we define as Met coal revenues divided by Met coal sales volume; (v) average segment mining costs per Mt sold, which we define as mining costs divided by sales volumes (excluding non-produced coal) for the respective segment; and (vi) average segment operating costs per Mt sold, which we define as segment operating costs divided by sales volumes for the respective segment.

Coal revenues are shown on our Consolidated Statements of Operations and Comprehensive Income exclusive of other revenues. Generally, export sale contracts for our Australian Operations require us to bear the cost of freight from our mines to the applicable outbound shipping port, while freight costs from the port to the end destination are typically borne by the customer. Sales to the export market from our U.S. Operations are generally recognized when the title to the coal passes to the customer at the mine load out similar to a domestic sale. For our domestic sales, customers typically bear the cost of freight. As such, freight expenses are excluded from the cost of coal revenues to allow for consistency and comparability in evaluating our operating performance.

### Non-GAAP Financial Measures; Other Measures

The following discussion of our results includes references to and analysis of Adjusted EBITDA and mining costs, which are financial measures not recognized in accordance with U.S. GAAP. Non-GAAP financial measures, including Adjusted EBITDA, are used by investors to measure our operating performance.

Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete non-recurring items that we exclude in analyzing each of our segments' operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly titled measures presented by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable measure under U.S. GAAP is included below.

Segment Adjusted EBITDA is defined as Adjusted EBITDA by operating and reporting segment, adjusted for certain transactions, eliminations or adjustments that our CODM does not consider for making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our Consolidated Financial Statements such as investors, industry analysts and lenders to assess the operating performance of the business.

Mining costs, a non-GAAP measure, are based on the reported cost of coal revenues, which is shown on our statement of operations and comprehensive income exclusive of freight expense, Stanwell rebate, other royalties, depreciation, depletion and amortization and selling, general and administrative expenses, adjusted for other items that do not relate directly to the costs incurred to produce coal at the mine. Mining costs exclude these cost

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components as our CODM does not view these costs as directly attributable to the production of coal. Mining costs is used as a supplemental financial measure by management, providing an accurate view of the costs directly attributable to the production of coal at our mining segments, and by external users of our Consolidated Financial Statements, such as investors, industry analysts and ratings agencies, to assess our mine operating performance in comparison to the mine operating performance of other companies in the coal industry.

# Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

# Summary

The financial and operational highlights for the year ended December 31, 2022:

- Net income increased by $582.3 million, from a net income of $189.4 million for the year ended December 31, 2021, to a net income of $771.7 million for the year ended December 31, 2022. The increase was driven by higher revenues, partially offset by higher operating costs and higher income tax expense.
- Supply concerns in key Met coal markets driven by wet weather, logistic issues, the ongoing impact of the Russia and Ukraine war on global coal supply chain and Met coal crossover trades into the thermal market caused considerable volatility in coal pricing, resulting in average realized Met price per Mt sold of $265.8 for the year ended December 31, 2022, 92.6% higher compared to $138.0 per Mt sold for the year ended December 31, 2021.
- Total sales volume was 16.4 MMt for the year ended December 31, 2022, or 1.5 MMt lower than the year ended December 31, 2021. The lower sales volumes were primarily driven by significant wet weather events at our Australian Operations and adverse geological and weather events at one of our mine complexes at our U.S. Operations.
- Adjusted EBITDA for the year ended December 31, 2022, totaled $1,215.6 million, an increase of $729.5 million, from Adjusted EBITDA of $486.1 million for the year ended December 31, 2021, driven by higher coal revenues partially offset by higher operating costs.
- Cash provided by operating activities was $926.6 million for the year ended December 31, 2022, an increase of $484.6 million compared to $442.0 million for the year ended December 31, 2021.
- As of December 31, 2022 the Company had total available liquidity of $434.4 million, consisting of $334.4 million of cash (excluding restricted cash) and $100.0 million of availability under the ABL Facility.

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|  | For Year Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- |
|  | (US$ in thousands) |  |  |  |
|  | 2022 | 2021 | Change | % |
| Revenues: |  |  |  |  |
| Coal revenues | 3,527,626 | 2,108,331 | 1,419,295 | 67.3% |
| Other revenues | 43,916 | 40,140 | 3,776 | 9.4% |
| Total revenues | 3,571,542 | 2,148,471 | 1,423,071 | 66.2% |
| Costs and expenses: |  |  |  |  |
| Cost of coal revenues (exclusive of items shown separately below) | 1,515,585 | 1,195,250 | 320,335 | 26.8% |
| Depreciation, depletion and amortization | 167,046 | 177,875 | (10,829) | (6.1%) |
| Freight expenses | 249,081 | 241,862 | 7,219 | 3.0% |
| Stanwell rebate | 165,995 | 55,403 | 110,592 | 199.6% |
| Other royalties | 385,065 | 142,751 | 242,314 | 169.7% |
| Selling, general, and administrative expenses | 42,499 | 30,666 | 11,833 | 38.6% |
| Restructuring costs | - | 2,300 | (2,300) | (100.0%) |
| Total costs and expenses | 2,525,271 | 1,846,107 | 679,164 | 36.8% |
| Other income (expenses): |  |  |  |  |
| Interest expense, net | (67,632) | (68,062) | 430 | (0.6%) |
| Loss on debt extinguishment | (5,336) | (8,477) | 3,141 | (37.1%) |
| (Increase) decrease in provision for discounting and | (3,821) | 8,042 | (11,863) | (147.5%) |
| Other disposal of asset | - | 14,845 | (14,845) | (100.0%) |
| Other, net | 33,795 | (6,187) | 39,982 | (646.2%) |
| Total other expense, net | (42,994) | (59,839) | 16,845 | (28.2%) |
| Income before tax | 1,003,277 | 242,525 | 760,752 | 313.7% |
| Income tax expense | (231,574) | (53,102) | (178,472) | 336.1% |
| Net income | 771,703 | 189,423 | 582,280 | 307.4% |
| Less: Net loss attributable to noncontrolling interest | - | (2) | 2 | (100.0%) |
| Net income attributable to Coronado Global Resources Inc. | 771,703 | 189,425 | 582,278 | 307.4% |

# **Coal revenues**

Coal revenues were $3,527.6 million for the year ended December 31, 2022, an increase of $1,419.3 million, compared to $2,108.3 million for the year ended December 31, 2021. This increase was driven by favorable market conditions and higher coal price indices, which resulted in a higher average realized Met price per Mt sold for the year ended December 31, 2022 of $265.8, compared to $138.0 per Mt sold for the same period in 2021. This increase was partially offset by 1.8 MMt lower Met coal sales volume compared to the year ended December 31, 2021, primarily a result of above average rainfall impacting production at our Australian Operations.

# **Cost of coal revenues (exclusive of items shown separately below)**

Cost of coal revenues is comprised of costs related to produced tons sold, along with changes in both the volumes and carrying values of coal inventory. Cost of coal revenues include items such as direct operating costs, which include employee-related costs, materials and supplies, contractor services, coal handling and preparation costs and production taxes.

Total cost of coal revenues was $1,515.6 million for the year ended December 31, 2022, an increase of $320.3 million, or 26.8%, compared to $1,195.3 million for the year ended December 31, 2021. Cost of coal revenues for our U.S. Operations increased $171.3 million during the year ended December 31, 2022, driven by the impact of inflation on labor and supply costs, adverse geological conditions in certain mines of our U.S. Operations resulting in unplanned maintenance costs, and increased purchased coal transactions to meet certain sales commitments. Cost of coal revenues for our Australian Operations for the year ended December 31, 2022 increased $149.1 million, largely due to additional fleets mobilized to accelerate overburden removal, inflationary pressure on fuel pricing and labor costs and increased purchased coal transactions to meet sales commitments. Higher costs were partially offset by a favorable average foreign exchange rate on translation of the Australian Operations for the year ended December 31, 2022, of A$/US$: 0.70 compared to 0.75 for the same period in 2021.

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### Depreciation, depletion and amortization

Depreciation, depletion and amortization were $167.0 million for the year ended December 31, 2022, a decrease of $10.8 million, compared to $177.9 million for the year ended December 31, 2021. The decrease was associated with a favorable average foreign exchange rate on translation of the Australian Operations, partially offset by depreciation on equipment brought into service during the year ended December 31, 2022.

### Freight expenses

Freight expenses of $249.1 million for the year ended December 31, 2022, increased by $7.2 million, compared to $241.9 million for the year ended December 31, 2021. Our U.S. Operations contributed $15.9 million to the increase, due to certain contracts for which we arrange and pay for transportation to port that did not exist to the same extent in 2022 combined with higher rail freight rates due the impact of inflationary pressures in the market, partially offset by the benefits of lower average foreign exchange rate on translation of freight cost from Australian Operations.

### Stanwell rebate

The Stanwell rebate was $166.0 million for the year ended December 31, 2022, an increase of $110.6 million, compared to $55.4 million for the year ended December 31, 2021. The increase was largely driven by higher realized export reference coal pricing for the prior twelve-month period used to calculate the rebate, partially offset by the favorable average foreign exchange rate on translation of the Australian Operations.

### Other royalties

Other royalties were $385.1 million for the year ended December 31, 2022, an increase of $242.3 million, as compared to $142.8 million for the year ended December 31, 2021. Higher royalties were a product of higher average realized export pricing and the adverse impact of the new Queensland Government royalty regime applicable from July 1, 2022 to our Australian Operations.

### Other, net

Other, net was a gain of $33.8 million in the year ended December 31, 2022, an increase of $40.0 million compared to a net loss of $6.2 million for the year ended December 31, 2021. The increase largely relates to foreign exchange gains recognized in the translation of short-term inter-entity balances in certain entities within the Group that are denominated in currencies other than their respective functional currencies due to the favorable average foreign exchange rate on translation.

### Income tax expense

Income tax expense of $231.6 million for the year ended December 31, 2022, increased by $178.5 million, as compared to $53.1 million for the year ended December 31, 2021.

The income tax expense for the year ended December 31, 2022 resulted in an annual effective tax rate of 23.8%, an increase from 21.9% for the year ended December 31, 2021.

### Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

The Company's comparison of 2021 results to 2020 results is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, under Part II Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations'.

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# Supplemental Segment Financial Data

# Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

# **Australian Operations**

|  | For Year Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- |
|  | (US$ in thousands) |  |  |  |
|  | 2022 | 2021 | Change | % |
| Sales Volume (MMt) | 10.0 | 11.3 | (1.3) | (12.1)% |
| Total revenues ($) | 2,116,555 | 1,315,851 | 800,704 | 60.9% |
| Coal revenues ($) | 2,078,518 | 1,279,736 | 798,782 | 62.4% |
| Average realized price per Mt sold ($/Mt) | 208.9 | 113.1 | 95.8 | 84.7% |
| Met sales volume (MMt) | 6.5 | 8.2 | (1.7) | (20.7)% |
| Met coal revenues ($) | 1,968,173 | 1,171,869 | 796,304 | 68.0% |
| Average realized Met price per Mt sold ($/Mt) | 303.1 | 143.1 | 160.0 | 111.8% |
| Mining costs ($) | 864,616 | 736,782 | 127,834 | 17.4% |
| Mining costs per Mt sold ($/Mt) | 89.5 | 67.6 | 21.9 | 32.4% |
| Operating costs ($) | 1,575,786 | 1,111,248 | 464,538 | 41.8% |
| Operating costs per Mt sold ($/Mt) | 158.3 | 98.2 | 60.1 | 61.2% |
| Segment Adjusted EBITDA ($) | 541,208 | 204,992 | 336,216 | 164.0% |

Coal revenues for Australian Operations for the year ended December 31, 2022, were $2,078.5 million, an increase of $798.8 million, or 62.4%, compared to $1,279.7 million for the year ended December 31, 2021. This increase was driven by higher average realized Met price of $303.1 per Mt, an increase of $160.0 per Mt, compared to $143.1 per Mt sold during the same period in 2021. The higher realized price during the period was primarily driven by disruption in supply dynamics caused by the conflict between Russia and Ukraine, as well as supply constraints from key Met coal markets due to unseasonal wet weather and logistical issues. Sales volume of 10.0 MMt was 1.3 MMt lower compared to 11.3 MMt for the year ended December 31, 2021, mainly driven by significant unprecedented wet weather events experienced at the Curragh mine during 2022 which significantly reduced mining activities and coal availability.

Operating costs increased by $464.5 million, or 41.8%, for the year ended December 31, 2022, compared to the year ended December 31, 2021. The increase was driven by a higher mining costs, higher Stanwell rebate (mainly due to higher realized coal pricing) and greater royalties, due to higher coal revenues and the adverse impact of the amended royalty. Mining costs were $127.8 million, or 17.4%, higher for the year ended December 31, 2022 compared to the same period in 2021, primarily due to inflationary pressures and additional contractor fleets mobilized during the first half of 2022 at our Australian Operations, partially offset by favorable average foreign exchange on translation of our Australian Operations. Increased costs combined with lower sales volumes resulted in higher Mining and Operating costs per Mt sold of $89.5 and $158.3, respectively, an increase of $21.9 and $60.1, respectively, compared to the same period in 2021.

For the year ended December 31, 2022, Segment Adjusted EBITDA was $541.2 million, an increase of $336.2 million compared to Segment Adjusted EBITDA of $205.0 million for the year ended December 31, 2021. This increase was primarily driven by higher coal revenues partially offset by higher operating costs.

Comrade Global Resources Inc. Form 10-K December 31, 2022 105

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# **United States**

|  | For Year Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- |
|  | (US$ in thousands) |  |  |  |
|  | 2022 | 2021 | Change | % |
| Sales Volume (MMt) | 6.4 | 6.4 | - | (0.1)% |
| Total revenues ($) | 1,454,987 | 832,620 | 622,367 | 74.7% |
| Coal revenues ($) | 1,449,108 | 828,595 | 620,513 | 74.9% |
| Average realized price per Mt sold ($/Mt) | 225.2 | 128.6 | 96.6 | 75.1% |
| Met sales volume (MMt) | 6.2 | 6.3 | (0.1) | (1.7)% |
| Met coal revenues ($) | 1,394,880 | 822,000 | 572,880 | 69.7% |
| Average realized Met price per Mt sold ($/Mt) | 226.5 | 131.2 | 95.3 | 72.6% |
| Mining costs ($) | 531,812 | 392,362 | 139,450 | 35.5% |
| Mining costs per Mt sold ($/Mt) | 86.5 | 62.3 | 24.2 | 38.9% |
| Operating costs ($) | 739,940 | 524,018 | 215,922 | 41.2% |
| Operating costs per Mt sold ($/Mt) | 115.0 | 81.3 | 33.7 | 41.5% |
| Segment Adjusted EBITDA ($) | 716,661 | 312,048 | 404,613 | 129.7% |

Coal revenues increased by $620.5 million, or 74.9%, to $1,449.1 million for the year ended December 31, 2022, as compared to $828.6 million for the year ended December 31, 2021. This increase was mainly driven by a higher average realized Met price per Mt sold for the year ended December 31, 2022 of $226.5 compared to $131.2 per Mt sold for the same period in 2021. Higher average realized Met price benefited from strong demand and supply shortage in the global seaborne export markets and high demand of U.S.-sourced coal into Europe due to trade restrictions on Russian coal.

Operating costs increased by $215.9 million, or 41.2%, to $739.9 million for the year ended December 31, 2022, compared to operating costs of $524.0 million for the year ended December 31, 2021 driven by higher mining costs, royalties, freight expenses and increase in purchased coal to meet sales commitments. Higher operating costs were largely driven by increase in mining costs of $139.5 million, or 35.5%, compared to the same period in 2021, as a result of adverse geological conditions causing higher maintenance costs, higher subcontractor's costs due to labor shortages and overall inflationary pressures on labor, materials and supplies.

Segment Adjusted EBITDA of $716.7 million for the year ended December 31, 2022 increased by $404.6 million, or 129.7%, compared to $312.0 million for the year ended December 31, 2021. This increase was primarily driven by a higher average realized Met price per Mt sold, partially offset by higher operating costs.

# **Corporate and Other Adjusted EBITDA**

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

|  | For Year Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- |
|  | (US$ in thousands) |  |  |  |
|  | 2022 | 2021 | Change | % |
| Selling, general, and administrative expenses | 42,499 | 30,666 | 11,833 | 38.6% |
| Other, net | (254) | 241 | (495) | (205.4)% |
| Total Corporate and Other Adjusted EBITDA | 42,245 | 30,907 | 11,338 | 36.7% |

Corporate and other costs increased $11.3 million to $42.2 million for the year ended December 31, 2022, compared to $30.9 million for the year ended December 31, 2021. The increase in selling, general, and administrative expenses was largely driven by inflationary pressures on corporate and labor costs, corporate activities resuming to pre-COVID-19 pandemic levels and timing or certain corporate costs.

Corporate Global Resources Inc. Form 10-K December 31, 2022 106

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# **Mining and operating costs for the Year Ended December 31, 2022 compared to Year December 31, 2021**

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

| (US$ in thousands) | For Year Ended December 31, 2022 |  |  |  |
| --- | --- | --- | --- | --- |
|  | Australia | United States | Other / Corporate | Total Consolidated |
| Total costs and expenses | 1,658,105 | 823,529 | 43,637 | 2,525,271 |
| Less: Selling, general and administrative expense | (24) | - | (42,475) | (42,499) |
| Less: Depreciation, depletion and amortization | (82,295) | (83,589) | (1,162) | (167,046) |
| Total operating costs | 1,575,786 | 739,940 | - | 2,315,726 |
| Less: Other royalties | (330,503) | (54,562) | - | (385,065) |
| Less: Stanwell rebate | (165,995) | - | - | (165,995) |
| Less: Freight expenses | (153,068) | (96,013) | - | (249,081) |
| Less: Other non-mining costs | (61,604) | (57,553) | - | (119,157) |
| Total mining costs | 864,616 | 531,812 | - | 1,396,428 |
| Sales Volume excluding non-produced coal (MMt) | 9.7 | 6.1 | - | 15.8 |
| Mining cost per Mt sold ($/Mt) | 89.5 | 86.5 | - | 88.4 |

| (US$ in thousands) | For Year Ended December 31, 2021 |  |  |  |
| --- | --- | --- | --- | --- |
|  | Australia | United States | Other / Corporate | Total Consolidated |
| Total costs and expenses | 1,202,807 | 611,611 | 31,689 | 1,846,107 |
| Less: Selling, general and administrative expense | - | - | (30,666) | (30,666) |
| Less: Restructuring costs | (2,300) | - | - | (2,300) |
| Less: Depreciation, depletion and amortization | (89,259) | (87,593) | (1,023) | (177,875) |
| Total operating costs | 1,111,248 | 524,018 | - | 1,635,266 |
| Less: Other royalties | (117,001) | (25,750) | - | (142,751) |
| Less: Stanwell rebate | (55,403) | - | - | (55,403) |
| Less: Freight expenses | (161,703) | (80,159) | - | (241,862) |
| Less: Other non-mining costs | (40,359) | (25,747) | - | (66,106) |
| Total mining costs | 736,782 | 392,362 | - | 1,129,144 |
| Sales Volume excluding non-produced coal (MMt) | 10.9 | 6.3 | - | 17.2 |
| Mining cost per Mt sold ($/Mt) | 67.6 | 62.3 | - | 65.7 |

# **Average realized Met price for the Year Ended December 31, 2022 compared to Year December 31, 2021**

A reconciliation of the Company's average realized Met coal revenue is shown below:

|  | For Year Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- |
|  | (US$ in thousands) |  |  |  |
|  | 2022 | 2021 | Change | % |
| Met sales volume (MMt) | 12.7 | 14.5 | (1.8) | (12.4)% |
| Met coal revenues ($) | 3,363,053 | 1,993,869 | 1,369,184 | 68.7% |
| Average realized met price per Mt sold ($/Mt) | 265.8 | 138.0 | 127.8 | 92.6% |

Coronado Global Resources Inc. Form 10-K December 31, 2022 107

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# Reconciliation of Non-GAAP Financial Measures

# Adjusted EBITDA

| (US$ in thousands) | For year ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Reconciliation to Adjusted EBITDA: |  |  |  |
| Net income (loss) | 771,703 | 189,423 | (226,537) |
| Add: Depreciation, depletion and amortization | 167,046 | 177,875 | 191,189 |
| Add: Interest expense, net | 67,632 | 68,062 | 50,585 |
| Add: Other foreign exchange (gains) losses | (32,259) | 7,049 | 1,175 |
| Add: Loss on debt extinguishment | 5,336 | 8,477 | - |
| Add: Income tax expense (benefit) | 231,574 | 53,102 | (60,016) |
| Add: Impairment of assets | - | - | 78,111 |
| Add: Restructuring costs | - | 2,300 | - |
| Add: Losses on idled assets held for sale | 771 | 2,732 | 9,994 |
| Add: Gain on disposal of asset held for sale | - | (14,845) | - |
| Add: Increase (decrease) in provision for discounting and credit losses | 3,821 | (8,042) | 9,298 |
| Adjusted EBITDA | 1,215,624 | 486,133 | 53,799 |

# Liquidity and Capital Resources

# Overview

Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are available to meet both anticipated and unanticipated financial obligations, including unforeseen events that could have an adverse impact on revenues or costs. Our principal sources of funds are cash and cash equivalents, cash flow from operations and availability under the ABL Facility.

Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations, working capital, capital expenditure, debt service obligations, business or assets acquisitions and payment of dividends. Based on our outlook for the next twelve months and beyond, which is subject to continually changing demand from our customers, volatility in coal prices, ongoing interruptions and uncertainties surrounding China's import restrictions, such as trade barriers imposed by China on Australian sourced coal and the uncertainty of impacts from the Russia and Ukraine war on the global supply chain, we believe expected cash generated from operations together with available borrowing facilities and other strategic and financial initiatives, will be sufficient to meet the needs of our existing operations, capital expenditure, service our debt obligations and, if declared, payment of dividends.

Our ability to generate sufficient cash depends on our future performance which may be subject to a number of factors beyond our control, including general economic, financial and competitive conditions and other risks described in Part I, Item 1A, 'Risk Factors' of this Annual Report on Form 10-K.

Liquidity as of December 31, 2022 and December 31, 2021 was as follows:

| (US$ in thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Cash, excluding restricted cash | 334,378 | 437,679 |
| Availability under ABL Facility (1) | 100,000 | 100,000 |
| Total | 434,378 | 537,679 |

$^{(1)}$ The ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the ABL Facility is less than $17.5 million for five consecutive business days or less than $15.0 million on any business day.

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Our total indebtedness as of December 31, 2022 and December 31, 2021 consisted of the following:

| (US$ in thousands) | 2022 | 2021 |
| --- | --- | --- |
| Interest bearing liabilities, excluding current installments | 242,326 | 315,000 |
| Current installments of other financial liabilities and finance lease obligations | 4,585 | 8,634 |
| Other financial liabilities and finance lease obligations, excluding current installments | 8,336 | 14,031 |
| Total | 255,247 | 337,665 |

### Liquidity

As of December 31, 2022, available liquidity was $434.4 million, comprising of cash and cash equivalents (excluding restricted cash) of $334.4 million and $100.0 million of available borrowings under our ABL Facility.

Coronado continues to actively review plans for reducing operating, corporate and capital expenditures to ensure sufficient available liquidity during periods of uncertainty and volatility.

### Cash

Cash is held in a multicurrency interest bearing bank accounts available to be used to service the working capital needs of the Company. Cash balances surplus to immediate working capital requirements is invested in short-term interest-bearing deposit accounts or used to repay interest bearing liabilities.

### Senior Secured Notes

As of December 31, 2022, the outstanding principal amount of our 10.750% Senior Secured Notes due 2026, or the Notes, was $242.3 million. Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes mature on May 15, 2026 and are senior secured obligations of the Company.

The Notes are guaranteed on a senior secured basis by the Company and its wholly-owned subsidiaries (other than the Issuer) (subject to certain exceptions and permitted liens) and secured by (i) a first-priority lien on substantially all of the Company's assets and the assets of the other Guarantors (other than accounts receivable and other rights to payment, inventory, intercompany indebtedness, certain general intangibles and commercial tort claims, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds and products of each of the foregoing, or, collectively, the ABL Collateral), or the Notes Collateral, and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien, for the benefit of the lenders under the ABL Facility.

The terms of the Notes are governed by the indenture. The indenture contains customary covenants for high yield bonds, including, but not limited to, limitations on investments, liens, indebtedness, asset sales, transactions with affiliates and restricted payments, including payment of dividends on capital stock.

The Company may redeem some or all of the Notes at the redemption prices and on the terms specified in the Indenture. In addition, the Company may, from time to time, seek to retire or purchase outstanding debt through open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as the Company may determine, and will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors.

As of December 31, 2022, we were in compliance with all applicable covenants under the Indenture.

### Partial Redemption of Notes

On November 23, 2022, the Company exercised its optional redemption rights and redeemed $35.0 million, or 10.0%, of the original aggregate principal amount of its Notes at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption.

For the year ended December 31, 2022, in connection with the dividends paid in the period, we offered to purchase the Notes pursuant to the terms of the Indenture. In connection with the above offers, we purchased an aggregate principal amount, for accepted offers, of $37.7 million at a price equal to 104% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption.

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### *ABL Facility*

The ABL Facility, dated May 12, 2021, is for an aggregate multi-currency lender commitment of up to $100.0 million, including a $30.0 million sublimit for the issuance of letters of credit and $5.0 million for swingline loans, at any time outstanding, subject to borrowing base availability. The ABL Facility matures on May 12, 2024.

Borrowings under the ABL Facility bear interest at a rate equal to a BBSY rate plus an applicable margin.

As at December 31, 2022, no amounts were drawn and no letters of credit were outstanding under the ABL Facility.

As of December 31, 2022, we were in compliance with all applicable covenants under the ABL Facility.

### *Bank Guarantees and Surety Bonds*

We are required to provide financial assurances and securities to satisfy contractual and other requirements generated in the normal course of business. Some of these assurances are provided to comply with state or other government agencies' statutes and regulations.

For the U.S. Operations, in order to provide the required financial assurance, we generally use surety bonds for post-mining reclamation. We can also use bank letters of credit to collateralize certain other obligations. As of December 31, 2022, we had outstanding surety bonds of $34.9 million and letters of credit of $16.8 million issued from our available bank guarantees, to meet contractual obligations under workers compensation insurance and to secure various obligations and commitments. Future regulatory changes relating to these obligations could result in increased obligations, additional costs or additional collateral requirements.

For the Australian Operations, we had bank guarantees outstanding of $27.3 million at December 31, 2022, primarily in respect of certain rail and port arrangements of the Company.

As of December 31, 2022, we had outstanding bank guarantees of $44.1 million to secure various obligations and commitments. The Company provided cash, in the form of deposits, as collateral against these bank guarantees.

### *Dividend*

During the year ended December 31, 2022, we paid $700.2 million in dividends to stockholders or CDI holders on the ASX, net of $1.4 million foreign exchange gain on payment of dividends to certain CDI holders that elected to be paid in Australian dollars.

On February 21, 2023, our Board of Directors declared a bi-annual fully franked fixed ordinary dividend of $8.4 million, or 0.5 cents per CDI. The Company is not required to make an offer to purchase Notes in relation to this dividend due to the available unaccepted portion of the offer to purchase Notes made in connection with special dividends declared on October 30, 2022. The dividend will have a record date of March 15, 2023, Australia time, and be payable on April 5, 2023, Australia time. The ordinary dividend will be funded from available cash.

### *Capital Requirements*

Our main uses of cash have historically been the funding of our operations, working capital, capital expenditure, the payment of interest and dividends. We intend to use cash to fund debt service payments on our Notes, the ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures, partial redemption of the Notes, business or assets acquisitions and, if declared, payment of dividends.

Coronado Global Resources Inc. Form 10-K December 31, 2022 110

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## Historical Cash Flows

The following table summarizes our cash flows for the year ended December 31, 2022, 2021 and 2020 as reported in the accompanying Consolidated Financial Statements:

### Cash Flow

| (US$ in thousands) | For Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Net cash provided by (used in) operating activities | 926,643 | 442,014 | (3,000) |
| Net cash used in investing activities | (208,343) | (134,332) | (114,128) |
| Net cash (used in) provided by financing activities | (784,251) | 80,836 | 137,526 |
| Net change in cash and cash equivalents | (65,951) | 388,518 | 20,398 |
| Effect of exchange rate changes on cash and restricted cash | (37,351) | 3,677 | (1,215) |
| Cash and restricted cash at beginning of period | 437,931 | 45,736 | 26,553 |
| Cash and restricted cash at end of period | 334,629 | 437,931 | 45,736 |

### Operating activities

Net cash provided by operating activities was $926.6 million for the year ended December 31, 2022, compared to a cash provided by in operating activities of $442.0 million for the year ended December 31, 2021. The increase was primarily driven by higher coal revenues due to an increase in the average realized Met coal pricing partially offset by higher operating costs and unfavorable working capital movement due to higher trade receivables and inventories at December 31, 2022.

Net cash provided by operating activities was $442.0 million for the year ended December 31, 2021, compared to a cash used in operating activities of $3.0 million for the year ended December 31, 2020. The increase in cash provided by operating activities was driven by favorable movement in working capital and an increase in coal revenues during the year partially offset by higher operating costs.

### Investing activities

Net cash used in investing activities was $208.3 million for the year ended December 31, 2022, compared to $134.3 million for the year ended December 31, 2021. Cash spent on capital expenditures for the year ended December 31, 2022 was $199.7 million, of which $79.4 million is related to the Australian Operations, $119.7 million is related to the U.S. Operations and the remaining $0.6 million for other and corporate. During the year ended December 31, 2022, a net of $6.5 million of additional deposits were provided as collateral for our U.S. workers compensation obligations and $2.4 million of the additional security deposit were provided by our Australian Operations to satisfy contractual requirements in the normal course of business.

Net cash used in investing activities was $134.3 million for the year ended December 31, 2021, compared to $114.1 million for the year ended December 31, 2020. Cash spent on capital expenditures for the year ended December 31, 2021 was $89.7 million, of which $37.9 million is related to the Australian Operations, $50.1 million related to the U.S. Operations and the remaining $1.6 million for other and corporate. During the year ended December 31, 2021, a net of $73.7 million of additional deposits were provided as collateral for bank guarantees and our U.S. workers compensation obligations. Partially offsetting the cash used, was net proceeds of $27.5 million generated during the year ended December 31, 2021 from the sale of Amonate.

### Financing activities

Net cash used in financing activities was $784.3 million for the year ended December 31, 2022, compared to cash provided by financing activities of $80.8 million for the year ended December 31, 2021. The net cash used in financing activities for the year ended December 31, 2022, included dividend payments of $700.2 million, net of a $1.4 million foreign exchange gain on settlement of dividends for shareholders who elected to be paid in Australian dollars, $72.7 million of Notes redeemed and $2.6 million of premium paid on redemption, and the remainder related to repayment of other financial liabilities.

Net cash provided by financing activities was $80.8 million for the year ended December 31, 2021, compared to $137.5 million for the year ended December 31, 2021. Included in the net cash provided by financing activities for the year ended December 31, 2021, were net proceeds from borrowings of $396.3 million, repayment of borrowings of $413.2 million and net proceeds from the stock issuance of $97.7 million.

Comrade Global Resources Inc. Form 10-K December 31, 2022 111

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# Contractual Obligations

The following is a summary of our contractual obligations at December 31, 2022:

| (US$ in thousands) | Payments Due By Year |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years |
| Long-term debt obligations (1) | 12,964 | 4,543 | 8,421 | - | - |
| Senior secured notes (2) | 242,326 | - | - | 242,326 | - |
| Mineral lease commitments (3) | 52,742 | 5,493 | 10,623 | 10,228 | 26,398 |
| Operating and finance lease commitments | 27,099 | 9,102 | 11,644 | 6,353 | - |
| Unconditional purchase obligations (4) | 28,601 | 28,601 | - | - | - |
| Take-or-pay contracts (5) | 932,701 | 96,734 | 203,116 | 206,564 | 426,287 |
| Total contractual cash obligations | 1,296,433 | 144,473 | 233,804 | 465,471 | 452,685 |

(1) Represents financial obligation relating to amounts outstanding from financing equipment purchases, insurance premiums and financial liabilities for a sale and lease back type arrangement.
(2) Represents financial obligation outstanding under the Senior Secured Notes. Refer to 17 "Interest Bearing Liabilities" in the accompanying audited Consolidated Financial Statements for additional discussion.
(3) Represents future minimum royalties and payments under mineral leases. Refer to 27 "Commitments" in the accompanying audited Consolidated Financial Statements for additional discussion.
(4) Represents firm purchase commitments for capital expenditures (based on order to suppliers for capital purchases) for 2023.
(5) Represents various short- and long-term take-or-pay arrangements in Australia associated with rail and port commitments for the delivery of coal.

This table does not include our estimated Asset Retirement Obligations, or ARO. As discussed in "-Critical Accounting Policies and Estimates-Carrying Value of Asset Retirement Obligations" below, the current and non-current carrying amount of our ARO involves several estimates, including the amount and timing of the payments required to satisfy these obligations. The timing of payments is based on numerous factors, including projected mine closure dates. Based on our assumptions, the carrying amount of our ARO as determined in accordance with U.S. GAAP was $138.5 million as of December 31, 2022.

# Critical Accounting Policies and Estimates

The preparation of our Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Listed below are the accounting estimates that we believe are critical to our Consolidated Financial Statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liability, revenue or expense being reported. All of these accounting estimates and assumptions, as well as the resulting impact to our Consolidated Financial Statements, have been discussed with the Audit, Governance and Risk Committee, or Audit Committee, of our Board of Directors.

See Note 2, "Summary of Significant Accounting Policies" to the accompanying audited Consolidated Financial Statements for a summary of our significant accounting policies.

# Fair Value of Non-Financial Assets

Our non-financial assets valuations are primarily comprised of our determination of the estimated fair value allocation of net tangible and intangible assets, our annual assessment of the recoverability of our goodwill and our evaluation of the recoverability of our other long-lived assets upon certain triggering events.

# Long-Lived Assets

We review the carrying value of intangible assets with definite lives and other long-lived assets to be used in operations annually or whenever events or changes in circumstances indicate that the carrying amount of the assets or asset groups might not be recoverable.

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Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset group or a significant decline in the observable market value of an asset group, among others. If such facts indicate a potential impairment, the recoverability of the asset group is assessed by determining whether the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the asset group over the remaining economic life of the asset group. If the projected undiscounted cash flows are less than the carrying amount, an impairment is recorded for the excess of the carrying amount over the estimated fair value, which is generally determined using discounted future cash flows. Any such write down is included in impairment expense in our consolidated statement of operations.

A high degree of judgment is required to estimate the fair value of our intangible and long-lived assets, and the conclusions that we reach could vary significantly based on these judgments. We make various assumptions, including assumptions regarding future cash flows in our assessments of fair value. The assumptions about future cash flows and growth rates are based on the current and long-term business plans related to the long-lived assets. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the long-lived assets.

At December 31, 2022, we determined, based on our qualitative assessment, that no impairment indicators existed.

#### *Goodwill Impairment*

We had a balance of goodwill of $28.0 million recorded at December 31, 2022, which was generated upon the acquisition of Buchanan in 2016. We perform our annual assessment of the recoverability of our goodwill in the fourth quarter of each year. We utilize a qualitative assessment for determining whether the quantitative goodwill impairment analysis is necessary. The accounting guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. In evaluating goodwill on a qualitative basis, we review the business performance of the Buchanan mine complex (the only reporting unit with a goodwill balance) and evaluate other relevant factors as identified in the relevant accounting guidance to determine whether it is more likely than not that an indicator of impairment exists at Buchanan. We consider whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, legal environments and how these factors might impact company specific performance in future periods. As part of the analysis, we also consider fair value determinations for certain reporting units that have been made at various points throughout the current and prior year for other purposes to ensure there is no contrary evidence to our analysis. At December 31, 2022, we did not perform a quantitative impairment assessment as we determined, based on our qualitative assessment, that no impairment indicators existed.

#### *Assets held for sale*

As of December 31, 2022, the assets and liabilities held for sale represent the fair value of the Greenbrier mining asset, which may be realized through a potential sale within the next 12 months.

The fair value of the Greenbrier mining asset was primarily driven by indicative offers and Level 3 inputs such as estimates of future cash flows which aligns to the Company's best estimate of future market and operating conditions, including its current life of mine plan. The life of mine plan includes assumptions in relation to coal price forecasts, projected mine production volumes, operating costs, capital costs and discount rate.

#### **Carrying Value of Asset Retirement Obligations**

The Company is required to maintain a liability (and associated asset) for the expected value of future retirement obligations on their mines, in line with ASC 410, Asset Retirement and Environmental Obligations.

Reclamation of areas disturbed by mining operations must be performed by us in accordance with approved reclamation plans and in compliance with state and federal laws in the states of West Virginia and Virginia in the U.S., and Queensland in Australia. For areas disturbed, a significant amount of the reclamation will take place in the future, when operations cease. There were no assets that were legally restricted for purposes of settling asset retirement obligations as of December 31, 2022. In addition, state agencies monitor compliance with the mine plans, including reclamation.

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We record the fair value of additions to our asset retirement obligations using the present value of projected future cash flows discounted using a credit-adjusted risk-free rate, with an equivalent amount recorded as a long-lived asset. An accretion cost is recorded each period and the capitalized cost is depreciated over the useful life of the related asset. As reclamation work is performed or liabilities are otherwise settled, the recorded amount of the liability is reduced.

A review of restoration and decommissioning provisions is carried out annually on a mine-by-mine basis, and adjustments are made to reflect any changes in estimates, if necessary. On an interim basis, we may update the liability based on significant changes to the life of mine or significant increases in disturbances during the period.

### **Expected Credit Losses**

For trade and related party receivables carried at amortized cost, we determine expected credit losses, or ECL, on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk since the initial recognition of the respective financial instrument. We recognize the lifetime ECL. ECL is estimated based on our historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions, including the expected timing of collection, at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade and related party receivables have been grouped based on shared credit risk characteristics and the days past due.

We consider an event of default has occurred when a financial asset is significantly past due or other factors indicate that the debtor is unlikely to pay amounts owed to us. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as default or past due event has occurred. We write off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. The amount of the impairment loss is recognized in the consolidated statement of operations and other comprehensive income within "Decrease (increase) in provision for discounting and credit losses". Subsequent recoveries of amounts previously written off are credit against "Decrease (increase) provision for discounting and credit losses" in the consolidated statement of operations and other comprehensive income.

### **Recoverable Coal Reserves**

There are numerous uncertainties inherent in estimating quantities and values of economically recoverable coal reserves, including many factors beyond our control. As a result, estimates of economically recoverable coal reserves are by their nature uncertain. Information about our reserves consists of estimates based on engineering, economic and geological data assembled and analyzed by our staff and third-party qualified persons. Our reserves are periodically reviewed by an independent third party consultant. Some of the factors and assumptions which impact economically recoverable reserve estimates include:

- geological settings;
- historical production from the area compared with production from other producing areas;
- the assumed effects of regulations and taxes by governmental agencies;
- assumptions governing future prices; and
- future operating costs.

Each of these factors may in fact vary considerably from the assumptions used in estimating reserves. For these reasons, estimates of the economically recoverable quantities of coal attributable to a particular group of properties, and classifications of these reserves based on the risk of recovery and estimates of future net cash flows, may vary substantially. Actual production, revenues and expenditures with respect to our reserves will likely vary from estimates, and these variances may be material. See Item 1A. "Risk Factors-We rely on estimates of our recoverable reserves, which is complex due to geological characteristics of the properties and the number of assumptions made" and Item 2. "Properties" for discussions of the uncertainties in estimating our proven and probable coal reserves.

### **Taxes**

We are required to estimate the amount of tax payable or refundable for the current year and the deferred income tax liabilities and assets for the future tax consequences of events that have been reflected in our Consolidated

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Financial Statements or tax returns for each taxing jurisdiction in which we operate. This process requires our management to make judgments regarding the timing and probability of the ultimate tax impact of the various agreements and transactions that we enter into. Based on these judgments we may record tax reserves or adjustments to valuation allowances on deferred tax assets to reflect the expected realizability of future tax benefits. Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate, our inability to generate sufficient future taxable income or unpredicted results from the final determination of each year's liability by taxing authorities. These changes could have a significant impact on our financial position.

#### **Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented**

See Note 2. 'Summary of Significant Accounting Policies' to the accompanying audited Consolidated Financial Statements for a discussion of newly adopted accounting standards and accounting standards not yet implemented.

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## ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our activities expose us to a variety of financial risks, such as commodity price risk, interest rate risk, foreign currency risk, liquidity risk and credit risk. The overall risk management objective is to minimize potential adverse effects on our financial performance from those risks which are not coal price related.

We manage financial risk through policies and procedures approved by our Board of Directors. These specify the responsibility of the Board of Directors and management with regard to the management of financial risk. Financial risks are managed centrally by our finance team under the direction of the Group Chief Financial Officer. The finance team manages risk exposures primarily through delegated authority limits approved by the Board of Directors. The finance team regularly monitors our exposure to these financial risks and reports to management and the Board of Directors on a regular basis. Policies are reviewed at least annually and amended where appropriate.

We may use derivative financial instruments such as forward fixed price commodity contracts, interest rate swaps and foreign exchange rate contracts to hedge certain risk exposures. Derivatives for speculative purposes is strictly prohibited by the Treasury Risk Management Policy approved by our Board of Directors. We use different methods to measure the extent to which we are exposed to various financial risks. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and aging analysis for credit risk.

### Commodity Price Risk

#### Coal Price Risk

We are exposed to domestic and global coal prices. Our principal philosophy is that our investors would not consider hedging of coal prices to be in the long-term interest of our stockholders. Therefore, any potential hedging of coal prices through long-term fixed price contracts is subject to the approval of our Board of Directors and would only be adopted in exceptional circumstances.

The expectation of future prices for coal depends upon many factors beyond our control. Met coal has been volatile commodity over the past ten years. Recently, in the second quarter of 2022, seaborne prices reached record levels with both the Australian and U.S. Met coal price indices exceeding $600 per Mt, largely as result of supply concerns in key Met coal markets and continued trade flow disruptions caused by geopolitical tensions following Russian invasion of Ukraine. The demand and supply in the Met coal industry changes from time to time. There are no assurances that oversupply will not occur, that demand will not decrease or that overcapacity will not occur, which could cause declines in the prices of coal, which could have a material adverse effect on our financial condition and results of operations.

Additionally, access to international markets may be subject to ongoing interruptions and trade barriers due to policies and tariffs of individual countries. For example, the imposition of restrictions by China on Australian coal into the Country, may in the future have a negative impact on our profitability. We may or may not be able to access alternate markets for our coal should additional interruptions and trade barriers occur in the future. An inability for Met coal suppliers to access international markets, including China, would likely result in an oversupply of Met coal and may result in a decrease in prices and or the curtailment of production.

We manage our commodity price risk for our non-trading, thermal coal sales through the use of long-term coal supply agreements in our U.S. Operations. In Australia, thermal coal is sold to Stanwell on a supply contract. See Part I, Item 1A. 'Risk Factors-Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations.'

Sales commitments in the Met coal market are typically not long-term in nature, and we are therefore subject to fluctuations in market pricing. Certain coal sales in our Australian Operations are provisionally priced initially. Provisionally priced sales are those for which price finalization, referenced to the relevant index, is outstanding at the reporting date. The final sales price is determined within 7 to 90 days after delivery to the customer. As of December 31, 2022, we had $13.7 million of outstanding provisionally priced receivables subject to changes in the relevant price index. If prices decreased 10%, these provisionally priced receivables would decrease by $1.4 million. See Part I, Item 1A. 'Risk Factors-Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and can fluctuate widely based upon a number of factors beyond our control.'

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### *Diesel Fuel*

We may be exposed to price risk in relation to other commodities from time to time arising from raw materials used in our operations (such as gas or diesel). These commodities may be hedged through financial instruments if the exposure is considered material and where the exposure cannot be mitigated through fixed price supply agreements.

The fuel required for our operations in fiscal year 2023 will be purchased under fixed-price contracts or on a spot basis.

### *Interest Rate Risk*

Interest rate risk is the risk that a change in interest rates on our borrowing facilities will have an adverse impact on financial performance, investment decisions and stockholder return. Our objectives in managing our exposure to interest rates include minimizing interest costs in the long term, providing a reliable estimate of interest costs for the annual work program and budget and ensuring that changes in interest rates will not have a material impact on our financial performance.

As of December 31, 2022, we had $255.2 million of fixed-rate borrowings and Notes and there were no variable-rate borrowings outstanding.

We currently do not hedge against interest rate fluctuations.

### *Foreign Exchange Risk*

A significant portion of our sales are denominated in US$. Foreign exchange risk is the risk that our earnings or cash flows are adversely impacted by movements in exchange rates of currencies that are not in US$.

Our main exposure is to the A$-US$ exchange rate through our Australian Operations, which have predominantly A$ denominated costs. In 2022, greater than 60% of expenses incurred at our Australian Operations were denominated in A$. Approximately 40% of our Australian Operations' purchases were made with reference to US$, which provides a natural hedge against foreign exchange movements on these purchases (including fuel, several port handling charges, demurrage, purchased coal and some insurance premiums). Appreciation of the A$ against US$ will increase our Australian Operations' US$ reported cost base and reduce US$ reported net income. For the portion of US$ required to purchase A$ to settle our Australian Operations' operating costs, a 10% increase in the A$ to US$ exchange rate would have increased reported total costs and expenses by approximately $99.0 million for the year ended December 31, 2022.

Under normal market conditions, we generally do not consider it necessary to hedge our exposure to this foreign exchange risk. However, there may be specific commercial circumstances, such as the hedging of significant capital expenditure, acquisitions, disposals and other financial transactions, where we may deem foreign exchange hedging as appropriate and where a US$ contract cannot be negotiated directly with suppliers and other third parties.

For our Australian Operations, we translate all monetary assets and liabilities at the period-end exchange rate, all non-monetary assets and liabilities at historical rates and revenue and expenses at the average exchange rates in effect during the periods. The net effect of these translation adjustments is shown in the accompanying Consolidated Financial Statements within components of net income.

We currently do not hedge our non-US$ exposures against exchange rate fluctuations.

### *Credit Risk*

Credit risk is the risk of sustaining a financial loss as a result of a counterparty not meeting its obligations under a financial instrument or customer contract.

We are exposed to credit risk when we have financial derivatives, cash deposits, lines of credit, letters of credit or bank guarantees in place with financial institutions. To mitigate against credit risk from financial counterparties, we have minimum credit rating requirements with financial institutions where we transact.

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We are also exposed to counterparty credit risk arising from our operating activities, primarily from trade receivables. Customers who wish to trade on credit terms are subject to credit verification procedures, including an assessment of their independent credit rating, financial position, past experience and industry reputation. We monitor the financial performance of counterparties on a routine basis to ensure credit thresholds are achieved. Where required, we will request additional credit support, such as letters of credit, to mitigate against credit risk. Credit risk is monitored regularly, and performance reports are provided to our management and Board of Directors.

As of December 31, 2022, we had financial assets of $838.8 million, comprising of cash and restricted cash, trade receivables and restricted deposits, which are exposed to counterparty credit risk. These financial assets have been assessed under ASC 326, Financial Instruments - Credit Losses, and a provision for discounting and credit losses of $5.1 million was recorded as of December 31, 2022. See item 8. Financial Statements and Supplementary Data-Note 9. Provision for Discounting and Credit Losses.

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# ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

# TABLE OF CONTENTS

|  | Page Number |
| --- | --- |
| Consolidated Balance Sheets | 120 |
| Consolidated Statements of Operations and Comprehensive Income | 121 |
| Consolidated Statements of Stockholders' Equity | 122 |
| Consolidated Statements of Cash Flows | 123 |
| Notes to Consolidated Financial Statements | 124 |
| Report of Independent Registered Public Accounting Firm (PCAOB ID: 01435) | 159 |

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# **Consolidated Balance Sheets**  
(In US\$ thousands, except share data)

|  | Note | December 31, 2022 | December 31, 2021 |
| --- | --- | --- | --- |
| Assets |  |  |  |
| Current assets: |  |  |  |
| Cash and restricted cash |  | $334,629 | $437,931 |
| Trade receivables, net | 8 | 409,979 | 271,923 |
| Inventories | 10 | 158,018 | 118,922 |
| Other current assets | 13 | 60,188 | 47,647 |
| Assets held for sale | 4 | 26,214 | 27,023 |
| Total current assets |  | 989,028 | 903,446 |
| Non-current assets: |  |  |  |
| Property, plant and equipment, net | 11 | 1,389,548 | 1,397,363 |
| Right of use asset - operating leases, net | 15 | 17,385 | 13,656 |
| Goodwill | 12 | 28,008 | 28,008 |
| Intangible assets, net | 12 | 3,311 | 3,514 |
| Restricted deposits | 28 | 89,062 | 80,981 |
| Deferred income tax assets | 24 | - | 14,716 |
| Other non-current assets | 13 | 33,585 | 19,728 |
| Total assets |  | $2,549,927 | $2,461,412 |
| Liabilities and Stockholders' Equity |  |  |  |
| Current liabilities: |  |  |  |
| Accounts payable |  | $61,780 | $97,514 |
| Accrued expenses and other current liabilities | 14 | 343,691 | 270,942 |
| Income tax payable | 24 | 119,981 | 25,612 |
| Asset retirement obligations | 16 | 10,646 | 9,414 |
| Contract obligations | 19 | 40,343 | 39,961 |
| Lease liabilities | 15 | 7,720 | 8,452 |
| Other current financial liabilities | 18 | 4,458 | 8,508 |
| Liabilities held for sale | 4 | 12,241 | 12,113 |
| Total current liabilities |  | 600,860 | 472,516 |
| Non-current liabilities: |  |  |  |
| Asset retirement obligations | 16 | 127,844 | 110,863 |
| Contract obligations | 19 | 94,525 | 141,188 |
| Deferred consideration liability | 20 | 243,191 | 230,492 |
| Interest bearing liabilities | 17 | 232,953 | 300,169 |
| Other financial liabilities | 18 | 8,268 | 13,822 |
| Lease liabilities | 15 | 15,573 | 12,894 |
| Deferred income tax liabilities | 24 | 95,671 | 75,750 |
| Other non-current liabilities |  | 27,952 | 26,216 |
| Total liabilities |  | $1,446,837 | $1,383,910 |
| Common stock $0.01 par value; 1,000,000,000 shares authorized, 167,645,373 shares issued and outstanding as of December 31, 2022 and December 31, 2021 |  | 1,677 | 1,677 |
| Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of December 31, 2022 and December 31, 2021 |  | - | - |
| Additional paid-in capital |  | 1,092,282 | 1,089,547 |
| Accumulated other comprehensive losses | 26 | (91,423) | (44,228) |
| Retained earnings |  | 100,554 | 30,506 |
| Total stockholders' equity |  | 1,103,090 | 1,077,502 |
| Total liabilities and stockholders' equity |  | $2,549,927 | $2,461,412 |

See accompanying notes to consolidated financial statements.

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# **Consolidated Statements of Operations and Comprehensive Income**  
(In US\$ thousands, except share data)

|  | Note | Year ended December 31, |  |  |
| --- | --- | --- | --- | --- |
|  |  | 2022 | 2021 | 2020 |
| Revenues: |  |  |  |  |
| Coal revenues |  | $3,527,626 | $2,010,996 | $1,289,010 |
| Coal revenues from related parties | 29 | - | 97,335 | 134,589 |
| Other revenues |  | 43,916 | 40,140 | 38,663 |
| Total revenues | 3 | 3,571,542 | 2,148,471 | 1,462,262 |
| Costs and expenses: |  |  |  |  |
| Cost of coal revenues (exclusive of items shown separately below) |  | 1,515,585 | 1,195,250 | 1,014,879 |
| Depreciation, depletion and amortization |  | 167,046 | 177,875 | 191,189 |
| Freight expenses |  | 249,081 | 241,862 | 185,863 |
| Stamwell rebate |  | 165,995 | 55,403 | 103,039 |
| Other royalties |  | 385,065 | 142,751 | 84,891 |
| Selling, general, and administrative expenses |  | 42,499 | 30,666 | 30,352 |
| Restructuring costs |  | - | 2,300 | - |
| Total costs and expenses |  | 2,525,271 | 1,846,107 | 1,610,213 |
| Other income (expenses): |  |  |  |  |
| Interest expense, net |  | (67,632) | (68,062) | (50,585) |
| Loss on debt extinguishment |  | (5,336) | (8,477) | - |
| Impairment of assets | 5 | - | - | (78,111) |
| (Increase) decrease in provision for discounting and credit losses | 9 | (3,821) | 8,042 | (9,298) |
| Gain on disposal of asset held for sale | 4 | - | 14,845 | - |
| Other, net | 6 | 33,795 | (6,187) | (608) |
| Total other expense, net |  | (42,994) | (59,839) | (138,602) |
| Income (loss) before tax |  | 1,003,277 | 242,525 | (286,553) |
| Income tax (expense) benefit | 24 | (231,574) | (53,102) | 60,016 |
| Net income (loss) |  | 771,703 | 189,423 | (226,537) |
| Less: Net loss attributable to noncontrolling interest |  | - | (2) | (69) |
| Net income (loss) attributable to Coronado Global Resources Inc. |  | $771,703 | $189,425 | $(226,468) |
| Other comprehensive income, net of income taxes: |  |  |  |  |
| Foreign currency translation adjustment | 26 | (47,195) | (17,451) | 21,488 |
| Net gain (loss) on cash flow hedges, net of tax | 26 | - | 2,029 | (5,088) |
| Total other comprehensive (loss) income |  | (47,195) | (15,422) | 16,400 |
| Total comprehensive income (loss) |  | 724,508 | 174,001 | (210,137) |
| Less: Net loss attributable to noncontrolling interest |  | - | (2) | (69) |
| Total comprehensive income (loss) attributable to Coronado Global Resources Inc. |  | $724,508 | $174,003 | $(210,068) |
| Earnings (loss) per share of common stock |  |  |  |  |
| Basic | 7 | 4.60 | 1.21 | (2.04) |
| Diluted | 7 | 4.60 | 1.21 | (2.04) |

See accompanying notes to consolidated financial statements.

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# **Consolidated Statements of Stockholders' Equity**  
(In US\$ thousands, except share data)

|  | Common stock |  | Preferred stock |  | Additional paid in capital | Accumulated other comprehensive losses | Retained earnings (Accumulated losses) | Noncontrolling interest | Total stockholders' equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Shares | Amount | Series A | Amount |  |  |  |  |  |
| Balance December 31, 2019 | 96,651,692 | $967 | 1 | $ - | $820,247 | $(45,206) | $91,712 | $221 | $867,941 |
| Net loss | - | - | - | - | - | - | (226,468) | (69) | (226,537) |
| Other comprehensive income (net of $2,108 deferred income tax) | - | - | - | - | - | 16,400 | - | - | 16,400 |
| Total comprehensive income (loss) | - | - | - | - | - | 16,400 | (226,468) | (69) | (210,137) |
| Issuance of common stock, net | 41,736,198 | 417 | - | - | 171,168 | - | - | - | 171,585 |
| Stock-based compensation for equity classified awards | - | - | - | - | 1,637 | - | - | - | 1,637 |
| Dividends | - | - | - | - | - | - | (24,163) | - | (24,163) |
| Balance December 31, 2020 | 138,387,890 | $1,384 | 1 | $ - | $993,052 | $(28,806) | $(158,919) | $152 | $806,863 |
| Net income (loss) | - | - | - | - | - | - | 189,425 | (2) | 189,423 |
| Other comprehensive income (net of $870 deferred income tax) | - | - | - | - | - | (15,422) | - | - | (15,422) |
| Total comprehensive (loss) income | - | - | - | - | - | (15,422) | 189,425 | (2) | 174,001 |
| Issuance of common stock, net | 29,257,483 | 293 | - | - | 97,448 | - | - | - | 97,741 |
| Stock-based compensation for equity classified awards | - | - | - | - | (250) | - | - | - | (250) |
| Acquisition of non-controlling interest | - | - | - | - | (703) | - | - | (150) | (853) |
| Balance December 31, 2021 | 167,645,373 | $1,677 | 1 | $ - | $1,089,547 | $(44,228) | $30,506 | $ - | $1,077,502 |
| Net income | - | - | - | - | - | - | 771,703 | - | 771,703 |
| Other comprehensive loss | - | - | - | - | - | (47,195) | - | - | (47,195) |
| Total comprehensive (loss) income | - | - | - | - | - | (47,195) | 771,703 | - | 724,508 |
| Stock-based compensation for equity classified awards | - | - | - | - | 2,735 | - | - | - | 2,735 |
| Dividends | - | - | - | - | - | - | (701,655) | - | (701,655) |
| Balance December 31, 2022 | 167,645,373 | $1,677 | 1 | $ - | $1,092,282 | $(91,423) | $100,554 | $ - | $1,103,090 |

See accompanying notes to consolidated financial statements

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# **Consolidated Statements of Cash Flows**  
(In US\$ thousands)

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Cash flows from operating activities: |  |  |  |
| Net income (loss) | $771,703 | $189,423 | $(226,537) |
| Adjustments to reconcile net income to cash and restricted cash provided by operating activities: |  |  |  |
| Depreciation, depletion and amortization | 165,503 | 175,814 | 197,162 |
| Impairment of Assets | - | - | 78,111 |
| Amortization of right of use asset - operating leases | 6,704 | 8,899 | 13,285 |
| Amortization of deferred financing costs | 1,933 | 3,133 | 5,546 |
| Non-cash interest expense | 31,362 | 29,120 | 22,410 |
| Amortization of contract obligations | (36,519) | (33,967) | (33,172) |
| Loss on disposal of property, plant and equipment | 855 | 415 | 131 |
| Decrease in contingent royalty consideration | - | - | (1,543) |
| Gain on operating lease derecognition | - | - | (1,184) |
| Equity-based compensation expense (gain) | 2,735 | (250) | 1,637 |
| Loss on debt extinguishment | 5,336 | 8,477 | - |
| Deferred income taxes | 40,423 | 24,417 | (11,247) |
| Reclamation of asset retirement obligations | (4,543) | (4,273) | (2,859) |
| Change in estimate of asset retirement obligation | 1,543 | 2,061 | (5,973) |
| Gain on disposal of asset held for sale | - | (14,845) | - |
| Increase (decrease) in provision for discounting and credit losses | 3,821 | (8,042) | 9,298 |
| Changes in operating assets and liabilities: |  |  |  |
| Accounts receivable - including related party receivables, net | (156,818) | (33,545) | (38,025) |
| Inventories | (41,243) | (9,637) | 53,652 |
| Other current assets | (12,365) | 24,573 | (1,921) |
| Accounts payable | (27,664) | 24,166 | 6,833 |
| Accrued expenses and other current liabilities | 84,041 | 64,285 | (27,829) |
| Operating lease liabilities | (8,244) | (10,986) | (15,329) |
| Income tax payable | 96,326 | - | - |
| Change in other liabilities | 1,754 | 2,776 | (25,446) |
| Net cash provided by (used in) operating activities | 926,643 | 442,014 | (3,000) |
| Cash flows from investing activities: |  |  |  |
| Capital expenditures | (199,716) | (89,661) | (117,856) |
| Proceeds from the disposal of property, plant, and equipment | 318 | 1,594 | - |
| Proceeds from disposal of assets held for sale | - | 27,451 | - |
| Purchase of restricted deposits | (9,761) | (103,997) | (2,302) |
| Redemption of restricted deposits | 816 | 30,281 | 6,030 |
| Net cash used in investing activities | (208,343) | (134,332) | (114,128) |
| Cash flows from financing activities: |  |  |  |
| Proceeds from interest bearing liabilities and other financial liabilities | - | 411,524 | 216,953 |
| Debt issuance costs and other financing costs | - | (15,263) | (2,955) |
| Principal payments on interest bearing liabilities and other financial liabilities | (81,310) | (412,046) | (221,414) |
| Call premiums paid on early redemption of debt | (2,557) | (1,050) | - |
| Principal payments on finance lease obligations | (140) | (70) | (2,481) |
| Dividends paid | (700,244) | - | (24,162) |
| Proceeds from stock issuance, net | - | 97,741 | 171,585 |
| Net cash (used in) provided by financing activities | (784,251) | 80,836 | 137,526 |
| Net (decrease) increase in cash and restricted cash | (65,951) | 388,518 | 20,398 |
| Effect of exchange rate changes on cash and restricted cash | (37,351) | 3,677 | (1,215) |
| Cash and restricted cash at beginning of period | 437,931 | 45,736 | 26,553 |
| Cash and restricted cash at end of period | $334,629 | $437,931 | $45,736 |
| Supplemental disclosure of cash flow information: |  |  |  |
| Cash payments for interest | $36,728 | $33,462 | $23,538 |
| Cash paid (refund) for taxes | $90,888 | $(16,582) | $1,955 |

See accompanying notes to consolidated financial statements

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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

### 1. Description of Business, Basis of Presentation

#### (a) Nature of operations

Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) is a global producer, marketer, and exporter of a full range of metallurgical coals, an essential element in the production of steel. The Company has a portfolio of operating mines and development projects in Queensland, Australia and in the states of Pennsylvania, Virginia and West Virginia in the United States, or U.S. For details of the Company’s capital structure, refer to Note 7 “Capital Structure” for further information.

#### (b) Basis of Presentation

The Consolidated Financial Statements have been prepared in accordance with requirements of the U.S. Generally Accepted Accounting Principles, or U.S. GAAP and are presented in U.S. dollars, unless otherwise stated.

The Consolidated Financial Statements include the accounts of the Company and its affiliates. The Company, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. or Coronado Global Resources Inc. and its subsidiaries, as appropriate to the context. Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests. All intercompany balances and transactions have been eliminated on consolidation.

#### (c) Certain Significant Risks and Uncertainties

External factors, including general economic conditions, international events and circumstances, competitor actions, governmental actions and regulations are beyond the Company’s control and can cause fluctuations in demand for coal and volatility in the price of commodities. This in turn may adversely impact on the Company’s future operating results, purchase or investment opportunities in the coal mining industry.

#### Concentration of customers

The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customer’s financial condition. Collateral is not generally required, unless credit cannot be established.

Payments from customers are generally due between 30 to 60 days after invoicing. Invoicing usually occurs after shipment or delivery of goods. The timing between the recognition of revenue and receipt of payment is not significant.

The Company had certain customers whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, or whose revenue individually represented 10% or more of the Company’s total revenue.

The following table summarizes any customer whose revenue individually represented 10% or more of the Company’s total revenue in the years ended December 31, 2022, 2021 and 2020.

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Xcoal | 12% | 11% | 9% |
| Tata Steel | 19% | 17% | 17% |

For the year ended December 31, 2022, $1,848.8 million, or 52.6% of total revenues, were attributable to five customers. In comparison, for the year ended December 31, 2021, $971.6 million, or 46.3% of total revenues were attributable to five customers and for the year ended December 31, 2020, $671.9 million, or 47.1% of total revenues were attributable to five customers. As of December 31, 2022, the Company had four customers that accounted for $212.5 million, or 51.6%, of accounts receivable. As of December 31, 2021, the Company had four customers that accounted for $149.2 million, or 54.7%, of accounts receivable.

Coronado Global Resources Inc. Form 10-K December 31, 2022 124

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# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table presents revenues as a percent of total revenue from external customers by geographic region:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| North America | 12% | 7% | 13% |
| Australia | 4% | 6% | 6% |
| Asia | 46% | 48% | 50% |
| Europe | 11% | 12% | 13% |
| South America | 8% | 6% | 4% |
| Brokered sales | 19% | 21% | 14% |
| Total | 100% | 100% | 100% |

The Company uses shipping destination as the basis for attributing revenue to individual countries. Because title may transfer on brokered transactions at a point that does not reflect the end usage point, they are reflected as exports, and attributed to an end delivery point if that knowledge is known to the Company.

# **Concentration of labor**

Out of the Company's total employees, 11.5% are subject to the Curragh Mine Operations Enterprise Bargaining Agreement 2019. This agreement covers work carried out by permanent, full-time, temporary, and casual coal mining employees engaged by Curragh to fulfil production, maintenance and processing activities. Other than the Curragh Mine Operations Enterprise Bargaining Agreement 2019, there are no other collective bargaining agreements or union contracts covering employees of the Company.

# **Transportation**

The Company depends upon port and rail transportation systems to deliver coal to its customers. Disruption of these transportation services due to weather-related problems, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair the Company's ability to supply coal to its customers. In the past, disruptions in these services have resulted in delayed shipments and production interruptions.

# **2. Summary of Significant Accounting Policies**

# **(a) Newly Adopted Accounting Standards**

During the period there have been no new Accounting Standards Updates issued by the Financial Accounting Standards Board that had a material impact on the Company's Consolidated Financial Statements.

# **(b) Accounting Standards Not Yet Implemented**

To date, there have been no recent accounting pronouncements not yet effective that have significance, or potential significance, to the Company's Consolidated Financial Statements.

# **(c) Use of Estimates**

The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. Significant items subject to such estimates and assumptions include asset retirement obligations; useful lives for depreciation, depletion and amortization; deferred income tax assets and liabilities; values of coal properties; fair value of assets held for sale, workers' compensation liability and other contingencies.

Coronado Global Resources Inc. Form 10-K December 31, 2022 125

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# **(d) Foreign Currency**

# **Financial Statements of foreign operations**

The reporting currency of the Company is the U.S. Dollar, or US$.

Functional currency is determined by the primary economic environment in which an entity operates. The functional currency of the Company and its subsidiaries is the US$, with the exception of two foreign operating subsidiaries, Curragh and its immediate parent CAH, whose functional currency is the Australian dollar, or A$, since Curragh's predominant sources of operating expenses are denominated in that currency.

Assets and liabilities are translated at the year-end exchange rate and items in the statement of operations are translated at average rates with gains and losses from translation recorded in other comprehensive losses.

# **Foreign Currency Transactions**

Monetary assets and liabilities are remeasured at year-end exchange rates while non-monetary items are remeasured at historical rates.

Gains and losses from foreign currency remeasurement related to Curragh's U.S. dollar receivables are included in coal revenues. All other gains and losses from foreign currency remeasurement and foreign currency forward contracts are included in 'Other, net', with exception of foreign currency gains or losses on long-term intercompany loan balances which are classified within 'Accumulated other comprehensive losses'. The total aggregate impact of foreign currency transaction gains or losses on the Consolidated Statements of Operations and Comprehensive Income was a net gain of $47.6 million and $1.7 million and a net loss of $3.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. The total impact of foreign currency transactions related to U.S. dollar coal sales in Australia (included in the total above) was a net gain of $15.0 million and $8.7 million and a net loss of $4.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

# **(e) Cash and Cash Equivalents and Restricted Cash**

Cash and cash equivalents include cash at bank and short-term highly liquid investments with an original maturity date of three months or less. At December 31, 2022 and 2021, the Company had no cash equivalents.

'Cash and Restricted Cash', as disclosed in the accompanying Consolidated Balance Sheets includes $0.3 million of restricted cash at December 31, 2022 and $0.3 million at 2021.

# **(f) Trade Accounts Receivables**

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL.

For trade receivables carried at amortized cost, the Company determines ECL on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company recognizes the lifetime ECL. The ECL is estimated based on the Company's historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions, including expected timing of collection, at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

The amount of credit loss is recognized in the Consolidated Statements of Operations and Other Comprehensive Income within 'Provision for discounting and credit losses'. The Company writes off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. Subsequent recoveries of amounts previously written off are credited against 'Provision for discounting and credit losses' in the Consolidated Statements of Operations and Other Comprehensive Income.

# **Factoring**

The Company has agreements with financial institutions to sell selected trade receivables on a recurring, non-recourse basis. Under these agreements, trade receivables sold do not allow for recourse for any credit risk related to the Company's customers if such receivables are not collected by the third-party financial institutions.

Coronado Global Resources Inc. Form 10-K December 31, 2022 126

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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company derecognizes the trade receivables sold under the factoring arrangement and the difference between proceeds received and carrying amount of the trade receivables sold is recognized within 'Interest, net' in its Consolidated Statements of Operations and Comprehensive Income.

### (g) Inventories

Coal is recorded as inventory at the point in time the coal is extracted from the mine. Raw coal represents coal stockpiles that may be sold in current condition or may be further processed prior to shipment to a customer. Saleable coal represents coal stockpiles which require no further processing prior to shipment to a customer.

Coal inventories are stated at the lower of average cost and net realizable value. The cost of coal inventories is determined based on an average cost of production, which includes all costs incurred to extract, transport and process the coal. Net realizable value considers the estimated sales price of the particular coal product, less applicable selling costs, and, in the case of raw coal, estimated remaining processing costs.

Supplies inventory is comprised of replacement parts for operational equipment and other miscellaneous materials and supplies required for mining which are stated at cost on the date of purchase. Supplies inventory is valued at the lower of average cost or net realizable value, less a reserve for obsolete or surplus items. This reserve incorporates several factors, such as anticipated usage, inventory turnover and inventory levels. It is not customary to sell these inventories; the Company plans to use them in mining operations as needed.

### (h) Assets held for sale

Assets held for sale are measured at the lower of their carrying amount or fair value less costs to sell. The Company classifies assets and liabilities as held for sale (disposal group) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year and the disposal group is available for sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. An impairment test is performed when a disposal group is classified as held for sale and an impairment charge is recorded when the carrying amount of the disposal group exceeds its estimated fair value, less cost to sell. Depreciation and amortization for assets classified as held for sale are ceased.

### (i) Property, Plant and Equipment, Impairment of Long-Lived Assets and Goodwill

#### Property, Plant, and Equipment

Costs for mine development incurred to expand capacity of operating mines or to develop new mines and certain mining equipment are capitalized and charged to operations on the hours of usage or units of production method over the estimated proven and probable reserve tons directly benefiting from the capital expenditures. Mine development costs include costs incurred for site preparation and development of the mines during the development stage. Mineral rights and reserves acquired are measured at cost and are depleted on a units of production method over the estimated proven and probable reserve tons of the relevant mineral property. Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful lives of the assets.

Property, plant, and equipment are recorded at cost and include expenditures for improvements when they substantially increase the productive lives of existing assets. Depreciation is calculated using the straight-line method over the estimated useful lives of the depreciable assets of 3 to 10 years for machinery, mining equipment and transportation vehicles, 5 to 10 years for office equipment, and 10 to 20 years for plant, buildings and improvements.

Maintenance and repair costs are expensed to operations as incurred. When equipment is retired or disposed, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss on disposal is recognized in operations.

Coronado Global Resources Inc. Form 10-K December 31, 2022 127

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# **Impairment of long-lived assets**

Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Refer to Note 5 'Impairment of Assets' for further disclosure.

# **Goodwill**

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In connection with the Buchanan acquisition on March 31, 2016, the Company recorded goodwill in the amount of $28.0 million. Goodwill is not amortized but is reviewed for impairment annually or when circumstances or other events indicate that impairment may have occurred. The Company follows the guidance in Accounting Standards Update 2017-04 'Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment' (ASU 2017-04). The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying amount. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; and a significant restructuring charge within a reporting unit. If a quantitative assessment is determined to be necessary, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds its fair value to the extent of the amount of goodwill allocated to that reporting unit.

The Company defines reporting units at the mining asset level. For purposes of testing goodwill for impairment, goodwill has been allocated to the reporting units to the extent it relates to each reporting unit.

# **(j) Asset Retirement Obligations**

The Company's asset retirement obligation, or ARO, liabilities primarily consist of estimates of surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit.

The Company estimates its ARO liabilities for final reclamation and mine closure based upon detailed engineering calculations of the amount and timing of the future cash spending for a third party to perform the required work. Spending estimates are escalated for inflation and then discounted at the credit-adjusted, risk-free rate. The Company records an ARO asset associated with the discounted liability for final reclamation and mine closure. The obligation and corresponding asset are recognized in the period in which the liability is incurred. The ARO asset is amortized on the units-of-production method over its expected life of the related asset and the ARO liability is accreted to the projected spending date. As changes in estimates occur (such as mine plan revisions, changes in estimated costs or changes in timing of the performance of reclamation activities), the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free rate. The Company also recognizes an obligation for contemporaneous reclamation liabilities incurred as a result of surface mining. Contemporaneous reclamation consists primarily of grading, topsoil replacement and re-vegetation of backfilled pit areas. To settle the liability, the obligation is paid, and to the extent there is a difference between the liability and the amount of cash paid, a gain or loss upon settlement is recorded. The Company annually reviews its estimated future cash flows for its asset retirement obligations.

# **(k) Borrowing costs**

Borrowing costs are recognized as an expense when they are incurred, except for interest charges attributable to major projects with substantial development and construction phases which are capitalized as part of the cost of the asset. There was no interest capitalized during the years ended December 31, 2022 and 2021.

Coronado Global Resources Inc. Form 10-K December 31, 2022 128

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# **(l) Leases**

From time to time, the Company enters into mining services contracts which may include embedded leases of mining equipment and other contractual agreements to lease mining equipment and facilities. Based upon the Company's assessment of the terms of a specific lease agreement, the Company classifies a lease as either finance or operating.

# *Finance leases*

Right of Use, or ROU, assets related to finance leases are presented in Property, plant and equipment, net on the Consolidated Balance Sheet. Lease liabilities related to finance leases are presented in 'Lease Liabilities' (current) and 'Lease Liabilities' (non-current) on the Consolidated Balance Sheets.

Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

# *Operating leases*

ROU assets related to operating leases are presented as Right of Use assets - operating leases, net on the Consolidated Balance Sheet. Lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in 'Lease Liabilities' (current) and 'Lease Liabilities' (non-current) on Consolidated Balance Sheets.

Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value.

# **(m) Royalties**

Lease rights to coal lands are often acquired in exchange for royalty payments. Royalties are payable monthly as a percentage of the gross realization from the sale of the coal mined using surface mining methods and as a percentage of the gross realization for coal produced using underground mining methods. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production. The Company had advance mining royalties of $6.8 million and $5.5 million respectively, included in 'Other current assets' as of December 31, 2022 and 2021.

# **(n) Stanwell Rebate**

The Stanwell rebate relates to a contractual arrangement entered into by Curragh with Stanwell Corporation Limited, a State of Queensland owned electricity generator, which requires payment of a rebate for export coal sold from some of Curragh's mining tenements. The rebate obligation is accounted for as an executory contract and the expense is recognized as incurred.

Compass Global Resources Inc. Form 10-K December 31, 2022 129

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# **(o) Revenue Recognition**

The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Once a contract is identified, the Company evaluates whether the combined or single contract should be accounted for as more than one performance obligation.

The Company recognizes revenue when control is transferred to the customer. For the Company's contracts, in order to determine the point in time when control transfers to customers, the Company uses standard shipping terms to determine the timing of transfer of legal title and the significant risks and rewards of ownership. The Company also considers other indicators including timing of when the Company has a present right to payment and when physical possession of products is transferred to customers. The amount of revenue recognized includes any adjustments for variable consideration, which is included in the transaction price and allocated to each performance obligation based on the relative standalone selling price. The variable consideration is estimated through the course of the contract using management's best estimates.

The majority of the Company's revenue is derived from short term contracts where the time between confirmation of sales orders and collection of cash is not more than a few months.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue.

# **Performance obligations**

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

The Company's contracts have multiple performance obligations as the promise to transfer the individual unit of coal is separately identifiable from other units of coal promised in the contracts and, therefore, distinct. Performance obligations, as described above, primarily relate to the Company's promise to deliver a designated quantity and type of coal within the quality specifications stated in the contract.

For contracts with multiple performance obligations, we allocate the contract's transaction price to each performance obligation on a relative standalone selling price basis. The standalone selling price is determined at each contract inception using an adjusted market assessment approach. This approach focuses on the amount that the Company believes the market is willing to pay for a good or service, considering market conditions, such as benchmark pricing, competitor pricing, market awareness of the product and current market trends that affect the pricing.

Warranties provided to customers are assurance-type of warranties on the fitness of purpose and merchantability of the Company's goods. The Company does not provide service-type of warranties to customers.

Revenue is recognized at a point in time and therefore there are no unsatisfied and/or partially satisfied performance obligations at December 31, 2022 and 2021.

# **Shipping and Handling**

The Company accounts for shipping and handling activities on Free on Rail sales after the customer obtains control of the good as an activity to fulfil the promise to transfer the good. In this instance, shipping and handling costs paid to third party carriers and invoiced to coal customers are recorded as freight expense and other revenues, respectively.

# **(p) Commodity Price Risk**

The Company has commodity price risk arising from fluctuations in domestic and global coal prices.

The Company's principal philosophy is not to hedge against movements in coal prices unless there are exceptional circumstances. Any potential hedging of coal prices would be through fixed price contracts.

The Company is also exposed to commodity price risk related to diesel fuel purchases. The Company may periodically enter into arrangements that protect against the volatility in fuel prices as follows:

- enter into fixed price contracts to purchase fuel for the U.S. Operations.

Comrade Global Resources Inc. Form 10-K December 31, 2022 130

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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

- enter into derivative financial instruments to hedge exposures to fuel price fluctuations.

There are no derivative contracts outstanding at December 31, 2022 and 2021.

### (q) Income Taxes

The Company uses the asset and liability approach to account for income taxes as required by ASC 740, Income Taxes, which requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Valuation allowances are provided when necessary to reduce deferred income tax assets to the amount expected to be realized, on a more likely than not basis.

The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.

The Company's foreign structure consists of Australian entities which are treated as corporations subject to tax under Australian taxing authorities. The Curragh entities are treated as a branch for U.S. tax purposes and all income flows through the ultimate parent (the Company).

### (r) Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most relevant market. When considering market participant assumptions in fair value measurements, the Company distinguishes between observable and unobservable inputs, which are categorized in one of 3 levels of inputs.

Refer to Note 25 'Fair Value Measurement' for detailed information related to the Company's fair value policies and disclosures.

### (s) Derivative accounting

The Company recognizes at fair value all contracts meeting the definition of a derivative as assets or liabilities in the Consolidated Balance Sheet.

With respect to derivatives used in hedging activities, the Company assesses, both at inception and at least quarterly thereafter, whether such derivatives are highly effective at offsetting the changes in the anticipated exposure of the hedged item. The change in the fair value of derivatives designated as a cash flow hedge and deemed highly effective is recorded in 'Accumulated other comprehensive losses' until the hedged transaction impacts reported earnings, at which time any gain or loss is reclassified to earnings. If the hedge ceases to qualify for hedge accounting, the Company prospectively recognizes changes in the fair value of the instrument in earnings in the period of the change. The potential for hedge ineffectiveness is present in the design of certain of the Company's cash flow hedge relationships.

The Company's asset and liability derivative positions are offset on a counterparty-by-counterparty basis if the contractual agreement provides for the net settlement of contracts with the counterparty in the event of default or termination of any one contract.

There are no derivative contracts outstanding at December 31, 2022 and 2021.

### (t) Stock-based Compensation

The Company has a stock-based compensation plan which allows for the grant of certain equity-based incentives including stock options, performance stock units, or PSU, and restricted stock units, or RSU, to employees and executive directors, valued in whole or in part with reference to the Company's CDIs or equivalent common shares (on a 10.1 CDI to common share ratio).

Compass Global Resources Inc. Form 10-K December 31, 2022 131

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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The grant-date fair value of stock option award is estimated on the date of grant using Black-Scholes-Merton option-pricing model. For certain options and PSUs, the Company includes a relative Total Stockholder Return, or TSR, modifier to determine the number of shares earned at the end of the performance period. The fair value of awards that include the TSR modifier is determined using a Monte Carlo valuation model.

The expense for these equity-based incentives is based on their fair value at date of grant and is amortized over the required service period, generally the vesting period. The Company accounts for forfeitures as and when they occur.

Refer to Note 23 'Stock-Based Compensation' for detailed information related to the Company's stock-based compensation plans.

### (b) Earnings per Share

Basic earnings per share is computed by dividing net income attributable to stockholders of the Company by the weighted-average number of shares of common stock outstanding during the reporting period.

Diluted net income per share is computed using the weighted-average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Dilutive potential shares of common stock primarily consist of employee stock options and restricted stock.

### (v) Deferred Financing Costs

The Company capitalizes costs incurred in connection with new borrowings, the establishment or enhancement of credit facilities and the issuance of debt securities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or term of the credit facility using the effective interest method. Debt issuance costs related to a recognized liability are presented in the balance sheet as a direct reduction from the carrying amount of that liability whereas debt issuance costs related to a credit facility are shown as an asset.

For information on the unamortized balance of deferred financing fees related to outstanding debt, see Note 17 'Interest Bearing Liabilities'.

### 3. Segment Information

The Company has a portfolio of operating mines and development projects in Queensland, Australia and in the states of Pennsylvania, Virginia and West Virginia in the U.S. The Australian Operations comprise the 100%-owned Curragh producing mine complex. The U.S. Operations comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned idled mine complex which is held for sale (Greenbrier) and two development properties (Mon Valley and Russell County).

The Company operates its business along two reportable segments: Australia and United States. The organization of the two reportable segments reflects how Coronado's chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company's business.

The CODM uses Adjusted EBITDA as the primary metric to measure each segment's operating performance. Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors should be aware that the Company's presentation of Adjusted EBITDA may not be comparable to similarly titled financial measures used by other companies.

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude in analyzing each of the Company's segments' operating performance. 'Other and corporate' relates to additional financial information for the corporate function such as financial reporting and accounting, treasury, legal, human resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment but is discretely disclosed for purposes of reconciliation to the Company's Consolidated Financial Statements.

Coronado Global Resources Inc. Form 10-K December 31, 2022 132

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# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

Reportable segment results for the years ended December 31, 2022, 2021 and 2020 are presented below:

| (US$ thousands) | Australia | United States | Other and Corporate | Total |
| --- | --- | --- | --- | --- |
| Year ended December 31, 2022 |  |  |  |  |
| Total revenues | $2,116,555 | $1,454,987 | $ - | $3,571,542 |
| Adjusted EBITDA | 541,208 | 716,661 | (42,245) | 1,215,624 |
| Net income (loss) | 328,632 | 486,817 | (43,746) | 771,703 |
| Total assets | 1,353,424 | 1,013,359 | 183,144 | 2,549,927 |
| Capital expenditures | 89,001 | 95,769 | 587 | 185,357 |
| Year ended December 31, 2021 |  |  |  |  |
| Total revenues | $1,315,851 | $832,620 | $ - | $2,148,471 |
| Adjusted EBITDA | 204,992 | 312,048 | (30,907) | 486,133 |
| Net income (loss) | 64,278 | 220,975 | (95,830) | 189,423 |
| Total assets | 1,357,132 | 822,222 | 282,058 | 2,461,412 |
| Capital expenditures | 38,733 | 50,787 | 1,616 | 91,136 |
| Year ended December 31, 2020 |  |  |  |  |
| Total revenues | $976,369 | $485,893 | $ - | $1,462,262 |
| Adjusted EBITDA | (8,586) | 92,801 | (30,416) | 53,799 |
| Net loss | (66,645) | (77,853) | (82,039) | (226,537) |
| Total assets | 1,307,745 | 908,361 | (67,630) | 2,148,476 |
| Capital expenditures | 47,456 | 74,881 | 1,519 | 123,856 |

The reconciliation of Adjusted EBITDA to net income attributable to the Company for the years ended December 31, 2022, 2021 and 2020 are as follows:

| (US$ thousands) | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Net income (loss) | $771,703 | $189,423 | $(226,537) |
| Depreciation, depletion and amortization | 167,046 | 177,875 | 191,189 |
| Interest expense, net | 67,632 | 68,062 | 50,585 |
| Other foreign exchange (gains) losses (1) | (32,259) | 7,049 | 1,175 |
| Loss on debt extinguishment | 5,336 | 8,477 | - |
| Income tax expense (benefit) | 231,574 | 53,102 | (60,016) |
| Impairment of assets | - | - | 78,111 |
| Restructuring costs | - | 2,300 | - |
| Losses on idled assets held for sale (2) | 771 | 2,732 | 9,994 |
| Gain on disposal of assets held for sale | - | (14,845) | - |
| Increase (decrease) in provision for discounting and credit losses | 3,821 | (8,042) | 9,298 |
| Consolidated adjusted EBITDA | $1,215,624 | $486,133 | $53,799 |

$^{(1)}$ Refer to Note 6 'Other, net' for further discussion.

$^{(2)}$ These losses relate to idled non-core assets that the Company has classified as held for sale with the view that these will be sold within the next twelve months or were sold in prior periods.

Coronado Global Resources Inc. Form 10-K December 31, 2022 133

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# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The reconciliations of capital expenditures per the Company's segment information to capital expenditures disclosed on the Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020 are as follows:

| (US$ thousands) | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Capital expenditures per Consolidated Statement of Cash flows | $199,716 | $89,661 | $117,856 |
| Payment for capital acquired in prior period | (7,475) | (6,000) | - |
| Accruals for capital expenditures | 11,243 | 7,475 | 6,000 |
| Advance payment to acquire long lead capital items | (18,127) | - | - |
| Capital expenditures per segment detail | $185,357 | $91,136 | $123,856 |

# **Disaggregation of Revenue**

The Company disaggregates the revenue from contracts with customers by major product group for each of the Company's segments, as the Company believes it best depicts the nature, amount, timing and uncertainty of revenues and cash flows. All revenue is recognized at a point in time.

| (US$ thousands) | Year ended December 31, 2022 |  |  |
| --- | --- | --- | --- |
|  | Australia | United States | Total |
| Product Groups: |  |  |  |
| Metallurgical coal | $1,968,173 | $1,394,880 | $3,363,053 |
| Thermal coal | 110,345 | 54,228 | 164,573 |
| Total coal revenue | 2,078,518 | 1,449,108 | 3,527,626 |
| Other (1) | 38,037 | 5,879 | 43,916 |
| Total | $2,116,555 | $1,454,987 | $3,571,542 |

| (US$ thousands) | Year ended December 31, 2021 |  |  |
| --- | --- | --- | --- |
|  | Australia | United States | Total |
| Product Groups: |  |  |  |
| Metallurgical coal | $1,171,869 | $822,000 | $1,993,869 |
| Thermal coal | 107,867 | 6,595 | 114,462 |
| Total coal revenue | 1,279,736 | 828,595 | 2,108,331 |
| Other (1) | 36,115 | 4,025 | 40,140 |
| Total | $1,315,851 | $832,620 | $2,148,471 |

| (US$ thousands) | Year ended December 31, 2020 |  |  |
| --- | --- | --- | --- |
|  | Australia | United States | Total |
| Product Groups: |  |  |  |
| Metallurgical coal | $836,545 | $476,222 | $1,312,767 |
| Thermal coal | 105,681 | 5,151 | 110,832 |
| Total coal revenue | 942,226 | 481,373 | 1,423,599 |
| Other (1) | 34,143 | 4,520 | 38,663 |
| Total | $976,369 | $485,893 | $1,462,262 |

$^{(1)}$ Included in Other is the amortization of Stanwell non-market coal supply agreement liability recognized on acquisition of Curragh. See further discussion in Note 19 'Contract Obligations'.

# **Further explanation to tables above:**

The following is a description of the principal activities by reportable segments.

- The Company primarily offers two types of products to its customers: metallurgical coal and thermal coal of varying qualities. The Company's metallurgical coal is classified as hard coking coal, further distinguished by its volatility (defined as high, mid, or low), and pulverized coal injection.

Coronado Global Resources Inc. Form 10-K December 31, 2022 134

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

- The Australian Operations reportable segment includes the Curragh mine. The Australian Operations is a separate reportable segment due to having separate management, location, assets, and operations. Curragh mine, included in the Australian Operations, is located in central Queensland, Australia and produces a wide variety of metallurgical coal.
- The United States reportable segment includes the Buchanan, Logan and Greenbrier coal mine facilities in Virginia and West Virginia, United States. It produces high, mid and low volatility hard coking coal.

# 4. Assets Held for Sale

During the fourth quarter of 2020, the Company committed to a plan to sell the Greenbrier asset and determined that all of the criteria to classify assets and liabilities as held for sale were met. The asset is part of the Company's U.S. segment, located in the State of West Virginia, and does not form part of the Company's core business strategy. The Greenbrier mining asset has been idle since April 1, 2020.

The following table provides the major classes of assets and liabilities classified as held for sale as of December 31, 2022 and December 31, 2021:

| (US$ thousands) | December 31 |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Inventories, net | - | 1,795 |
| Other current assets | 2,326 | 1,706 |
| Property, plant and equipment, net | 23,447 | 23,447 |
| Other noncurrent assets | 441 | 75 |
| Total assets held for sale | $26,214 | $27,023 |
| Accounts payable | 313 | 426 |
| Accrued expenses and other current liabilities | 813 | 1,344 |
| Current asset retirement obligations | 5,137 | 5,140 |
| Noncurrent asset retirement obligations | 5,978 | 5,203 |
| Total liabilities held for sale | $12,241 | $12,113 |

As of December 31, 2022, the assets and liabilities held for sale represent the fair value of the Greenbrier mining asset, which will likely be realized through a sale within the next 12 months.

The fair value of the Greenbrier mining asset was primarily determined by reference to non-binding indicative offers and Level 3 inputs such as estimates of future cash flows which aligns to the Company's best estimate of future market and operating conditions, including its current life of mine plan. The life of mine plan includes assumptions in relation to coal price forecasts, projected mine production volumes, operating costs, capital costs and discount rate.

# Sale of the Amonate Mining Asset

On December 2, 2021, the Company sold Amonate, including related assets and liabilities, to Ramaco Resources, Inc., a Delaware corporation, for a purchase price of $30.0 million and realized a pre-tax net gain of $14.8 million after transaction costs of $2.6 million, included within "Gain on disposal of asset held for sale" in the Company's Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2021.

# 5. Impairment of Assets

The Company concluded that no impairment charges were required at any of the Company's mining assets for the years ended December 31, 2022 and 2021.

Coronado Global Resources Inc. Form 10-K December 31, 2022 135

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# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

During the year ended December 31, 2020, the Company performed an impairment assessment in accordance with ASC 360 - Property, Plant and Equipment, and determined that the sum of the estimated undiscounted pre-tax future cash flows of Greenbrier long-lived assets exceeded its carrying amount. As a result, an impairment charge of $78.1 million was recorded, reducing the carrying amount of Greenbrier's long-lived assets to its fair value at that time, which did not include any associated ARO liabilities.

# **6. Other, net**

Other, net consists of the following:

| (US$ thousands) | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Other foreign exchange gains (losses) (1) | $32,259 | $(7,049) | $(1,175) |
| Other income | 1,536 | 862 | 567 |
| Total Other, net | $33,795 | $(6,187) | $(608) |

$^{(1)}$ Other foreign exchange gains (losses) primarily relates to gains and losses recognized on the translation of short-term inter-entity balances between certain entities within the Group that are denominated in currencies other than their respective functional currencies.

# **7. Capital Structure**

# **(a) Stockholders' Equity**

# **Authorized capital stock**

The Company's Articles of Incorporation, as amended, authorize the Company to issue 1,100,000,000 shares of $0.01 par value capital stock consisting of 1,000,000,000 shares of common stock and 100,000,000 shares of preferred stock.

# **Common Stock / CDIs**

The common stock is publicly traded on the ASX under the ticker 'CRN,' in the form of CHESS Depository Interests ('CDIs'). CDIs are units of beneficial ownership in shares of common stock held by CHESS Depository Nominees Pty Limited ('CDN'), a wholly-owned subsidiary of ASX Limited, the company that operates the ASX.

As each CDI represents one tenth of a share, holders of CDIs will be entitled to one vote for every 10 CDIs they hold. CDI holders are to receive entitlements which attach to underlying shares such as participation in rights issues, bonus issues, capital reductions and liquidation preferences.

The CDIs entitle holders to dividends, if any, and other rights economically equivalent to shares of common stock, including the right to attend stockholders' meetings. CDN, as the stockholder of record, will vote the underlying shares in accordance with the directions of the CDI holders.

The following table summarizes Common Stock activity during the periods presented below:

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Shares outstanding at the beginning of the year | 167,645,373 | 138,387,890 | 96,651,692 |
| Shares issued during the year | - | 29,257,483 | 41,736,198 |
| Shares outstanding at the end of the year | 167,645,373 | 167,645,373 | 138,387,890 |

# **Coronado Group LLC**

As of December 31, 2022, Coronado Group LLC, the Company's controlling stockholder, beneficially owns 845,061,399 CDIs (representing a beneficial interest in 84,506,140 shares of common stock) representing 50.4% of the total 1,676,453,730 CDIs (representing a beneficial interest in 167,645,373 shares of common stock) outstanding. The remaining 831,392,331 CDIs (representing a beneficial interest in 83,139,233 shares of common stock) are owned by investors in the form of CDIs publicly traded on the ASX.

Coronado Global Resources Inc. Form 10-K December 31, 2022 136

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Refer to Note 23 "Stock-Based Compensation" for options to purchase common stock issued and outstanding as of December 31, 2022 and 2021.

# Preferred Stock

Coronado Group LLC holds one share of preferred stock Series A. The holder of Series A Preferred Stock is permitted to nominate and elect members of the Company's Board of Directors in relation to the level of the holder's aggregate beneficial ownership of shares of the Company's common stock. The Series A Preferred Share is not entitled to dividends and is non transferable. The Series A Preferred Share has a liquidation preference of $1.00.

# (b) Dividends

The dividend policy and the payment of future cash dividends are subject to the discretion of the Company's Board of Directors.

During the year ended December 31, 2022, the Company declared:

- Dividends of $150.9 million, or $0.09 per CDI ($0.90 per share of common stock), on February 24, 2022;
- Dividends of $200.1 million, or $0.119 per CDI ($1.19 per share of common stock), on May 9, 2022;
- Dividends of $125.7 million, or $0.075 per CDI ($0.75 per share of common stock), on August 8, 2022; and
- Dividends of $225.0 million, or $0.134 per CDI ($1.34 per share of common stock), on October 30, 2022.

The Company paid a total of $700.2 million to stockholders and CDI holders on the ASX, net of $1.4 million foreign exchange gain on payment of dividends to certain CDI holders that elected to be paid in Australian dollars, in relation to the above declared dividends.

During the year ended December 31, 2021, the Company did not declare or pay dividends.

During the year ended December 31, 2020, the Company declared a dividend to stockholders and CDI holders on the ASX of $24.2 million, or $0.025 per CDI ($0.25 per share of common stock). The dividend was paid on March 31, 2020.

# (c) Earnings per Share

Basic earnings per share of common stock is computed by dividing net income attributable to the Company for the period, by the weighted-average number of shares of common stock outstanding during the same period. Diluted earnings per share of common stock is computed by dividing net income attributable to the Company by the weighted-average number of shares of common stock outstanding adjusted to give effect to potentially dilutive securities. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive.

Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):

Coronado Global Resources Inc. Form 10-K December 31, 2022 137

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

| (US$ thousands, except per share data) | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Numerator: |  |  |  |
| Net income (loss) | $771,703 | $189,423 | $(226,537) |
| Less: Net (loss) attributable to Non-controlling interest | - | (2) | (69) |
| Net income (loss) attributable to Company stockholders | $771,703 | $189,425 | $(226,468) |
| Denominator (in thousands): |  |  |  |
| Weighted-average shares of common stock outstanding | 167,645 | 156,710 | 111,073 |
| Effects of dilutive shares | 201 | 132 | - |
| Weighted average diluted shares of common stock outstanding | 167,846 | 156,842 | 111,073 |
| Earnings (Loss) Per Share (US$): |  |  |  |
| Basic | 4.60 | 1.21 | (2.04) |
| Dilutive | 4.60 | 1.21 | (2.04) |

# 8. Trade Receivables, net

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables are recorded initially at fair value and subsequently at amortized cost, less any ECL.

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Trade receivables - at amortized cost | $414,490 | $272,657 |
| Provision for discounting and credit losses (Note 9) | (4,511) | (734) |
| Trade receivables, net | $409,979 | $271,923 |

# Xcoal

At December 31, 2022, amounts outstanding from Xcoal in respect of coal sales were $69.8 million, of which $34.9 million were past due, and is included within 'Trade receivables, net' on the Consolidated Balance Sheet. Subsequent to December 31, 2022, the Company has collected the Xcoal past due balance in full. The carrying amount of trade receivables from Xcoal, net of provision for discounting and credit losses of $2.9 million, recognized due to the uncertainty surrounding expected timing of collection, was $65.7 million.

At December 31, 2021, amounts outstanding from Xcoal in respect of coal sales were $35.2 million, of which $17.9 million was past due and was included in 'Trade receivables, net' on the Consolidated Balance Sheet. Subsequent to December 31, 2021, the Company collected Xcoal's past due balance in full. The carrying amount of trade receivables from Xcoal, net of provision for discounting and credit losses of $0.4 million, was $34.8 million.

# 9. Provision for Discounting and Credit Losses

The following table provides the reconciliation of the allowance for credit losses that is deducted from financial assets to present the net amount expected to be collected:

| (US$ thousands) | Trade and related party trade receivables | Other Assets | Total |
| --- | --- | --- | --- |
| As at January 1, 2021 | $9,298 | $ - | $9,298 |
| Change in estimates during the current period | 436 | 522 | 958 |
| Unwind of provision for discounting and credit losses | (9,000) | - | (9,000) |
| As at December 31, 2021 | 734 | 522 | 1,256 |
| Change in estimates during the current period | 3,777 | 44 | 3,821 |
| As at December 31, 2022 | $4,511 | $566 | $5,077 |

Coronado Global Resources Inc. Form 10-K December 31, 2022 138

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 10. Inventories

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Raw coal | $50,604 | $17,334 |
| Saleable coal | 45,913 | 42,006 |
| Total coal inventories | 96,517 | 59,340 |
| Supplies inventory | 61,501 | 59,582 |
| Total inventories | $158,018 | $118,922 |

Coal inventories measured at its net realizable value were $5.0 million and $2.2 million at December 31, 2022 and 2021, respectively, and relates to coal designated for deliveries under the Stanwell non-market coal supply agreement. See further discussion in Note 19 'Contract Obligations'.

# 11. Property, Plant and Equipment

The following table indicates the carrying amount of each of the major classes of the Company's consolidated depreciable assets:

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Land | $27,711 | $27,853 |
| Buildings and improvements | 91,336 | 88,079 |
| Plant, machinery, mining equipment and transportation vehicles | 1,012,844 | 963,272 |
| Mineral rights and reserves | 373,309 | 374,326 |
| Office and computer equipment | 9,488 | 8,718 |
| Mine development | 565,106 | 566,201 |
| Asset retirement obligation asset | 87,877 | 75,215 |
| Construction in process | 82,713 | 42,055 |
| Total cost of property, plant and equipment | 2,250,384 | 2,145,719 |
| Less accumulated depreciation, depletion and amortization | 860,836 | 748,356 |
| Property, plant and equipment, net | $1,389,548 | $1,397,363 |

The amount of depreciation and amortization expense for property, plant and equipment for the years ended December 31, 2022, 2021 and 2020 was $155.8 million, $166.2 million and $187.7 million, respectively.

Coronado Global Resources Inc. Form 10-K December 31, 2022 139

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 12. Goodwill and Other Intangible Assets

# (a) Acquired Intangible Assets

| (US$ thousands) | December 31, 2022 |  |  |  |
| --- | --- | --- | --- | --- |
|  | Weighted average amortization period (years) | Gross carrying amount | Accumulated amortization | Net carrying amount |
| Intangible assets: |  |  |  |  |
| Amortizing intangible assets: |  |  |  |  |
| Mining permits - Logan | 15 | $1,642 | $990 | $652 |
| Mining permits - Buchanan | 28 | 3,501 | 842 | 2,659 |
| Total intangible assets |  | $5,143 | $1,832 | $3,311 |
| (US$ thousands) | December 31, 2021 |  |  |  |
|  | Weighted average amortization period (years) | Gross carrying amount | Accumulated amortization | Net carrying amount |
| Intangible assets: |  |  |  |  |
| Amortizing intangible assets: |  |  |  |  |
| Mining permits - Logan | 15 | $1,642 | $912 | $730 |
| Mining permits - Buchanan | 28 | 3,501 | 717 | 2,784 |
| Total intangible assets |  | $5,143 | $1,629 | $3,514 |

Amortization expense is charged using the straight-line method over the useful lives of the respective intangible asset. The aggregate amount of amortization expense for amortizing intangible assets for the years ended December 31, 2022, 2021 and 2020, were $0.2 million, $0.2 million and $0.2 million, respectively. Estimated amortization expense for each of the next five years is $0.2 million.

# (b) Goodwill

In connection with the Buchanan acquisition on March 31, 2016, the Company recorded goodwill in the amount of $28.0 million. The Company performed a qualitative assessment to determine if impairment was required at December 31, 2022 or 2021. Based upon the Company's qualitative assessment, it is more likely than not that the fair value of the reporting unit is greater than the carrying amount at December 31, 2022 and 2021. As a result, no impairment was recorded, and the balance of goodwill at both December 31, 2022 and 2021 was $28.0 million. The Company has not noted any indicators of impairment since the acquisition date.

Coronado Global Resources Inc. Form 10-K December 31, 2022 140

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 13. Other Assets

|  | December 31, |  |
| --- | --- | --- |
| (US$ thousands) | 2022 | 2021 |
| Other current assets: |  |  |
| Prepayments | $26,831 | $24,226 |
| Long service leave receivable | 7,884 | 9,136 |
| Tax credits receivable | 4,183 | 4,440 |
| Other | 21,290 | 9,845 |
| Total other current assets | $60,188 | $47,647 |
| Other non-current assets: |  |  |
| Favorable mineral leases | $3,448 | $3,645 |
| Deferred debt issue costs | 2,463 | 4,310 |
| Long service leave receivable | 585 | 550 |
| Tax credits receivable | 7,269 | 11,223 |
| Deposits to acquire long lead capital items | 18,126 | - |
| Other | 1,694 | - |
| Total other non-current assets | $33,585 | $19,728 |

The Company has other assets which includes prepayments, favorable mineral leases, deferred debt issue costs, long service leave receivable, equipment deposits and coalfield employment enhancement tax credit receivable.

The favorable mineral leases are amortized based on the coal tonnage removed from the lease property relative to the total estimated reserves on that property.

Long service leave for eligible coal mine workers at the Company's Australian Operations is paid when leave is taken, with a subsequent reimbursement received from the Coal Mining Industry (Long Service Leave Funding) Corporation in Queensland, Australia. The reimbursement entitlement is recognized as a receivable and is measured as the present value of expected future reimbursements to be received for the corresponding leave liability recognized.

The deferred issue costs as of December 31, 2022 and 2021, were incurred to establish the ABL Facility (as described in Note 17 'Interest Bearing Liabilities') and amortized over the life of the facility on a straight-line basis and included in 'Interest expense, net' in the Company's Consolidated Statements of Operations and Comprehensive Income.

The tax credits receivable relates to the Virginia coalfield employment enhancement tax credit for coal sales from the Company's mining properties in the State of West Virginia in the U.S. during the 2018 to 2021 income years. Where the credits exceed the Company's state tax liability for the tax year, the excess is redeemable by the Tax Commissioner on behalf of the Commonwealth of Virginia for 85% of the face value within 90 days after filing the return. The tax credits allowed can be claimed in the third taxable year following the taxable year in which the credit was earned and allowed.

Coronado Global Resources Inc. Form 10-K December 31, 2022 141

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 14. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Wages and employee benefits | $38,687 | $41,187 |
| Taxes other than income taxes | 5,988 | 6,246 |
| Accrued royalties | 117,131 | 70,237 |
| Accrued freight costs | 44,496 | 27,754 |
| Accrued mining fees | 103,492 | 65,835 |
| Acquisition related accruals | 11,669 | 31,201 |
| Other liabilities | 22,228 | 28,482 |
| Total accrued expenses and other current liabilities | $343,691 | $270,942 |

Acquisition related accruals is an accrual for the remaining estimated stamp duty payable on the Curragh acquisition of $11.7 million (A$17.3 million). Refer to Note 28 'Contingencies' for further details.

# 15. Leases

Information related to Company's right-of-use assets and related lease liabilities are as follows:

| (US$ thousands) | Year ended December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Operating lease costs | $8,088 | $10,863 |
| Cash paid for operating lease liabilities | 8,244 | 10,986 |
| Finance lease costs: |  |  |
| Amortization of right of use assets | 304 | 227 |
| Interest on lease liabilities | 20 | 14 |
| Total finance lease costs | $324 | $241 |

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Operating leases: |  |  |
| Right of use asset - operating leases, net | $17,385 | $13,656 |
| Finance leases: |  |  |
| Property and equipment | 371 | 404 |
| Accumulated depreciation | (186) | (67) |
| Property and equipment, net | 185 | 337 |
| Current operating lease obligations | 7,593 | 8,326 |
| Non-current operating lease obligations | 15,505 | 12,685 |
| Total Operating lease liabilities | 23,098 | 21,011 |
| Current finance lease obligations | 127 | 126 |
| Non-current finance lease obligations | 68 | 209 |
| Total Finance lease liabilities | 195 | 335 |
| Current lease obligations | 7,720 | 8,452 |
| Non-current lease obligations | 15,573 | 12,894 |
| Total lease obligations | $23,293 | $21,346 |

Coronado Global Resources Inc. Form 10-K December 31, 2022 142

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

|  | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Weighted Average Remaining Lease Term (Years) |  |  |
| Weighted average remaining lease term - finance leases | 1.52 | 2.54 |
| Weighted average remaining lease term - operating leases | 4.11 | 2.59 |
| Weighted Average Discount Rate |  |  |
| Weighted discount rate - finance lease | 7.60% | 7.60% |
| Weighted discount rate - operating lease | 8.94% | 7.95% |

The Company's leases have remaining lease terms of 1 year to 5 years, some of which include options to extend the terms deemed reasonable to exercise. Maturities of lease liabilities are as follows:

| (US$ thousands) | Operating Lease | Finance Lease |
| --- | --- | --- |
| Year ending December 31, |  |  |
| 2023 | $8,964 | $138 |
| 2024 | 6,112 | 138 |
| 2025 | 5,325 | 69 |
| 2026 | 5,214 | - |
| Thereafter | 1,139 | - |
| Total lease payments | 26,754 | 345 |
| Less imputed interest | (3,656) | (150) |
| Total lease liability | $23,098 | $195 |

# **16. Asset Retirement Obligations**

Reclamation of areas disturbed by mining operations must be performed by the Company in accordance with approved reclamation plans and in compliance with state and federal laws in the states of West Virginia and Virginia in the United States and Queensland in Australia. For areas disturbed, a significant amount of the reclamation will take place in the future when operations cease. There were no assets that were legally restricted for purposes of settling asset retirement obligations as of December 31, 2022 and 2021. In addition, state agencies monitor compliance with the mine plans, including reclamation.

The Company records the fair value of its asset retirement obligations using the present value of projected future cash flows, with an equivalent amount recorded in the related long lived asset or a change to the Consolidated Statements of Operations if the related permit is closed. An accretion cost, representing the increase over time in the present value of the liability, is recorded each period and the capitalized cost is depreciated over the useful life of the related asset. As reclamation work is performed or liabilities otherwise settled, the recorded amount of the liability is reduced.

Changes in the asset retirement obligations for the years ended December 31, 2022 and December 31, 2021 were as follows:

| (US$ thousands) | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| Total asset retirement obligations at beginning of the year | $120,277 | $122,144 |
| ARO liability additions | 1,835 | 1,642 |
| Accretion | 9,066 | 9,353 |
| Reclamation performed in the year | (3,270) | (3,322) |
| Gain on settlement of ARO | (53) | (601) |
| Change in estimate recorded to net income | (2) | 1,195 |
| Change in estimate recorded to assets | 15,381 | (5,444) |
| Foreign currency translation adjustment | (4,744) | (4,690) |
| Total Asset retirement obligations at end of the year | 138,490 | 120,277 |
| Less current portion | (10,646) | (9,414) |
| Asset retirement obligation, excluding current portion | $127,844 | $110,863 |

Coronado Global Resources Inc. Form 10-K December 31, 2022 143

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 17. Interest Bearing Liabilities

The following is a summary of interest-bearing liabilities at December 31, 2022:

| (US$ thousands) | December 31, 2022 | December 31, 2021 | Weighted Average Interest Rate at December 31, 2022 | Final Maturity |
| --- | --- | --- | --- | --- |
| 10.75% Senior Secured Notes | $242,326 | $315,000 | 12.14% (2) | 2026 |
| ABL Facility | - | - | - | 2024 |
| Discount and debt issuance costs (1) | (9,373) | (14,831) | - | - |
| Total interest bearing liabilities | $232,953 | $300,169 | - | - |

$^{(1)}$ Deferred debt issuance costs incurred on the establishment of the ABL Facility has been included within 'Other non-current assets' on the Consolidated Balance Sheets.

$^{(2)}$ Represents the effective interest rate.

# *Senior Secured Notes*

On May 12, 2021, the Company entered into an indenture, or the Indenture, among Coronado Finance Pty Ltd, an Australian proprietary company, as the issuer or the Australian Borrower, the Company, as parent guarantor, the other guarantors party thereto and Wilmington Trust, National Association, as trustee, and as priority lien collateral trustee, relating to the issuance of 10.750% Senior Secured Notes due 2026, or the Notes.

Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 of each year to record holders of the Notes on the immediately preceding May 1 and November 1, as applicable. The Notes mature on May 15, 2026 and are senior secured obligations of the Company.

The Notes are guaranteed on a senior secured basis by the Company and its wholly-owned subsidiaries (other than the Issuer) (subject to certain exceptions and permitted liens) and secured by (i) a first-priority lien on substantially all of the Company's assets and the assets of the other Guarantors (other than accounts receivable and other rights to payment, inventory, intercompany indebtedness, certain general intangibles and commercial tort claims, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds and products of each of the foregoing, or, collectively, the ABL Collateral), or the Notes Collateral, and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien, for the benefit of the lenders under the Company's senior secured asset-based revolving credit agreement in an initial aggregate principal amount of $100.0 million, or the ABL Facility.

The terms of the Notes are governed by the Indenture. The Indenture contains customary covenants for high yield bonds, including, but not limited to, limitations on investments, liens, indebtedness, asset sales, transactions with affiliates and restricted payments, including payment of dividends on capital stock. As of December 31, 2022, the Company was in compliance with all applicable covenants under the Indenture.

The Company may redeem some or all of the Notes at the redemption prices and on the terms specified in the Indenture.

# *Partial Redemption of Notes*

On November 23, 2022, the Company exercised its optional redemption rights and redeemed $35.0 million, or 10.0%, of the original aggregate principal amount of its Notes at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption.

The redemption allocation was determined by lot, in compliance with the requirements of the Depository Trust Company as provided in the Indenture governing the Notes.

During the year ended December 31, 2022, in connection with the dividends paid in the period, the Company offered to purchase the Notes pursuant to the terms of the Indenture. In connection with the above offers, the Company purchased an aggregate principal amount, for accepted offers, of $37.7 million at a price equal to 104% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption.

Coronado Global Resources Inc. Form 10-K December 31, 2022 144

Table of Contents

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In connection to the above redemptions, the Company recorded a 'Loss on debt extinguishment' of $5.3 million in the Consolidated Statement of Operations and Comprehensive Income, which represents the premium paid and a portion of unamortized debt issuance costs and discount on issuance.

### ABL Facility

On May 12, 2021, the Company, Coronado Coal Corporation, a Delaware corporation and wholly-owned subsidiary of the Company, or the U.S. Borrower, the Australian Borrower and the guarantors entered into the ABL Facility agreement with Citibank, N.A., as administrative agent and a lender, and various other financial institutions, with an aggregate multi-currency lender commitment of up to $100.0 million, including a $30.0 million sublimit for the issuance of letters of credit and $5.0 million for swingline loans, at any time outstanding, subject to borrowing base availability. The ABL Facility matures on May 12, 2024.

Revolving loan (and letter of credit) availability under the ABL Facility is subject to a borrowing base, which at any time is equal to the sum of certain eligible accounts receivable, certain eligible inventory and certain eligible supplies inventories and, in each case, subject to specified advance rates. The borrowing base is subject to certain reserves, which may be established by the agent in its reasonable credit discretion, that could reasonably be expected to have an adverse effect on the value of the collateral included in the borrowing base.

Borrowings under the ABL Facility bear interest at a rate equal to a BBSY rate plus an applicable margin. In addition to paying interest on the outstanding borrowings under the ABL Facility, the Company is also required to pay a fee in respect of unutilized commitments, on amounts available to be drawn under outstanding letters of credit and certain administrative fees.

The obligations of the borrowers under the ABL Facility are guaranteed by (a) a first priority-lien in the ABL Collateral, (b) a second priority-lien in the Notes Collateral and (c) solely in the case of the obligations of the Australian Borrower, a featherweight floating security interest over certain accounts released from the security by the Australian Borrower in favor of Stanwell.

The ABL Facility contains customary covenants for asset-based credit agreements of this type, including, among others: (i) the requirement to deliver financial statements, other reports and notices; (ii) covenants related to the payment of dividends on, or purchase or redemption of, capital stock; (iii) covenants related to the incurrence or prepayment of certain debt; (iv) covenants related to the incurrence of liens or encumbrances; (v) compliance with laws; (vi) restrictions on certain mergers, consolidations and asset dispositions; and (vii) restrictions on certain transactions with affiliates. Subject to customary grace periods and notice requirements, the ABL Facility also contains customary events of default. Additionally, the ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the ABL Facility is less than a certain amount. As of December 31, 2022, the Company is not subject to this covenant. As at December 31, 2022, the Company met its undertakings under the ABL Facility.

As at December 31, 2022, no amounts were drawn and no letters of credit were outstanding under the ABL Facility.

The carrying value of debt issuance costs, recorded as 'Other non-current assets' in the Consolidated Balance Sheets, were $2.5 million and $4.3 million at December 31, 2022 and December 31, 2021, respectively. Refer to Note 13 'Other Assets'.

Coronado Global Resources Inc. Form 10-K December 31, 2022 145

Table of Contents

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 18. Other Financial Liabilities

The following is a summary of other financial liabilities:

| (US$ thousands) | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| Collateralized financial liabilities payable to third-party financing companies (1) | $12,726 | $17,794 |
| Unsecured notes payable to insurance premium finance company, payable in aggregate monthly instalments ranging from $645 to $700 with a fixed rate ranging up to 2.25% per annum | - | 4,536 |
| Total Other financial liabilities | 12,726 | 22,330 |
| Less: current portion | 4,458 | 8,508 |
| Other non-current financial liabilities | $8,268 | $13,822 |

$^{(1)}$ On January 6, 2021, the Company entered into an agreement with a third-party financier to sell and leaseback items of property, plant and equipment owned by Curragh, a wholly-owned subsidiary of the Company. The transaction did not satisfy the sale criteria under ASC 806 - Revenues from Contracts with Customers. As a result, the transaction was deemed a financing arrangement and the Company has continued to recognize the underlying property, plant and equipment on its Consolidated Balance Sheet. The proceeds received from the transaction of $23.5 million (A$30.2 million) were recognized as “Other financial liabilities” on the Consolidated Balance Sheet. The term of the financing arrangement ranges up to five years with an implied interest rate of up to 0.1% per annum. The carrying amount of this financial liability, net of issuance costs, was $12.7 million and $17.8 million as at December 30, 2022 and 2021, $4.5 million and $4.0 million of which were classified as a current liability, respectively.

# 19. Contract Obligations

In connection with the acquisition of the Logan assets, the Company assumed certain non-market contracts related to various coal leases. The non-market coal leases require royalty payments based on a percentage of the realization from the sale of the respective coal under lease. On acquisition, the Company recorded $27.3 million related to the non-market portion of the coal leases and is amortizing it ratably over the respective estimated coal reserves as they are mined and sold.

In connection with the acquisition of Curragh, the Company assumed the Stanwell non-market coal supply agreement (CSA) with a fixed pricing component that was effectively below the market price at the date of acquisition. As a result, on acquisition, the Company recorded a liability of $307.0 million (A$400.0 million) related to the unfavorable pricing of the Stanwell CSA and is amortizing it ratably based on the tons sold through the contract. The amortization of this liability for the year ended December 31, 2022, 2021 and 2020 were $36.2 million, $33.7 million and $32.6 million, respectively, and recorded as “Other revenues” in the Consolidated Statements of Operations and Comprehensive Income.

The following is a summary of the contract obligations as of December 31, 2022:

| (US$ thousands) | Short-term | Long-term | Total |
| --- | --- | --- | --- |
| Coal leases contract liability | $843 | $19,720 | $20,563 |
| Stanwell below market coal supply agreement | 39,500 | 74,805 | 114,305 |
|  | $40,343 | $94,525 | $134,868 |

The following is a summary of the contract obligations as of December 31, 2021:

| (US$ thousands) | Short-term | Long-term | Total |
| --- | --- | --- | --- |
| Coal leases contract liability | $843 | $20,081 | $20,924 |
| Stanwell below market coal supply agreement | 39,118 | 121,107 | 160,225 |
|  | $39,961 | $141,188 | $181,149 |

Coronado Global Resources Inc. Form 10-K December 31, 2022 146

Table of Contents

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

# 20. Deferred Consideration Liability

On August 14, 2018 the Company completed the purchase of the Stanwell Reserved Area, or the SRA, adjacent to the current Curragh mining tenements. This area was acquired on a deferred consideration basis and on acquisition the Company recognized a 'Mineral rights and reserves' asset and a corresponding deferred consideration liability of $155.2 million (A$210.0 million), calculated using the contractual pre-tax discount rate of 13% representing fair value of the arrangements at the date of acquisition. The deferred consideration liability will reflect passage of time changes by way of an annual accretion at the contractual pre-tax discount rate of 13% and will be settled as a discount to the price of thermal coal supplied to Stanwell over the term of a new coal supply agreement which is expected to commence in 2027. The accretion of deferred consideration is recognized in 'Interest expense, net' in the Consolidated Statements of Operations and Comprehensive Income. The Right-to-mine-asset will be amortized over the coal reserves mined from the SRA.

| (US$ thousands) | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Stanwell Reserved Area deferred consideration | $243,191 | $230,492 |
|  | $243,191 | $230,492 |

# 21. Workers' Compensation and Pneumoconiosis ('Black Lung') Obligations

In the United States, coal mine operations may lead to traumatic workers compensation claims, as well as workers' compensation occupational disease claims for black lung disease. Injured workers generally file claims for traumatic injury under the governing state workers compensation legislation. Workers may file claims due to black lung under the governing state workers compensation legislation or under a series of federal laws that include the Federal Coal Mine Health and Safety Act of 1969, as amended, the Black Lung Benefits Act of 1973, and the Black Lung Benefits Reform Act of 1977. The Company provides for both traumatic workers compensation claims and occupational disease claims through an insurance policy.

The Company obtained workers compensation insurance for work related injuries, including black lung, through a third-party commercial insurance company for the years ended December 31, 2022, 2021 and 2020. The insurance policy covers claims that exceed $0.5 million per occurrence for all years, or aggregate claims in excess of $22.7 million, $22.0 million and $15.0 million for policy years ending May 2023, May 2022 and May 2021. Per the contractual agreements, the Company was required to provide a collateral deposit of $53.1 million for policy years 2017 through 2023, ending May 31, 2023, which is accomplished through providing a combination of letters of credit and cash collateral in an escrow account. As of December 31, 2022, the Company has provided $16.8 million of letters of credit, $27.1 million of cash collateral and surety bonds of $6.0 million totaling $49.9 million. The remaining collateral is required to be provided by March 31, 2023.

For the years ended December 31, 2022, 2021 and 2020, the audited Consolidated Statements of Operations and Comprehensive Income included Company incurred claims, premium expenses and administrative fees related to worker's compensation benefits of $12.2 million, $12.2 million and $9.5 million, respectively. As of December 31, 2022 and 2021, the estimated workers' compensation liability was $30.1 million and $29.7 million, respectively, representing claims incurred but not paid based on the estimate of the outstanding claims under the coverage limits and the actuarially determined retained liability under the aggregate claim amount. As of December 31, 2022 and 2021, $27.1 million and $25.3 million, respectively, are recorded within 'Other non-current liabilities' in the Consolidated Balance Sheets. The current portion of the Company's estimated workers' compensation liabilities are recorded within 'Accrued expenses and other current liabilities' in the Consolidated Balance Sheets.

# 22. Employee Benefit Plans

The Company has a 401(k)-defined contribution plan in which all U.S. full time employees are eligible to participate upon their date of hire. Employees generally may contribute up to 100% of their qualifying compensation subject to statutory limitations. The Company matches up to 100% up to the first 4% of the participant's annual compensation for all employees except for those employed at Buchanan. For employees at Buchanan, the Company matches up to 100% of the first 6% of the participant's annual compensation. The Company's contributions immediately vest. Total Company contributions for the years ended December 31, 2022, 2021 and 2020 amounted to $3.9 million, $3.3 million and $2.7 million, respectively.

Coronado Global Resources Inc. Form 10-K December 31, 2022 147

Table of Contents

# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

In the United States, the Company is self-insured for employee health care claims up to the lesser of $0.2 million per covered person or an aggregate amount depending on the various coverages provided to employees throughout the plan year for all employees. The Company has purchased coverage from a commercial insurance carrier to provide for any claims in excess of these amounts. At December 31, 2022 and 2021, the Company had provided accruals of $1.9 million and $1.7 million, respectively, for claims incurred but not paid based on management's estimate of the Company's self-insured liability. For the years ended December 31, 2022, 2021 and 2020, the Company incurred claims, premium expenses and administrative fees related to this plan totaling $29.8 million, $25.8 million and $23.9 million respectively.

# **23. Stock-Based Compensation**

Total stock-based compensation expense was $2.7 million, $0.5 million and $1.6 million for the years ended December 31, 2022, 2021 and 2020 respectively, and was included as a component of selling, general, and administrative expenses in the Company's Consolidated Statements of Operations and Comprehensive Income. The stock-based compensation expense includes compensation expense recognized in full at the grant date for employees that meet certain retirement eligibility criteria per the 2018 Plan (as defined below).

As of December 31, 2022 the Company had $4.1 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under the plans. This cost is expected to be recognized over 3.25 years with a weighted-average period of 2.38 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards.

# **a) 2018 Equity Incentive Plan**

In connection with the completion of the Company's initial public offering of common stock, the Company implemented the Coronado Global Resources Inc. 2018 Equity Incentive Plan, or the 2018 Plan, which is designed to align compensation for certain key executives with the performance of the Company. Since its approval, there have been no updates to the 2018 Plan or issuance of a new plan.

The 2018 Plan provides for the grant of awards including stock options, or Options; stock appreciation rights; restricted stock units, or RSUs; and restricted stock, valued in whole or in part with reference to shares of the Company's CDIs or common stock, as well as performance-based awards, including performance stock units, or PSUs, denominated in CDIs or shares of common stock. Each award is entitled to receive one CDI with ten CDIs representing one share of common stock.

The Company measures the cost of all stock-based compensation, including stock options, at fair value on the grant date and recognizes such costs within 'Selling, general and administrative expense' in the Consolidated Statements of Operations and Comprehensive Income. The Company recognizes compensation expense related to Options, PSUs and RSUs that cliff vest using the straight-line method during the requisite service period. For stock-based awards where vesting is dependent upon achieving certain operating performance goals, the Company estimates the likelihood of achieving the performance goals during the performance period. The Company accounts for forfeitures as and when they occur.

All awards require the grantee to be employed by the Company at the vesting date except for grantees who meet certain retirement criteria under the 2018 Plan.

The following awards were granted under the 2018 Plan:

| Grant year | Vesting date (1) | Performance period | Stock Options | PSUs | RSUs |
| --- | --- | --- | --- | --- | --- |
| 2022 | 01/01/2023 | not applicable | - | - | 393,793 |
| 2022 | 01/07/2023 | not applicable | - | - | 255,284 |
| 2022 | 01/01/2024 | not applicable | - | - | 151,747 |
| 2022 | 01/07/2024 | not applicable | - | - | 343,210 |
| 2022 | 31/03/2026 | 01/01/2022 - 31/12/2024 | - | 7,471,100 | - |
| 2021 | 31/03/2025 | 01/01/2021 - 31/12/2023 | - | 5,998,212 | - |
| 2020 | 31/03/2024 | 01/01/2020 - 31/12/2022 | - | 3,203,988 | - |
| 2018 | 31/03/2023 | 01/01/2019 - 31/12/2021 | 1,336,454 | 1,001,914 | - |
| 2018 | 30/12/2019 | not applicable | - | - | 54,687 |

Coronado Global Resources Inc. Form 10-K December 31, 2022 148

Table of Contents

# **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

$^{(1)}$ The awards shall vest on the one-year anniversary of each testing date and no later than the disclosed date.

The Options and PSUs granted that will vest are subject to the achievement of goals over the performance period. These goals are relative total shareowner return, or TSR, and scorecard performance metrics, or the Scorecard. TSR is determined based on the Company's percentile ranking of TSR over the performance period relative to a predefined comparator group of companies.

Performance metrics applicable to the Options and PSUs granted as summarized below:

| Grant year | Relative TSR |  | Scorecard |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | TSR | Safety | TSR | Cashflow | Production | Production |
| 2022, 2021 and 2020 | 33.0% | 22.0% | 22.0% | 22.0% | - | - |
| 2018 | 25.0% | 25.0% | - | - | 25.0% | 25.0% |

Awards subject to TSR vest based on service and market conditions. The fair value of relative TSR was estimated on the grant date using a Monte Carlo simulation model.

Awards subject to Scorecard vest based on service and performance conditions. The fair value of the Scorecard was estimated on the grant date fair value of the Company's Common Stock adjusted for dividends foregone during the performance period.

PSUs are only subject to service conditions.

# **Stock Option Awards**

The Company's 2018 stock option awards were granted on the date of the IPO with an exercise price of $2.84 per CDI (A$4.00 per CDI) which was equal to the Company's IPO Price.

The Company's Stock Option activity is summarized below:

| Stock Option Plan Activity | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Opening at the beginning of the year | 1,015,006 | 1,083,101 | 1,292,476 |
| Granted | - | - | - |
| Forfeited | (833,319) | (68,095) | (209,375) |
| Outstanding at the end of the year | 181,687 | 1,015,006 | 1,083,101 |
| Exercisable at the end of the year | - | - | - |
|  | 2022 | 2021 | 2020 |
| Weighted-average remaining contractual term (in years) | 0.25 | 1.25 | 2.25 |

The weighted average grant date fair value of all Option Awards granted was $0.27. On August 5, 2019, the Board of Directors declared and approved return of capital of $0.298 (A$0.440) per CDI. In accordance with ASX listing rule clause 7.22.3 the exercise price of option awards granted under 2018 plan were reduced by the same amount as the return of capital to $2.41 (A$3.56). No stock option awards vested during the year ended December 31, 2022.

The assumptions used to determine the Options fair value on grant date were as follows:

|  | 2018 Grant |
| --- | --- |
| Expected term of the stock options (in years) (i) | 7.22 |
| Dividend yield (ii) | 10% |
| Expected volatility (iii) | 35% |
| Risk-free interest rate (iv) | 2.46% |

Coronado Global Resources Inc. Form 10-K December 31, 2022 149

Table of Contents

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(i) Expected term represents the period that the Company's stock-based awards are expected to be outstanding and is determined using the simplified method, which equates to a weighted average of the vesting period and total contractual term of the award. All awards cliff vest at the end of the requisite service period.
(ii) Dividend yield is the expected average yield of dividends expected over the vesting period.
(iii) Expected volatility was estimated using comparable public company's volatility for similar terms as the Company does not have a long enough operating period as a public company to estimate its own volatility. Over time as the Company develops its own volatility history it will begin to incorporate that history into its expected volatility estimates.
(iv) Risk-free interest rate is based on an interpolated Australian Government Bond Rate at the time of the grant for periods corresponding with the expected term of the option.

The applicable assumptions in determining the fair value of market and performance conditions of the Options awards were the same.

# Performance Stock Unit Awards

Activity of the Company's PSUs that are ultimately payable in the Company's CDIs or the equivalent number of shares of common stock granted under the 2018 Plan is summarized below:

| Performance Stock Units Plan Activity | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Nonvested at the beginning of the year | 8,501,869 | 4,002,783 | 988,721 |
| Granted | 7,471,100 | 5,998,212 | 3,203,988 |
| Forfeited | (1,114,048) | (1,499,126) | (189,926) |
| Nonvested at the end of the year | 14,858,921 | 8,501,869 | 4,002,783 |

|  | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Weighted-average grant date fair value (per CDI) | $0.53 | $0.43 | $0.79 |
| Weighted-average remaining term (in years) | 2.54 | 2.79 | 3.01 |

The weighted average grant date fair value of all PSU Awards granted in 2022 was $0.67 (A$0.89). No PSUs vested during the year ended December 31, 2022.

The assumptions used to determine the PSUs fair value on each grant date were as follow:

|  | 2022 Grant | 2021 Grant | 2020 Grant | 2018 Grant |
| --- | --- | --- | --- | --- |
| Time to maturity (in years) (i) | 3.99 | 3.85 | 3.49 | 4.52 |
| Dividend yield (ii) | 16.3% | 3.0% | 1.6% | 10.0% |
| Expected volatility (iii) | 60.0% | 60.0% | 60.0% | 35.0% |
| Risk-free interest rate (iv) | 2.66% | 0.35% | 0.18% | 2.23% |

(i) Time to maturity represents the period that the Company's stock-based awards will vest. All awards cliff vest at the end of the requisite service period.
(ii) Dividend yield is the expected average yield of dividends expected over the vesting period.
(iii) For the 2018 grant, the expected volatility was estimated using comparable public company's volatility for similar terms as the Company does not have a long enough operating period as a public company to estimate its own volatility. For the 2020, 2021 and 2022 grants, the volatility was estimated using comparable public company's volatility and the Company's own volatility for similar terms.
(iv) Risk-free interest rate is based on an interpolated Australian Government Bond Rate at the time of the grant for periods corresponding with the expected term of the PSUs.

The above inputs were consistent to determine the fair value of the market and performance conditions of the PSUs awards.

Coronado Global Resources Inc. Form 10-K December 31, 2022 150

## Exhibit 21.1

#### EXHIBIT 21.1

#### CORONADO GLOBAL RESOURCES INC.

#### SUBSIDIARIES

#### AS OF DECEMBER 31, 2022

#### Name

#### Coronado's Effective Ownership

#### Place of Incorporation
Buchanan Minerals, LLC

100%

Delaware

Buchanan Mining Company LLC

100%

Delaware

Coronado Australia Holdings Pty Ltd

100%

Australia

Coronado Coal Corporation

100%

Delaware

Coronado Coal II LLC

100%

Delaware

Coronado Coal LLC

100%

Delaware

Coronado Curragh LLC

100%

Delaware

Coronado Curragh Pty Ltd

100%

Australia

Coronado Finance Pty Ltd

100%

Australia

Coronado II LLC

100%

Delaware

Coronado IV LLC

100%

Delaware

Coronado VA, LLC

100%

Delaware

Curragh Coal Sales Co Pty Ltd

100%

Australia

Curragh Queensland Mining Pty Ltd

100%

Australia

Greenbrier Minerals, LLC

100%

Delaware

Greenbrier Smokeless Coal Mining, LLC

100%

Delaware

JEP Mining LLC

100%

Delaware

Matoaka Land Company, LLC

100%

Delaware

Midland Trail Resources, LLC

100%

West Virginia

Powhatan Mid-Vol Coal Sales, LLC

100%

Delaware

Mon Valley Minerals LLC

100%

Delaware

## Exhibit 23.1

#### EXHIBIT 23.1

#### CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the following Registration Statements (including all amendments

thereto):

1. Registration Statement (Form S-3 No. 333-239730) of Coronado Global Resources Inc.;

2. Registration Statement (Form S-8 No. 333-236597) pertaining to the Coronado Global Resources Inc.

2018 Equity Incentive Plan and the Coronado Global Resources Inc. 2018 Non-Executive Director Plan;

and

3. Registration Statement (Form S-8 No. 333-249566) pertaining to the Coronado Global Resources Inc.

2018 Equity Incentive Plan.

of our reports dated February 21, 2023 with respect to the consolidated financial statements of Coronado Global

Resources, Inc. and the effectiveness of internal control over financial reporting of Coronado Global Resources,

Inc. included in this Annual Report (Form 10-K) of Coronado Global Resources, Inc. for the year ended December

31, 2022.

/s/ Ernst & Young

Brisbane, Australia

February 21, 2023

## Exhibit 23.2

![ex232p1i0](ex232p1i0.jpg)

Resology Pty Ltd

5 Tristania Court,

Ormiston 4160

ACN # 622 794 834

ABN # 41622794834

#### CONSENT OF BARRY LAY
I, Barry Lay, BSc Geology (Hons); MAusIMM, Managing Director of Resology Pty Ltd prepared Sections

1.3, 1.4, 1.6, 5.2, 6, 7.1-7.3, 8, 9, 10, 11 of the Technical Report Summary titled "

*Coronado Global* 

*Resources Inc. ("Coronado") Statement of Coal Resources and Reserves for the Curragh Mine* 

*Complex in Accordance with the JORC Code and United States SEC Regulation S-K 1300 as of* 

*December 31, 2021 Bowen Basin Queensland, Australia*

", dated February 21, 2022 (the "Technical

Report Summary").

With respect to the portions of the Technical Report Summary that I prepared, I hereby consent to the

filing with the Securities and Exchange Commission of the Technical Report Summary as an exhibit to

the Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report") of

Coronado Global Resources Inc. (the "Company") and to the incorporation by reference of the Technical

Report Summary in the Company's Registration Statements on Form S-3 (No. 333-239730) and Form

S-8 (Nos. 333- 236597 and 333-249566) (the "Registration Statements").

I hereby further consent to the inclusion or incorporation by reference in the Annual Report and the

Registration Statements of references to my name (including status as an expert or qualified person

(as defined in Item 1300 of Regulation S-K)) and the information derived from the portions of the

Technical Report Summary that I prepared, including any quotation therefrom or summarization thereof.

Date: February 15, 2023

/s/ Barry Lay

Name: Barry Lay

Managing Director

## Exhibit 23.3

![ex233p1i0](ex233p1i0.jpg)

Coronado Curragh Pty Ltd

ABN 90 009 362 565

Level 33, Central Plaza One, 345 Queen Street

GPO Box 51, Brisbane QLD 4000

#### T:
+61 7 3031 7777 \|

#### F:
+61 7 3229 7402

Private Mail Bag, Blackwater QLD 4717

#### T:
+61 7 4986 9211 \|

#### F:
+61 7 4986 9361

www.coronadoglobal.com

#### CONSENT OF PAUL WOOD
I, Paul Wood, B. Eng.; MAusIMM(CP), Senior Life of Mine Planner of Coronado Curragh Pty Ltd, a wholly owned

subsidiary of Coronado Global Resources Inc. (the "Company"), prepared Sections 1.1, 1.2, 1.5, 1.7 through to

1.11, 2 through to 5, 7.4 and 12 through to 26 and reviewed all other sections of the technical report summary

titled "

*Coronado Global Resources Inc. ("Coronado") Statement of Coal Resources and Reserves for the Curragh* 

*Mine Complex in Accordance with the JORC Code and United States SEC Regulation S-K 1300 as of December* 

*31, 2021 Bowen Basin Queensland, Australia*," dated February 21, 2022 (the "Technical Report Summary").

With respect to the portions of the Technical Report Summary that I prepared, I hereby consent to the filing with

the Securities and Exchange Commission of the Technical Report Summary as an exhibit to the Company's

Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report") and to the

incorporation by reference of the Technical Report Summary in the Company's Registration Statements on Form

S-3 (No. 333-239730) and Form S-8 (Nos. 333- 236597 and 333-249566) (the "Registration Statements").

I hereby further consent to the inclusion or incorporation by reference in the Annual Report and the Registration

Statements of references to my name (including status as an expert or qualified person (as defined in Item 1300

of Regulation S-K)) and the information derived from the portions of the Technical Report Summary that I

prepared, including any quotation therefrom or summarization thereof .

February 14, 2023

/s/ Paul Wood

Name: Paul Wood

## Exhibit 23.4

![ex234p1i0](ex234p1i0.jpg)

582 Industrial Park Road, Bluefield, VA 24605-9364

#### ■
Phone 276.322.5467

www.mma1.com

info@gmail.com

#### ENERGY & MINERAL RESOURCES ■ HYDROGEOLOGY & GEOLOGY ■ GEOPHYSICAL LOGGING SERVICES

#### CARBON MANAGEMENT ■ EXPERT WITNESS TESTIMONY ■ MINING ENGINEERING ■ PETROLEUM ENGINEERING

#### CONSENT OF MARSHALL MILLER & ASSOCIATES, INC.
Marshall Miller & Associates, Inc. (*MM&A*), a third-party firm comprising mining experts, prepared the

technical report summaries identified below, each dated February 15, 2023, relating to estimates of coal

resources and reserves of Coronado Global Resources Inc. (the "Company") as of December 31, 2022

(the "Technical Report Summaries"). Specifically, MM&A prepared the following Technical Report

Summaries:

1. Technical Report Summary entitled

*"Coronado Global Resources Inc. ("Coronado"), Statement* 

*of Coal Resources and Reserves for the Buchanan Mine Complex in Accordance with the JORC* 

*Code and United States SEC Standards as of December 31, 2022 Central Appalachian Coal* 

*Basin Virginia, USA"*

;

2. Technical Report Summary entitled

*"Coronado Global Resources Inc. ("Coronado"), Statement* 

*of Coal Resources and Reserves for the Logan County Complex in Accordance with the JORC* 

*Code and United States SEC Standards as of December 31, 2022 Central Appalachian Coal* 

*Basin West Virginia, USA"*

; and

3. Technical Report Summary entitled

*"Coronado Global Resources Inc. ("Coronado"), Statement* 

*of Coal Resources and Reserves for the Mon Valley Complex Upper Freeport Holdings in* 

*Accordance with the JORC Code and United States SEC Standards as of December 31, 2022* 

*Northern Appalachian Coal Basin Pennsylvania, USA."*

MM&A hereby consents to the filing with the Securities and Exchange Commission of the Technical

Report Summaries as exhibits to the Company's Annual Report on Form 10-K for the year ended

December 31, 2022 (the "Annual Report") and to the incorporation by reference of the Technical Report

Summaries in the Company's Registration Statements on Form S-3 (No. 333-239730) and Form S-8

(Nos. 333- 236597 and 333-249566) (the "Registration Statements").

MM&A hereby further consents to the inclusion or incorporation by reference in the Annual Report and

the Registration Statements of references to the MM&A name (including status as an expert or qualified

person (as defined in Item 1300 of Regulation S-K)) and the information derived from the Technical

Report Summaries, including any quotation therefrom or summarization thereof.

Date: February 15, 2023

Name: /s/ Justin S. Douthat

Title: Executive Vice President

(MM&A Representative)

## Exhibit 31.1

#### EXHIBIT 31.1
CERTIFICATION

I, Garold Spindler, certify that:

1. I have reviewed this Annual Report on Form 10-K of Coronado Global Resources Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state

a material fact necessary to make the statements made, in light of the circumstances under which such

statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as

of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to the

registrant, including its consolidated subsidiaries, is made known to us by others within those entities,

particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in

this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the

end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that

occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case

of an Annual Report) that has materially affected or is reasonably likely to materially affect, the registrant's

internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of

directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant's ability to record,

process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant's internal control over financial reporting.

Date: February 21, 2023

/s/ Garold Spindler

Garold Spindler

Managing Director and Chief Executive Officer

## Exhibit 31.2

#### EXHIBIT 31.2
CERTIFICATION

I, Gerhard Ziems, certify that:

1. I have reviewed this Annual Report on Form 10-K of Coronado Global Resources Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state

a material fact necessary to make the statements made, in light of the circumstances under which such

statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as

of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to the

registrant, including its consolidated subsidiaries, is made known to us by others within those entities,

particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in

this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the

end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that

occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case

of an Annual Report) that has materially affected or is reasonably likely to materially affect, the registrant's

internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of

directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant's ability to record,

process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant's internal control over financial reporting.

Date: February 21, 2023

/s/ Gerhard Ziems

Gerhard Ziems

Group Chief Financial Officer

## Exhibit 32.1

#### EXHIBIT 32.1
CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Coronado Global Resources Inc. (the "Company") on Form 10-K for the

year ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the

"Report"), each of the undersigned officers of the company certifies, pursuant to 18 U.S.C. Section 1350, as

adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:

1. The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934; and

2. The information contained in the Annual Report fairly presents, in all material respects, the financial

condition and results of operations of the Company as of the dates and for the periods expressed in the

Report.

/s/ Garold Spindler

Garold Spindler

Managing Director and Chief Executive Officer

/s/ Gerhard Ziems

Gerhard Ziems

Group Chief Financial Officer

Date: February 21, 2023

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as

part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906 has been provided to the Company and will

be retained by the Company and furnished to the Securities and Exchange Commission or its staff on request.

## Exhibit 95.1

#### EXHIBIT 95.1

#### Mine Safety Disclosures
Safety is the cornerstone of our Company's values and is the number one priority for all employees at Coronado

Global Resources. Our mining operation at Curragh, located in Australia, is subject to regulation by the

Queensland Department of Natural Resources, Mine and Energy, or DNRME, under the Coal Mining Safety and

Health Act 1999 (Qld). The operation of our mines located in the United States is subject to regulation by the

Mine Safety and Health Administration, or MSHA, under the Federal Mine Safety and Health Act of 1977, or the

Mine Act. MSHA inspects these mines on a regular basis and issues various citations and orders when it believes

a violation has occurred under the Mine Act. We present information below regarding certain mining safety and

health citations that MSHA has issued with respect to our mining operations. In evaluating this information,

consideration should be given to factors such as: (i) the number of citations and orders will vary depending on

the size of the mine; (ii) the number of citations issued will vary from inspector to inspector and mine to mine; and

(iii) citations and orders can be contested and appealed and, in that process, are often reduced in severity and

amount, and are sometimes dismissed. Since MSHA is a branch of the U.S. Department of Labor, its jurisdiction

only applies to our operations in the United States. As such, the mine safety disclosures included herein do not

contain information related to our Australian mines.

Under the Dodd-Frank Act, each operator of a coal or other mine is required to include certain mine safety results

within its periodic reports filed with the Securities and Exchange Commission, or the SEC. As required by the

reporting requirements included in §1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K (17 CFR

229.104), we present the following items regarding certain mining safety and health matters, for the year ended

December 31, 2022, for each of our U.S. mine locations that are covered under the scope of the Dodd-Frank Act.

The table that follows reflects citations and orders issued to us by MSHA during the year ended December 31,

2022. The table only includes those U.S. mines that were issued orders or citations during this period, and

commensurate with SEC regulations, does not reflect orders or citations issued to independent contractors

working at our mines. The proposed assessments for the year ended December 31, 2022, were retrieved from

the MSHA Data Retrieval System, or MSHA DRS, as of January 3, 2023.

(A) (B) (C) (D) (E) (F) (G) #### MSHA Mine

#### ID No.

#### Mine Name (1)(2)(3)

#### Section

#### 104

#### S&S

#### Citations

#### Section

#### 104(b)

#### Orders

#### Section 104(d)

#### Citations and

#### Orders

#### Section 110(b)(2)

#### Violations

#### Section

#### 107(a)

#### Orders

#### Total Dollar Value of

#### MSHA Assessments

#### Proposed

#### ($ in thousands)

#### Total Number of

#### Mining Related

#### Fatalities
4404856

Buchanan Mine #1

—

—

—

—

$134.6

—

4609292

Buck Lilly Surface Mine

—

—

—

—

—

0.1 —

4602140

Saunders Prep Plant

—

—

—

11.8 —

4609217

Powellton #1 Mine

—

—

—

—

22.0 —

4609246

Kuhn Ridge

—

—

—

—

—

0.3 —

4609319

Lower War Eagle

—

—

—

—

71.5 —

4609563

Eagle No. 1 Mine

—

—

—

—

64.3 —

4609583

North Fork Winifrede Deep Mine

—

—

—

—

0.7 —

4609101

Toney Fork Surface Mine

—

—

—

—

3.3 —

4609514

Muddy Bridge

—

—

—

—

93.6 —

4604315

Elk Lick Tipple

—

—

—

—

—

0.7 —

4609560

North Fork Surface Mine

—

—

—

—

2.7 —

4609172

Mountaineer Pocahontas No.1

—

—

—

—

—

1.1 —

4609564

Elklick Surface Mine

—

—

—

4.4 —

#### Total:

#### 208

#### 3

#### —

#### $411.1

#### —
(1) The definition of "mine" under Section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting

coal, such as land, structures, facilities, equipment, machines, tools and coal preparation facilities. Also, there are instances where the mine name per the MSHA

system differs from the mine name utilized by us.

(2) Idle facilities are not included in the table above unless they received a citation, order or assessment by MSHA during the current quarterly reporting period or

are subject to pending legal actions.

(3) During the year ended December 31, 2022, none of the Company's mines have received written notice from MSHA of a pattern of violations or the potential to

have such a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the

cause and effect of coal or other mine health or safety standards under section 104(e) of the Mine Act.

References used in the table above are as follows:

A. The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other

mine safety or health hazard under section 104 of the Mine Act (30 U.S.C. 814) for which the operator received a citation from MSHA.

B. The total number of orders issued under section 104(b) of the Mine Act (30 U.S.C. 814(b)).

C. The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section 104(d)

of the Mine Act (30 U.S.C. 814(d)).

D. The total number of flagrant violations under section 110(b)(2) of the Mine Act.

E. The total number of imminent danger orders issued under section 107(a) of the Mine Act (30 U.S.C. 817(a)).

F. The total dollar value of proposed assessments from MSHA under the Mine Act (30 U.S.C. 801 et seq.).

G. The total number of mining-related fatalities.

The table below presents legal actions pending before the Federal Mine Safety and Health Review Commission, or FMSHRC, for each of the Company's U.S. mines as

of December 31, 2022, together with the number of legal actions initiated and the number of legal actions resolved during the year ended December 31, 2022.

#### Legal Actions Pending as of Last Day of the Year (December 31, 2022) (1)

#### MSHA

#### Mine ID

#### No.

#### Mine Name

#### Contests of

#### Citations

#### and Orders

#### (Subpart B)

#### Contests of

#### Proposed

#### Penalties

#### (Subpart C)

#### Complaints for

#### Compensation

#### (Subpart D)

#### Complaints of

#### Discharge,

#### Discrimination

#### or Interference

#### (Subpart E)

#### Applications of

#### Temporary Relief

#### (Subpart F)

#### Appeals of Judges'

#### Decisions or

#### Orders

#### (Subpart H)

#### Legal Actions

#### Initiated

#### During the Year

#### Legal Actions

#### Resolved

#### During the

#### Year
4404856

Buchanan Mine #1

—

—

—

—

—

4609563

Eagle No. 1 Mine

—

—

—

—

4609514

Muddy Bridge

—

—

—

—

4609319

Lower War Eagle

—

—

—

—

—

4609217

Powellton #1 Mine

—

—

—

—

—

4609560

North Fork Surface Mine

—

—

—

—

—

—

4609564

Elklick Surface Mine

—

—

—

—

—

—

4602140

Saunders Prep Plant

—

—

—

—

—

#### Total:

#### —

#### 14

#### —

#### 2

#### 37

#### 31
(1) The legal actions pending shown in the table above have been categorized by type of proceeding with reference to the procedural rules established by the

FMSHRC under 29 CFR Part 2700. Reference to the applicable Subparts under this Rule are listed in the columns above.

(2) Secretary of Labor's appeals of Administrative Law Judge's orders denying motion for settlement approval in WEVA 2021-0294 and WEVA 2022-0403.

## Exhibit 96.2

# Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Buchanan Mine Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

February 2023

Prepared for:
Coronado Global Resources Inc.
100 Bill Baker Way
Beckley, West Virginia 25801

Prepared by:
MARSHALL MILLER & ASSOCIATES, INC.
582 Industrial Park Road
Bluefield, Virginia 24605
www.mma1.com

V062p210

the JORC Code and United States SEC Regulation S-IC as of December 31, 2022^{}[] Central Application for Civil Rights^{}[] ^{}[] Virginia, USA

### Statement of Use and Preparation

This Technical Report Summary (*TRS*) was prepared by **Marshall Miller & Associates, Inc. (MM&A)** for the sole use of **Coronado Global Resources Inc. (Coronado)** and its affiliated and subsidiary companies and advisors. Copies or references to information in this report may not be used without the written permission of Coronado.

This report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)* as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission (SEC)**. Subject to the comments below, this report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code)*.

The statement is based on information provided by Coronado and reviewed by *Qualified Persons (QPs)* who are full-time employees of MM&A.

As noted above, this report is a 'Public Report' for the purposes of the VALMIN Code. However, in accordance with paragraph 12.1 of the VALMIN Code, it is noted that this report is not a 'Valuation of Mineral Assets' and it also does not comply with the following requirements that apply to 'Technical Assessments' (as defined in the VALMIN Code):

This report does not include a determination of the status of tenure (as required by paragraph 7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by Coronado's legal advisors.

This report does not include separate commentary on the reasonableness and quality of the Resources and Reserves estimates and the basis on which they have been reported (as required by paragraph 7.3 of the VALMIN Code). MM&A did not consider that this was appropriate in circumstances where MM&A was engaged for the specific purpose of preparing those estimates. However, MM&A notes that, in accordance with its usual practice, a separate team of MM&A employees undertook a peer review of this report and confirmed that both the process followed by the authors of this report and the estimates prepared were reasonable and comply with the requirements of the JORC Code.

MARSHALL MILLER & ASSOCIATES, INC.

2

the JORC Code and United States SEC Regulation S-80 as of December 31, 2022  
Central Application for Coal Banks  
Virginia, USA

The information in this TRS related to coal resources and reserves is based on, and fairly represents, information compiled by the QPs. At the time of reporting, MM&A's QPs have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity they are undertaking to qualify as a QP as defined by Regulation S-K 1300 and the JORC Code. Each QP consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

**Marshall Miller & Associates, Inc./MM&A** hereby consents to the use of the information contained in this report dated December 31, 2022, relating to estimates of coal resources and coal reserves controlled by Coronado.

Qualified Person: /s/ Marshall Miller & Associates, Inc.

Date: February 15, 2023

MARSHA MILLER & ASSOCIATES, INC.

3

g0962p2j0

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

# Table of Contents

| 1 | Executive Summary | 1 |
| --- | --- | --- |
| 1.1 | Property Description | 1 |
| 1.2 | Ownership | 2 |
| 1.3 | Geology | 2 |
| 1.4 | Exploration Status | 2 |
| 1.5 | Operations and Development | 3 |
| 1.6 | Mineral Resource | 3 |
| 1.7 | Mineral Reserve | 3 |
| 1.8 | Capital Summary | 4 |
| 1.9 | Operating Costs | 5 |
| 1.10 | Economic Evaluation | 6 |
| 1.10.1 | Discounted Cash Flow Analysis | 8 |
| 1.10.2 | Sensitivity Analysis | 9 |
| 1.11 | Permitting | 9 |
| 1.12 | Conclusion and Recommendations | 9 |
| 2 | Introduction | 10 |
| 2.1 | Registrant and Terms of Reference | 10 |
| 2.2 | Information Sources | 10 |
| 2.3 | Personal Inspections | 11 |
| 3 | Property Description | 12 |
| 3.1 | Location | 12 |
| 3.2 | Titles, Claims or Leases | 12 |
| 3.3 | Mineral Rights | 12 |
| 3.4 | Encumbrances | 13 |
| 3.5 | Other Risks | 13 |
| 4 | Accessibility, Climate, Local Resources, Infrastructure and Physiography | 13 |
| 4.1 | Topography, Elevation, and Vegetation | 13 |
| 4.2 | Access and Transport | 13 |
| 4.3 | Proximity to Population Centers | 14 |
| 4.4 | Climate and Length of Operating Season | 14 |
| 4.5 | Infrastructure | 14 |
| 5 | History | 15 |
| 5.1 | Previous Operation | 15 |
| 5.2 | Previous Exploration | 15 |
| 6 | Geological Setting, Mineralization and Deposit | 15 |
| 6.1 | Regional, Local and Property Geology | 15 |
| 6.2 | Mineralization | 16 |

MARSHAL MILLER ASSOCIATES, INC.

4

g0962p2j0

the JORC Code and United States SEC Regulation 8(8) as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

| 6.3 | Deposits | 16 |
| --- | --- | --- |
| 7 | Exploration | 17 |
| 7.1 | Nature and Extent of Exploration | 17 |
| 7.2 | Non-Drilling Procedures and Parameters | 19 |
| 7.3 | Drilling Procedures | 20 |
| 7.4 | Hydrology | 20 |
| 7.5 | Geotechnical Data | 20 |
| 8 | Sample Preparation, Analyses and Security | 21 |
| 8.1 | Prior to Sending to the Lab | 21 |
| 8.2 | Lab Procedures | 21 |
| 9 | Data Verification | 22 |
| 9.1 | Procedures of Qualified Person | 22 |
| 9.2 | Limitations | 22 |
| 9.3 | Opinion of Qualified Person | 22 |
| 10 | Mineral Processing and Metallurgical Testing | 22 |
| 10.1 | Testing Procedures | 22 |
| 10.2 | Relationship of Tests to the Whole | 23 |
| 10.3 | Lab Information | 23 |
| 10.4 | Relevant Results | 24 |
| 11 | Mineral Resource Estimates | 24 |
| 11.1 | Assumptions, Parameters and Methodology | 24 |
| 11.1.1 | Geostatistical Analysis for Classification | 26 |
| 11.2 | Qualified Person's Estimates | 28 |
| 11.3 | Resources Exclusive of Reserves | 29 |
| 11.3.1 | Initial Economic Assessment | 29 |
| 11.4 | Qualified Person's Opinion | 30 |
| 12 | Mineral Reserve Estimates | 30 |
| 12.1 | Assumptions, Parameters and Methodology | 30 |
| 12.2 | Qualified Person's Estimates | 32 |
| 12.3 | Qualified Person's Opinion | 33 |
| 13 | Mining Methods | 33 |
| 13.1 | Geotech and Hydrology | 33 |
| 13.2 | Production Rates | 34 |
| 13.3 | Mining Related Requirements | 35 |
| 13.4 | Required Equipment and Personnel | 35 |
| 14 | Processing and Recovery Methods | 36 |
| 14.1 | Description or Flowsheet | 36 |
| 14.2 | Requirements for Energy, Water, Material and Personnel | 36 |
| 15 | Infrastructure | 36 |

MARSHALL MILLER ASSOCIATES, INC.

5

g0962p201

the JORC Code and United States SEC Regulation 630 as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

| 16 | Market Studies | 37 |
| --- | --- | --- |
| 16.1 | Market Description | 37 |
| 16.2 | Price Forecasts | 38 |
| 16.3 | Contract Requirements | 38 |
| 17 | Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals | 39 |
| 17.1 | Results of Studies | 39 |
| 17.2 | Requirements and Plans for Waste Disposal | 39 |
| 17.3 | Permit Requirements and Status | 39 |
| 17.4 | Local Plans, Negotiations or Agreements | 40 |
| 17.5 | Mine Closure Plans | 40 |
| 17.6 | Qualified Person's Opinion | 41 |
| 18 | Capital and Operating Costs | 41 |
| 18.1 | Capital Cost Estimate | 41 |
| 18.2 | Operating Cost Estimate | 42 |
| 19 | Economic Analysis | 43 |
| 19.1 | Assumptions, Parameters and Methods | 43 |
| 19.2 | Results | 45 |
| 19.3 | Sensitivity | 47 |
| 20 | Adjacent Properties | 48 |
| 20.1 | Information Used | 48 |
| 21 | Other Relevant Data and Information | 48 |
| 22 | Interpretation and Conclusions | 49 |
| 22.1 | Conclusion | 49 |
| 22.2 | Risk Factors | 49 |
| 22.2.1 | Governing Assumptions | 50 |
| 22.2.2 | Limitations | 50 |
| 22.2.3 | Methodology | 50 |
| 22.2.4 | Development of the Risk Matrix | 51 |
| 22.2.5 | Categorization of Risk Levels and Color Code Convention | 53 |
| 22.2.6 | Description of the Coal Property | 53 |
| 22.2.7 | Summary of Residual Risk Ratings | 53 |
| 22.2.8 | Risk Factors | 54 |
| 23 | Recommendations | 60 |
| 24 | References | 60 |
| 25 | Reliance on Information Provided by the Registrant | 60 |

**FIGURE 1-1 REPORT**

Figure 1-1: Coronado Buchanan Mine Complex Property Location Map 2

MARSHAL MILLER ASSOCIATES, INC.

6

V0962p2/0

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

Figure 1-2: CAPEX...5
Figure 1-3: OPEX...6
Figure 1-4: Sensitivity of NPV...9
Figure 6-1: Buchanan Stratigraphic Column...16
Figure 7-1: Buchanan Cross-Section, A1 - A2...18
Figure 7-2: Buchanan Cross-Section, B1 - B2...19
Figure 11-1: Histogram of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in the
Buchanan Mine Complex...26
Figure 11-2: Scatter plot of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in
the Buchanan Mine Complex...26
Figure 11-3: Variogram of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in the
Buchanan Mine Complex...27
Figure 11-4: Result of DHSA for the Pocahontas No. 3 Seam Present in the Buchanan Mine
Complex...28
Figure 11-5: Results of Initial Economic Assessment...30
Figure 15-1: Buchanan Surface Facilities...37
Figure 18-1: CAPEX...41
Figure 19-1: Cash Costs per Tonne...45
Figure 19-2: Sensitivity of NPV...48

# TABLE (EN) REPORT

Table 1-1: Coal Resources Summary as of December 31, 2022...3
Table 1-2: Coal Summary (ROM (Moist)) as of December 31, 2022...4
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022...4
Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA...7
Table 1-5: Project Cash Flow Summary (000)...7
Table 2-1: Information Provided to MM&A by Coronado...11
Table 11-1: General Reserve and Resource Criteria...25
Table 11-2: DHSA Results Summary for Radius from a Central Point...28
Table 11-3: Coal Resources Summary as of December 31, 2022...29
Table 11-4: Results of Initial Economic Assessment...30
Table 12-1: Coal ROM (Moist) Summary as of December 31, 2022...32
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022...33
Table 13-1: Summary of Production by Year (Tonnes x 1,000)...35
Table 16-1: Quality Specifications by Product...38
Table 17-1: Buchanan Mining Permit...40
Table 18-1: Estimated Coal Production Taxes and Sales Costs...43
Table 18-2: Buchanan Mine Operating Costs...43
Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA...45
Table 19-2: Summary of Buchanan Key Financial Performance Metrics (2023-2030)...46
Table 19-3: Project Cash Flow Summary (000)...47
Table 22-1: Probability Level Table...51
Table 22-2: Consequence Level Table...52
Table 22-3: Risk Matrix...53
Table 22-4: Risk Assessment Matrix...54
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)...55
Table 22-6: Environmental (Risks 3 and 4)...56
Table 22-7: Regulatory Requirements (Risk 5)...56

MARSHAL MILLER ASSOCIATES, INC.

7

W0962p210

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

Table 22-8: Market and Transportation (Risk 6)...57
Table 22-9: Market and Transportation (Risk 7)...57
Table 22-10: Methane Management (Risk 8)...58
Table 22-11: Mine Fires (Risk 9)...58
Table 22-12: Availability of Supplies and Equipment (Risk 10)...59
Table 22-13: Labor - Work Stoppage (Risk 11)...59
Table 22-14: Labor - Retirement (Risk 12)...60
Table 25-1: Information from Registrant Relied Upon by MM&A...60

Appendices

A...MM&A Qualifications
B...Map
C...Glossary of Terms
D...Initial Economic Assessment for Resources Exclusive of Reserves
E...JORC Table 1

MARSHAL MILLER & ASSOCIATES, INC.

8

P0962p20

the JORC Code and United States SEC Regulation (S-8) as of December 31, 2022^{}[] Central Application for^{}[] ^{}[] Legal Use^{}[] ^{}[] in^{}[] ^{}[] Virginia, USA

# 1 Executive Summary

## 1.1 Property Description

**Coronado Global Resources Inc. (Coronado)** authorized **Marshall Miller & Associates, Inc. (MM&A)** to prepare this Technical Report Summary (*TRS*) of its controlled coal resources and reserves located at the **Buchanan Division (Buchanan)** in Buchanan and Tazewell Counties, Virginia (the *Property*). An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. This report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)* as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission (SEC)**. This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code)*.

Coal resources and coal reserves are herein reported in imperial units of measurement and are rounded to millions of metric tonnes ( *Mt* ).

The Buchanan No. 1 Mine Complex is located in Buchanan County in southwest Virginia. The Property is 24 kilometers northwest of the town of Richlands, Virginia and 65.9 kilometers southeast of Pikeville, Kentucky. The nearest major population centers are Lexington, Kentucky (290 kilometers northwest) and Roanoke, Virginia (153 kilometers northeast) (see *Figure 1-1*). The Property is composed of approximately 33,577 total hectares, of which 25,852 are leased or subleased from private landholders under approximately 150 individual coal lease tracts, and 7,725 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, all the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2044.

---

MARSHALL MILLER & ASSOCIATES, INC.

1

![WCB2020 logo]() WCB2020

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
Central Appalachian Coal Basin  
Virginia, USA

**Figure 1-1: Coronado Buchanan Mine Complex Property Location Map**

![WCB2020 logo]() WCB2020

## 1.2 Ownership

The Property was formerly controlled by **Consolidation Coal Company (CONSOL)**. Mine development was started by CONSOL in 1983 and longwall production began in 1987. Coronado acquired the Buchanan Mine from CONSOL in March 2016.

## 1.3 Geology

Operations at the Buchanan Mine Complex extract the Pocahontas No. 3 coal bed by longwall mining methods. Strata of economic interest for this TRS are of the Pennsylvanian-age Pocahontas Formation and the subject Pocahontas No. 3 seam is the principal coal seam of that formation. Due to the high value of this low-volatile coking coal, it has been extensively mined in the region. The seam is situated below drainage throughout the Property and is accessed by existing mine shafts.

## 1.4 Exploration Status

The Property has been extensively explored, largely by drilling using continuous coring methods, rotary drilling but also by obtaining coal measurements at mine exposures, ongoing drilling associated with degas activities, and by downhole geophysical methods. The majority of the data was acquired or generated by previous owners of the Property. These sources comprise the primary data used in the evaluation of the coal resources and coal reserves on the Property.

MARSHAL MILLS & ASSOCIATES, INC.

2

![WBC logo]()

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

MM&A examined the data available for the evaluation and incorporated all pertinent information into this TRS. Where data appeared to be anomalous or not representative, that data was excluded from the digital databases and subsequent processing by MM&A.

Ongoing exploration has been carried out by Coronado since acquiring the Buchanan Mine. The exploration data acquired by Coronado has been consistent with past drilling activities.

## 1.5 Operations and Development

Due to its coal reserve and seam characteristics, the Buchanan No. 1 Mine operates using the longwall method. The model was therefore generated with longwall-mining constraints in mind for Buchanan's underground resources. The mine produces coal that is suitable for the low-volatile metallurgical coal markets.

The Buchanan No. 1 Mine in Buchanan County, Virginia, is the only active longwall mine currently being operated by Coronado.

Coronado currently operates a coal preparation plant at Buchanan. The Buchanan Plant operates at a feed rate of approximately 1,270 raw tonnes per hour ( *tph* ). Processes are typical of those used in the coal industry and are in use at adjacent coal processing plants.

## 1.6 Mineral Resource

Mineral resources, representing in-situ coal from a portion of which reserves are derived, are presented below. A coal resource estimate, summarized in *Table 1-1*, was prepared as of December 31, 2022, for property controlled by Coronado.

**Table 1-1: Coal Resources Summary as of December 31, 2022**

| Area | Coal Resource (Dry Tonnes, In Situ, Mt) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | Ash% | Salt% | Vol% |
| Inclusive of Reserves | 158.0 | 10.2 | 0.0 | 168.2 |  |  |  |
| Exclusive of Reserves | 33.0 | 5.9 | 0.0 | 39.8 | 25 | 0.7 | 16 |
| Total 12/31/2022 | 191.9 | 16.1 | 0.0 | 200.0 |  |  |  |

Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.

Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.

Note 3: The Property contains 39.8 Mt of dry, in-place measured and indicated coal resources exclusive of reserves as of December 31, 2022.

## 1.7 Mineral Reserve

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tons presented in *Table 1-1*, and not in addition to coal resources. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The Resource estimate has been used as the basis for this Reserve calculation, which utilizes a reasonable preliminary feasibility study, a life-of-mine (*LOM*) mine plan and practical recovery factors. Production modeling was completed with an effective start date of October 1, 2022. Additions and depletion have been used to bring the Reserve estimate forward to December 31, 2022.

MARSHAL MILLS & ASSOCIATES, INC.

3

![WORC logo]()

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

Factors that would typically preclude conversion of a coal resource to coal reserve, include the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of access; geological encumbrances associated with overlying and underlying strata; seam thinning; structural complication; and insufficient exploration have all been considered. Reserve consideration excludes those portions of the resource area which exhibit the aforementioned-geological and operational encumbrances.

Coal reserves are presented on a run-of-mine ( *ROM* ) basis in *Table 1-2*. Proven and probable coal reserves were derived from the defined in-situ coal resource considering relevant processing, economic (including technical estimates of capital, revenue, and cost), marketing, legal, environmental, socioeconomic, and regulatory factors. The proven and probable coal reserves on the Property are summarized below in *Table 1-3*.

**Table 1-2: Coal Summary (ROM (Moist)) as of December 31, 2022**

| Area / Mine | Demonstrated Coal Reserves (Mt. Moist/ROM) |  |  |  |  |  |  |  | Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  |  |  |  |
|  | Proven | Probable | Total | Surface | UG | Owned | Leased | Subleased | Air | Soil | Vol |
| Buchanan | 144.9 | 8.7 | 153.6 | 0.0 | 153.6 | 21.7 | 127.9 | 4.0 | 42 | 0.7 | 12 |

**Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022**

| Area / Mine | Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipper, US) |  |  |  |  |  |  |  | Quality (Dry Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  |  |  |  |
|  | Proven | Probable | Total | Surface | UG | Owned | Leased | Subleased | Air% | Soil% | Vol% |
| Buchanan Mine Complex | 87.5 | 5.4 | 92.9 | 0.0 | 92.9 | 14.4 | 75.9 | 2.6 | 6 | 0.7 | 19 |

Note: Marketable reserve zones are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled at 6-percent. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contact specifications and can exceed 8-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting.

In summary, Coronado controls a total of 92.9 Mt (moist basis) of marketable coal reserves, at Buchanan, as of December 31, 2022. Of that total, 94 percent are proven, and 6 percent are probable. There are 14.4 Mt of owned coal reserves and 75.9 Mt of leased coal reserves and 2.6 Mt of subleased reserves. All the Buchanan reserves are considered suitable for the metallurgical coal market, and all of the Buchanan reserves are assigned.

## 1.8 Capital Summary

Coronado provided MM&A with an inventory of operating equipment available at Buchanan. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment. A summary of the estimated capital for the Property is provided in *Figure 1-2* below.

MARSHAL MILLS ASSOCIATES

4

![PSTC logo]() PSTC  
PSTC

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
Central Appalachian Coal Basin  
Virginia, USA

Figure 1-2: CAPEX

![PSTC logo]() PSTC  
PSTC

## 1.9 Operating Costs

Coronado provided historical and preliminary 5-year projections of operating costs for Buchanan for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed personnel schedules for the mine and support facilities. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe-benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare, and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof-control costs and other mine-supply costs at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

Operating costs factors were also developed for the coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands, and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees.

A summary of the projected operating costs for the Property is provided in *Figure 1-3*.

MARSHALMILLE & ASSOCIATES, INC.

5

![P&O logo]() 962p210

the JORC Code and United States SEC Regulation 60(1) as of December 31, 2022  
Central Appalachian Coal Basin  
Virginia, USA

The pre-feasibility

![P&O logo]() 962p140

## 1.10 Economic Evaluation

The pre-feasibility financial model prepared for this TRS was developed to test the economic viability of the coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations contemplated for the Coronado properties, but are intended to establish the economic viability of the estimated coal reserves. Cash flows are simulated on an annual basis in nominal dollars assuming a 2% inflation rate based on projected production from the coal reserves. The discounted cash flow analysis presented herein is based on an effective date of January 1, 2023.

On an un-levered basis, the net present value ( *NPV* ) of the project cash flow after taxes represents the Enterprise Value of the project. The project cash flow, excluding debt service, is calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the federal black lung tax, federal and state reclamation taxes, property taxes, coal production royalties, and income taxes.

*Table 1-4* shows LOM tonnage, profit & loss (P&L), and earnings before income tax, depreciation & amortization (EBITDA) for Buchanan.

MARSHAL MILLER ASSOCIATES, INC.

6

![WBC logo]()

the JORC Code and United States SEC Regulation B&R as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA**

|  | LOM Tonnes | LOM Per-Tax P&L | P&L Per-Tonne | LOM EBITDA | EBITDA Per-Tonne |
| --- | --- | --- | --- | --- | --- |
| Buchanan | 92,923 | $4,280,077 | $46.06 | $6,174,578 | $66.45 |

As shown in *Table 1-4*, the Buchanan Mine shows positive EBITDA over the LOM. Overall, the Coronado consolidated operations show positive LOM P&L and LOM EBITDA of $4.3 billion and $6.2 billion, respectively.

Coronado's consolidated Buchanan cash flow summary in nominal dollars assuming a 2% interest rate, excluding debt service, is shown in *Table 1-5* below.

**Table 1-5: Project Cash Flow Summary (000)**

|  | Total | YE12/31 2023 | YE12/31 2024 | YE12/31 2025 | YE12/31 2026 | YE12/31 2027 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 92,924 | 3,786 | 3,811 | 4,363 | 4,446 | 5,112 |
| Total Revenue | $14,194,747 | $675,923 | $544,435 | $574,963 | $592,283 | $692,273 |
| EBITDA | $6,174,578 | $295,749 | $209,789 | $206,065 | $217,757 | $294,147 |
| Net Income | $3,368,328 | $179,131 | $103,854 | $91,899 | $90,456 | $138,196 |
| Net Cash Provided by Operating Activities | $5,181,846 | $188,692 | $200,765 | $186,416 | $195,463 | $245,493 |
| Purchases of Property, Plant, and Equipment | $(1,448,505) | $(135,766) | $(130,803) | $(111,896) | $(122,768) | $(101,557) |
| Net Cash Flow | $3,733,342 | $52,926 | $69,962 | $74,520 | $72,695 | $143,936 |
|  | YE12/31 2026 | YE12/31 2026 | YE12/31 2030 | YE12/31 2031 | YE12/31 2032 | YE12/31 2033 |
| Production & Sales tonnes | 6,242 | 6,462 | 6,200 | 5,444 | 6,226 | 4,814 |
| Total Revenue | $862,187 | $910,476 | $890,951 | $798,054 | $930,819 | $734,119 |
| EBITDA | $431,599 | $469,093 | $445,727 | $357,721 | $458,785 | $288,024 |
| Net Income | $240,334 | $262,860 | $254,666 | $197,893 | $280,873 | $159,996 |
| Net Cash Provided by Operating Activities | $339,674 | $386,828 | $379,000 | $320,798 | $362,834 | $277,786 |
| Purchases of Property, Plant, and Equipment | $(70,382) | $(50,228) | $(71,184) | $(59,572) | $(49,573) | $(65,133) |
| Net Cash Flow | $269,292 | $336,600 | $307,815 | $261,226 | $313,262 | $212,653 |

MARSHAL MILLS & ASSOCIATES, INC.

7

![JOBE logo]()

the JOBE Code and United States SEC Regulation B(8) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

|  | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 | YE12/31 2038 | YE12/31 2039 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 6,474 | 6,433 | 5,249 | 3,447 | 3,009 | 2,914 |
| Total Revenue | $1,007,101 | $1,019,070 | $849,433 | $569,043 | $506,626 | $500,552 |
| EBITDA | $501,730 | $526,779 | $424,763 | $211,060 | $168,369 | $216,035 |
| Net Income | $326,060 | $344,381 | $266,105 | $105,424 | $79,886 | $116,181 |
| Net Cash Provided by Operating Activities | $372,442 | $424,330 | $368,367 | $223,842 | $158,704 | $177,921 |
| Purchases of Property, Plant, and Equipment | $(54,807) | $(69,272) | $(64,919) | $(77,383) | $(43,070) | $(35,719) |
| Net Cash Flow | $318,435 | $355,058 | $303,449 | $146,459 | $115,634 | $142,202 |
|  | YE12/31 2040 | YE12/31 2041 | YE12/31 2042 | YE12/31 2043 | YE12/31 2044 | YE12/31 2045 |
| Production & Sales tonnes | 2,093 | 2,254 | 1,703 | 1,714 | 737 | - |
| Total Revenue | $366,649 | $402,822 | $309,918 | $317,808 | $139,240 | $- |
| EBITDA | $108,191 | $153,415 | $80,892 | $106,596 | $2,291 | $- |
| Net Income | $34,854 | $71,326 | $19,002 | $46,332 | $(34,676) | $(3,773) |
| Net Cash Provided by Operating Activities | $119,167 | $128,269 | $89,120 | $92,258 | $24,650 | $(47,861) |
| Purchases of Property, Plant, and Equipment | $(50,131) | $(46,604) | $(24,930) | $(13,606) | $- | $- |
| Net Cash Flow | $69,036 | $81,665 | $64,190 | $78,652 | $24,650 | $(47,861) |
|  | YE12/31 2046 | YE12/31 2047 | YE12/31 2048 | YE12/31 2049 | YE12/31 2050 | YE12/31 2051 |
| Production & Sales tonnes | - | - | - | - | - | - |
| Total Revenue | $- | $- | $- | $- | $- | $- |
| EBITDA | $- | $- | $- | $- | $- | $- |
| Net Income | $(1,534) | $(785) | $(403) | $(209) | $(0) | $(0) |
| Net Cash Provided by Operating Activities | $(16,273) | $(8,299) | $(4,232) | $(4,317) | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $(16,273) | $(8,299) | $(4,232) | $(4,317) | $- | $- |

Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from a peak of 6.5 million tonnes in 2034 to a low of 0.7 million tonnes in 2044. Projected consolidated revenue ranges from $317.8 million to $1.019 billion at a steady state. Revenue totals $14.2 billion for the project's life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending. Consolidated cash flow from operations peaks at $424.3 million in 2035 and totals $5.2 billion over the project's life. Capital expenditures total $602.8 million through 2027 and $1.4 billion over the project's life.

#### 1.10.1 Discounted Cash Flow Analysis

Cash flow after tax, but before debt service, generated over the life of the project was discounted to NPV at a 10.0% discount rate, which represents Coronado's estimate of the nominal dollar, risk adjusted weighted average cost of capital (WACC) for likely market participants if the subject reserves were offered for sale. On an un-levered basis, the NPV of the project cash flows represents the Enterprise Value of the project and amounts to $1.562 billion. The pre-feasibility financial model prepared for the TRS was developed to test the economic viability of each coal resource area. The NPV estimate was made for the purpose of confirming the economics for classification of coal reserves and not for purposes of valuing Coronado or its Buchanan assets. Mine plans were not optimized, and actual results of the operations may be different, but in all cases, the mine production plan assumes the properties are under competent management.

MARSHAL MILLER ASSOCIATES, INC.

8

![WPC logo]() WPC 2020

the JORC Code and United States SEC Regulation 5(4) as of December 31, 2022  
Central Application for Coal Basin  
Virginia, USA

### 1.10.2 Sensitivity Analysis

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

**Figure 1-4: Sensitivity of NPV**

![img-0.jpeg](img-0.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

### 1.11 Permitting

Coronado has obtained all mining and discharge permits to operate its mine and processing, loadout, or related support facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Buchanan, along with all coal producers, is subject to a level of uncertainty regarding future clean water permits due to **United States Environmental Protection Agency (EPA)** and **United States Fish and Wildlife (USFW)** involvement with state programs.

### 1.12 Conclusion and Recommendations

Sufficient data have been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data are of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating and capital cost estimates are sufficient to support the classification of coal reserves provided herein.

MARSHAL MILLER ASSOCIATES, INC.

9

P0962p20

the JORC Code and United States SEC Regulation S-K as of December 31, 2022^{}[] Central Application for Coal and Gas^{}[] ^{}[] Virginia, USA

This geologic evaluation conducted in conjunction with the preliminary feasibility study concludes that the 92.9 Mt of marketable underground coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

## 2 Introduction

### 2.1 Registrant and Terms of Reference

This report was prepared for the sole use of **Coronado Global Resources Inc. (Coronado)** and its affiliated and subsidiary companies and advisors. An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. This report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)* as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission SEC**. This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code)*.

This report provides a statement of coal resources and coal reserves for Coronado at Buchanan. Exploration results and Resource calculations were used as the basis for the mine planning and the preliminary feasibility study completed to determine the extent and viability of the reserve.

Coal resources and coal reserves are herein reported in metric units of measurement and are rounded to millions of metric tonnes (Mt).

### 2.2 Information Sources

This TRS is based on information provided by Coronado and reviewed by MM&A. Sources of data and information are listed below in *Table 2-1*:

MARSHALL MILLER ASSOCIATES, INC.

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P0962p200

the JORC Code and United States SEC Regulation S-K as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

**Table 2-1: Information Provided to MM&A by Coronado**

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Geological | Geologic data including digital databases and original source data including geologist logs, driller's logs, geophysical logs | 9.1 |
| Coal Quality | Database of coal quality information supplemented with original source laboratory sheets where available | 10.1 |
| Mining | Historical productivities and manpower from operating and future Coronado mines | 13.2, 13.4 |
| Coal Preparation | Flow sheet and other information representing current and future methods of coal processing | 14.1 |
| Waste Disposal | Engineering data and estimates representing remaining capacities for coarse and fine coal waste disposal | 17.2 |
| Costs | Historical and budgetary operating cost information used to derive cost drivers for reserve financial modeling | 18.2 |
| Economic | WACC and inflation rate used in discounted cash flow analysis | 19.1, 19.2, 19.3 |

Note: While the sources of data listed in Table 2-1 are not exhaustive, they represent a significant portion of information which supports this TRS. MM&A reviewed the provided data and found it to be reasonable prior to incorporating it into the TRS. The TRS contains "forward-looking information" including forecasts of productivity and annual coal production, operating and capital cost estimates, cash sales price forecasts, the assumption that Coronado will continue to acquire necessary permits, and other assumptions. The TRS statements and conclusions are not a guarantee of future performance and undue reliance should not be placed on them. The ability of Coronado to recover the estimated coal reserves is dependent on multiple factors beyond the control of MM&A including, but not limited to geologic factors, mining conditions, regulatory approvals, and changes in regulations. In all cases, the plans assume the Property is under competent management.

Coronado engaged MM&A to conduct a coal resource and reserve evaluation of the Coronado coal properties as of September 30, 2022. Additions and depletion have been used to bring the Resource and Reserve estimates forward to December 31, 2022, the effective date of this TRS for Buchanan. For the evaluation, the following tasks were to be completed:

> Conduct site visits of the mines and mine infrastructure facilities;
> Process the information supporting the estimation of coal resources and reserves into geological models;
> Develop life-of-reserve mine (LOM) plans and financial models;
> Hold discussions with Coronado company management; and
> Prepare and issue a TRS providing a statement of coal resources and reserves which would include:
- A description of the mine and facilities.
- A description of the evaluation process.
- An estimation of coal resources and reserves with compliance elements as stated under the JORC Code and the SEC Regulation S-K 1300.

### 2.3 Personal Inspections

MM&A is very familiar with Buchanan, having provided a variety of services in recent years, and the QPs involved in this TRS have conducted multiple site visits.

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### 3 Property Description

### 3.1 Location

The Buchanan Mine Complex is located in Buchanan County in southwestern Virginia (see Figure 1-1) approximately 16 kilometers southeast of Grundy, which is the county seat of Buchanan County. Surface facilities for the shaft mine are located along Garden Creek and a Norfolk Southern (NS) rail line about 6.4 kilometers south-southeast of Oakwood, Virginia.

The Property is located on the following United States Geological Survey (USGS) Quadrangles: Prater, Vansant, Keen Mountain, and Jewell Ridge. Current mining projections fall within the Keen Mountain and Jewell Ridge quadrangles. The coordinate system and datum used for the model of Buchanan No. 1 and the subsequent maps were produced in the Virginia State Plane South system, NAD 27.

### 3.2 Titles, Claims or Leases

The Buchanan coal reserves are located in Buchanan and Tazewell Counties, Virginia. The Property is composed of approximately 33,577 total hectares, of which 25,852 are leased or subleased from private landholders under approximately 150 individual coal lease tracts, and 7,725 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, all the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2044. MM&A has not carried out a separate title verification for the coal property and has not verified leases, deeds, surveys, or other property control instruments pertinent to the subject resources. Tenure was separately reviewed by Coronado's legal advisors. Coronado has represented to MM&A that it controls the mining rights to the reserves as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the Property is developed under responsible and experienced management.

### 3.3 Mineral Rights

Coronado supplied property control maps to MM&A related to properties for which mineral and/or surface property are controlled by Coronado. While MM&A accepted these representations as being true and accurate, MM&A has no knowledge of past property boundary disputes or other concerns, through past knowledge of the Property, that would signal concern over future mining operations or development potential.

Property control in Appalachia can be intricate. Coal mining properties are typically composed of numerous property tracts which are owned and/or leased from both land-holding companies and private individuals or companies. It is common to encounter severed ownership, with different entities or individuals controlling the surface and mineral rights. Mineral control in the region is typically characterized by leases or ownership of larger tracts of land, with surface control generally comprised of smaller tracts, particularly in developed areas.

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Legal mining rights may reflect a combination of fee or mineral ownership and fee or mineral leases of coal lands through various surface and mineral lease agreements. There is also a relatively small amount of area where the coal is partially owned and/or partially leased on a limited number of individual tracts.

Control of the surface property is necessary to conduct surface mining but is not necessary to conduct underground mining. Given that the Buchanan Mine has been active dating back to the 1980s, Coronado, and its predecessors, have a successful history of obtaining any necessary rights and the associated permits to mine.

### 3.4 Encumbrances

No Title Encumbrances are known. By assignment, MM&A did not complete an independent query related to Title Encumbrances.

### 3.5 Other Risks

There is always risk involved in property control. Coronado and its predecessor, CONSOL, have both had their legal teams examine the deeds and title control in order to minimize the risk. Historically, property control has not posed any challenges related to Buchanan's operations.

## 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

### 4.1 Topography, Elevation, and Vegetation

The topography of the area surrounding the Buchanan Mine Complex is typical of the Central Appalachian Plateau being rugged and deeply dissected by v-shaped river valleys flanked by steep-sided upland regions. Surface elevations near the mine complex range from approximately 823 meters above sea level in upland regions to approximately 579 meters at stream level. The Property is moderately vegetated, with a mixture of hardwood and conifer forest in the temperate broadleaf category. The Property is not situated near any major urban centers, and the surrounding area is considered rural.

### 4.2 Access and Transport

General access to the Buchanan No. 1 Mine property is via a well-developed network of primary, secondary, and unimproved roads. Highway 460 is the primary highway connecting Pike County in Eastern Kentucky to Buchanan and Tazewell Counties in Southwestern Virginia. Numerous secondary and unimproved roads provide direct access to the Property, some being state- and town-maintained. These roads typically stay open throughout the year. A **Norfolk Southern (NS)** rail line that is located approximately 6.44 kilometers south-southeast of Oakwood, Virginia, serves as the primary means of transport for produced coal. NS transports coal from the Buchanan Mine Complex either to domestic customers or to the Pier 6 export terminal at Norfolk, Virginia for overseas shipment. A small portion of production is transported via truck haul. An

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extensive network of service roads to gob gas and coalbed methane (CBM) production wells exist on the subject property.

#### 4.3 Proximity to Population Centers

The Buchanan No. 1 Mine property lies near the town of Grundy in Buchanan County, Virginia approximately 290 kilometers southeast of Lexington, Kentucky and 153 kilometers southwest of Roanoke, Virginia. As of 2021, Buchanan County had a population of approximately 19,800 residents.

#### 4.4 Climate and Length of Operating Season

The climate of the region is classified as humid sub-tropical with four distinct seasons: warm summers, cold winters, and moderate fall and spring seasons. Precipitation in the region is consistent throughout the year with the most rain falling in spring and the early months of summer. Average yearly rainfall is 112.62 centimeters. Summer months typically begin in late May and end in early September and range in average temperature from 49 to 84 degrees Fahrenheit (or 9.44 to 28.89 degrees Celsius). Winters typically begin in mid to late November and run until mid to late March with average temperatures ranging from 26 to 56 degrees Fahrenheit (or -3.33 to 13.33 degrees Celsius). Precipitation in the winter typically comes in the form of snowfall or as a wintery mix (sleet and snow) with severe snowfall events occurring occasionally. Seasonal variations in climate typically do not affect underground mining in Virginia. However, weather events could potentially negatively impact efficiency of surface and preparation plant operations on a very limited basis and lasting less than a few days.

#### 4.5 Infrastructure

The Buchanan No. 1 Mine Complex has sources of water, power, personnel, and supplies readily available for use. Personnel have historically been sourced from the surrounding communities in Buchanan, Tazewell, McDowell, and Pike counties, and have proven to be adequate in numbers to operate the mine. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners. Water is sourced locally from streams that flow over Coronado-owned property. The mine also utilizes ground water from an old abandoned mine. Electricity is sourced from **American Electric Power(AER)**. The service industry in the areas surrounding the mine complex has historically provided supplies, equipment repairs and fabrication, etc. The Coronado-owned Buchanan Preparation Plant services the mine via a skip hoist and conveyor belt system which transports extracted coal from an underground bunker to the surface facility. The NS rail line serves as the main means of transport from the mine.

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# 5 History

## 5.1 Previous Operation

The Property was formerly controlled by **Consolidation Coal Company (CONSOL)**. Mine development was started by CONSOL in 1983 and longwall production began in 1987. Coronado acquired the Buchanan Mine from CONSOL in March 2016.

The most productive mining of any period since 1987 has occurred since the acquisition of Buchanan Mine by Coronado. Production history has been approximately 3.5 Mt in 2016 (in only a 9-month period), 4.9 Mt in 2017, 4.7 Mt in 2018, 4.5 Mt in 2019, 3.4 Mt in 2020, 4.4 Mt in 2021, and 3.9 Mt in 2022.

## 5.2 Previous Exploration

The Property has been extensively explored by subsurface drilling efforts carried out by numerous entities, many of which were completed prior to acquisition by Coronado. The majority of the drilling was accomplished using vertical continuous (diamond) coring or air rotary methods.

Drill records indicate that independent contract drilling operators have typically been engaged to carry out drilling on the Property. Geophysical logging on those properties acquired from CONSOL was often performed by both CONSOL's in-house logging services and outside logging firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a significant number of the past exploration holes and degas wells, and currently logs most of the recently drilled holes.

# 6 Geological Setting, Mineralization and Deposit

## 6.1 Regional, Local and Property Geology

The Property lies in the Central Appalachian Coal basin in the Appalachian Plateau physiographic province.

The coal deposits in the eastern US are the oldest and most extensively developed coal deposits in the country. The coal deposits on the Property are Carboniferous in age, being of the Pennsylvanian system. Overall, these Carboniferous coals contain two-fifths of the US's bituminous coal deposits and extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known as the *Appalachian Basin*. The Appalachian Basin is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of varying economic significance.

Seams of economic significance typically range between 0.30 meters and 1.83 meters in thickness, with relatively little structural deformation. Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent.

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Seams of the Pocahontas Formation have historically been mined in the Buchanan No. 1 Mine with the Pocahontas No. 3 seam being the principal seam in the formation. Coal from the area has historically been sold in primarily metallurgical markets.

## 6.2 Mineralization

The generalized stratigraphic columnar section in *Figure 6-1* demonstrates the vertical relationship of the principal coal seams and rock formations on the Property.

**Figure 6-1: Buchanan Stratigraphic Column**

![img-0.jpeg](img-0.jpeg)

Note: not to scale

## 6.3 Deposits

The coal produced at Buchanan No. 1 is typically Low Volatile (<23% volatile matter) bituminous coal. Due to the value of the Pocahontas No. 3 ( *P3* ) as a low-volatile coking coal, it has been extensively mined in the region. The P3 seam consists of multiple benches that split and merge across the Property, including in descending stratigraphic order:

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> P31, uppermost bench, represented in purple on Figures 7-1 and 7-2
> P32, represented in orange on Figures 7-1 and 7-2
> P33, represented in blue on Figures 7-1 and 7-2
> 345, lowermost bench, represented in green on Figures 7-1 and 7-2

The mineable benches within the P3 horizon consist of three principal configurations determined by variable seam splitting characteristics present across the Property:

1. **Full-seam** all four benches (P31, P32, P33, and 345) are included within the mineable section. This configuration is present within the remaining North and Northwest resource areas, as well as the upper portion of the South resource area. Refer to Figures 7-1 and 7-2 below.
2. **P31, P32, and P33 Benches** the underlying 345 bench extends more than two feet below the P33 bench and is no longer included within the mineable section. This configuration is present on the South side of the Property. Refer to Figure 7-1 below.
3. **P32, P33, and 345 Benches** the overlying P31 bench extends more than two feet above the P32 bench and is no longer included within the mineable section. This configuration is present on the Northeast side of the Property. Refer to Figure 7-2 below.

The full-seam bench (P3) thickness ranges from 1.22 to 3.44 meters with an average of 1.86 meters, the P31, P32, P33 bench thickness ranges from 1.22 to 2.10 meters with an average of 1.43 meters, and the P32, P33, 345 bench thickness ranges from 1.22 to 2.71 meters with an average of 1.65 meters. The seam is situated below drainage throughout the Property and is accessible by existing mine shafts. Floor and roof strata vary throughout the mine area with floor strata including fireclay, claystone, shale, sandy shale, and sandstone, but primarily being fireclay and shale. Roof strata varies throughout as well but primarily is composed of sandstone, sandy shale, and shale.

## 7 Exploration

### 7.1 Nature and Extent of Exploration

Extensive exploration in the form of subsurface drill efforts has been carried out on the Property by numerous entities, most of which efforts were completed prior to the acquisition by Coronado. Diamond core, rotary, and CBM drilling are the three primary types of exploration on the Property. Data for correlation and mining conditions are derived from core descriptions and geophysical logging (e-logging). Coal quality analyses were also employed during the core exploration process. A total of 4,589 core, rotary, channel samples, mine measurements, and CBM wells with Pocahontas No. 3 seam information are found within the Coronado database, of which 1,784 data points are located within the current mine / resource area. The location of the drilling is shown on the maps included in Appendix B.

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The concentration of exploration varies slightly across the Property, with the proposed underground mining areas having the highest concentration of drill holes. Drilling on the Property is typically sufficient for delineation of potential underground mineable benches. Core logging is typically conducted by professional geologists in cases where roof and floor strata are of particular interest and in cases where greater resolution and geologic detail are needed.

However, much of the early drill hole data comes from simplified driller's logs, which often lack specific details regarding geotechnical conditions and specific geology, making correlations and floor and roof conditions difficult to determine. Geophysical logging techniques, by contrast, document some details useful for geologic interpretation and mining conditions, but do not provide detailed lithologic information. Given the variability of data-gathering methods, definitive mapping of future mining conditions may not be possible, but projections and assumptions can be made within a reasonable degree of certainty.

Once the integrity of the database was established, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal seam correlations. Cross-section illustrating the three mineable bench configurations are presented below in *Figure 7-1* and *Figure 7-2*.

**Figure 7-1: Buchanan Cross-Section, A1 - A2**

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![img-1.jpeg](img-1.jpeg)

Due to the extended history of exploration by various parties on the Property, a wide variety of survey techniques exist for documentation of data point locations. Many of the older exploration drill holes appear to have been located by survey and more recently completed drill holes are often located by high-resolution Global Positioning System (GPS) units. However, some holes appear to have been approximately located using USGS topography maps or other methods which are less accurate. Therefore, discretion had to be used regarding the accuracy for the location and ground surface elevation of some of these older drill holes. In instances where a drill hole location (or associated coal seam elevations) appeared to be inconsistent with the overall structural trend (or surface topography for surface-mineable areas), the data point was not honored for geological modeling. Others with apparently minor variances were adjusted and then used by MM&A.

Surveying of the underground and surface mined areas has been performed by the mine operators and/or their consulting surveyors. By assignment, MM&A did not verify the accuracy or completeness of supplied mine maps but accepted this information as being the work of responsible engineers and surveyors.

MM&A compiled comprehensive topographic map files by selecting the best available aerial mapping for each area and filling any gaps with digital USGS topographic mapping.

## 7.2 Non-Drilling Procedures and Parameters

To supplement the core hole quality database, samples have been collected from underground channel samples, mine stockpiles, and/or truck / train shipments.

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### 7.3 Drilling Procedures

Core drilling methods typically utilize NX-size (5.4 centimeters) or similar-sized core cylinders to recover core samples, which can be used to delineate geologic characteristics, and for coal quality testing and geotechnical logging. For the core holes, the geophysical logs are especially useful in verifying the core recovery of both the coal samples (for assurance that a sample is representative of the full seam) and of the roof and floor rock samples (for evaluating ground control characteristics of deep mineable coal seams).

In addition to core holes, rotary-drilled holes also exist on much of the Property. Data for the rotary drilled holes are mainly derived from downhole geophysical logs, which are used to interpret coal and rock thickness and depth since logging of the drill cuttings is not reliable. From time to time, geological staff at MM&A have been engaged by Coronado to interpret geophysical logs within specific areas of interest, the results of which have been added to the Coronado geologic database. Moreover, MM&A field geologists have conducted gas content (desorption) testing of core samples as part of an ongoing effort to assess levels of coalbed methane gas (CBM) present within the seam. Additionally, there is an ongoing active surface drilling program for degassing the mined seam ahead of mining. The degas holes are typically logged geophysically, and the resulting interpreted data are incorporated into the geological model. Exploratory drilling generally requires drilling to depths of over 305 meters to penetrate the target coal seam at Buchanan.

A wide variety of core logging techniques exist for the Property. For many of the core holes, the primary data source is a generalized lithology description by the driller, which may be supplemented by a more detailed core log completed by a geologist. These logs were provided to MM&A as a geological database. MM&A geologists were not involved in the production of original core logs but did perform a basic check of information within the provided database. Where geophysical logs for such holes are available, they were used by MM&A geologists to verify the coal thickness and core recovery of seams.

### 7.4 Hydrology

Buchanan is an active mine with no hydrologic concerns or material issues experienced in its history. Future mining is projected to occur in areas exhibiting similar hydrogeological conditions as past mining, including stream undermining, undermining of aquifers, and mining through hydraulically fractured (frac'd) coalbed methane wells. Based upon the successful history of the operation with regards to hydrogeological conditions, MM&A assumes that the operation will not be hindered by such issues in the future.

### 7.5 Geotechnical Data

Mining plans for potential underground mines were developed by Coronado and modified by MM&A to fit current property constraints. Pillar stability was tested by MM&A using the Analysis of Retreat Mining Pillar Stability (ARMPS) and Analysis of Longwall Pillar Stability (ALPS) programs that were developed by the National Institute for Occupational Safety and Health (NIOSH). MM&A reviewed the results from the ARMPS and ALPS analysis and considered them in the development of the LOM plan.

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# 8 Sample Preparation, Analyses and Security

## 8.1 Prior to Sending to the Lab

Most of the coal samples have been obtained from the Property by subsurface exploration using core drilling techniques. The protocol for preparing and testing the samples has varied over time and is not well documented for the older holes drilled on the Property. Typical core-drilling sampling methods for coal in the United States involves drilling through the seam, removing the core from the barrel, describing the lithology, wrapping the sample in a sealed plastic sleeve and placing it lengthwise into a covered core box, and carefully marking hole ID and depth intervals on each box and lid, allowing the core to be delivered to a laboratory in correct stratigraphic order, and with original moisture content. This process has been the norm for both historical and ongoing exploration activities at the Property.

This work is typically performed by the supervising driller, geologist, or company personnel. Samples are most often delivered to the company by the driller after each shift or acquired by company personnel or representatives. Most of the coal core samples were obtained by previous or current operators on the Property. MM&A did not participate in the collection, sampling, and analysis of the core samples. However, it is reasonable to assume, given the consistency of quality from previous operators, that these samples were generally collected and processed under industry best practices. This assumption is based on MM&A's familiarity with the operating companies and the companies used to perform the analyses.

## 8.2 Lab Procedures

Coal-quality testing has been performed over many years by operating companies using different laboratories and testing regimens. Some of the samples have raw analyses and washabilities on the full seam (with coal and rock parting layers co-mingled) and are mainly useful for characterizing the coal quality for projected production from underground mining. Other samples have coal and rock analyzed separately, the results of which can be utilized to forecast underground mining quality. Care has been taken to use only those analyses that are representative of the coal quality parameters for the appropriate mining type for each sample. Unlike many Appalachian properties, Buchanan has interest in a single deep-mineable seam, the Pocahontas No. 3 seam; therefore, the analyses have been conducted following a consistent protocol.

Standard procedure upon receipt of core samples by the testing laboratory is to: 1) log the depth and thickness of the sample; then 2) perform testing as specified by a representative of the operating company.

Samples are analyzed in accordance with procedures defined under ASTM International/STM standards including, but not limited to (not all analytical tests identified in the list below have been run on each sample): washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (ASTM D720).

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While not confirmed by MM&A, it is assumed that best practices and ASTM (or equivalent standards at the time of testing) were utilized in laboratory quality testing.

## 9 Data Verification

### 9.1 Procedures of Qualified Person

MM&A reviewed the digital geologic database supplied by Coronado. The database consists of data records, which include drill hole information for holes that lie within and adjacent to the Property and records for numerous supplemental coal seam thickness measurements. Upon completion of the database verification, copies of each entry were printed, and cross referenced to the original document for verification. Once the initial integrity of the database was established, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal-seam correlations. Geophysical logs were used wherever available to assist in confirming the seam correlation and to verify proper seam thickness measurements and recovery of coal samples.

After establishing and/or verifying proper seam correlation, seam data-control maps and geological cross-sections were generated and again used to verify seam correlations and data integrity. Once the database was fully vetted, seam thickness, base-of-seam elevation, roof and floor lithology, and overburden maps were independently generated for use in the mine planning process.

### 9.2 Limitations

As with any exploration program, localized anomalies cannot always be discovered. The greater the density of the samples taken, the less the risk. Once an area is identified as being of interest for inclusion in the mine plan, additional samples are taken to help reduce the risk in those specific areas. In general, provision is made in the mine planning portion of the study to allow for localized anomalies that are typically classed more as a nuisance than a hindrance. Longwall production has been de-rated in thinner coal zones.

### 9.3 Opinion of Qualified Person

Sufficient data have been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data are of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

## 10 Mineral Processing and Metallurgical Testing

### 10.1 Testing Procedures

Separate tabulations have been compiled for basic chemical analyses (both raw and washed quality), petrographic data, rheological data and chlorine, ash, ultimate and sulfur analysis. The

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latter two data types are not as prevalent and have been supplemented by samples collected from mine stockpiles and either truck- or train-shipment samples.

Available coal-quality data were tabulated by resource area in a Microsoft® EXCEL workbook and the details of that work are maintained on file at the offices of Coronado and MM&A. These tables also provide basic statistical analyses of the coal quality data sets, including average value; maximum and minimum values; and the number of samples available to represent each quality parameter of the seam. Coal samples that were deemed by MM&A geologists to be unrepresentative were not used for statistical analysis of coal quality, as documented in the tabulations. A representative group of drill hole samples from the Property were then checked against the original drill laboratory reports to verify accuracy and correctness.

The amount and areal extent of coal sampling for geological data is generally sufficient to represent the quality characteristics of the coal horizons and allow for proper market placement of the subject coal seams. For some of the coal deposits there are considerable laboratory data from core samples that are representative of the full extent of the resource area; and for others there are more limited data to represent the resource area. For example, in the active operations with considerable previous mining, there may be limited quality data within some of the remaining resource areas; however, in those cases the core sampling data can be supplemented with operational data from mining and shipped quality samples representative of the resource area.

## 10.2 Relationship of Tests to the Whole

The extensive sampling and testing procedures typically followed in the coal industry result in an excellent correlation between samples and marketable product. Shipped analyses of the coal from Buchanan were reviewed to verify that the coal quality and characteristics were as expected. Buchanan has a long history of saleable production in the low-volatile metallurgical markets, confirming exploration results. Degradation of coking coal characteristics over time is not anticipated to be an issue.

## 10.3 Lab Information

As noted previously, samples are analyzed at area Laboratories that operate in accordance with procedures defined under ASTM standards including, but not limited to the following (Note: not all analytical tests identified in this list have been run on each sample.):

> **ASTM D 4371**- Test Method for Determining Washability Characteristics of Coal
> **ASTM D 3174**- Method for Ash in the Analysis Sample of Coal and Coke
> **ASTM D 4239**- Test Methods for Sulphur in the Analysis Sample of Coal and Coke Using High-Temperature Tube Furnace Combustion Methods
> **ASTM D 5865**- Test Method for Gross Calorific Value of Coal and Coke
> **ASTM D 3175**- Test Method for Volatile Matter in the Analysis Sample of Coal and Coke
> **ASTM D 3176**- Standard Practice for Ultimate Analysis of Coal and Coke

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> ASTM D 3178- Test Method for Carbon and Hydrogen in Coal and Coke
> ASTM D 3179- Test Method for Nitrogen in Coal and Coke
> ASTM D 720- Test Method for Free-Swelling Index (FS) of Coal
> ASTM D 5515- Test Method for Determination of the Swelling Properties of Bituminous Coal Using a Dilatometer (Arnu)
> ASTM D 2639- Test Method for Plastic Properties of Coal (Gieseler)
> ASTM D 3683- Trace Elements in Coal and Coke Ash by the Atomic Absorption Method
> ASTM D 1857- Standard Test Method for Fusibility of Coal and Coke Ash
> ASTM D 2798- Microscopical Determination of the Reflectance of Vitrinite in a Polished Specimen of Coal

Ultimate analysis is a process typically used which gives the composition of coal in terms of carbon, hydrogen, nitrogen, oxygen, ash, and sulfur without regard to origin. The sum of the carbon, hydrogen, nitrogen, sulfur, and ash are subtracted from 100 percent to calculate oxygen percent.

Heating value or calorific value is a measure of the heat produced from a unit weight of coal. In the United States, it is commonly expressed in British thermal units per pound ( Btu/lb ). Other units are kilocalories per kilogram (Kcal/kg) and kilojoules per gram (KJ/g). Heating value is generally determined by burning a weighed coal sample, in oxygen, in a calorimeter.

### 10.4 Relevant Results

No critical factors have been found that would adversely affect the recovery of the Reserve.

## 11 Mineral Resource Estimates

MM&A independently created a geologic model to define the coal resources at Buchanan. Coal resources were estimated as of December 31, 2022.

### 11.1 Assumptions, Parameters and Methodology

Geological data were imported into Carlson Mining® (formerly SurvCAD®) geological modelling software in the form of Microsoft ® Excel files incorporating drill hole collars, seam and thickness picks, bottom seam elevations and raw and washed coal quality. These data files were validated prior to importing into the software. Once imported, a geologic model was created, reviewed, and verified with a key element being a gridded model of coal seam thickness.

Resource tonnes were estimated by using the seam thickness grid based on each valid point of observation and by defining resource confidence arcs around the points of observation. Points of observation for Measured and Indicated confidence arcs were defined for all valid drill holes that intersected the seam using standards deemed acceptable by MM&A based on a detailed geologic evaluation and a statistical analysis of all drill holes within the projected reserve areas as described

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in Section 11.1.1. The geological evaluation incorporated an analysis of seam thickness related to depositional environments, adjacent roof and floor lithologies, and structural influences.

After validating coal seam data and establishing correlations, the thickness and elevation for seams of economic interest were used to generate a geologic model. Due to the relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds, the principal geological interpretation necessary to define the geometry of the coal deposits is the proper modeling of their thickness and elevation. Both coal thickness and quality data are deemed by MM&A to be reasonably sufficient within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data.

Table 11-1 below provides the geological mapping and coal tonnage estimation criteria used for the coal resource and reserve evaluation. These cut-off parameters have been developed by MM&A based on its experience with the Coronado property and are typical of mining operations in the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves.

**Table 11-1: General Reserve and Resource Criteria**

| Item | Parameters | Technical Notes & Exceptions* |
| --- | --- | --- |
| • General Reserve Criteria |  |  |
| Reserve Classification | Reserve and Resource |  |
| Reliability Categories | Reserve (Proven and Probable) Resource (Measured, Indicated and Inferred) | To better reflect geological conditions of the coal deposits, distance between points of observation is standard USGS (in meters), respectively, for measured and indicated and inferred. |
| Effective Date of Resource Estimate | December 31, 2022 | Coal resources were updated for depletion based on information from Coronado. Effective date for coal resources is as of December 31, 2022. |
| Effective Date of Reserve Estimate | December 31, 2022 | Coal reserves were updated for depletion based on information from Coronado. Effective date for coal reserves is as of December 31, 2022. |
| Seam Density | Variable, dependent upon seam characteristics (based on available drill hole quality). In the absence of laboratory data, estimated by (1) assuming specific gravity of 1.30 for coal and 2.25 to 2.5 for rock parting, or (2) 1280 kg/m 3 to 1324 kg/m 3 for a 'clean' seam |  |
| • Underground-Mineable Criteria |  |  |
| Map Thickness | Total seam thickness |  |
| Minimum Seam Thickness | 1.2 meters (locally <1.2 m for limited areas integral to the mine plan) |  |
| Minimum Mining Thickness | 1.83 meters |  |
| Minimum In-Seam Wash Recovery | 40 percent |  |
| Wash Recovery Applied to Coal Reserves | Based on average yield for drill holes within reserve area, or in the absence of laboratory washability data, based on estimated visual recovery using specific gravities noted above and 95 percent yield on 'clean' coal |  |
| Out-of-Seam Dilution Thickness for Run-of-Mine Tonnes Applied to Coal Reserves | 0.05 meters | 2243 kg/m 3 density used for dilution tonnage estimate |
| Mine Barrier | 61-meter distance from abandoned mines and sealed or pillared areas. |  |
| Adjustments Applied to Coal Reserves | 6 percent moisture increase; 5 percent preparation plant inefficiency |  |

Note: Exceptions for application of these criteria to resource and reserve estimation are made as warranted and demonstrated by either actual mining experience or detailed data that allows for empirical evaluation of mining conditions. Final classification of coal reserve is made based on the pre-feasibility evaluation.

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
Central Appalachian Coal Basin  
Virginia, USA

### 11.1.1 Geostatistical Analysis for Classification

MM&A completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated and inferred coal resources. Historically, the United States has assumed that coal within 0.4 kilometers of a point of observation represents a measured resource whereas coal between 0.4 kilometer and 1.2 kilometers from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. Per SEC regulations, only measured and indicated resources may be considered for reserve classification, respectively as proven and probable reserves.

MM&A performed a geostatistical analysis of the Buchanan data set using the Drill Hole Spacing Analysis (*DHSA*) method. This method attempts to quantify the uncertainty of applying a measurement from a central location to increasingly larger square blocks and provides recommendations for determining the distances between drill holes for measured, indicated, and inferred resources.

To perform DHSA the data set was processed to remove any erroneous data points, clustered data points, as well as directional trends. This was achieved through the use of histograms, as seen in *Figure 11-1*, color coded scatter plots showing the geospatial positioning of the borings, *Figure 11-2*, and trend analysis.

**Figure 11-1: Histogram of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in the Buchanan Mine Complex**

![img-0.jpeg](img-0.jpeg)

**Figure 11-2: Scatter plot of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in the Buchanan Mine Complex**

![img-1.jpeg](img-1.jpeg)

Following the completion of data processing, a variogram of the data set was created, *Figure 11-3*. The variogram plots average square difference against the separation distance between the data pairs. The separation distance is broken up into separate bins defined by a uniform lag distance (e.g., for a lag distance of 152 meters the bins would be 0 - 152 meters, 153 - 305 meters, etc.). Each pair of data points that are less than one lag distance apart are reported in the first bin. If the data pair is further apart than one lag distance but less than two lag distances apart, then the variance is reported in the second bin. The numerical average for differences reported for each bin is then plotted on the variogram. Care was taken to define the lag distance in such a way as to not overestimate any nugget effect present in the data set. Lastly, modeled equations, often

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the JORC Code and United States SEC Regulation 630 as of December 31, 2022  
Central Appalachian Coal Basin  
Virginia, USA

spherical, gaussian, or exponential, are applied to the variogram in order to represent the data set across a continuous spectrum.

**Figure 11-3: Variogram of the Total Seam Thickness for the Pocahontas No. 3 Seam Present in the Buchanan Mine Complex**

![img-2.jpeg](img-2.jpeg)

The estimation variance is then calculated using information from the modeled variogram as well as charts published by Journel and Huijbregts (1978). This value estimates the variance from applying a single central measurement to increasingly larger square blocks. Care was taken to ensure any nugget effect present was added back into the data. This process was repeated for each test block size.

The final step of the process is to calculate the global estimation variance. In this step, the number of square blocks that would fit inside the selected study area is determined for each block size that was investigated in the previous step. The estimation variance is then divided by the number of blocks that would fit inside the study area for each test block size. Following this determination, the data is then transformed back to represent the relative error in the 95th-percentile range.

*Figure 11-4* shows the results of the DHSA performed on the Pocahontas No. 3 seam data for the Buchanan Mine. DHSA provides hole to hole spacing values; these distances need to be converted to radius from a central point in order to compare to the historical standards. A summary of the radius data is shown in *Table 11-2*. DHSA prescribes that measured, indicated, and inferred drill

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

hole spacing be determined at the 10-percent, 20-percent, and 50-percent levels of relative error, respectively.

**Figure 11-4: Result of DHSA for the Pocahontas No. 3 Seam Present in the Buchanan Mine Complex**

![img-3.jpeg](img-3.jpeg)

**Table 11-2: DHSA Results Summary for Radius from a Central Point**

| Model: | Measured Radial Distance (10% Relative Error) | Indicated Radial Distance (20% Relative Error) | Inferred Radial Distance (50% Relative Error) |
| --- | --- | --- | --- |
|  | (km) | (km) | (km) |
| Gaussian: | 0.71 | 1.10 | 2.76 |
| Spherical: | 0.71 | 1.08 | 2.67 |
| Exponential: | 0.67 | 1.08 | 3.08 |

Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Exponential model recommends using a radius of 0.67 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources, the DHSA falls in line closely with the historical standards. The Exponential and Spherical models recommend using a radius 1.08 kilometers, while the Gaussian model recommends a radius of 1.10 kilometers. These values line up closely with the historical radius of 1.2 kilometers. These results have led the QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

## 11.2 Qualified Person's Estimates

Mineral resources, representing in-situ coal from a portion of which reserves are derived, are presented below. Based on the work described and detailed modelling of the areas considering all the parameters defined, a coal resource estimate, summarized in *Table 11-3*, was prepared as of December 31, 2022, for property controlled by Coronado.

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Central Appalachian Coal Basin
Virginia, USA

Table 11-3: Coal Resources Summary as of December 31, 2022

| Area | Coal Resource (Dry, Tonnes, In Stm. Mt) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | Ash% | Sulfur% | Vol% |
| Inclusive of Reserves | 158.0 | 10.2 | 0.0 | 160.2 | 25 | 8.7 | 16 |
| Exclusive of Reserves | 33.9 | 5.9 | 0.0 | 39.8 |  |  |  |
| Total 12/31/2022 | 191.9 | 16.1 | 0.0 | 208.0 |  |  |  |

Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.

Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.

Note 3: The Property contains 39.8 Mt of dry, in-place measured and indicated coal resources exclusive of reserves as of December 31, 2022.

### 11.3 Resources Exclusive of Reserves

The Property contains multiple resource blocks which were not deemed to exhibit reserve potential at the time of the study. These resources, formally identified as resources exclusive of reserves, are located in the Pocahontas No. 3 coal seam. Reasons which may preclude elevation of resources to reserves include, but are not limited to:

1. Insufficient density of drilling and/or coal quality data available at the time of this evaluation.
2. Unfavorable economics at the PFS level, yet economics could become attractive in the future under different market conditions.
3. Exclusion from LOM planning by mining operator due to remaining resource blocks which are relatively small, isolated blocks and not currently attractive from an operational perspective. Multiple resource blocks in the active Buchanan Mine have not been considered as reserve due to relatively small size and isolation.

#### 11.3.1 Initial Economic Assessment

MM&A completed an initial economic assessment to determine the potential economic viability of resources exclusive of reserves. Unlike the economic analysis presented in Section 19 developed to test reserves, the initial economic assessment below is presented on a real basis in 2022 dollars. MM&A applied relevant technical factors to estimate potential saleable tonnes without the resource blocks, should the resources be extracted via deep, continuous mining methods (given that their irregular and isolated nature may preclude longwall mining).

MM&A developed cash cost profiles for the resource blocks, including direct cash costs (labor, supplies, roof control, maintenance and repair, power, and other); washing, trucking, materials handling, general and administrative, and environmental costs; and indirect cash costs (royalties, production taxes, property tax, insurance). Costs were developed based off relevant cost drivers (per-meter, per-raw-tonne, per-clean-tonne). Additionally, MM&A estimated capital costs to extract resources. Capital costs associated with mine development were amortized across the resource's potential saleable tonnages. Additional non-cash items (depreciation of equipment and depletion) and cash costs were compared to an assumed sale price of $110 per tonne (FOB loadout), representing the long-term average price forecast for Buchanan supplied by Coronado. The results of the analysis are shown below and demonstrate potential profitability on a fully loaded cost basis. Detailed summaries are shown in Appendix D.

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 11-4: Results of Initial Economic Assessment**

| Seam | Resource Block | Project Cash | Transportation, Washing, Enviro, G&A | Indirect | Non-Cash | Total Cost | Fully Loaded P&Y |
| --- | --- | --- | --- | --- | --- | --- | --- |
| P1 | N, NE, NW | $58.63 | $14.14 | $7.52 | $16.77 | $97.06 | $13.18 |

**Figure 11-5: Results of Initial Economic Assessment**

![P2020 logo]() P2020

## 11.4 Qualified Person's Opinion

While there is some level of stratigraphically controlled seam-thickness variability, the Pocahontas No. 3 coal seam at Buchanan demonstrates reasonable thickness consistency according to the classification system of **measured** (0 - 0.4 kilometer), **indicated** (0.4 to 1.2 kilometers), and **inferred** (1.2 to 4.8 kilometers). MM&A geologists and engineers modeled the deposit and delineated mineable regions to reflect the nature of each seam and the practicality of mining constraints. Based on MM&A's geostatistical analysis, it would be possible to extend the measured arcs slightly beyond historically accepted practices due to consistent geological settings. These results have led the QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

Based on the data review, the attendant work done to verify the data integrity and the creation of an independent geologic model, the QPs believe this is a fair and accurate representation of the Buchanan coal resources.

## 12 Mineral Reserve Estimates

### 12.1 Assumptions, Parameters and Methodology

Coal Reserves are classified as *proven* or *probable* considering “modifying factors” including mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors.

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the JORC Code and United States SEC Regulation 630 as of December 31, 2022
Central Appalachian Coal Basin
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> **Proven Coal Reserves** are the economically mineable part of a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

> **Probable Coal Reserves** are the economically mineable part of an indicated coal resource, and in some circumstances a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

Upon completion of delineation and calculation of coal resources, MM&A generated a LOM plan for Buchanan. The footprint of the reserve area is shown on the map in Appendix B. The Mine plan was generated based on the forecast mine plan and permit plan provided by Coronado with modifications by MM&A where necessary due to current property control limits, modifications to geologic mapping, or other factors determined during the evaluation.

Carlson Mining software was used to generate the LOM plan for Buchanan. The mine plan was sequenced based on productivity schedules provided by Coronado. MM&A judged the productivity estimates and plans to be reasonable based on experience and current industry practice.

At the Buchanan No. 1 Mine, a minimum mining height of 1.83 meters was used due to the longwall mining method being employed. For coal seams thinner than the assigned mining height, the difference between the coal seam height and assigned mining height consists of out-of-seam dilution (OSD). Mine recovery generally varies between 40 and 60 percent for continuous mining panels, and 100 percent for longwall. Plant recovery is a function of in-seam recovery, OSD and plant efficiency factor, which is set at 95 percent. Typical entry width is 5.79 meters to 6.10 meters.

Raw, ROM production data outputs from LOM plan sequencing were processed into Microsoft ® EXCEL spreadsheets and summarized on an annual basis for processing into the economic model. Average seam densities were estimated to determine raw coal tonnes produced from the LOM plan. Average mine recovery and wash recovery factors were applied to determine coal reserve tonnes.

Coal reserve tonnes in this evaluation are reported at a 6.0-percent moisture basis and represent the saleable product from the Property.

Pricing data as provided by Coronado is described in Section 16.2. The pricing data assumes a weighted average domestic and international FOB-mine price of approximately $179 per metric tonne for calendar year 2023. The weighted average price decreases to approximately $132 to $143 per metric tonne through year 2027 and averages approximately $153 per metric tonne over the LOM.

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the JOBE Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

The coal resource mapping and estimation process described in this report was used as a basis for the coal reserve estimate. Proven and probable coal reserves were derived from the defined coal resource considering relevant processing, economic (including technical estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic, and regulatory factors and are presented on a moist, recoverable basis.

As is customary in the US, the categories for proven and probable coal reserves are based on the distances from valid points of measurement as determined by the QPs for the area under consideration. For this evaluation, measured resource, which may convert to a proven reserve, is based on a 0.4-kilometer radius from a valid point of observation.

Points of observation include exploration drill holes, degas holes, and mine measurements which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. Once the geologic model was completed, a statistical analysis, described in Section 11.1.1 was conducted and a 0.4-kilometer radius from a valid point of observation was selected to define Measured Resources.

Likewise, the distance between 0.4 and 1.2 of a kilometer radius was selected to define Indicated Resources. Indicated Resources may convert to Probable Reserves.

There are no Inferred Resources (greater than a 1.2-kilometer radius from a valid point of observation) at Buchanan.

## 12.2 Qualified Person's Estimates

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tonnes presented in *Table 11-3*, and not in addition to coal resources. Coal reserves are presented on a ROM basis in *Table 12-1*. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The coal reserves, as shown in *Table 12-2*, are based on a technical evaluation of the geology and a preliminary feasibility study of the coal deposits. The extent to which the coal reserves may be affected by any known environmental, permitting, legal, title, socio-economic, marketing, political, or other relevant issues has been reviewed rigorously. Similarly, the extent to which the estimates of coal reserves may be materially affected by mining, metallurgical, infrastructure and other relevant factors has also been considered.

**Table 12-1: Coal ROM (Moist) Summary as of December 31, 2022**

| Area / Mine | Demonstrated Coal Reserves (Mt. Tight ROM) |  |  |  |  |  |  |  | Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  |  |  |  |
|  | Proven | Probable | Total | Surface | EC | Owned | Leased | Subleased | Ash | Sutter | Vol |
| Buchanan | 144.9 | 0.7 | 153.6 | 0.0 | 153.6 | 21.7 | 127.9 | 4.0 | 42 | 0.7 | 12 |

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the JORC Code and United States SEC Regulation S-K as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022

| Area / Mine | Proportion of Coal Reserves (Dry Basis, Wet Basis or Direct Shipment, M) |  |  |  |  |  |  |  | Quality (Dry Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  | Ash% | Sulfur% | VSH% |
|  | Proven | Probable | Total | Surface | U | Owned | Leased | Subleased |  |  |  |
| Buchanan Mine Complex | 87.5 | 5.4 | 92.9 | 0.0 | 92.9 | 14.4 | 75.9 | 2.6 | 6 | 0.7 | 19 |

Note: Marketable reserve stones are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled 6-percent. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting.

As shown below, coal shipments during 2022 (primarily from the northern portion of the Property) exhibit a year-to-date average quality comparable to quality projected from core samples (refer to Table 12-2 above).

- > Moisture content: 8.3%
- > Ash content: 5.8% (db)
- > Sulfur content: 0.7% (db)
- > VM content: 17% (db)

The results of this TRS define an estimated 92.9 Mt of proven and probable marketable coal reserves. Of that total, 94 percent are proven, and 6 percent are probable. There are 14.4 Mt of owned coal reserves and 75.9 Mt of leased coal and 2.6 Mt of subleased reserves. All the Buchanan reserves are considered suitable for the metallurgical coal market, and all are assigned.

### 12.3 Qualified Person's Opinion

The estimate of coal reserves was determined in accordance with the JORC Code along with SEC Regulation S-K 1300.

The LOM mining plan for Buchanan was prepared to the level of preliminary feasibility. Mine projections were prepared with a timing schedule to match production with coal seam characteristics. Production timing was carried out from current locations to depletion of the coal reserve area. Coal reserve estimates could be materially affected by the risk factors described in Section 22.2.

Based on the preliminary feasibility study and the attendant economic review, the QPs believe this is a fair and accurate calculation of the Buchanan coal reserves.

## 13 Mining Methods

### 13.1 Geotech and Hydrology

Mining plans for potential underground mines were developed by Coronado and MM&A. Pillar stability was tested by MM&A using the Analysis of Retreat Mining Pillar Stability (ARMP) and Analysis of Longwall Pillar Stability (ALP) programs that were developed by the National Institute

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the JORC Code and United States SEC Regulation B(8) as of December 31, 2022^{}[] Central Application for Coal Basin^{}[] ^{}[] Virginia, USA

**for Occupational Safety and Health (OSH).** MM&A reviewed the results from the ARMPS and ALPS analysis and considered them in the development of the LOM plan.

Hydrology has not been an issue of concern at Buchanan. Based on numerous site visits to both the surface and underground portions of the Property by the QPs, it has been determined that this is not a significant concern. Mining of future reserves is projected to occur in areas which exhibit similar hydrogeological characteristics as those formerly mined areas.

### 13.2 Production Rates

The Buchanan mine is active with six continuous mining sections and one longwall section currently operating. Operations at Buchanan by Coronado and its predecessor have been ongoing for many years. The mine plan and productivity expectations reflect historical performance and efforts have been made to adjust the plan to reflect future conditions. MM&A is confident that the mine plan is reasonably representative to provide an accurate estimation of coal reserves. Mine development and operation have not been optimized within the TRS.

Longwall production is scheduled for approximately 295 to 312 days each year, which represents production on Monday through Saturday with allowances for holidays and longwall moves. On each day, the continuous mining sections and longwall produce coal on three shifts. The sections are configured as regular sections with one continuous miner available for production on each section. Productivity is planned at the rate of 18.2 meters to 21.3 meters of advance per shift of operation for the continuous miner sections, and 5.79 meters to 7.32 meters per shift of longwall retreat. A second longwall is scheduled to begin production in the first quarter of 2025.

Carlson Mining software was used by MM&A to generate mine plans for the underground mineable coal seam. Coronado recently revised the Buchanan mine plan with an independent headgate and tailgate for longwall panels in the South and Northeast districts. Such a change was made to allow for an effective panel width of 982 feet, as opposed to an effective width of 688 feet used previously. The active areas in the North and East, along with the future Northwest area, are still based on an effective panel width of approximately 688 feet. MM&A incorporated this mine plan revision into the layout and subsequent reserve estimates contained herein. Mine plans were sequenced based on productivity schedules provided by Coronado, which were based on historically achieved productivity levels. All production forecasting ties assumed production rates to geological models as constructed by MM&A's team of geologists and mining engineers.

As shown in *Table 13-1*, the areas planned for underground production continue until 2044. Clean coal production varies directly with coal thickness.

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 13-1: Summary of Production by Year (Tonnes x 1,000)**

| Mine Name | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Buchanan | 3,786 | 3,811 | 4,363 | 4,446 | 5,112 | 6,242 | 6,462 | 6,200 |
| Mine Name | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 |
| Buchanan | 5,444 | 6,226 | 4,814 | 6,474 | 6,423 | 5,249 | 3,447 | 3,009 |
| Mine Name | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 |
| Buchanan | 2,914 | 2,093 | 2,254 | 1,703 | 1,714 | 737 | 0 | 0 |

### 13.3 Mining Related Requirements

Although the continuous miner sections are significantly more expensive to operate on a cost-per-tonne basis, they are necessary to open up areas of the mine for the longwall. At the time of this study, Buchanan had 6 operating continuous miner stations that were used to develop main entries and gate roads in preparation for the longwall. As the mine develops, this number will be able to be reduced.

An additional requirement at Buchanan is the drilling of degas holes prior to mining. This process was initially developed as a safety measure to extract methane from the coal seam prior to exposure to the workforce. As such, it has been very effective.

More recently, the methane extracted has been able to be processed and sold. However, degasifying of the coal seam will continue as a safety measure regardless.

### 13.4 Required Equipment and Personnel

The Buchanan Mine is currently Coronado's only longwall operation. The longwall shearing machine is used for extraction of coal at the production face. A chain conveyor is used to remove coal from the longwall face for discharge onto the conveyor belt which then ultimately delivers it to an underground storage bunker. Development for the longwall is conducted by the extraction of coal from the production faces using continuous miners and haulage using shuttle cars to a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor. Roof-bolting machines are used to support the roof on the development sections of the longwall mines. Roof-bolting machines are used to install roof bolts, and battery scoops are available to clean the mine entries and assist in delivery of mine supplies to work areas. Other supplemental equipment such as personnel carriers, supply vehicles, etc., are also used daily.

Mine conveyors typically range in width up to 1.83 meters. Multiple belt flights are arranged in series to deliver raw coal to the underground storage. Along the main and sub-main entries and panels, a travel way is provided for personnel and materials by rubber-tired equipment or on rail. The Buchanan No. 1 Mine utilizes a skip hoist in order to transport ROM coal from the underground storage bunker to the surface where the coal may be sampled, crushed and washed in the preparation plant and stockpiled to await shipment.

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the FORC Code and United States SEC Regulation 8(8) as of December 31, 2022^{}[] Central Appalachian Coal Basin^{}[] ^{}[] Virginia, USA

Surface ventilation fans are installed as needed to provide a sufficient volume of air to ventilate production sections, coal haulage and transport entries, battery charging stations, and transformers in accordance with approved plans. High-voltage cables deliver power throughout the mine where transformers reduce voltage for specific equipment requirements. *The Mine Improvement and New Emergency Response Act of 2006 (MINER Act)* requires that carbon monoxide detection systems be installed along mine conveyor belts and that electronic two-way tracking and communications systems be installed throughout underground mines. Water is required to control dust at production sections and along conveyor belts, and to cool electric motors. Water is available from nearby sources and is distributed within the mine by pipelines as required. A total of 588 salary and hourly employees are assigned to the mine in 2023, and a total of 672 salary and hourly employees are assigned to the mine beginning in 2025 when the second longwall begins operation.

## 14 Processing and Recovery Methods

### 14.1 Description or Flowsheet

Coronado currently operates a coal preparation plant at Buchanan. The Buchanan Plant operates at a feed rate of approximately 1,270 raw tonnes per hour ( *tph* ). Coarse material is washed in a heavy medium vessel, the intermediate-size material is washed in heavy medium cyclones and fine material is washed using froth flotation. These processes are supported by the requisite screens, centrifuges, vacuum filters, sumps, pumps, and distribution systems. Processes and equipment are typical of those used in the coal industry and are in use in nearly all plants in the Central Appalachian Basin.

### 14.2 Requirements for Energy, Water, Material and Personnel

Personnel have historically been sourced from the surrounding communities in Buchanan, Tazewell, McDowell, and Pike Counties, and have proven to be adequate in numbers to operate the mine. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners.

The Buchanan No. 1 Mine Complex has sources of water, power, personnel, and supplies readily available for use. Water is sourced locally from a nearby abandoned underground mine. Electricity is sourced from AEP. The service industry in the areas surrounding the mine complex has historically provided supplies, equipment repairs and fabrication, etc.

## 15 Infrastructure

The Coronado-owned Buchanan Preparation Plant services the mine via a skip hoist and conveyor belt system which transports extracted coal from an underground bunker to the surface facility. The NS rail line serves as the main means of transport from the mine.

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As an active operation, the necessary support infrastructure for Buchanan is in place. In addition to the plant and loadout, there are also portal facilities, including personnel access to the mine, ventilation fans and a coal hoisting skip shaft. A map of the existing facilities in *Figure 15-1*.

**Figure 15-1: Buchanan Surface Facilities**

P0962p410

## 16 Market Studies

### 16.1 Market Description

The quality characteristics for the subject coal resources and coal reserves have been reviewed in detail by MM&A. The drill hole data were utilized to develop average coal quality characteristics for the mining site. These average coal quality characteristics were then utilized as the basis for determining the various markets into which the saleable coal will likely be placed.

The projected quality specifications for the Buchanan products are as shown in *Table 16-1*.

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

**Table 16-1: Quality Specifications by Product**

|  | Buchanan |  |
| --- | --- | --- |
|  | HCC | PCI |
| Moisture (%) | 7.50 | 7.50 |
| Ash (%) | 5.50 | 6.00 |
| Sulfur (%) | 0.75 | 0.85 |
| Volatile Matter (%) | 18.00 | 18.00 |
| Btu/lb. | N/A | 14,926 |
| Fluidity (ddpm) | 130 | N/A |
| MMR (%) | 1.69 | N/A |
| CSR | 40 | N/A |
| FSI | 8.5 | N/A |

Note: All Specs are dry basis except Moisture and Thermal

All the mine production serves the metallurgical markets. The metallurgical coal is marketed as a low-volatile (typically less than 23 percent volatile matter content) product.

## 16.2 Price Forecasts

Coronado provided MM&A with price forecasts for the Buchanan operation. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Concurrent with the active operation, Buchanan's production is assumed to enter domestic and international low volatile coking coal markets. Pricing provided by Coronado assumes applicable quality adjustments. Pricing was provided through calendar year 2044.

Coal price forecasts for the Buchanan products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne.

## 16.3 Contract Requirements

Some contracts are necessary for successful marketing of the coal. For Buchanan, since all mining, preparation and marketing is done in-house, the remaining contracts required are:

> **Transportation**- The Mine contracts with NS to transport the coal to either the domestic customers or to the Pier 6 export terminal for overseas shipment.
> **Handling**- Contracts for loading vessels for export sales are necessary. These are typically handled by annual negotiations based on projected shipments.
> **Sales**- Sales contracts are a mix of spot and contract sales. With the volatility of the market, long-term contracts are not typically written.

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# 17 Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals

## 17.1 Results of Studies

MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Property in April 2016 on behalf of Coronado. Coronado reports not having conducted such a study since the MM&A study. The ESA completed by MM&A included a site inspection, review of historical records, a database search of state and federal regulatory records and interviews to identify potential recognized environmental conditions (REC) that may create environmental liability for the sites. MM&A concluded that no long-term liabilities existed at the time of the ESA.

Based on the former ESA completed by MM&A, it is the QPs' opinion that Buchanan generally has a record consistent with industry standards regarding compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial models.

## 17.2 Requirements and Plans for Waste Disposal

Based on a study commissioned by Coronado in June 2020, the current Buchanan refuse disposal site adjacent to the preparation plant has a capacity of 29 million cubic meters (CM) as currently designed; with an additional lift (No. 11), the capacity is 37 million CM. Projected requirements within the MM&A financial model are 28.0 million CM. Permitting for such an expansion is anticipated to be achievable.

## 17.3 Permit Requirements and Status

All mining operations are subject to federal and state laws and must obtain permits to operate mines, coal preparation and related facilities, haul roads, and other incidental surface disturbances necessary for mining to occur. Permits generally require that the permittee post a performance bond in an amount established by the regulatory program to provide assurance that any disturbance or liability created during mining operations is properly restored to an approved post-mining land use and that all regulations and requirements of the permits are fully satisfied before the bond is returned to the permittee. Significant penalties exist for any permittee who fails to meet the obligations of the permits including cessation of mining operations, which can lead to potential forfeiture of the bond. Any company, and its directors, owners and officers, which are subject to bond forfeiture can be denied future permits under the program. $^{1}$

New permits or permit revisions will occasionally be necessary to facilitate the expansion or addition of new mining areas on the properties, such as amendments to existing permits and new permits for mining of reserve areas. Exploration permits are also required. Property under lease includes provisions for exploration among the terms of the lease. New or modified mining permits are subject to a public advertisement process and comment period, and the public is provided an

$^{1}$ Monitored under the Applicant Violator System (AVS) by the Federal Office of Surface Mining.

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opportunity to raise objections to any proposed mining operation. MM&A is not aware of any specific prohibition of mining on the subject property and given sufficient time and planning. Coronado should be able to secure new permits to maintain its planned mining operations within the context of current regulations. Necessary permits are in place to support current production on the Property, but future permits are required to maintain and expand production. Portions of the Property are located near local communities. Regulations prohibit mining activities within 91.44 meters of a residential dwelling, school, church, or similar structure unless written consent is first obtained from the owner of the structure. Where required, such consents have been obtained where mining is proposed beyond the regulatory limits.

Coronado has obtained all mining and discharge permits to operate its mines and processing, loadout, or related facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Buchanan, along with all coal producers, is subject to a level of uncertainty regarding future clean water permits due to **United States Environmental Protection Agency(EPA)** and **United States Fish and Wildlife (USFW)** involvement with state programs.

The active Mining permit currently held by Buchanan is shown in *Table 17-1*.

**Table 17-1: Buchanan Mining Permit**

| Type | Permit ID | Permit Name | $ Bond | Current Status | Issued Date | Expiration Date | Amount | Notice No. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Coal Underground | 1402152 | Buchanan No. 1 Mine | $2,484,000 | Active | 03/08/1983 | 03/08/2023 | 334.79 | VA0082152 |

#### 17.4 Local Plans, Negotiations or Agreements

MM&A found no indication of agreements beyond the scope of federal or state regulations.

#### 17.5 Mine Closure Plans

Applicable regulations require that mines be properly closed, and reclamation commenced immediately upon abandonment. In general, site reclamation includes removal of structures, backfilling, regrading, and revegetation of disturbed areas. Sediment control is required during the establishment of vegetation, and bond release generally requires a minimum five-year period of site maintenance, water sampling, and sediment control following mine completion. This requirement is reduced to two years for certain operations involving re-mining. Reclamation of underground mines includes closure and sealing of mine openings such as portals and shafts in addition to the items listed above.

Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial model. As with all mining companies, an accretion calculation is performed annually so the necessary Asset Retirement Obligations (ARO) can be shown as a Liability on the balance sheet.

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## 17.6 Qualified Person's Opinion

The Buchanan Mine is an operating facility; all necessary permits for current production have been obtained. The QPs know of no reason that any permits revisions that may be required cannot be obtained.

Estimated expenditures for site closure and reclamation are included in the financial model for this site.

## 18 Capital and Operating Costs

### 18.1 Capital Cost Estimate

The production sequence selected for a property must consider the proximity of each reserve area to coal preparation plants, river docks and railroad loading points, along with suitability of production equipment to coal seam conditions. The in-place infrastructure was evaluated, and any future needs were planned to a level suitable for a Preliminary Feasibility Study and included in the Capital Forecast.

Coronado provided MM&A with an inventory of operating equipment available at Buchanan. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment.

A summary of the estimated capital for the Property is provided in *Figure 18-2* below.

**Figure 18-1: CAPEX**

![img-0.jpeg](img-0.jpeg)

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## 18.2 Operating Cost Estimate

Coronado provided historical and a preliminary five-year projection of operating costs for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed a personnel schedule for the mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe-benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare, and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof-control costs and other mine-supply costs experienced at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

Other cost factors were developed for coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands, and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees.

Mandated Sales Related Costs such as Black Lung Excise are summarized in *Table 18-1*.

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 Virginia, USA

**Table 18-1: Estimated Coal Production Taxes and Sales Costs**

| Description of Tax or Sales Cost | Basis of Assessment | Cost |
| --- | --- | --- |
| Federal Black Lung Excise Tax - Underground | Per Tonne | $1.21 |
| Federal Reclamation Fees - Underground | Per Tonne | $0.13 |
| Virginia Reclamation Tax - Underground | Per Tonne | $0.05 |
| Virginia Severnment Tax |  | 2% |
| Royalties - Underground | Percentage of Revenue | 4.0% |

Notes:

1. Federal black lung excise tax is paid only on coal sold domestically. MM&A assumed 45% of total coal sales to be domestic in the economic analysis discussed below.

A summary of the projected Operating Costs is in *Table 18-2*.

**Table 18-2: Buchanan Mine Operating Costs**

|  | Total | YE 12/31 2023 | YE 12/31 2024 | YE 12/31 2025 | YE 12/31 2026 | YE 12/31 2027 | YE 12/31 2028 | YE 12/31 2029 | YE 12/31 2030 | Remaining LOM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROM Production Tonnes | 153.6 | 7.4 | 7.5 | 8.8 | 9.5 | 11.1 | 9.4 | 9.4 | 9.2 | 5.8 |
| Yield | 68.48% | 50.98% | 50.61% | 49.81% | 46.98% | 46.16% | 46.22% | 68.89% | 67.79% | 64.48% |
| Saleable Production Tonnes | 92.9 | 3.8 | 3.8 | 4.4 | 4.4 | 5.1 | 6.2 | 6.5 | 6.2 | 3.8 |
| Thermal Tonnes | - | - | - | - | - | - | - | - | - | - |
| Domestic & Non-Asia Export Met Tonnes | 29.9 | 1.2 | 1.2 | 1.4 | 1.4 | 1.6 | 2.0 | 2.1 | 2.0 | 1.2 |
| Export Met Tonnes | 63.0 | 2.6 | 2.6 | 3.0 | 3.0 | 3.5 | 4.2 | 4.4 | 4.2 | 2.5 |
| Total Saleable Tonnes | 92.9 | 3.8 | 3.8 | 4.4 | 4.4 | 5.1 | 6.2 | 6.5 | 6.2 | 3.8 |
| Cash Costs per Tonne: |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $65.99 | $66.53 | $66.60 | $64.95 | $64.94 | $58.16 | $51.67 | $50.89 | $53.95 | $71.83 |
| Processing and Transport | $8.22 | $20.33 | $9.40 | $9.03 | $9.11 | $8.84 | $6.32 | $6.20 | $6.44 | $7.74 |
| Sales Related Costs | $9.48 | $9.78 | $8.92 | $8.04 | $7.64 | $8.60 | $8.60 | $8.84 | $9.01 | $10.05 |
| G&A | $2.65 | $3.79 | $2.89 | $2.54 | $2.54 | $2.27 | $2.32 | $2.36 | $2.41 | $2.70 |
| Total Cash Costs | $86.33 | $100.43 | $87.80 | $84.55 | $84.24 | $77.88 | $68.98 | $68.30 | $71.81 | $92.31 |

## 19 Economic Analysis

### 19.1 Assumptions, Parameters and Methods

A pre-feasibility LOM plan was prepared by MM&A for the Buchanan operations. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2023 to depletion (exhaustion) of the coal reserve areas, which is projected for the year 2044. All costs and prices are based on 2022 nominal United States dollars.

The Mine plan, productivity expectations and cost estimates generally reflect historical performance by Coronado and efforts have been made to adjust plans and costs to reflect future conditions. MM&A is confident that the mine plan and financial model are reasonably representative to provide an accurate estimation of coal reserves.

Capital schedules were developed by MM&A for mine development, infrastructure, and on-going capital requirements for the life of the mine. Staffing levels were prepared, and operating costs estimated by MM&A. MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs.

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The preliminary feasibility financial model, prepared for this TRS, was developed to test the economic viability of the coal reserve area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations, but are intended to prove the economic viability of the estimated coal reserves. All costs and prices are based on 2022 nominal United States dollars assuming a 2% inflation rate.

On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the purpose of classifying coal reserves. The project cash flows, excluding debt service, are calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis services, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the federal black lung tax, federal and state reclamation taxes, property taxes, local transportation prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, income taxes and state severance taxes. Coronado's historical costs provided a useful reference for MM&A's cost estimates.

Sales revenue is based on the metallurgical coal price information provided to MM&A by Coronado.

Projected debt service is excluded from the P&L and cash flow model in order to determine Enterprise Value.

The financial model expresses coal sales prices, operating costs, and capital expenditures in current day dollars without adjustment for inflation. Capital expenditures and reclamation costs are included based on engineering estimates for each mine by year. The Coronado division's existing allocations of administrative costs are continued in the future projections.

Coronado will pay royalties for the various current and projected operations. The royalty rates vary by mining method and location. The royalty rates for Buchanan are estimated to be 4.0% of the sales revenue.

The projection model also includes consolidated income tax calculations at the Coronado level, incorporating statutory depletion calculations, as well as state income taxes, and a federal tax rate of 21%. To the extent the mine generates net operating losses for tax purposes, the losses are carried over to offset future taxable income. The terms 'cash flows' and 'project cash flows' used in this report refer to after tax cash flows.

Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from a peak of 6.5 million tonnes in 2034 to a low of 0.7 million tonnes in 2044. Projected consolidated revenue ranges from $317.8 million to $1.019 billion at a steady state. Revenue totals $14.2 billion for the project's life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending.

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 Virginia, USA

Consolidated cash flow from operations peaks at $424.3 million in 2035 and totals $5.2 billion over the project's life. Capital expenditures total $602.8 million through 2027 and $1.4 billion over the project's life.

Coal price forecasts for coal products were prepared by Coronado for its active operations. Such prices were used for the revenue input into the financial model. Sales variable costs such as production royalties and severance taxes were based upon the revenue input.

## 19.2 Results

The pre-feasibility financial model, prepared by MM&A for this TRS, was developed to test the economic viability of each coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, as may be required for financing of any current or future mining operations contemplated but are intended to prove the economic viability of the estimated coal reserves. Optimization of the LOM plan was outside the scope of the engagement.

Figure 19-1 shows the annual variance of cash costs per ton. Table 19-1 shows LOM tonnage, P&L, and EBITDA for Buchanan.

As shown in

![img-0.jpeg](img-0.jpeg)

As shown above, the Buchanan Mine's average cash cost ranges between approximately $68 and $111 per tonne for most of the operating period.

Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA

|  | LOM Tonnes | LOM Per-Tax P&L | P&L Per-Tonne | LOM EBITDA | EBITDA Per Tonne |
| --- | --- | --- | --- | --- | --- |
| Buchanan | 92,923 | $4,280,077 | $46.06 | $6,174,578 | $66.45 |

As shown in Table 19-1, the Buchanan Mine shows positive EBITDA over the LOM. Overall, Coronado's consolidated operations show positive LOM P&L and EBITDA of $4.3 billion and $6.2 billion, respectively. A summary of the key financial performance metrics projected through 2030 is provided below in Table 19-2.

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**Table 19-2: Summary of Buchanan Key Financial Performance Metrics (2023-2030)**

|  | Total | YE 12/31 2023 | YE 12/31 2024 | YE 12/31 2025 | YE 12/31 2026 | YE 12/31 2027 | YE 12/31 2028 | YE 12/31 2029 | YE 12/31 2030 | Remaining LOM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BOM Production Tonnes | 153.6 | 7.4 | 7.5 | 8.8 | 9.5 | 11.1 | 9.4 | 9.4 | 9.2 | 5.8 |
| Yield | 60.48% | 50.08% | 50.61% | 49.81% | 46.08% | 46.16% | 66.22% | 68.89% | 67.70% | 64.48% |
| Saleable Production Tonnes | 92.9 | 3.8 | 3.8 | 4.4 | 4.4 | 5.1 | 6.2 | 6.5 | 6.2 | 3.8 |
| Thermal Tonnes | - | - | - | - | - | - | - | - | - | - |
| Domestic & Non-Asia Export Met Tonnes | 29.9 | 1.2 | 1.2 | 1.4 | 1.4 | 1.6 | 2.0 | 2.1 | 2.0 | 1.2 |
| Export Met Tonnes | 63.0 | 2.6 | 2.6 | 3.0 | 3.0 | 3.5 | 4.2 | 4.4 | 4.2 | 2.5 |
| Total Saleable Tonnes | 92.9 | 3.8 | 3.8 | 4.4 | 4.4 | 5.1 | 6.2 | 6.5 | 6.2 | 3.8 |
| Cash Costs per Tonnes |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $65.99 | $66.53 | $66.60 | $64.95 | $64.94 | $58.16 | $51.67 | $50.89 | $53.95 | $71.83 |
| Processing and Transport | $8.22 | $20.33 | $9.40 | $9.03 | $9.11 | $8.84 | $6.32 | $6.20 | $6.44 | $7.74 |
| Sales Related Costs | $9.48 | $9.78 | $8.92 | $8.04 | $7.64 | $8.60 | $8.68 | $8.84 | $9.01 | $10.05 |
| O&A | $2.65 | $3.79 | $2.89 | $2.54 | $2.54 | $2.27 | $2.32 | $2.36 | $2.41 | $2.70 |
| Total Cash Costs | $86.33 | $100.43 | $87.80 | $84.55 | $84.24 | $77.88 | $68.98 | $68.30 | $71.81 | $92.31 |
| EBITDA per Tonnes | $66.45 | $78.12 | $55.04 | $47.23 | $48.98 | $57.54 | $69.15 | $72.59 | $71.98 | $68.66 |
| Expansion CapEx ($M) | $- | $- | $- | $- | $- | $- | $- | $- | $- | $- |
| Maintenance CapEx ($M) | $1,448.5 | $135.8 | $130.8 | $111.9 | $122.8 | $101.6 | $70.4 | $50.2 | $71.2 | $46.7 |
| Total CapEx | $1,448.5 | $135.8 | $130.8 | $111.9 | $122.8 | $101.6 | $70.4 | $50.2 | $71.2 | $46.7 |

After Tax Cash Flows were developed in order to calculate the NPV for this Property. The NPV is estimated to be $1.562 billion at a discount rate of 10.0%. A summary of the Buchanan after-tax cash flow is shown in *Table 19-3*.

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 Central Appalachian Coal Basin  
 Virginia, USA

**Table 19-3: Project Cash Flow Summary (000)**

|  | 1928 | YE12/31 2023 | YE12/31 2024 | YE12/31 2025 | YE12/31 2026 | YE12/31 2027 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 92,924 | 3,786 | 3,811 | 4,363 | 4,446 | 5,112 |
| Total Revenue | $14,194,747 | $675,923 | $544,435 | $574,963 | $592,283 | $692,273 |
| EBITDA | $6,174,578 | $295,749 | $209,789 | $206,065 | $217,757 | $294,147 |
| Net Income | $3,368,328 | $179,131 | $103,854 | $91,899 | $90,456 | $138,196 |
| Net Cash Provided by Operating Activities | $5,181,846 | $188,692 | $206,765 | $186,416 | $195,463 | $245,493 |
| Purchases of Property, Plant, and Equipment | $(1,448,505) | $(135,766) | $(130,883) | $(111,896) | $(122,768) | $(101,557) |
| Net Cash Flow | $3,733,342 | $52,926 | $69,962 | $74,520 | $72,695 | $143,036 |
|  | YE12/31 2028 | YE12/31 2029 | YE12/31 2030 | YE12/31 2031 | YE12/31 2032 | YE12/31 2033 |
| Production & Sales tonnes | 6,242 | 6,462 | 6,280 | 5,444 | 6,326 | 4,814 |
| Total Revenue | $862,187 | $910,476 | $890,951 | $798,054 | $930,819 | $734,119 |
| EBITDA | $431,599 | $469,093 | $445,727 | $357,721 | $458,785 | $288,024 |
| Net Income | $240,334 | $262,860 | $254,666 | $197,893 | $280,873 | $159,996 |
| Net Cash Provided by Operating Activities | $339,674 | $386,828 | $379,000 | $320,798 | $362,834 | $277,786 |
| Purchases of Property, Plant, and Equipment | $(70,382) | $(50,228) | $(71,184) | $(59,572) | $(49,573) | $(65,133) |
| Net Cash Flow | $269,292 | $336,600 | $307,815 | $261,226 | $313,262 | $212,653 |
|  | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 | YE12/31 2038 | YE12/31 2039 |
| Production & Sales tonnes | 6,474 | 6,423 | 5,249 | 3,447 | 3,009 | 2,914 |
| Total Revenue | $1,007,101 | $1,019,070 | $849,433 | $569,043 | $506,626 | $500,552 |
| EBITDA | $501,730 | $526,779 | $424,763 | $211,060 | $168,369 | $216,035 |
| Net Income | $326,060 | $344,381 | $266,105 | $105,424 | $79,886 | $116,181 |
| Net Cash Provided by Operating Activities | $372,442 | $424,330 | $368,367 | $223,842 | $158,704 | $177,921 |
| Purchases of Property, Plant, and Equipment | $(54,807) | $(69,272) | $(64,919) | $(77,383) | $(43,070) | $(35,719) |
| Net Cash Flow | $318,435 | $355,058 | $303,449 | $146,459 | $115,634 | $142,202 |
|  | YE12/31 2040 | YE12/31 2041 | YE12/31 2042 | YE12/31 2043 | YE12/31 2044 | YE12/31 2045 |
| Production & Sales tonnes | 2,093 | 2,254 | 1,703 | 1,714 | 737 | - |
| Total Revenue | $366,649 | $462,822 | $309,918 | $317,808 | $139,240 | $- |
| EBITDA | $108,191 | $153,415 | $80,892 | $106,596 | $2,291 | $- |
| Net Income | $34,854 | $71,326 | $19,002 | $46,332 | $(34,676) | $(3,773) |
| Net Cash Provided by Operating Activities | $119,167 | $128,269 | $89,128 | $92,258 | $24,650 | $(47,861) |
| Purchases of Property, Plant, and Equipment | $(50,131) | $(46,604) | $(24,930) | $(13,606) | $- | $- |
| Net Cash Flow | $69,036 | $81,665 | $64,198 | $78,652 | $24,650 | $(47,861) |
|  | YE12/31 2046 | YE12/31 2047 | YE12/31 2048 | YE12/31 2049 | YE12/31 2050 | YE12/31 2051 |
| Production & Sales tonnes | - | - | - | - | - | - |
| Total Revenue | $- | $- | $- | $- | $- | $- |
| EBITDA | $- | $- | $- | $- | $- | $- |
| Net Income | $(1,534) | $(785) | $(403) | $(209) | $(0) | $(0) |
| Net Cash Provided by Operating Activities | $(16,273) | $(8,299) | $(4,232) | $(4,317) | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $(16,273) | $(8,299) | $(4,232) | $(4,317) | $- | $- |

### 19.3 Sensitivity

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

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Central Appalachian Coal Basin  
Virginia, USA

Figure 19-2: Sensitivity of NPV

![img-1.jpeg](img-1.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

## 20 Adjacent Properties

### 20.1 Information Used

No proprietary information associated with neighboring properties was used as part of this study.

## 21 Other Relevant Data and Information

MM&A performed a previous audit of all the properties in year 2017 for Coronado based on SEC Industry Guide 7 standards. In addition, MM&A completed a Limited Phase I Environmental Site Assessment (*ESA*) on the Property in 2016 on behalf of Coronado. MM&A has subsequently conducted Joint Ore Reserve Committee (*JORC*) compliant resource and reserve assessments of the Buchanan assets as of: (1) December 31, 2017, (2) December 31, 2020, and (3) December 31, 2021. By assignment, the JORC assessment included a preliminary feasibility level study of the subject coal reserves, encompassing detailed mine planning and cost analysis through depletion of Buchanan's JORC-compliant coal reserves. MM&A utilized these former preliminary feasibility studies as the basis of an updated study which meets those standards set forth by the SEC.

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the JORC Code and United States SEC Regulation B(R) as of December 31, 2022^{}[] Central Application for^{}[] ^{}[] Good Health^{}[] ^{}[] Virginia, USA

## 22 Interpretation and Conclusions

### 22.1 Conclusion

Sufficient data have been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data are of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating and capital cost estimates are sufficient to support the classification of coal reserves provided herein.

This geologic evaluation conducted in conjunction with the preliminary feasibility study is sufficient to conclude that the 92.9 Mt of marketable underground coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

### 22.2 Risk Factors

Risks have been identified for operational, technical and administrative subjects addressed in the Pre-Feasibility Study. A risk matrix has been constructed to present the risk levels for all the risk factors identified and quantified in the risk assessment process. The risk matrix and risk assessment process are modelled according to the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

The purpose of the characterization of the project risk components is to inform the project stakeholders of key aspects of the Coronado projects that can be impacted by events whose consequences can affect the success of the venture. The significance of an impacted aspect of the operation is directly related to both the probability of occurrence and the severity of the consequences. The initial risk for a risk factor is herein defined as the risk level after the potential impact of the risk factor is addressed by competent and prudent management utilizing control measures readily available. Residual risk for a risk factor is herein defined as the risk level following application of special mitigation measures if management determines that the initial risk level is unacceptable. Initial risk and residual risk can be quantified numerically, derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

The probability and consequence parameters are subjective numerical estimates made by practiced mine engineers and managers. Both are assigned values from 1 to 5 for which the value 1 represents the lowest probability and least consequence, and the value 5 represents the highest probability and greatest consequence. The products, which define the Risk Level, are classified from very low to very high.

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FORD2010

the FORC Code and United States SEC Regulation B(R) as of December 31, 2022

Central Appalachian Coal Basin

Virginia, USA

Risk Level Table (R = P x C)

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Risk aspects identified and evaluated during this assignment total 12. No residual risks are rated Very High. One (1) residual risk is rated High. Seven (7) of the risk aspects could be associated with Moderate residual risk. Four (4) of the risk aspects were attributed Low or Very Low residual risks.

### 22.2.1 Governing Assumptions

The listing of the aspects is not presumed to be exhaustive. Instead that listing is presented based on the experiences of the contributors to the TRS.

1. The probability and consequence ratings are subjectively assigned, and it is assumed that this subjectivity reasonably reflects the condition of the active and projected mine operations.
2. The Control Measures shown in the matrices presented in this chapter are not exhaustive. They represent a condensed collection of activities that the author of the risk assessment section has observed to be effective in coal mining scenarios.
3. Mitigation Measures listed for each risk factor of the operation are not exhaustive. The measures listed, however, have been observed by the author to be effective.
4. The monetary values used in ranking the consequences are generally-accepted quantities for the coal mining industry.

### 22.2.2 Limitations

The risk assessment proposed in this report is subject to the limitations of the information currently collected, tested, and interpreted at the time of the writing of this report.

### 22.2.3 Methodology

The numerical quantities (i.e., risk levels) attributable to either “initial” or “residual” risks are derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

$$R = P \times C$$

Where: R = Risk Level

P = Probability of Occurrence

C = Consequence of Occurrence

The Probability (P) and Consequence (C) parameters recited in the formula are subjective numerical estimates made by practiced mine engineers and managers. Both P and C are assigned integer values ranging from 1 to 5 for which the value 1 represents the lowest probability and

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![W2020 logo]()

the JORC Code and United States SEC Regulation B(R) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

least consequence, and the value 5 represents the highest probability and greatest consequence. The products ( $R = P \times C$ ) which define the Risk Level, are thereafter classified from very low to very high.

**Risk Level Table**

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Very high initial risks are considered to be unacceptable and require corrective action well in advance of project development. In short, measures must be applied to reduce very high initial risks to a tolerable level.

As shown and discussed above, after taking into account the operational, technical, and administrative actions that have been applied or are available for action when required, the residual risk can be determined. The residual risk provides a basis for the management team to determine if the residual risk level is acceptable or tolerable. If the risk level is determined to be unacceptable, further actions should be considered to reduce the residual risk to acceptable or tolerable levels to provide justification for continuation of the proposed operation.

#### 22.2.4 Development of the Risk Matrix

Risks have been identified for the technical, operational, and administrative subjects addressed in the TRS. The risk matrix and risk assessment process are modelled according to the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

##### 22.2.4.1 Probability Level Table

**Table 22-1: Probability Level Table**

| Category | Probability Level (P) |  |  |
| --- | --- | --- | --- |
| 1 | Remote | Not likely to occur except in exceptional circumstances. | <10% |
| 2 | Unlikely | Not likely to occur; small in degree. | 10 - 30% |
| 3 | Possible | Capable of occurring. | 30 - 60% |
| 4 | Likely | High chance of occurring in most circumstances. | 60 - 90% |
| 5 | Almost Certain | Event is expected under most circumstances; impossible to avoid. | >90% |

The lowest rated probability of occurrence is assigned the value of 1 and described as remote, with a likelihood of occurrence of less than 2 percent. Increasing values are assigned to each higher probability of occurrence, culminating with the value of 5 assigned to incidents considered to be almost certain to occur.

##### 22.2.4.2 Consequence Level Table

Table 22-2 lists the consequence levels.

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ec062p5010

the JORC Code and United States SEC Regulation B(8) as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 22-2: Consequence Level Table**

| Correlation of Events in Key Elements of the Project Program to Event Severity Category |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Category | Severity of the Event | Financial Impact of the Event | Unplanned Loss of Production (Impact on Commercial Operations) | Events Impacting on the Environment | Events Affecting the Program's Social and Community Relations | Resultant Regulatory / Sovereign Risk | Events Affecting Occupational Health & Safety |
| 1 | Insignificant | < USD $0.5 million | ≤ 12 hours | Insignificant loss of habitat; no irreversible effects on water, soil and the environment. | Occasional nuisance impact on travel. | - | Event recurrence avoided by corrective action through established procedures (Engineering, guarding, training). |
| 2 | Minor | USD $0.5 million to $2.0 million | ≤ 1 day | No significant change to species populations; short-term reversible perturbation to ecosystem function. | Persistent nuisance impact on travel. Transient adverse media coverage. | - | First aid - lost time. Event recurrence avoided by corrective action through established procedures. |
| 3 | Moderate | USD $2.0 million to $10.0 million | ≤ 1 week | Appreciable change to species population; medium-term (≤10 years) detriment to ecosystem function. | Measurable impact on travel and water/air quality. Significant adverse media coverage / transient public outrage. | Uncertainty securing or retaining essential approval / license. | Medical Treatment - permanent incapacitation. Avoiding event recurrence requires modification to established corrective action procedures. |
|  |  |  |  |  |  | Change to regulations (tax; bonds; standards). |  |
| 4 | Major | USD $10.0 million to $50.0 million | 1 to 2 weeks | Change to species population threatening viability; long-term (>10 years) detriment to ecosystem function. | Long-term, serious impact on travel and use of water resources; degradation of air quality; sustained and effective public opposition. | Suspension / long-delay in securing essential approval / license. | Fatality. Avoiding event recurrence requires modification to established corrective action procedures and staff retraining. |
|  |  |  |  |  |  | Change to laws (tax; bonds; standards). |  |
| 5 | Critical | >USD $50.0 million | >1 month | Species extinction; irreversible damage to ecosystem function. | Loss of social license. | Withdraw / failure to secure essential approval / license. | Multiple fatalities. Avoiding event recurrence requires major overhaul of policies and procedures. |

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g902p20

the JORC Code and United States SEC Regulation 800 as of December 31, 2022

Central Appalachian Coal Basin

Virginia, USA

The lowest rated consequence is assigned the value of 1 and is described as an Insignificant Consequence, parameters of which include non-reportable safety incidents with zero days lost accidents, no environmental damage, loss of production or systems for less than one week and cost of less than USD $0.5 million. Increasing values are assigned to each higher consequence, culminating with the value of 5 assigned to critical consequences, the parameters of which include multiple-fatality accidents, major environmental damage, and loss of production or systems for longer than one month and cost of greater than USD $50.0 million.

### Composite Risk Matrix R = P x C and Color-Code Convention

The risk level, defined as the product of probability of occurrence and consequence, ranges in value from 1 (lowest possible risk) to 25 (maximum risk level). The values are color-coded to facilitate identification of the highest risk aspects.

Table 22-3: Risk Matrix

| P x C = R |  | Consequence (C) |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Insignificant | Minor | Moderate | Major | Critical |
| Probability Level (P) | Remote 1 | 1 | 2 | 3 | 4 | 5 |
|  | Unlikely 2 | 2 | 4 | 6 | 8 | 10 |
|  | Possible 3 | 3 | 6 | 9 | 12 | 15 |
|  | Likely 4 | 4 | 8 | 12 | 16 | 20 |
|  | Almost Certain 5 | 5 | 10 | 15 | 20 | 25 |

### 22.2.5 Categorization of Risk Levels and Color Code Convention

Very high risks are considered to be unacceptable and require corrective action. Risk reduction measures must be applied to reduce very high risks to a tolerable level.

### 22.2.6 Description of the Coal Property

The Buchanan Mine Complex is located in Buchanan and Tazewell Counties, Virginia and operates a longwall section with supporting continuous mining sections. Operations are projected to continue in the present mode until reserves are depleted in 2044.

### 22.2.7 Summary of Residual Risk Ratings

Each risk factor is numbered, and a risk level for each is determined by multiplying the assigned probability by the assigned consequence. The risk levels are plotted on a risk

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g902p210

the JORC Code and United States SEC Regulation B&O as of December 31, 2022
Central Appalachian Coal Basin
Virginia, USA

matrix to provide a composite view of the Coronado risk profile. The average risk level is 7.1, which is defined as Moderate.

Table 22-4: Risk Assessment Matrix

| Consequence | Critical | >$50 MM | 8,9 |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Major | $10-50MM |  |  |  | 6 |  |
|  | Moderate | $2-10 MM | 11 | 1,2,4 | 3 |  |  |
|  | Minor | $0.5-$2 MM |  |  | 12 | 5 | 7 |
|  | Low | <$0.5 MM |  |  | 10 |  |  |
|  |  |  | <10% Remote | 10-30% Unlikely | 30-60% Possible | 60-90% Likely | >90% Almost Certain |

### 22.2.8 Risk Factors

A high-level approach is utilized to characterize risk factors that are generally similar across a number of the active and proposed mining operations. Risk factors that are unique to a specific operation or are particularly noteworthy are addressed individually.

#### 22.2.8.1 Geological and Coal Resource

Coal mining is accompanied by risk that, despite exploration efforts, mining areas will be encountered where geological conditions render extraction of the resource to be uneconomic, or that coal quality characteristics disqualify the product for sale into target markets.

Offsetting the geological and coal resource risks are the massive size of the controlled property which allows large areas to be mined in the preferred mine areas sufficiently away from areas where coal quality and mineability may be less favorable. This flexibility, combined with the extensive work done to define the reserve, reduces the risk at Buchanan below that of other mine properties.

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![W2020 logo]() W2020

the JORC Code and United States SEC Regulation 102 as of December 31, 2022  
 Central Application for Coal Basin  
 Virginia, USA

**Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | I |  | P | C | I |
| Recoverable coal tonnes recognized by significantly less than previously estimated. | Reserve base is adequate to serve market commitments and respond to opportunities for many years. Local adverse conditions may increase frequency and cost of production unit relocation. | Previous and ongoing exploration and extensive regional mining history provide a high level of confidence of coal seam correlation, continuity of the coal seams, and coal resource tonnes. | 3 | 4 | 12 | Optimize mine plan to increase resource recovery; develop mine plan to provide readily available alternate mining locations to sustain expected production level. | 2 | 3 | 8 |
| Coal quality locally proves to be lower than initially projected. | If uncontrolled, production and sale of coal that is out of specification can result in rejection of deliveries, cancellation of coal sales agreements and damage reputation. | Exploration and vast experience and history in local coal seams provide confidence in coal quality; limited excursions can be managed with careful product segregation and blending. | 2 | 5 | 10 | Develop mine plan to provide readily available alternate mining locations to sustain expected production level; modify coal sales agreements to reflect coal quality. | 2 | 4 | 8 |

### 22.2.8.2 Environmental

MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Property in April 2016 on behalf of Coronado. MM&A concluded that no long-term liabilities existed at the time of this ESA.

Water quality and other permit requirements are subject to modification and such changes could have a material impact on the capability of the operator to meet modified standards or to receive new permits and modifications to existing permits. Permit protests may result in delays or denials to permit applications.

Environmental standards and permit requirements have evolved significantly over the past 50 years and to date, mining operators and regulatory bodies have been able to adapt successfully to evolving environmental requirements.

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the JORC Code and United States SEC Regulation 1982 as of December 31, 2022

Central Appalachian Coal Basin

Virginia, USA

Table 22-6: Environmental (Risks 3 and 4)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Environmental performance standards are modified in the future. | Delays in receiving new permits and modifications existing permits; cost of testing and treatment of water and soils. | Work with regulatory agencies to understand and influence final standards; implement testing, treatment and other actions to comply with new standards. | 3 | 4 | 12 | Modify mining and reclamation plans to improve compliance with new standards while reducing cost of compliance. | 3 | 3 | 9 |
| New permits and permit modifications are increasingly delayed or denied. | Interruption of production delayed implementation of replacement production for new mining areas. | Comply quickly with testing; treatment and other actions required; continue excellent compliance performance within existing permits. | 4 | 4 | 8 | Establish and maintain close and constructive working relationships with regulatory agencies, local communities and community action groups. Prepare and submit permits well in advance of needs. | 3 | 3 | 6 |

### 22.2.8.3 Regulatory Requirements

Federal and state health and safety regulatory agencies occasionally amend mine laws and regulations. The impact is industry-wide. Mining operators and regulatory agencies have been able to adapt successfully to evolving health and safety requirements.

Table 22-7: Regulatory Requirements (Risk 5)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Federal and state mine safety and health regulatory agencies amend mine laws and regulations. | Cost of training, materials, supplies and equipment; modification of mine examination and production procedures; modification of mining plans. | Participate in hearings and workshops when possible to facilitate understanding and implementation; work cooperatively with agencies and employees to facilitate implementation of new laws and regulations. | 4 | 3 | 12 | Familiarity and experience with new laws and regulations results in reduced impact to operations and productivity and improved supplies and equipment options. | 4 | 2 | 8 |

### 22.2.8.4 Market and Transportation

Most of the current and future production is expected to be directed to domestic and international metallurgical markets. Historically the metallurgical markets have been cyclical and highly volatile.

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the JORC Code and United States SEC Regulation 800 as of December 31, 2022

Central Appalachian Coal Basin

Virginia, USA

Table 22-8: Market and Transportation (Risk 6)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Volatile coal prices directly and preciptously. | Loss of revenue adversely affects profitability; reduced cash flow may disrupt capital expenditures plan. | Cost control measures implemented; capital spending deferred. | 4 | 5 |  | High-cost operations closed, and employees temporarily furloughed. | 4 | 4 | 10 |

Occasional delay or interruption of rail, river and terminals service may be expected. The operator can possibly minimize the impact of delays by being a preferred customer by fulfilling shipment obligations promptly and maintaining close working relationships.

Table 22-9: Market and Transportation (Risk 7)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Rail or river transport is delayed; storage and shipping access at river and ocean terminals is not available. | Furnishment of coal sales agreements delayed; limited coal storage at mines may increase cost of rehandling production may be temporarily lifted. | Provide adequate storage capacity at mines; coordinate continuously with railroad and shipping companies to respond quickly and effectively to changing circumstances. | 5 | 3 | 15 | Provide back-up storage facility along with personnel, equipment and rehandle plan to sustain production and fulfill sales obligations timely. | 5 | 2 | 10 |

### 22.2.8.5 Mining Plan

Occupational health and safety risks are inherent in mining operations. Comprehensive training and retraining programs, internal safety audits and examinations, regular mine inspections, safety meetings, along with support of trained fire brigades and mine-rescue teams are among activities that greatly reduce accident risks. Employee health-monitoring programs coupled with dust and noise monitoring and abatement reduce health risks to miners.

As underground mines are developed and extended, observation of geological, hydrogeological and geotechnical conditions leads to modification of mine plans and procedures to enable safe work within the mine environments.

Highlighted below are selected examples of safety and external factors relevant to Coronado operations.

#### 22.2.8.5.1 Methane Management

Coalbed methane is present in coal operations below drainage. Often the methane concentration in shallow coal seams is at such low levels that it can be readily managed with frequent testing and monitoring, vigilance, and routine mine ventilation. Very high methane concentrations may be present at greater depths, as experienced in the Pocahontas No. 3 seam at Buchanan Mine Complex in Virginia. High methane concentrations may require

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![JOB 2020 logo]()

the JOBC Code and United States SEC Regulation 830 as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

degasification of the coal seam to assure safe mining. The Buchanan Mine has operated safely for many years in one of the most intense methane environments in the United States through careful management of coal seam degasification, gob degasification and mine-ventilation procedures.

**Table 22-10: Methane Management (Risk 8)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Methane hazard is present in mines operating below drainage. | Injury or loss of life; possible ignition of gas and mine explosion; potential loss of mine and equipment temporarily or permanently; additional mine fan, mine power, ventilation, monitoring and examination requirements. | Low to moderate levels can be managed with frequent examinations, testing and monitoring within the mine ventilation system. Excellent rock dust maintenance minimizes explosion propagation risk should an ignition occur. | 1 | 5 | 5 | Very high-level methane concentrations may require coal seam degasification and gob degasification of longwall or pillar extraction methods are employed. | 1 | 5 | 5 |

# **22.2.8.5.2 Mine Fires**

Mine fires, once common at mine operations, are rare today. Most active coal miners have not encountered a mine fire. Vastly improved mine power and equipment electrical systems, along with safe mine practices, reduce mine fire risks. Crew training and fire brigade support and training improve response for containment and control if a fire occurs. Spontaneous combustion within coal mines, which is the source of most fires that occur today, is not expected to occur at Buchanan.

**Table 22-11: Mine Fires (Risk 9)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Mine fire at underground or surface mine operation. | Injury or loss of life; potential loss of mine temporarily or permanently; damage to equipment and mine infrastructure. | Inspection and maintenance of mine power, equipment and mine infrastructure; good housekeeping; frequent examination of conveyor belt entries; prompt removal of accumulations of combustible materials. | 1 | 5 | 5 | If spontaneous combustion conditions are present, enhanced monitoring and examination procedures will be implemented; mine design will incorporate features to facilitate isolation, containment and extinguishment of spontaneous combustion locations. | 1 | 5 | 5 |

# **22.2.8.5.3 Availability of Supplies and Equipment**

The industry has periodically experienced difficulty receiving timely delivery of mine supplies and equipment. Availability issues often accompanied boom periods for coal demand. Any future delivery of supplies and equipment delays are expected to be temporary with limited impact on production.

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the JORC Code and United States SEC Regulation 580 as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 22-12: Availability of Supplies and Equipment (Risk 10)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Disruption of availability for supplies and equipment. | Temporary interruption of production. | Force majeure provision of coal sales agreements to limit liability for delayed or lost sales. | 3 | 2 | 6 | Work closely with customers to assure delayed coal delivery rather than cancelled sales; monitor external conditions and increase inventory of critical supplies; accelerate delivery of equipment when possible. | 3 | 1 | 3 |

# **22.2.8.5.4 Labor**

Work stoppage due to labor protests are considered unlikely and are accompanied by limited impact should it occur. Excellent employee relations and communications limit the exposure to outside protesters. Loss of supervisors and skilled employees to retirement is inevitable; the impact can be lessened with succession planning and training and mentorship of new employees.

**Table 22-13: Labor - Work Stoppage (Risk 11)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Work stoppage due to strikes, slowdowns or secondary boycott activity. | Loss of production and coal sales; damaged customer employee relations; repulsions. | Maintain excellent employee relations and communications; maintain frequent customer communications. | 1 | 3 | 3 | Develop plan for employee communications and legal support to minimize impact of secondary boycott activities. | 1 | 3 | 3 |

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![SOC 2022-23 logo]()

the JORC Code and United States SEC Regulation 2022 as of December 31, 2022  
 Central Appalachian Coal Basin  
 Virginia, USA

**Table 22-14: Labor - Retirement (Risk 12)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Retirement of supervisors and skilled employees. | Loss of leadership and critical skills to sustain high levels of safety, maintenance and productivity. | Monitor demographics closely and maintain communications with employees who are approaching retirement age; maintain employee selection and training programs. | 3 | 3 | 9 | Maintain selection of candidates and implementation of in-house or third-party training for electricians and mechanics; develop employee mentoring program. | 3 | 2 | 6 |

## 23 Recommendations

Coronado is continuing to work both internally and with outside assistance to further define their resource base and to optimize the LOM plan.

## 24 References

Publicly available information from various state and federal agencies was used where relevant.

## 25 Reliance on Information Provided by the Registrant

A summary of the information provided by Coronado relied upon by MM&A for the purposes of this TRS is provided in *Table 25-1*.

**Table 25-1: Information from Registrant Relied Upon by MM&A**

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Marketing | Long-term price forecast used in financial projections | 16.2 |
| Legal | Mineral control and surface control rights as shown on maps | 3.2, 3.3 |
| Environmental | Permit and bonding information | 17.3 |

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# APPENDIX

# A

MM&A QUALIFICATIONS

A-0629-0000

www.ajr.com

# APPENDIX

# B

MAP

B+06/2718

![Creative Commons BY-NC-ND license logo]() v.962p7210

# APPENDIX

# C

GLOSSARY OF ITEMS

V0962p7140

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Appendix C

# **Glossary of Abbreviations and Definitions**

| Abbreviation | Definition |
| --- | --- |
| AIPG | American Institute of Professional Geologists |
| ARMPS | Analysis of Retreat Mining Pillar Stability |
| ASTM | ASTM International |
| AVS | Applicant Violator System |
| bcm | Bank cubic meters |
| Btu/lb. | British Thermal Unit per pound |
| CAP | Caterpillar Inc. |
| C.P.G. | Certified Professional Geologist |
| Carlson | Carlson Mining - formerly SurvCADD- a prevalent software package used for modeling in the Appalachian region |
| CFR | Code of Federal Regulations |
| CBM | Coalbed Methane |
| Coronado | Coronado Global Resources Inc. |
| CSR | Codes of State Rules |
| CSX | CSX Corporation, a rail-based freight transportation company |
| CTR | Contour mining |
| Demonstrated reserves | Demonstrated reserves are the sum of proven and probable reserves. |
| DEP | Department of Environmental Protection |
| EBITDA | Earnings before Interest, Taxes, Depreciation, and Amortization |
| EOM | End-of-mine reclamation |
| EPA | United States Environmental Protection Agency |
| ESA | Limited Phase I Environmental Site Assessment |
| EVR | Estimated Visual Recovery |
| Feasibility Study | “...comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors together with any other relevant operational factors, and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. According to the proposed definition, the results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. Thus, a feasibility study is more comprehensive, with a higher degree of accuracy, and yielding results with a higher level of confidence, than a pre-feasibility study.” |
| Hitachi | Hitachi Construction Machinery Co., Ltd. |
| HWM | Highwall mining |
| In situ | Its natural position; said specific of a rock, soil, or fossil when in the situation in which was originally formed or deposited |
| Indicated Resources | Indicated resources are those lying between 0.4-kilometer and 1.2-kilometer radius from such an observation point and reported herein as in-situ mineral resources. |
| Inferred Resources | Inferred resources lie more than a 1.2-kilometer radius from a valid point of measurement but less than 4.8 kilometers from one and reported herein as in-situ mineral resources. |
| JORC Code | Australasian Code for Reporting of Exploration Results, Mineral Resources and |

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Appendix C

| Abbreviation | Definition |
| --- | --- |
|  | Ore Reserves |
| lb. SQ / mm Btu | Pounds per sulfur dioxide per million British thermal units |
| LJ Hughes | LJ Hughes & Sons, Inc. - drilling Company |
| LOM | Life-of-mine |
| M&R | Maintenance and repair |
| M.B.A. | Master of Business Administration |
| Measured Resources | Measured resources are those lying within 0.4-kilometer radius from a valid point of measurement and reported herein as in-situ mineral resources. |
| MINER Act | Mine Improvement and New Emergency Response Act of 2006 |
| Mineral Reserve | “...the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes dilution materials and allowances for losses, which occur when the material is mined or extracted and is defined by studies at Preliminary Feasibility or Feasibility level as appropriate that include Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction of the mineral reserve is economically viable under reasonable investment and marketing assumptions.” |
| Mineral Resource | “...a concentration or occurrence of solid material of economic interest or on the Earth’s crust in such form, grade or quality that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.” |
| MM&A | Marshall Miller & Associates, Inc. |
| Modifying Factors | “...considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental compliance, plans, negotiations, or agreements with local individuals or groups and governmental factors.” |
| MRMR | Mineral Resources to Mineral Reserves |
| MSHA | United States Department of Labor Mine Safety and Health Administration |
| MSL | Mean sea level |
| Mt | Million metric tonnes |
| NAIP | National Agricultural Imagery Program |
| NIOSH | National Institute for Occupational Safety and Health |
| NS | Norfolk Southern Corporation, a rail-based freight transportation company |
| O&M | Operating and maintenance |
| OSD | Out-of-seam dilution |
| OSM | U.S. Office of Surface Mining Reclamation and Enforcement |
| P&L | Profit and loss before tax |
| P.E. | Professional Engineer |
| Preliminary Feasibility Study | “...as a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. The study’s financial analysis must have |

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Appendix C

| Abbreviation | Definition |
| --- | --- |
|  | the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. In addition, as noted in the proposed definition of a pre-feasibility study, while a pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study, a pre- feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.' |
| Property(ies) | Bituminous coal deposits located in Buchanan and Tazewell Counties, Virginia. |
| QP | Qualified Person |
| Qualified Person | '...a person who is a mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant. In addition, the proposed definition requires a qualified person to be an eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared.' |
| Rec. | Recovery |
| RECs | Recognized Environmental Conditions |
| Resource Database | The Resource Database is established by the collection, validation, recording, storing and processing of data and forms the foundation necessary for the estimation of Mineral Resource and Mineral Reserve. A quality assurance and quality control program is essential and must be established to govern the collection of all data. In reporting, a Mineral Resource must meet the minimum requirement of 'reasonable prospects for economic extraction'. This will require the concurrent collection and storage of preliminary economic, mining, metallurgical, environmental, legal and social data and other information for use in the estimation of MRMR. The Resource Database will include both 'primary' (observation and measurement) and 'interpreted' data. It is recommended that data be stored digitally, using a documented, standard format and a reliable storage medium that allows for easy and complete retrieval of the data. |
| ROM | Run-of-mine |
| RPO | Recognized Professional Organizations |
| S-K 1300 | United States Securities and Exchange Commission Regulation S-K 1300 Modernization of Property Disclosures |
| SEC | U.S. Securities and Exchange Commission |
| SME | Society for Mining Engineers |
| SMCRA | Surface Mining Control and Reclamation Act of 1977 is the primary federal law that regulates the environmental effects of coal mining in the United States. |
| Strip Ratio | Represented by bcm of overburden to recoverable coal tonnes |
| tph | tonnes per hour |
| TRS | Technical Report Summary |
| USA | United States of America |
| USFW | United States Fish and Wildlife |
| USGS | United States Geologic Survey |

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Appendix C

| Abbreviation | Definition |
| --- | --- |
| VALMIN Code | Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets |
| VulcanTM | VulcanTM software is a product of MaptekTM, a provider of software for the global mining industry. |

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# APPENDIX

# E

JORC TABLE 1

w962p7140

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basin -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

# Section 1 Sampling Techniques and Data

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Sampling techniques | > Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sundae, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. > Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. > Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. | > Most of the coal samples have been obtained from the Properties by subsurface exploration using core drilling techniques. The protocol for preparing and testing the samples has varied over time and is not well documented for the older holes drilled on the Properties. > Typical USA core drilling sampling technique is for the coal core sample, once recovered from the core barrel, to be described then wrapped in a sealed plastic sleeve and placed into a covered core box, which is the length of the sample so that the core can be delivered to a laboratory in relatively intact condition and with original moisture content. > It is reasonable to assume, given the sophistication level of the previous operators, that these samples were generally collected and processed under industry best practices. This assumption is based on MM&A's familiarity with the operating companies and the companies used to perform the analysis. > Some of the drill holes were air rotary bored and no coal core samples were collected. Seam thickness for rotary-drilled bore holes is verified by calibrated downhole gamma-density logs. > Coal samples that were deemed by MM&A geologists to be unrepresentative were not used for statistical analysis of coal quality, as documented in the tabulations. A representative group of drill hole samples from the Properties were then checked against the original drill laboratory reports to verify accuracy and correctness. |
| Drilling techniques | > Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond soils, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). | > The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado. The majority of the drilling was accomplished using vertical continuous (diamond) coring or air rotary methods. > Core drilling methods utilize NX-size (5.4 centimeter) or similar-sized core cylinders to recover core samples, which can be used to delineate geologic characteristics, and for coal quality testing and geotechnical logging. > Data for the rotary drilled holes is mainly derived from downhole geophysical logs, which are used to interpret coal and rock thickness and depth since logging of the drill castings is not reliable. > Geophysical logging was performed on many of the holes, either by Geological Logging Systems (a division of MM&A), other geophysical logging contractors, and on those properties acquired from CONSOL geophysical logging was often performed by CONSOL's in-house logging services. |

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basin -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Drill sample recovery | > Method of recording and assessing core and chip sample recoveries and results assessed. > Measures taken to maximise sample recovery and ensure representative nature of the samples. > Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/course material. | > Where available, core recovery thickness of coal samples was reconciled with the thickness interpreted from geophysical logs. > Core recovery of the older coal samples lacking geophysical logs is sometimes not well-documented; however, when the laboratory results for such holes had anomalous values, the data was disqualified and not used. |
| Logging | > Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. > Whether logging is qualitative or quantitative in nature. Core (or corean, channel, etc.) photography. > The total length and percentage of the relevant intersections logged. | > A wide variety of core-logging techniques exist for the properties. For many of the core holes, the primary data source is a generalized lithology description by the driller, in some cases supplemented by a more detailed core log completed by a geologist. > The logging of core thickness and depth is quantitative. With the exception of the coal seams, logging of rock strata type is more subjective and best considered as qualitative. |
| Sub-sampling techniques and sample preparation | > If core, whether cut or sawn and whether quarter, half or all core taken. > If non-core, whether riffed, tube sampled, rotary split, etc. and whether sampled wet or dry. > For all sample types, the nature, quality and appropriateness of the sample preparation technique. > Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. > Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. > Whether sample sizes are appropriate to the grain size of the material being sampled. | > Typical US practice in the Appalachian Basin is that core samples for deep minerable core samples are not sawn or subsampled (since seams are not of great thickness and the entire seam is mixed and co-mingled). > Oftentimes, core for surface-minerable coal seams are bench sampled separately by the various coal and rock layers (piles). > MM&A has exercised diligence to use only those analyses that are representative of the coal quality parameters for the appropriate mining type for each sample. |
| Quality of assay data and laboratory tests | > The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. > For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. > Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. | > Sample analysis was typically carried out by accredited US laboratories. > Standard procedure upon receipt of core samples by the testing laboratory is to log the depth and thickness of the sample, then perform testing as specified by a representative of the operating company. Each sample is then analyzed in accordance with procedures defined under ASTM International (ASTM) standards including, but not limited to, washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Bluffs (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (FSI) (ASTM D729). > Geophysical tools are calibrated by the logging company and where possible, validated using a calibration hole. |

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ysc92p20

Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basins -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Verification of sampling and assaying | > The verification of significant intersections by either independent or alternative company personnel. > The use of twinned holes. > Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. > Discuss any adjustment to assay data. | > All coal intersection data used to generate the geologic model has been cross referenced with the lithological and geophysical logs by MM&A. > Laboratory quality was adjusted from dry basis to reflect the anticipated marketable product moisture. > Coal quality results were verified by spot-check with laboratory analysis sheets by MM&A before inclusion into the geologic model and use in the resource estimate. |
| Location of data points | > Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. > Specification of the grid system used. > Quality and adequacy of topographic control. | > Due to the long history of exploration by various parties on the Properties, a wide variety of survey techniques exist for documentation of data point locations. Many of the older exploration drill holes appear to have been located by ground survey; more recently completed drill holes are often located by high-resolution Global Positioning System (GPS) units. > Grid systems used are typically the State Plane Coordinate System pertinent to each property. > Topography is based on either the USGS topographic 7.5-minute quadrangle maps or on recent aerial photogrammetry as necessary (subject to availability). |
| Data spacing and distribution | > Data spacing for reporting of Exploration Results. > Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. > Whether sample composition has been applied. | > Spacing and distribution of data point information may vary from seam to seam within each mining area. The areas estimated for coal resource and coal reserve tonnes have been limited so that the data spacing and distribution is sufficient to establish the degree of geological continuity appropriate for the estimation and classification of the coal tonnes. > All of the coal resource tonnes are in the measured, indicated, and inferred categories, and all of the coal reserve tonnes are in the proved and probable categories in accordance with the JORC Code and SEC standards. |
| Orientation of data in relation to geological structure | > Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. > If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | > Drill holes have been vertically drilled. No downhole deviation logs have been collected and it is therefore not known if the drill holes have deviated away from vertical. Based on the relatively shallow seam depths, any deviation is expected to be insignificant and immaterial to the geologic characterization of the Property. > The dip of the coal seams is relatively minor and not a material issue for representation of seam thickness or quality. |
| Sample security | The measures taken to ensure sample security. | > Sample handling procedures employed by explorationists follow typical US protocol and should be adequate to insure sample security. |
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. | > MM&A has reviewed all available geological information for the Properties in developing the geologic model. Only that data deemed suitable has been used for the purpose of generating the resource and reserve estimates. |

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Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

## Section 2 Reporting of Exploration Results

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Mineral tenement and land tenure status | > Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. > The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. | > The Coronado coal resources are located within three of the United States of America: Virginia, West Virginia, and Pennsylvania. Control of these Properties is governed by many hundreds of agreements. > MM&A has not carried out separate title verification for the coal properties and has not verified losses, deeds, surveys or other property control instruments pertinent to the subject resources. > Coronado has represented to MM&A that it controls the mining rights to the coal deposits as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management. > There are no known legal or environmental encumbrances that would impede development of the subject coal reserves. |
| Exploration done by other parties | > Acknowledgment and appraisal of exploration by other parties. | > The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado. > This exploration work was generally performed to prevailing US best practice standards and deemed adequate for the purposes of this TRS. |
| Geology | > Deposit type, geological setting and style of mineralisation. | > The Coronado coal resources are located within the Northern and Central Appalachian Coal Basin. > The coal deposits are Carboniferous in age, being of the Pennsylvania system. > Seam of economic significance typically range between 0.3 meters and 1.8 meters in thickness, with relatively little structural deformation. > Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent. |
| Drill hole information | > A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. > If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Component Person should clearly explain why this is the case. | > MM&A reviewed and entered all pertinent data into a digital geologic database for each Coronado property. The database consists of thousands of data records, which include drill hole and supplemental coal seam thickness measurements from outcrop and mine exposures. > All drill holes in the database are provided with a collar elevation and the State Plane Coordinate System easting and northing coordinate. > After MM&A confirmed proper coal seam thickness and correlation, the seam data was modelled and compiled into coal resource maps. > The maps are provided in the TRS; however, a tabulation of the thousands of individual data records is not practical to include. |

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basins -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Data aggregation methods | > In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. > Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. > The assumptions used for any reporting of metal equivalent values should be clearly stated. | > Where a coal seam has been bench sampled (typically for surface mining) the individual analyses for the coal piles are normally weight-averaged to represent the total of recoverable coal. > Coal quality summary results have been documented in the TRS. Average coal quality on a per-seam basis is used to represent the coal resources within a given mining area. > Average coal quality for each Coronado complex is provided in Tables 1-1, 1-2 and 1-3 of this TRS. > No other data aggregations methods are used. |
| Relationship between mineralisation widths and intercept lengths | > These relationships are particularly important in the reporting of Exploration Results. > If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. > If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known'). | > Coal thickness values from all coal intersections and down hole geophysical logs are considered to be vertical thicknesses. Seam dip of approximately 2.0 to 3.0 degrees has little effect on the vertical thickness of the seam. |
| Diagrams | > Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. | > Diagrams and maps showing the coal seam intercepts are presented in the TRS. |
| Balanced reporting | > Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. | > All of the available, qualified exploration data has been included within the tabulations, maps, and diagrams for this TRS. > Both coal thickness and quality data are deemed by MM&A to be reasonably sufficient within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data. |
| Other substantive exploration data | > Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. | > Informational material available from the U.S. Geological Survey and the respective State Surveys was used to assist in the Resource estimate. |
| Further work | > The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). > Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | > Further work is expected to include additional exploration, geotechnical testing, coal quality analyses, and coal property acquisition. |

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yoc92p20

Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Races -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

### Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in the preceding section also apply to this section.)

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Database integrity | > Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. > Data validation procedures used. | > MM&A confirmed coal seam thickness and correlations in databases used for coal deposit modelling. Representative records were spot-checked for data entry validation. > Geophysical logs were used wherever available to assist in confirming the seam correlation and to verify proper seam thickness measurements and recovery of coal samples. |
| Site visits | > Comment on any site visits undertaken by the Competent Person and the outcome of those visits. > If no site visits have been undertaken indicate why this is the case. | > MM&A is very familiar with the Properties and has conducted multiple site visits throughout the years. |
| Geological interpretation | > Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. > Nature of the data used and of any assumptions made. > The effect, if any, of alternative interpretations on Mineral Resource estimation. > The use of geology in guiding and controlling Mineral Resource estimation. > The factors affecting continuity both of grade and geology. | > Due to the relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds, the principal geological interpretation necessary to define the geometry of the coal deposits is the proper modeling of their thickness and elevation. > Both coal thickness and quality data are deemed by MM&A to be reasonable within the resource areas. > Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data. |
| Dimensions | > The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. | > The subject coal resource areas mostly exist in discreet, individual deposits of highly variable dimensions, shapes and depth below the ground surface. > Such factors are best depicted in the maps contained in the TRS. > Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of the TRS. |
| Estimation and modelling techniques | > The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. > The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. > The assumptions made regarding recovery of by-products. > Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation). > In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. | > Geological data was imported into Carbon Mining® (formerly SurvCAD®) geological modelling software in the form of Microsoft® Excel files incorporating, drill hole collars, seam and thickness picks, bottom seam elevations and raw and washed coal quality. These data files were validated prior to importing into the software. > Once imported, a geologic model was created. > The geological model was verified and reviewed. > Resources were estimated by defining seam thickness at each point of observation and by defining resource confidence arcs around the points of observation. > Points of observation for Measured and Indicated confidence arcs were defined for all drill holes that intersected the seam. > As prescribed by the common United States classification system the following distances from points |

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yoc92p20

Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basins -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > Any assumptions behind modelling of selective mining units. > Any assumptions about correlation between variables. > Description of how the geological interpretation was used to control the resource estimates. > Discussion of basis for using or not using grade cutting or capping. > The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. | of observation were used to define the corresponding Resource category arcs: - Inferred Resources - greater than 3,960 feet (1.2 kilometers) but less than 15,840 feet (4.8 kilometers) - Indicated Resources - 3,960 feet (1.2 kilometers) - Measured Resources - 1,320 feet (0.4 kilometers) > The use of the standards commonly used in the United States are appropriate and customary for this resource jurisdiction and deposition type. > MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole Spacing Analysis (DSSA) method. > Based on MM&A's analysis, it would be possible to extend the measured, indicated and inferred arcs slightly beyond historically accepted practices due to consistent geological settings. The QP's have elected not to extend arc distances, introducing a level of conservation in the coal classification. |
| Moisture | > Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. | > Coal resource tonnes are presented on a dry, in-situ basis. > Reserve tonnes are presented on a moist basis at anticipated product moisture ranging from 4.0 to 6.0 percent. Moisture content based on historic analyses of shipped coal. |
| Cut-off Parameters | > The basis of the adopted cut-off grade(s) or quality parameters applied. | > The cut-off parameters were tailored for each of the Coronado properties to be in accordance with mining/processing capabilities and market conditions prevalent at each operation. > Examples include minimum recoverable coal thickness, acceptable ash content and wash recovery, and manageable overburden to coal ratio for surface mineable coal. > Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of this TRS. > These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and other mining operations of the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves. |
| Mining factors or assumptions | > Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. | > Mining factors such as dilution, mining and washing recovery are variable and have been applied at the coal deposits at each operation based on site-specific characteristics. > Details of the factors are cited within the TRS. > Factors that would typically preclude conversion of a coal resource to coal reserve include the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of access; insufficient exploration; or uncontrolled surface property for areas of proposed for surface mining. |

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gsc062p20

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Basin -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | While such factors were used to preclude the conversion of a very limited number of coal resources to coal reserves in this report, the extensive history of mining on the Properties would suggest that there are reasonable prospects for eventual economic extractions of all coal resources under favorable market conditions. |
| Metallurgical factors or assumptions | The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. | The products mined from coal resources controlled by Coronado can be sold into high-, mid-, and low-volatile metallurgical coal markets because of their inherent quality characteristics. Run-of-mine production is washed at the coal preparation plants as needed for quality control. Coronado may blend production from multiple sources to manage ash and sulfur content along with the rheological and petrographic characteristics of the shipped products. |
| Environmental factors or assumptions | Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. | MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Buchanan property in April 2016, and on the Logan County and Greenbrier Properties in May 2017 on behalf of Coronado. Coronado reports not having conducted such a study since the MM&A studies. The ESAs completed by MM&A included a site inspection, review of historical records, a database search of State and Federal regulatory records and interviews to identify potential recognized environmental conditions (RECs) that may create environmental liability for the sites. MM&A identified one REC at Greenbrier associated with stained soil and gravel near a fueling and maintenance area. Coronado reported to MM&A that satisfactory clean-up efforts were completed at Greenbrier. Based on these former ESAs completed by MM&A, it is MM&A's opinion that Coronado has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the TRS financial models. |
| Bulk density | Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vap, porosity, etc.), moisture and differences between rock and alteration zones within the deposit. Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. | Laboratory derived seam densities measured in specific gravity were used where available. As needed, these data were supplemented by estimated seam density values based on the relative proportion of coal and non-coal material within the seam (typically at 1.30 and 2.25 specific gravity, respectively). Average seam density was determined for each coal deposit and used to convert coal volumes into coal tonnage estimates. |
| Classification | The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). Whether the result appropriately reflects the Competent | The Resource has been classified based on suitable distances from points of observations prescribed in the common United States classification system. The use of the United States standards is appropriate and customary for this resource jurisdiction and deposition type. MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole |

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basins -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > Person's view of the deposit. | Spacing Analysis (DHA) method. > Based on MM&A's analysis, it would be possible to extend the measured, indicated and inferred arcs slightly beyond historically accepted practices due to consistent geological settings. The QP's have elected not to extend arc distances, introducing a level of conservation in the coal classification. > All relevant factors have been accounted for and reflect the Competent Person's view of the deposit. |
| Audits or reviews | > The results of any audits or reviews of Mineral Resource estimates. | > MM&A completed prepared a statement of coal resources and reserves for the Properties in accordance with the JORC Code as of December 31, 2017. MM&A also subsequently updated the estimate of resources and reserves for depletion as of December 31, 2018, December 31, 2019, December 31, 2020 and December 31, 2021. > MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S. Securities and Exchange Commission (SEC) Industry Guide 7 and USGS Circular 891 standards. > Earlier audits were performed by various independent consultants for predecessors-in-title to Coronado and at various levels of detail depending on the clients concerns and the allowed time for completion. Previous audits and reviews defined the primary coal resource areas and estimated the recoverable tonnes for each seam based on the expected mining methods. > Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado, which encompass portions of the Properties included in this TRS. |
| Discussion of relative accuracy/ confidence | > Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. > The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. > These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. | > The relative accuracy of and confidence in the coal tonnage and quality estimates provided herein are judged to be in conformance with current industry best practices. > The representation of average coal quality characteristics should be understood to represent a reasonably representative sampling that is generally indicative of coal quality and does not represent a statistically rigorous approach to coal quality modeling. > Resource estimation has been completed using standard coal estimation methods which are deemed appropriate for this deposit. |

## Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in the preceding section also apply to this section.)

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Mineral Resource estimate for conversion to Ore Reserves | > Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. | > The coal resource estimate was prepared as part of the report Coronado Global Resources Inc. Statement of Coal Resources and Reserves in Accordance with JORC Code and United States SEC Standards as of December 31, 2022 - Northern and Central Appalachian Coal Basins - Virginia, West Virginia and Pennsylvania, USA - February 2023 prepared by MM&A. |

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basin -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | > The resource estimation criteria were developed by MM&A based on the capabilities of the mining equipment used within the production model and on industry-accepted standards to assure that the basic geologic characteristics of the coal resources are in reasonable conformity with those to be mined and marketed by Coronado. |
|  | > Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves. | > Coal resources generally are reported inclusive of the coal reserves. In some cases, resources are reported in addition to coal reserves. Tables 1-1 and 11-3 of the TRS clearly identify resources "inclusive of mine plan" from which coal reserves were estimated along with those resources "exclusive of mine plan" from which no reserves were estimated. |
| Site visits | > Comment on any site visits undertaken by the Competent Person and the outcome of those visits. | > MM&A is very familiar with the Properties and has conducted multiple site visits throughout the years. |
| Study status | > The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves. | > A preliminary feasibility LOM plan was prepared by MM&A for active and proposed mines. |
|  | > The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered. | > This geologic evaluation conducted in accordance with JORC and SEC standards and in conjunction with the preliminary feasibility study is sufficient to conclude that the surface, highwall miner and underground coal reserves identified on the Properties are economically minable under reasonable expectations of market prices for thermal and metallurgical coal products, estimated operation costs, and capital expenditures. > The pre-feasibility financial models, prepared by MM&A for this TRS, was developed to test the economic viability of each coal resource area. > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors). |
| Cut-off parameters | > The basis of the adopted cut-off grade(s) or quality parameters applied. | > The cut-off parameters were tailored for each of the Coronado properties to be in accordance with mining/ processing capabilities and market conditions prevalent at each operation. > Examples include minimum recoverable coal thickness, acceptable ash content and wash recovery, and manageable overburden to coal ratio for surface mineable coal. > Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of this TRS. > These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and are typical of mining operations in the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves. |
| Mining factors or assumptions | > The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design). | > After validating coal seam data and establishing correlations, the thickness and elevation for seams of economic interest were used to generate a geologic model. > A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2023 to depletion (exhaustion) of the coal reserve areas. |

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Statement of Coal Resources and Reserves

in Accordance with SEC and the JORC Code as of December 31, 2021

Northern and Central Appalachian Coal Basin -

Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. | > The room-and-pillar mining method was selected to model the underground mining resources, utilizing continuous miners for coal extraction, shuttle cars for production section haulage and roof boilers for roof control, with the exception that the Buchanan Mine also uses longwall shears, armored face conveyors, and hydraulic self-advancing roof support. The resource areas located above drainage are relatively small and often have irregular boundaries. The Buchanan Mine in Buchanan County, Virginia is the only active longwall mine currently being operated by Coronado. > The Coronado underground mining resource areas which are located above-drainage require an access road and mine access development along the outcrop, whereas below-drainage mines are accessed via shaft or slope based on other proposed surface infrastructure locations and/or surface property control. > The surface mining method selected utilizes highly productive hydraulic shovels, front-end loaders, large roaches and rock tracks for overburden removal. The mobile equipment spreads adapt readily to winding coal outcrops for contour surface mining and are effective for point-removal and area mining applications. > Application of highwall and auger mining units is an effective method to recover coal resources not suitable for underground mining and under excessive cover for surface mining. |
|  | > The assumptions made regarding geotechnical parameters (e.g. pit slopes, slope sizes, etc.), grade control and pre-production drilling. | > Mining plans for potential underground mines were developed by MM&A. Pillar stability was tested by MM&A using the Analysis of Coal Pillar Stability (ACP) program that was developed by the National Institute for Occupational Safety and Health (NIOSH). > Coronado must obtain approved mining plans from United States Department of Labor Mine Safety and Health Administration (MSHA) that define safety parameters for the highwalls developed during contour and area mining. MM&A's planning model does not require input of specific highwall design parameters, but provides for timing of mining within mine plan polygons that is representative of the operation performance attained at Central Appalachia surface mines. > Highwall and auger mining is conducted under highwalls designed and constructed to meet MSHA permit requirements. To better assure highwall stability and safety during highwall coal extraction, MSHA requires that coal feeders, or stumps, be left in place between successive cuts. Periodic barrier pillars must be left in place as an additional safeguard. MM&A has adjusted the expected mining recovery for highwall and auger mining resources to reflect highwall stability and safety requirements. |
|  | > The major assumptions made and Mineral Resource model used for pit and slope optimisation (if appropriate). | > Underground Mining Resources: For metallurgical resources, minimum coal seam thickness extends down to between 0.6 and 1.2 meters and a minimum overburden (depth of cover) of 30.5 meters. A 61-meter horizontal distance is maintained from abandoned mines and sealed or pillared areas, and a 30-meter horizontal distance is maintained from planned highwall miner panels. Mine recovery is reduced when a rider coal seam is present within a 1.5- to 3.0-meter interval above the coal seam. No mining is projected when the interval between overlying and underlying reserves is less than 12 meters. > Surface Mining Resources: For classification as a surface-minable resource, a seam must be at least 0.3 meters in thickness as a stand-alone (principle) seam and 0.15 meters in thickness when less than 0.8 meters from a principal seam. The maximum cumulative area mining strip ratio is generally |

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Statement of Coal Resources and Reserves
in Accordance with SEC and the IORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: IORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | 20:1 for thermal coal and 30:1 for metallurgical coal. Some areas were assessed for their economic viability at higher rates, and were included as reserves if deemed economic. For contour surface mining, a minimum of 38-meter bench is provided to support HWM. > HWM and Auger Mining Resources: HWM cut depth (penetration) is established at a maximum of 244 meters. The minimum mineable coal thickness is limited at 0.6 meters. For coal seams less than 0.8 meters thick, roof and/or floor characteristics must allow OSD cutting to maintain a 0.8-meter minimum cutting height. Auger mining cut depth is established at an average of 91 meters. The minimum mineable coal thickness is limited at 0.5 meters. |
|  | > The mining dilution factors used. | > Underground Mining Reserves: The planning model assigns minimum mining heights of 1.4 to 1.8 meters for mains and panel development. At the Buchanan Mine, a minimum mining height of 1.8 meters was used due to the longwall mining method being employed. For coal seams thinner than the assigned mining height, the difference between the coal seam height and assigned mining height consists of OSD. In all cases a minimum of 0.05 meters of OSD was assumed, with the exception of the Mon Valley mines, where a minimum 0.15 meters of OSD was assumed due to weaker floor strata. > Surface Mining Reserves: Area mining is generally limited to a cumulative overburden ratio of 30:1 and a 15:1 ratio for contour mining. Exceptions were considered for mining of metallurgical grade coal where deemed economical. It is assumed that careful cleaning of exposed coal pits will result in minimal OSD. > HWM and Auger Mining Reserves: The mining plan assumes that the HWM cutting height is a minimum of 76 to 99 centimeters for clearance purposes. When the coal seam is less than 76 to 99 centimeters thick, OSD assumed and included in the ROM product. Because the auger has very limited OSD cutting ability, it is assumed that an appropriate auger diameter will be chosen based on the coal seam thickness and that OSD will be minimal. |
|  | > The mining recovery factors used. | > Underground Mining Reserves: Mine recovery generally varies between 40 and 60 percent for continuous mining panels, and 100 percent for longwall. > Surface Mining Reserves: Mining recovery is 90 percent for virgin areas. Mining recovery is reduced where second mining is projected in previously underground and auger mined areas. > HWM and Auger Mining Reserves: A mine recovery of 40 percent has been applied for HWM. A mine recovery of 35 percent has been applied for auger mining. |
|  | > Any minimum mining widths used. | > Underground Mining Reserves: Typical entry width is 5.8 to 6.1 meters. |
|  | > The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion. | > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors). > Mine plan LOM tonnage includes inferred coal and those areas that do not meet the minimum coal thickness requirement for classification as reserve. Inferred coal represents approximately 0.6% of the LOM production for Mon Valley and 0.000001% of the total LOM production for Logan. None of this coal was included in the estimate of reserves. |

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Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Basin -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > The infrastructure requirements of the selected mining methods. | > Underground Mining Resources: The continuous mining method provides for the extraction of coal from the production faces using continuous miners (and longwall shearing machine at Buchanan) and haulage using shuttle cars or battery haulers to a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor. A chain conveyor is used to remove coal from the longwall face at the Buchanan Mine for placement onto the conveyor belt which is ultimately delivered to an underground storage bunker. Roof-holding machines are used to install roof holes, and battery scoops are available to clean the mine entries and assist in delivery of mine supplies to work areas. Surface ventilation fans are installed as needed to provide a sufficient volume of air to ventilate production sections, coal haulage and transport entries, battery charging stations, and transformers in accordance with approved plans. > Coronado currently operates three coal preparation plants, one each at the Buchanan, Logan County and Greenbrier Divisions. The Buchanan Plant operates at a feed rate of approximately 907 raw tonnes per hour (tph), whereas the Saunders Plant (Logan County Division) has a nominal feed rate of 816 tph, and the Mountaineer Plant (Greenbrier Division) operates at 544 tph. MM&A has included capital estimates for construction of additional coal preparation plants at the Russell County and Mon Valley Complex for the purposes of this TRS. > Surface Mining Resources: The surface mining mobile equipment spreads advance the contour and area mining pits while systematically reclaiming the trailing side of pits where coal has been removed. The coal haul roads are extended and maintained as the pits advance. Support facilities are maintained nearby but away from the active mining, and include storage areas for blasting agents, fuel and lubricants, and mine supplies along with maintenance facilities and offices. Most of the surface mine production is transported to a loading point for crushing, blending and direct-shipment to customers. > HWM and Auger Resources: The HWM equipment advances along with the contour mining pits. The rate of advance of the contour mining is governed by the advancement rate of the HWM. A diesel-powered generator trails the highwall miner and powers the continuous mining unit. Other support facilities are provided along with the contour mining support facilities. HWM production is all transported by truck to the coal preparation plant for washing. |
| Metallurgical factors or assumptions | > The metallurgical process proposed and the appropriateness of that process to the style of mineralisation. | > Coarse material is washed in a heavy medium vessel. Intermediate-size material is washed in heavy medium cyclones. Fine material is washed using conventional fresh flotation cells. |
|  | > Whether the metallurgical process is well-tested technology or novel in nature. | > Processes are typical of those used in the coal industry and are in use at adjacent coal processing plants. |
|  | > The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical demining applied and the corresponding metallurgical recovery factors applied. | > The quality characteristics for the subject coal resources and coal reserves have been reviewed in detail by MM&A. The drill hole data were utilized to develop average coal quality characteristics mining site. These average coal quality characteristics were then utilized as the basis for determining the various markets into which the saleable coal will likely be placed. |
|  | > Any assumptions or allowances made for deleterious elements. | > No significant effects on product quality are anticipated from dilution material; float product quality was used to model final product quality. |

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![JOBE logo]()

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JOBE Code as of December 31, 2021  
 Northern and Central Appalachian Coal Basin -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JOBE Table 1

| Criteria | JOBE Code explanation | Commentary |
| --- | --- | --- |
|  | > The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the on-body as a whole > For minerals that are defined by a specification, has the rere reserve estimation been based on the appropriate mineralogy to meet specifications? | > No bulk sample or pilot scale work has been completed. > Notwithstanding the complexity of the coal quality data set, the seams of the central and northern Appalachian coalfields have a long history of providing both high-flux thermal coals and high-, mid- and low-volatile coking coals with favorable metallurgical properties. |
| Environmental | > The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported. | > MM&A completed a Limited Phase I Environmental Site Assessment (ES) on the Buchanan property in April 2016, and on the Logan County and Greenbrier Properties in May 2017 on behalf of Coronado. > MM&A identified one REC at Greenbrier associated with stained soil and gravel near a fueling and maintenance area. Coronado reported to MM&A that satisfactory clean-up efforts were completed at Greenbrier. > Based on these former ESAs completed by MM&A, it is MM&A's opinion that Coronado has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the TRS financial models. |
| Infrastructure | > The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed. | > Coronado currently operates one surface mine (Tinney Fork Mine at the Logan Mine Complex); Coronado also controls the idle Midland Surface Mine at the Greenbrier Mine Complex. > Coronado operates five underground mines as follows: Buchanan Mine at the Buchanan Mine Complex; Windfiel, Eagle No. 1, Muddy Bridge and Lower War Eagle Mines in the Logan Mine Complex; the Mountaineer #1 Mine at the Greenbrier Mine Complex is currently idle. > All ROM production is currently planned for either truck transportation from the mines to the processing or shipping facilities, or in some cases there is either a current or planned mine-mouth preparation plant and barge/rail loading facility. > There is a network of public highways that provide serviceable coal haul routes and private, internal roads on the Properties would be developed as may be needed. Rail service to the Properties is most readily provided by NS and CS with connections to both domestic consumers and international trans-shipment points. NS truck is located across the Monongahela River from the proposed Pangborn Hollow load-out facility. Coal would be shipped to customers via barge and rail and sold as both metallurgical and thermal products. |

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Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Basin -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Costs | The derivation of, or assumptions made, regarding projected capital costs in the study. The methodology used to estimate operating costs. | Coronado provided historical and 5-year budget operating costs for its active mines for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed personnel schedules for each mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for real control costs and other mine supply costs at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs. Surface mine direct operating costs were developed as a function of overburden ratio for repair and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies and services. Operating costs for highwall mines are based on costs per ROM stone estimates. Other cost factors were developed for coal preparation plant processing, refuse handling, coal loading, trucking, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees. Capital schedules were developed by MM&A for mine development, infrastructure, and on-going capital requirements for the life of each projected mine. Staffing levels were prepared and operating costs estimated by MM&A for each projected mine. MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs. |
|  | Allowances made for the content of deleterious elements. | No allowances have been made for deleterious elements; no impact to quality from deleterious elements is anticipated. |
|  | The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co-products. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | Derivation of transportation charges. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |

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Statement of Coal Resources and Reserves
in Accordance with SEC and the IORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: IORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. The allowances made for royalties payable, both Government and private. | MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs. All ROM production is currently planned for either truck transportation from the mines to the processing or shipping facilities, or in some cases there is either a current or planned mine mouth preparation plant and barge/tail loading facility. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black king excise tax, and federal and state reclamation fees. |
| Revenue factors | The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products. | Coal sales prices as defined above. All reported reserves are on a marketable basis. |
| Market assessment | The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | A customer and competitor analysis along with the identification of likely market windows for the product. | All of the mine production serves metallurgical and thermal markets. The metallurgical coal is marketed as high-volatile (typically 28 percent or greater volatile matter content); mid-volatile (typically 23- to 27-percent volatile matter content) and low-volatile (typically less than 23 percent volatile matter content) products. Raw ROM production that requires washing is currently processed through Coronado owned and operated coal preparation plants. ROM coal that does not require further processing is delivered directly to the loading points for sizing and delivery to customers. Coronado has access to two rail-loading points serviced by the Norfolk Southern Corporation and two rail-loading points serviced by CSX Corporation . |
|  | Price and volume forecasts and the basis for these forecasts. | Carlson Mining ® was used by MM&A to generate mine plans for underground- and surface-mineable coal seams. Underground mine plans were sequenced based on productivity schedules provided by Coronado, which were based on historically achieved productivity levels. Surface mine plans were generated under productivity assumptions (bank cubic yard per shift) as provided by Coronado and reviewed by MM&A, again based heavily on productivity levels achieved by Coronado. All production forecasting ties assumed production rates to geological models as constructed independently by MM&A's team of geologists and mining engineers. Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived |

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Statement of Coal Resources and Reserves
in Accordance with SEC and the IORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: IORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | > The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. | > On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the purpose of classifying coal reserves. The project cash flows, excluding debt service, are calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis services, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal black lung tax, Federal and State reclamation taxes, property taxes, local transportation prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, income taxes and State severance taxes. Coronado's historical costs provided a useful reference for MM&A's cost estimates. > Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. > All costs and prices are based on 2022 nominal United States dollars. > A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2023 to depletion (exhaustion) of the coal reserve areas, which is projected for the year 2100. > The all-mines average cash cost ranges between approximately $65 and $317 per tonne for most of the operating period. |
|  | > NPV ranges and sensitivity to variations in the significant assumptions and inputs. | > An estimate of NPV at a base discount rate of 10.0% was included in Section 19 of the TRS. > NPV of the Buchanan, Russell, Mon Valley, Logan and Greenbrier Properties was estimated to be $1.562 billion, $92.2 million, $168.3 million, $366.6 million and $62.7 million, respectively. > The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range. |
| Social | > The status of agreements with key stakeholders and matters leading to social license to operate. | > Portions of the properties are located near local communities. Regulations prohibit mining activities within 91 meters of a residential dwelling, school, church, or similar structure unless written consent is first obtained from the owner of the structure. Where required, such consents have been |

MARSHAL MILLER & ASSOCIATES, INC.

19

gsc062p20

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | obtained where mining is proposed beyond the regulatory limits. |
| Other | To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: |  |
|  | > Any identified material naturally occurring risks. | > No material naturally occurring risks have been identified. |
|  | > The status of material legal agreements and marketing arrangements. | > The Coronado coal resources are located in Buchanan, Russell and Tazewell Counties, Virginia; Greenbrier, Logan, Boone, Wyoming and Greenbrier Counties, West Virginia; Allegheny, Washington and Westmoreland Counties, Pennsylvania. > MM&A has not carried out separate title verification for the coal properties and has not verified leases, deeds, surveys or other property control instruments pertinent to the subject resources. > Coronado has represented to MM&A that it controls the mining rights to the reserves as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management. |
|  | > The status of government agreements and approvals critical to the viability of the project, such as mineral tenement status and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Frausibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third part on which extraction of the reserve is contingent. | > Coronado has obtained all mining and discharge permits to operate 34 underground mines, 13 surface mines, and 18 processing, loadout or related facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Coronado, along with all Central and Northern Appalachian basin coal producers, is subject to a level of uncertainty regarding future clean water permits due to United States Environmental Protection Agency (EPA) involvement with state programs. |
| Classification | > The basis for the classification of the Ore Reserves into varying confidence categories. Whether the result appropriately reflects the Competent Person's view of the deposit. The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). | > Measured and indicated resources have been converted to proved and probable reserves, respectively. > None of the probable coal reserves have been derived from measured resources. > In a limited number of cases where there was only very limited data available to demonstrate the metallurgical suitability of a given coal deposit, that deposit was classified as a probable reserve instead of a proved reserve. > The results of this TRS define an estimated total initial ROM recoverable ore (coal) reserve estimate of 551 million tonnes for Coronado as follows: a) Buchanan = 154 Mt b) Logan = 138 Mt c) Greenbrier = 12 Mt d) Russell = 50 Mt e) Mon Valley = 197 Mt > Coronado controls a total of 334 Mt (moist basis) of marketable coal reserves for Coronado as of December 31, 2022 (total may not add due to rounding). Of that total, 74 percent are proved, and 26 percent are probable. Total reserves by complex are as follows: |

MARSHELL MILLER & ASSOCIATES, INC.

20

gsc962p20

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | a) Buchanan = 93 Mt b) Logan = 71 Mt c) Greenbrier = 7 Mt d) Russell = 30 Mt e) Mon Valley = 134 Mt |
| Audits or reviews | > The results of any audits or reviews of Ore Reserve estimates. | > MM&A completed prepared a statement of coal resources and reserves for the Properties in accordance with the JORC Code as of December 31, 2017. MM&A also subsequently updated the estimate of resources and reserves for depletion as of December 31, 2018, December 31, 2019, December 31, 2020 and December 31, 2021. > MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S. Securities and Exchange Commission/EQ Industry Guide 7 standards. Earlier audits were performed by various independent consultants for predecessors-in-title to Coronado and at various levels of detail depending on the clients concerns and the allotted time for completion. Previous audits and reviews defined the primary coal resource areas and estimated the recoverable tonnes for each seam based on the expected mining methods. > Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado, which encompass portions of the Properties included in this TRS. |
| Discussion of relative accuracy/ confidence | > Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. | > Operations on the Properties by Coronado and its predecessors have been on-going for many years. > MM&A is confident that the mine plans and financial models are reasonably representative to provide an accurate estimation of coal reserves. > Mine development and operation have not been optimized within the TRS. |
|  | > The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. | > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost), marketing, legal, environmental, socioeconomic, and regulatory factors on a global scale as current local data reflects the global assumptions. |
|  | > Accuracy and confidence discussions should extend to specific discussions of any applicable Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. | risk factors for the active Coronado mines and future resource development are summarized below: > Mine Accidents > Highwall Failure. Highwall failures are likely to result in a temporary mine closure and should not have a material impact on the mine sustainability. The risk is considered to be probable. > Adverse Geological Conditions. Adverse geological conditions include such conditions as faults and sandstone washouts. The risk is considered to be probable. The impact is expected to be temporary with little material impact on mine sustainability. > Environmental Risk. Numerous federal and state permits are required to operate coal mines and mine surface facilities. Permitting rules are complex and may change over time, making compliance difficult or impossible. > Water Quality. Permit requirements to fulfill Clean Water Act obligations are subject to modification. The probability of water quality changes having a material impact on mine operations. |

MARSHAL MILLER & ASSOCIATES INC.

21

gsc062p20

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basin -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | is possible. As a contemporary example, the selenium discharge issue that affects western Canadian and Central Appalachian Basin operators has only recently emerged as a concern and its ultimate impact has not been determined. > New Permits. Permit protests by environmental groups and individuals can contribute to permit delays or denial and increase the cost of permitting and delay development. Surface mining activities, coal refuse disposal and construction of access roads in mountainous terrain often require storage of material in valley fills. Authority to dispose of fill material into waters of the United States must be granted by the United States Army Corps of Engineers [D] . COE permits are increasingly difficult to obtain. > Regulatory Requirements. Adverse impact from regulatory changes is considered to be probable. The impact will likely affect the broader industry and is not expected to result in mine closure. > Market Risk. Metallurgical and thermal coal markets ultimately depend upon the global steel and thermal coal demand and are considered to be volatile. Currently, the US coal market has seen a decline in demand for thermal coal due to thermal plant closures, as a result of new air and water pollution regulations, and competition from other commodities used for power generation such as natural gas. This has resulted in an overall decline in CAPP coal production. Continued regulatory changes and declining demand could result in material changes in domestic and global coal markets. The impact cannot be predicted at this time; however, while M&R expects the coal reserve within this TRS to remain economically viable throughout the life of the projected mines, the LOM financial model is very sensitive to changes in coal sales price and therefore market risk is not insignificant. > Labor Risk. Work stoppage due to organized labor protests is considered to be unlikely and not likely to lead to permanent mine closure. The mines are likely to suffer the loss of key supervisors and skilled employees due to retirement as the workforce ages. The problem is industry-wide and the impact is expected to be temporary and have no sustained impact on coal production. > Availability of Equipment and Supplies. Risk of equipment and supply availability is likely to be temporary and should not have a sustained adverse impact on the production of coal. > Transportation Delay. Interruption of coal transport services by river or rail is considered to be probable but unlikely to have a sustained impact on coal production. |
|  | > It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. | > Mine plans, productivity expectations and cost estimates generally reflect historical performance and efforts have been made to adjust plans and costs to reflect future conditions. |

MARSHAL MILLS & ASSOCIATES, INC.

22

## Exhibit 96.3

# **Coronado Global Resources Inc.**
**Statement of Coal Resources and Reserves for the**
**Logan County Complex in Accordance with**
**the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2022**
**Central Appalachian Coal Basin**
**West Virginia, USA**

*February 2023*

**Prepared for:**
**Coronado Global Resources Inc.**
100 Bill Baker Way
Beckley, West Virginia 25801

**Prepared by:**
**MARSHAL MILLE & ASSOCIATES, INC.**
582 Industrial Park Road
Bluefield, Virginia 24605
www.mimsl.com

mW2p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

## Statement of Use and Preparation

This Technical Report Summary (TRS) was prepared by Marshall Miller & Associates, Inc. (MM&A) for the sole use of Coronado Global Resources Inc. (Coronado) and its affiliated and subsidiary companies and advisors. Copies or references to information in this report may not be used without the written permission of Coronado.

This report provides a statement of coal resources and coal reserves for Coronado, as defined under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the United States Securities and Exchange Commission (SEC). Subject to the comments below, this report was also prepared in accordance with the Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code).

The statement is based on information provided by Coronado and reviewed by Qualified Persons (QPs) who are full-time employees of MM&A.

As noted above, this report is a "Public Report" for the purposes of the VALMIN Code. However, in accordance with paragraph 12.1 of the VALMIN Code, it is noted that this report is not a "Valuation of Mineral Assets", and it also does not comply with the following requirements that apply to "Technical Assessments" (as defined in the VALMIN Code):

This report does not include a determination of the status of tenure (as required by paragraph 7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by Coronado's legal advisors.

This report does not include separate commentary on the reasonableness and quality of the Resources and Reserves estimates and the basis on which they have been reported (as required by paragraph 7.3 of the VALMIN Code). MM&A did not consider that this was appropriate in circumstances where MM&A was engaged for the specific purpose of preparing those estimates. However, MM&A notes that, in accordance with its usual practice, a separate team of MM&A employees undertook a peer review of this report and confirmed that both the process followed by the authors of this report and the estimates prepared were reasonable and comply with the requirements of the JORC Code.

MARSHALL MILLER & ASSOCIATES, INC.

2

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

The information in this TRS related to coal resources and reserves is based on, and fairly represents, information compiled by the QPs. At the time of reporting, MM&A's QPs have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity they are undertaking to qualify as a QP as defined by Regulation S-K 1300 and the JORC Code. Each QP consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

**Marshall Miller & Associates, Inc. (MM&A)** hereby consents to the use of the information contained in this report dated December 31, 2022, relating to estimates of coal resources and coal reserves controlled by Coronado.

Qualified Person: /s/ Marshall Miller & Associates, Inc.

Date: February 15, 2023

MARSHALL MILLER & ASSOCIATES, INC.

3

rev9/3p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

## Table of Contents

| 1 | Executive Summary | 1 |
| --- | --- | --- |
| 1.1 | Property Description | 1 |
| 1.2 | Ownership | 2 |
| 1.3 | Geology | 3 |
| 1.4 | Exploration Status | 3 |
| 1.5 | Operations and Development | 3 |
| 1.6 | Mineral Resource | 4 |
| 1.7 | Mineral Reserve | 4 |
| 1.8 | Capital Summary | 5 |
| 1.9 | Operating Costs | 6 |
| 1.10 | Economic Evaluation | 7 |
| 1.10.1 | Discounted Cash Flow Analysis | 10 |
| 1.10.2 | Sensitivity Analysis | 11 |
| 1.11 | Permitting | 11 |
| 1.12 | Conclusion and Recommendations | 11 |
| 2 | Introduction | 12 |
| 2.1 | Registrant and Terms of Reference | 12 |
| 2.2 | Information Sources | 13 |
| 2.3 | Personal Inspections | 14 |
| 3 | Property Description | 14 |
| 3.1 | Location | 14 |
| 3.2 | Titles, Claims or Leases | 15 |
| 3.3 | Mineral Rights | 15 |
| 3.4 | Encumbrances | 16 |
| 3.5 | Other Risks | 16 |
| 4 | Accessibility, Climate, Local Resources, Infrastructure and Physiography | 16 |
| 4.1 | Topography, Elevation, and Vegetation | 16 |
| 4.2 | Access and Transport | 16 |
| 4.3 | Proximity to Population Centers | 17 |
| 4.4 | Climate and Length of Operating Season | 17 |
| 4.5 | Infrastructure | 17 |
| 5 | History | 18 |
| 5.1 | Previous Operation | 18 |
| 5.2 | Previous Exploration | 18 |
| 6 | Geological Setting, Mineralization and Deposit | 18 |

MARSHAL MILLS & ASSOCIATES, INC.

4

g0902p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

| 6.1 | Regional, Local and Property Geology | 18 |
| --- | --- | --- |
| 6.2 | Mineralization | 20 |
| 6.3 | Deposits | 21 |
| 7 | Exploration | 21 |
| 7.1 | Nature and Extent of Exploration | 21 |
| 7.2 | Non-Drilling Procedures and Parameters | 24 |
| 7.3 | Drilling Procedures | 24 |
| 7.4 | Hydrology | 25 |
| 7.5 | Geotechnical Data | 25 |
| 8 | Sample Preparation, Analyses and Security | 25 |
| 8.1 | Prior to Sending to the Lab | 25 |
| 8.2 | Lab Procedures | 26 |
| 9 | Data Verification | 26 |
| 9.1 | Procedures of Qualified Person | 26 |
| 9.2 | Limitations | 27 |
| 9.3 | Opinion of Qualified Person | 27 |
| 10 | Mineral Processing and Metallurgical Testing | 27 |
| 10.1 | Testing Procedures | 27 |
| 10.2 | Relationship of Tests to the Whole | 28 |
| 10.3 | Lab Information | 28 |
| 10.4 | Relevant Results | 28 |
| 11 | Mineral Resource Estimates | 28 |
| 11.1 | Assumptions, Parameters and Methodology | 28 |
| 11.1.1 | Geostatistical Analysis | 31 |
| 11.2 | Qualified Person's Estimates | 34 |
| 11.3 | Resources Exclusive of Reserves | 35 |
| 11.3.1 | Initial Economic Assessment | 35 |
| 11.4 | Resources Inclusive of Reserves | 36 |
| 11.5 | Qualified Person's Opinion | 37 |
| 12 | Mineral Reserve Estimates | 37 |
| 12.1 | Assumptions, Parameters and Methodology | 37 |
| 12.2 | Mineral Reserves | 38 |
| 12.2.1 | Surface Reserves | 39 |
| 12.2.2 | Underground Reserves | 40 |
| 12.2.2.1 | Upper Winifrede (No 8) Seam | 40 |
| 12.3 | Qualified Person's Estimates | 41 |

MARSHAL MILLS & ASSOCIATES, INC.

5

rev9/2/20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

| 12.4 | Qualified Person's Opinion | 42 |
| --- | --- | --- |
| 13 | Mining Methods | 42 |
| 13.1 | Geotech and Hydrology | 43 |
| 13.2 | Production Rates | 43 |
| 13.3 | Mining Related Requirements | 44 |
| 13.3.1 | Underground | 44 |
| 13.3.2 | Surface Mine | 44 |
| 13.3.3 | HWM | 44 |
| 13.4 | Required Equipment and Personnel | 45 |
| 13.4.1 | Underground Mines | 45 |
| 13.4.1.1 | Powellton No. 1 | 45 |
| 13.4.1.2 | Lower War Eagle | 45 |
| 13.4.1.3 | Eagle No. 1/Toney Fork #1 | 46 |
| 13.4.1.4 | Muddy Bridge | 47 |
| 13.4.1.5 | Elklick Chilton | 47 |
| 13.4.1.6 | Camp Branch Chilton | 48 |
| 13.4.1.7 | Winifrede | 49 |
| 13.4.1.8 | Lower Powellton | 49 |
| 13.4.1.9 | Upper Winifrede | 50 |
| 13.4.2 | Surface Mines and Highwall Miners | 51 |
| 13.4.2.1 | Toney Fork | 52 |
| 13.4.2.2 | Buffalo Creek South | 52 |
| 13.4.2.3 | Sugar Camp | 52 |
| 14 | Processing and Recovery Methods | 55 |
| 14.1 | Description or Flowsheet | 55 |
| 14.2 | Requirements for Energy, Water, Material and Personnel | 55 |
| 15 | Infrastructure | 56 |
| 16 | Market Studies | 57 |
| 16.1 | Market Description | 57 |
| 16.2 | Price Forecasts | 58 |
| 16.3 | Contract Requirements | 58 |
| 17 | Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals | 59 |
| 17.1 | Results of Studies | 59 |
| 17.2 | Requirements and Plans for Waste Disposal | 59 |
| 17.3 | Permit Requirements and Status | 59 |
| 17.4 | Local Plans, Negotiations or Agreements | 62 |

MARSHALMILLER ASSOCIATES, INC.

6

gsc90/p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

| 17.5 | Mine Closure Plans | 62 |
| --- | --- | --- |
| 17.6 | Qualified Person's Opinion | 62 |
| 18 | Capital and Operating Costs | 62 |
| 18.1 | Capital Cost Estimate | 62 |
| 18.2 | Operating Cost Estimate | 63 |
| 19 | Economic Analysis | 65 |
| 19.1 | Assumptions, Parameters and Methods | 65 |
| 19.2 | Results | 67 |
| 19.3 | Sensitivity | 71 |
| 20 | Adjacent Properties | 72 |
| 20.1 | Information Used | 72 |
| 21 | Other Relevant Data and Information | 72 |
| 22 | Interpretation and Conclusions | 72 |
| 22.1 | Conclusion | 72 |
| 22.2 | Risk Factors | 72 |
| 22.2.1 | Governing Assumptions | 73 |
| 22.2.2 | Limitations | 74 |
| 22.2.3 | Methodology | 74 |
| 22.2.4 | Development of the Risk Matrix | 75 |
| 22.2.4.1 | Probability Level Table | 75 |
| 22.2.4.2 | Consequence Level Table | 75 |
| 22.2.5 | Categorization of Risk Levels and Color Code Convention | 78 |
| 22.2.6 | Description of the Coal Property | 78 |
| 22.2.7 | Summary of Residual Risk Ratings | 79 |
| 22.2.8 | Risk Factors | 79 |
| 22.2.8.1 | Geological and Coal Resource | 80 |
| 22.2.8.2 | Environmental | 80 |
| 22.2.8.3 | Regulatory Requirements | 81 |
| 22.2.8.4 | Market and Transportation | 81 |
| 22.2.8.5 | Mining Plan | 83 |
| 23 | Recommendations | 87 |
| 24 | References | 87 |
| 25 | Reliance on Information Provided by the Registrant | 87 |

**FIGURE 1-1 REPORT**

| Figure 1-1: Coronado Logan Property Location Map | 2 |
| --- | --- |
| Figure 1-2: CAPEX | 6 |

MARSHAL MILLER ASSOCIATES, INC.

7

gq/0/2/20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

Figure 1-3: OPEX...7
Figure 1-4: Sensitivity of NPV...11
Figure 3-1: Logan Property Location...14
Figure 6-1: Coal Basins & Logan Property Location...19
Figure 6-2: Logan Stratigraphic Column...21
Figure 7-1: Logan Cross-Section...23
Figure 11-1: Histogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex...32
Figure 11-2: Scatter plot of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex...32
Figure 11-3: Variogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex...33
Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex...34
Figure 11-5: Results of Initial Economic Assessment...36
Figure 15-1: Logan Surface Facilities...57
Figure 18-1: CAPEX...63
Figure 19-1: Cash Costs per Tonne...68
Figure 19-2: Sensitivity of NPV...71

# **TABLE 1.1 REPORT**

Table 1-1: Coal Resources Summary as of December 31, 2022 (Mt)...4
Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)...5
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)...5
Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)...8
Table 1-5: Project Cash Flow Summary ($000)...9
Table 2-1: Information Provided to MM&A by Coronado...13
Table 11-1: General Reserve & Resource Criteria...29
Table 11-2: DHSA Results Summary for Radius from a Central Point...34
Table 11-3: Coal Resources Summary as of December 31, 2022 (Mt)...35
Table 11-4: Results of Initial Economic Assessment...36
Table 12-1: Coal Reserves Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)...42
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)...42
Table 13-1: Underground Summary of Production by Year (000)...53
Table 13-2: Surface Summary of Production by Year (000)...54
Table 13-3: Highwall Summary of Production by Year (000)...55
Table 16-1: Quality Specifications by Product...58
Table 17-1: Logan Mining Permits...61
Table 18-1: Estimated Coal Production Taxes and Sales Costs...65
Table 18-2: Logan Operating Costs...65
Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)...68
Table 19-2: Summary of Logan Key Financial Performance Metrics (2023-2030)...69
Table 19-3: Project Cash Flow Summary ($000)...70
Table 22-1: Probability Level Table...75
Table 22-2: Consequence Level Table...76
Table 22-3: Risk Matrix...78

MARSHAL MILLER ASSOCIATES, INC.

8

Comisario Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

Table 22-4: Risk Assessment Matrix ...79
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2) ...80
Table 22-6: Environmental (Risks 3 and 4) ...81
Table 22-7: Regulatory Requirements (Risk 5) ...81
Table 22-8: Market and Transportation (Risk 6) ...83
Table 22-9: Market and Transportation (Risk 7) ...83
Table 22-10: Methane Management (Risk 8) ...84
Table 22-11: Mine Fires (Risk 9) ...85
Table 22-12: Highwall Failure (Risk 10) ...85
Table 22-13: Availability of Supplies and Equipment (Risk 11) ...86
Table 22-14: Labor - Work Stoppage (Risk 12) ...86
Table 22-15: Labor - Retirement (Risk 13) ...86
Table 25-1: Information from Registrant Relied Upon by MM&A ...87

# **Appendices**

A ...MM&A Qualifications
B ...Maps
C ...Glossary of Terms
D ...Initial Economic Assessment for Resources Exclusive of Reserves
E ...JORC Table 1

MARSHAL MILLS & ASSOCIATES, INC.

9

Ex9C9210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

# 1 Executive Summary

## 1.1 Property Description

**Coronado Global Resources Inc** (*Coronado*) authorized **Marshall Miller & Associates, Inc** (M&A) to prepare this Technical Report Summary (TRS) of its controlled coal resources and reserves located at the **Logan County Complex** (*Logan*) in Boone, Logan and Wyoming Counties, West Virginia (the *Property*). An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. The report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves* (*JORC Code*) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission** (*SEC*). This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets* (*VALMIN Code*).

Coal resources and coal reserves are herein reported in metric units of measurement and are rounded to millions of metric tonnes ( *Mt* ).

Surface facilities for the operations are located along Buffalo Creek and a **CSX Corporation** (*CSX*) rail line about 21 kilometers north-northeast of Man, West Virginia (see *Figure 1-1*). The Property is composed of 13,183 total hectares, 13,114 of which are leased from private landholders under approximately 15 individual leases, and 69 hectares are owned by Coronado. Subject to Coronado exercising its renewal rights thereunder, a majority of the leases, covering a majority of the Logan reserves, expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2056. One lease expires in 2032; however, Coronado is projected to have previously exhausted the reserves covered thereby.

MARSHALLMILLER & ASSOCIATES, INC.

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ex963p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IOBC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

Figure 1-1: Coronado Logan Property Location Map

ex963p1111

## 1.2 Ownership

The Logan properties started mining in 1945 by **Lorado Mining Company**. The properties were sold to **Buffalo Mining Company** in 1964 and then to **Pittston Coal Company** (**Pittston**) in 1971. Pittston operated the properties until the early 1990's when it idled the mine complex and then in 2004 sold them to **Addington Resources** Production resumed in 2005. **Imagin Natural Resources** acquired the properties in 2007 and then sold them to **Cleveland-Cliffs Inc.** (**Cliffs**) in 2011, which in turn sold the properties to Coronado in 2014.

MARSHAL MILLER ASSOCIATES, INC.

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2013/2014

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IOBC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

### 1.3 Geology

The coal-bearing formation of interest at Logan is primarily the Kanawha Formation of Lower Pennsylvanian System, which comprises a major portion of the exposed ridges. The Kanawha Formation is a coal bearing sequence of sandstones, siltstones, shales, and mudstones with minor occurrences of siderite, limestone and flint clay.

Coronado mines several horizons within the Kanawha formation. The horizons are as follows: Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton, Upper Coalburg, Lower Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede, Chilton-A, Chilton, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, 2 Gas, Upper Powellton, Lower Powellton, Eagle, and Lower War Eagle. Operations at the Logan Mine Complex extract multiple coal seams by both underground and surface mining methods.

### 1.4 Exploration Status

The Property has been extensively explored, largely by drilling with continuous coring methods and rotary drilling, often supported by downhole geophysical methods. In addition to exploration means, coal measurements from mine exposures have supplemented the database. The majority of the data was acquired or generated by previous owners of the Property. These sources comprise the primary data used in the evaluation of the coal resources and coal reserves on the Property. MM&A examined the data available for the evaluation and incorporated all pertinent information into this TRS. Where data were anomalous or not representative, that data was not honored within the digital databases and for subsequent processing by MM&A.

Ongoing exploration has been carried out by Coronado since acquiring the Logan Complex. The Coronado acquired exploration data has been consistent with past drilling activities.

### 1.5 Operations and Development

As of December 31, 2022, underground mine operations were active at the Lower War Eagle, Eagle No. 1 and Muddy Bridge Mines with three, three or two active mining sections, respectively using the room-and-pillar method. In addition, Coronado operates a single active underground room-and-pillar section in the North Fork Winifrede Mine. Annual deep mine production peaks at approximately 2.3 Mt in 2028. One active surface mine, Toney Fork, was also operating. Surface production is projected to peak at 0.6 Mt in 2028. Highwall miner production is also projected to resume in 2023 with a peak in 2028 at 0.44 Mt. Overall production will continue until 2056 with peak production occurring in 2028 at 3.3 Mt.

The Logan County Complex includes the Saunders Preparation Plant in addition to the mines. The plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse disposal area. The plant has a feed rate capacity of 1,088 raw tonnes per hour.

MARSHALL MILLER ASSOCIATES, INC.

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![P2020 logo]() 2020

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

## 1.6 Mineral Resource

Mineral resources, representing in-situ coal from a portion of which reserves are derived, are presented below. A coal resource estimate, summarized in *Table 1-1*, was prepared as of December 31, 2022, for property controlled by Coronado.

**Table 1-1: Coal Resources Summary as of December 31, 2022 (Mt)**

| Area | Coal Resource (Dry Tonnes, In Situ, MT) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | At Mt | Inflow | Total |
| Inclusive of Reserves | 127.2 | 40.0 | 0.0 | 167.2 | 24 | 1.0 | 28 |
| Exclusive of Reserves | 45.2 | 37.0 | 3.4 | 85.6 |  |  |  |
| Total 12/31/2022 | 172.5 | 77.0 | 3.4 | 252.8 |  |  |  |

*Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.*

*Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.*

*Note 3: The Property has 82.2 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December 31, 2022.*

## 1.7 Mineral Reserve

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tons presented in *Table 1-1*, and not in addition to coal resources. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The Resource estimate has been used as the basis for this Reserve calculation, which utilizes a reasonable Preliminary Feasibility Study, a Life-of-Mine (LOM) Mine Plan and practical recovery factors. Production modeling was completed with an effective start date of October 1, 2022. Additions and depletion have been used to bring the Reserve estimate forward to December 31, 2022.

Factors that would typically preclude conversion of a coal resource to coal reserve, which include the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of access; geological encumbrances associated with overlying and underlying strata; seam thinning; structural complication; and insufficient exploration, have all been considered. Reserve consideration excludes those portions of the resource area which exhibit the aforementioned geological and operational encumbrances. Coal reserves are presented on a run-of-mine (ROM) basis in *Table 1-2*.

MARSHALL MILLER ASSOCIATES, INC.

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![P2C963p210 logo]()

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)**

| Area / Mine | Demonstrated Coal Reserves (Mt, Moist ROM) |  |  |  |  |  |  | Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Ash | Sulfur | Vol |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased |  |  |  |
| Logan Mine Complex | 101.4 | 36.7 | 138.1 | 37.3 | 100.8 | 0.0 | 138.1 | 51 | 0.9 | 19 |

Proven and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including technical estimates of capital, revenue and cost), marketing, legal, environmental, socioeconomic, and regulatory factors. The proven and probable coal reserves on the Property are summarized below in *Table 1-3*.

**Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)**

| Property | Demonstrated Coal Reserves (Net Basis, Method or Direct Shipment, MT) |  |  |  |  |  |  | Quality (Dry Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Ash | Sulfur | Vol |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased |  |  |  |
| Logan County Complex | 53.3 | 17.4 | 70.6 | 32.5 | 38.1 | 0.0 | 70.6 | 8 | 0.9 | 36 |

Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting.

In summary, Coronado controls a total of 70.6 Mt (moist basis) of marketable coal reserves at Logan as of December 31, 2022. Of that total, 75 percent are proven, and 25 percent are probable. All 70.6 Mt are leased coal reserves and are assigned. Approximately 61.6 Mt of reserves are considered suitable for the metallurgical coal market and 9.0 Mt are projected to be sold into the thermal coal market.

## 1.8 Capital Summary

Coronado provided MM&A with an inventory of operating equipment available at Logan. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment. A summary of the estimated capital for the Property is provided in *Figure 1-2* below.

MARSHALMILLER ASSOCIATES, INC.

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PC963p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Figure 1-2: CAPEX

PC963p1510

### 1.9 Operating Costs

Coronado provided historical and preliminary 5-year projections of operating costs for its active mines for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed personnel schedules for each mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare and bonuses.

For the underground operations, a cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof control costs and other mine supply costs at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

Surface mine direct operating costs were developed as a function of overburden ratio for repair and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies and services.

Operating costs for highwall mines are based on costs per ROM tonne estimates.

Operating costs factors were also developed for the coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding.

MARSHALL MILLER ASSOCIATES INC.

6

![Pex9G3p210 logo]()

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees.

A summary of the projected operating costs for the Property is provided in *Figure 1-3*.

**Figure 1-3: OPEX**

![img-0.jpeg](img-0.jpeg)

## 1.10 Economic Evaluation

The pre-feasibility financial model prepared for this TRS was developed to test the economic viability of the coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations contemplated for the Coronado properties, but are intended to establish the economic viability of the estimated coal reserves. Cash flows are simulated on an annual basis in nominal dollars assuming a 2% inflation rate based on projected production from the coal reserves. The discounted cash flow analysis presented herein is based on an effective date of January 1, 2023.

On an un-levered basis, the net present value ( *NPV* ) of the project cash flow after taxes represents the Enterprise Value of the project. The project cash flow, excluding debt service, is calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, operating supplies, maintenance and repairs, facilities cost for materials handling, coal preparation, refuse disposal, coal loading, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct

MARSHALMILLER ASSOCIATES, INC.

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P2013/20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

extraction of the mineral. The indirect costs are the Federal black lung tax, Federal and State reclamation taxes, property taxes, coal production royalties, and income taxes.

Table 1-4 shows LOM tonnage, profit & loss (P&L), and earnings before income tax, depreciation & amortization (EBITDA) for Logan.

Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)

|  | LOM Tonnes | LOM Pre-Tax P&L | P&L Per Tonne | LOM EBITDA | EBITDA Per Tonne |
| --- | --- | --- | --- | --- | --- |
| Deep Mines |  |  |  |  |  |
| Camp Br Chilton | 1,607 | $21,157 | $13.16 | $51,064 | $31.77 |
| Eagle No. 1 (Toney Fork) | 11,806 | $18,727 | $1.59 | $220,119 | $18.65 |
| Elk Lick Chilton | 3,809 | $76,902 | $20.19 | $146,959 | $38.58 |
| Lower Powellton | 5,095 | $112,692 | $22.12 | $224,168 | $44.00 |
| Lower War Eagle | 6,544 | $102,095 | $15.60 | $227,269 | $34.73 |
| Powellton No. 1 | 3,629 | $52,199 | $14.38 | $122,643 | $33.80 |
| Moddy Br No.2 Gas | 3,647 | $166,946 | $45.77 | $212,139 | $58.16 |
| Upper Winifred | 1,794 | $61,150 | $34.09 | $95,271 | $53.12 |
| Winifred (Chilton Rider) | 219 | $9,021 | $41.19 | $12,795 | $58.42 |
| Consolidated Deep Mines | 38,150 | $620,890 | $16.27 | $1,312,426 | $34.40 |
| Surface Mines |  |  |  |  |  |
| Toney Fork Surf | 6,338 | $106,288 | $16.77 | $245,407 | $38.72 |
| Buffalo Cr South Area | 7,990 | $27,941 | $3.50 | $203,185 | $25.43 |
| Sugar Camp Area 1 | 4,911 | $(100,944) | $(20.55) | $48,015 | $9.78 |
| Surface Mines Consolidated | 19,239 | $33,285 | $1.73 | $496,606 | $25.81 |
| HWM Operations |  |  |  |  |  |
| Toney Fork HWM | 4,919 | $330,409 | $67.17 | $361,920 | $73.57 |
| Buffalo Cr South HWM | 7,004 | $434,033 | $61.97 | $474,395 | $67.73 |
| Sugar Camp HWM | 1,314 | $82,843 | $63.05 | $91,260 | $69.45 |
| HWM Consolidated | 13,237 | $847,285 | $64.01 | $927,575 | $70.07 |
| Grand Total | 70,626 | $1,501,460 | $21.26 | $2,736,607 | $38.75 |

* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

As shown in Table 1-4, the Logan operations show positive EBITDA over the LOM. Overall, the Coronado consolidated operations show positive LOM P&L and LOM EBITDA of $1.5 billion and $2.7 billion, respectively.

Coronado's consolidated Logan cash flow summary in nominal dollars assuming a 2% inflation rate, excluding debt service, is shown in Table 1-5 below.

MARSHALL MILLER ASSOCIATES, INC.

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Ex90Sp210

Comtrade Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Table 1-5: Project Cash Flow Summary ($000)

|  | Total | YE12/31 2023 | YE12/31 2024 | YE12/31 2025 | YE12/31 2026 | YE12/31 2027 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 70,626 | 2,215 | 2,444 | 2,730 | 2,614 | 2,524 |
| Total Revenue | $11,449,478 | $403,255 | $343,593 | $366,750 | $356,408 | $349,974 |
| EBITDA | $2,736,607 | $154,435 | $79,831 | $67,982 | $64,942 | $48,930 |
| Net Income | $1,271,269 | $93,455 | $33,975 | $22,180 | $21,044 | $7,422 |
| Net Cash Provided by Operating Activities | $2,455,780 | $98,886 | $84,666 | $64,481 | $60,927 | $49,298 |
| Purchases of Property, Plant, and Equipment | $(1,212,814) | $(64,541) | $(46,249) | $(35,126) | $(24,721) | $(19,540) |
| Net Cash Flow | $1,242,966 | $34,345 | $38,417 | $29,354 | $36,206 | $29,758 |
|  | YE12/31 2028 | YE12/31 2029 | YE12/31 2030 | YE12/31 2031 | YE12/31 2032 | YE12/31 2033 |
| Production & Sales tonnes | 3,315 | 3,138 | 3,052 | 2,987 | 2,862 | 2,833 |
| Total Revenue | $469,730 | $441,352 | $437,982 | $436,621 | $425,513 | $428,277 |
| EBITDA | $134,632 | $96,812 | $86,647 | $88,298 | $85,099 | $81,695 |
| Net Income | $76,870 | $40,290 | $35,152 | $37,612 | $33,266 | $22,374 |
| Net Cash Provided by Operating Activities | $102,420 | $94,319 | $82,136 | $80,835 | $79,110 | $77,163 |
| Purchases of Property, Plant, and Equipment | $(54,676) | $(76,748) | $(30,875) | $(25,919) | $(58,356) | $(77,043) |
| Net Cash Flow | $47,743 | $17,571 | $51,261 | $54,916 | $20,754 | $119 |
|  | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 | YE12/31 2038 | YE12/31 2039 |
| Production & Sales tonnes | 2,872 | 2,714 | 2,739 | 2,785 | 2,969 | 2,783 |
| Total Revenue | $445,485 | $422,500 | $431,983 | $440,845 | $480,253 | $458,789 |
| EBITDA | $108,745 | $74,857 | $97,015 | $103,374 | $125,905 | $107,907 |
| Net Income | $53,277 | $22,619 | $43,055 | $45,843 | $62,109 | $46,564 |
| Net Cash Provided by Operating Activities | $92,575 | $73,923 | $84,785 | $93,567 | $110,105 | $102,650 |
| Purchases of Property, Plant, and Equipment | $(60,090) | $(30,525) | $(49,809) | $(65,949) | $(56,676) | $(42,223) |
| Net Cash Flow | $32,485 | $43,398 | $34,975 | $27,618 | $53,429 | $60,427 |
|  | YE12/31 2040 | YE12/31 2041 | YE12/31 2042 | YE12/31 2043 | YE12/31 2044 | YE12/31 2045 |
| Production & Sales tonnes | 2,733 | 2,519 | 2,100 | 2,214 | 1,611 | 1,476 |
| Total Revenue | $459,598 | $431,586 | $365,532 | $393,908 | $289,596 | $269,978 |
| EBITDA | $104,671 | $94,788 | $81,444 | $105,980 | $58,696 | $83,754 |
| Net Income | $47,235 | $41,064 | $39,833 | $60,889 | $23,010 | $51,731 |
| Net Cash Provided by Operating Activities | $96,543 | $88,891 | $75,724 | $90,314 | $63,837 | $71,484 |
| Purchases of Property, Plant, and Equipment | $(29,343) | $(33,901) | $(27,895) | $(23,194) | $(29,298) | $(22,073) |
| Net Cash Flow | $67,200 | $54,990 | $47,828 | $67,120 | $34,540 | $49,411 |
|  | YE12/31 2046 | YE12/31 2047 | YE12/31 2048 | YE12/31 2049 | YE12/31 2050 | YE12/31 2051 |
| Production & Sales tonnes | 1,057 | 1,057 | 1,053 | 1,053 | 1,057 | 1,061 |
| Total Revenue | $194,175 | $198,147 | $201,437 | $205,554 | $210,544 | $215,652 |
| EBITDA | $52,251 | $53,459 | $54,370 | $59,571 | $58,316 | $59,618 |
| Net Income | $28,842 | $28,388 | $27,184 | $31,758 | $28,651 | $30,020 |
| Net Cash Provided by Operating Activities | $52,854 | $48,225 | $49,193 | $53,061 | $49,045 | $52,351 |
| Purchases of Property, Plant, and Equipment | $(18,702) | $(21,272) | $(25,945) | $(30,072) | $(22,359) | $(22,221) |
| Net Cash Flow | $34,152 | $26,953 | $23,248 | $22,990 | $26,686 | $30,131 |

MARSHALL MILLER & ASSOCIATES, INC.

9

Ex-963p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

|  | YE12/31 2052 | YE12/31 2053 | YE12/31 2054 | YE12/31 2055 | YE12/31 2056 | YE12/31 2057 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 1,657 | 1,949 | 1,917 | 677 | 242 | - |
| Total Revenue | $219,229 | $222,017 | $223,966 | $151,873 | $57,377 | $- |
| EBITDA | $71,599 | $60,514 | $60,792 | $48,780 | $20,900 | $- |
| Net Income | $45,345 | $29,161 | $30,508 | $22,011 | $9,180 | $(339) |
| Net Cash Provided by Operating Activities | $60,653 | $56,148 | $54,570 | $47,692 | $20,671 | $(3,597) |
| Purchases of Property, Plant, and Equipment | $(24,540) | $(27,137) | $(12,933) | $(11,318) | $(11,544) | $- |
| Net Cash Flow | $36,113 | $29,011 | $41,637 | $36,374 | $9,127 | $(3,597) |
|  | YE12/31 2058 | YE12/31 2059 | YE12/31 2060 | YE12/31 2061 | YE12/31 2062 | YE12/31 2063 |
| Production & Sales tonnes | - | - | - | - | - | - |
| Total Revenue | $- | $- | $- | $- | $- | $- |
| EBITDA | $- | $- | $- | $- | $- | $- |
| Net Income | $(174) | $(89) | $(46) | $(0) | $(0) | $(0) |
| Net Cash Provided by Operating Activities | $(1,835) | $(936) | $(954) | $- | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $(1,835) | $(936) | $(954) | $- | $- | $- |

* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from a peak of 3.3 million tonnes in 2028 to a low of 1.0 million tonnes in 2054. Projected consolidated revenue ranges from $151.9 million to $480.3 million at a steady state. Revenue totals $11.4 billion for the project's life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending. Consolidated cash flow from operations peaks at $110.1 million in 2038 and totals $2.5 billion over the project's life. Capital expenditures total $190.2 million from 2023 through 2027 and $1.2 billion over the project's life.

#### 1.10.1 Discounted Cash Flow Analysis

Cash flow after tax, but before debt service, generated over the life of the project was discounted to NPV at a 10.0% discount rate, which represents Coronado's estimate of the nominal dollar, risk adjusted weighted average cost of capital (WACC) for likely market participants if the subject reserves were offered for sale. On an un-levered basis, the NPV of the project cash flows represents the Enterprise Value of the project and amounts to $366.6 million. The pre-feasibility financial model prepared for the TRS was developed to test the economic viability of each coal resource area. The NPV estimate was made for the purpose of confirming the economics for classification of coal reserves and not for purposes of valuing Coronado or its Logan assets. Mine plans were not optimized, and actual results of the operations may be different, but in all cases, the mine production plan assumes the properties are under competent management.

MARSHALL MILLER ASSOCIATES, INC.

10

PC9G3p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

### 1.10.2 Sensitivity Analysis

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

Figure 1-4: Sensitivity of NPV

![img-1.jpeg](img-1.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

### 1.11 Permitting

Coronado has obtained all mining and discharge permits to operate its active mines and processing, loadout or related support facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Logan, along with all coal producers, is subject to a level of uncertainty regarding future clean water permits due to United States Environmental Protection Agency (EPA) and United States Fish and Wildlife (SFW) involvement with state programs.

### 1.12 Conclusion and Recommendations

Sufficient data has been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Logan Property. The data is of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

MARSHALL MILLER ASSOCIATES, INC.

11

P0503P20

Coronado Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating and capital cost estimates are sufficient to support the classification of coal reserves provided herein.

This geologic evaluation conducted in conjunction with the preliminary feasibility study concludes that the 70.6 Mt of marketable coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

## 2 Introduction

### 2.1 Registrant and Terms of Reference

This report was prepared for the sole use of **Coronado Global Resources Inc. (Coronado)** and its affiliated and subsidiary companies and advisors. An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. The report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)* as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission (SEC)**. This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code)*.

The report provides a statement of coal resources and coal reserves for Coronado at Logan. Exploration results and Resource calculations were used as the basis for the mine planning and the preliminary feasibility study completed to determine the extent and viability of the reserve.

Coal resources and coal reserves are herein reported in metric units of measurement and are rounded to millions of metric tonnes (Mt).

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ExP6Sp210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

## 2.2 Information Sources

This TRS is based on information provided by Coronado and reviewed by MM&A. Sources of data and information are listed below in Table 2-1:

Table 2-1: Information Provided to MM&A by Coronado

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Geological | Geologic data including digital databases and original source data including geologist logs, driller's logs, geophysical logs | 9.1 |
| Coal Quality | Database of coal quality information supplemented with original source laboratory sheets where available | 10.1 |
| Mining | Historical productivities and manpower from operating and future Coronado mines | 13.2, 13.4 |
| Coal Preparation | Flow sheet and other information representing current and future methods of coal processing | 14.1 |
| Waste Disposal | Engineering data and estimates representing remaining capacities for coarse and fine coal waste disposal | 17.2 |
| Costs | Historical and budgetary operating cost information used to derive cost drivers for reserve financial modeling | 18.2 |
| Economic | WACC and inflation rate used in discounted cash flow analysis | 19.1, 19.2, 19.3 |

Note: While the sources of data listed in Table 2-1 are not exhaustive, they represent a significant portion of information which supports this TRS. MM&A reviewed the provided data and found it to be reasonable prior to incorporating it into the TRS. The TRS contains "forward-looking information" including forecasts of productivity and annual coal production, operating and capital cost estimates, coals sales price forecasts, the assumption that Coronado will continue to acquire necessary permits, and other assumptions. The TRS statements and conclusions are not a guarantee of future performance and undue reliance should not be placed on them. The ability of Coronado to recover the estimated coal reserves is dependent on multiple factors beyond the control of MM&A including, but not limited to geologic factors, mining conditions, regulatory approvals, and changes in regulations. In all cases, the plans assume the Property is under competent management.

Coronado engaged MM&A to conduct a coal resource and reserve evaluation of the Coronado coal properties as of September 30, 2022. Additions (Property and data) and depletion (mine) have been used to bring the Resource and Reserve estimates forward to December 31, 2022, the effective date of this TRS for Logan. For the evaluation, the following tasks were to be completed:

> Conduct site visits of the mines and mine infrastructure facilities;
> Process the information supporting the estimation of coal resources and reserves into geological models;
> Develop life-of-reserve mine (LOM) plans and financial models;
> Hold discussions with Coronado company management; and
> Prepare and issue a TRS providing a statement of coal resources and reserves which would include:
- A description of the mines and facilities.
- A description of the evaluation process.
- An estimation of coal resources and reserves with compliance elements as stated under the JORC Code and the SEC Regulation S-K 1300.

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![MBA logo]() mba

Comitado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the JORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

## 2.3 Personal Inspections

MM&A is very familiar with Logan, having provided a variety of services in recent years and one of the QP's involved in this TRS has conducted multiple site visits.

## 3 Property Description

### 3.1 Location

The Logan County Complex is located in Logan, Boone, and Wyoming Counties in southern West Virginia. The Property encompasses the towns of Lorado and Pardee in the northern portion and Lacoma and Cyclone in the southern portion (approximately 6 kilometers between the northern and southern towns). The nearest major population centers are Huntington, West Virginia (145 kilometers northwest) and Charleston, West Virginia (129 kilometers north-northeast).

**Figure 3-1: Logan Property Location**

![img-0.jpeg](img-0.jpeg)

The Logan property is composed of 13,183 total leased and owned hectares and is located in Logan, Boone, and Wyoming Counties. The Property is located on the following **United States Geological**

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gsc0930

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

**Survey (USGS)** Quadrangles: Lorado, Mallory, Amherstdale, and Oceana. Current mining projections fall within portions of all four quadrangles. The coordinate system and datum used for the model of the Logan County Complex and the subsequent maps were produced in the West Virginia State Plane South system, NAD 27.

### 3.2 Titles, Claims or Leases

The Property is composed of 13,183 total hectares, 13,114 of which are leased from private landholders under approximately 15 individual leases, and 69 hectares are owned by Coronado. The latest Coronado lease of 45 hectares was obtained in 2022. Subject to Coronado exercising its renewal rights thereunder, a majority of the leases, covering a majority of the Logan reserves, expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2056. One lease expires in 2032; however, Coronado is projected to have previously exhausted the reserves covered thereby. MM&A has not carried out a separate title verification for the coal properties and has not verified leases, deeds, surveys, or other property control instruments pertinent to the subject resources. Property tenure was separately reviewed by Coronado's legal advisors. Coronado has represented to MM&A that it controls the mining rights to the reserves as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management.

### 3.3 Mineral Rights

Coronado supplied property control maps to MM&A related to properties for which mineral and/or surface property are controlled by Coronado. While MM&A accepted these representations as being true and accurate, MM&A has no knowledge of past property boundary disputes or other concerns, through past knowledge of the Property, that would signal concern over future mining operations or development potential.

Property control in Appalachia can be intricate. Coal mining properties are typically composed of numerous property tracts which are owned and/or leased from both land holding companies and private individuals or companies. It is common to encounter severed ownership, with different entities or individuals controlling the surface and mineral rights. Mineral control in the region is typically characterized by leases or ownership of larger tracts of land, with surface control generally comprised of smaller tracts, particularly in developed areas.

Legal mining rights may reflect a combination of in fee or mineral ownership and in fee or mineral leases of coal lands through various surface and mineral lease agreements. There is also a relatively small amount of area where the coal is partially-owned and/or partially leased on a limited number of individual tracts.

Control of the surface property is necessary to conduct surface mining but is not necessary to conduct underground mining.

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Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Upon acquisition of mineral control for desired coal seams of surface-mineable economic interest, it is typical practice in the region for operators to delay the acquisition of surface control for purposes of surface mining and other surface development until plans are established for near-future development. Therefore, it is common for an operator to control mineral for proposed areas of mining for which they have not established the legal right to surface mine due to the lack of surface control. Acquisition of these rights is typically delayed in order to limit cost and royalty payments for areas not under consideration for near-future development. Coronado's executive management team has a history of surface mining in Central Appalachia and has conveyed to MM&A that it has been successful in acquiring surface rights where needed for past operations.

### 3.4 Encumbrances

No Title Encumbrances are known. By assignment, MM&A did not complete a query related to Title Encumbrances.

### 3.5 Other Risks

There is always risk involved in property control. As is common practice, Coronado, and its predecessors, have had their legal teams examine the deeds and title control in order to minimize the risk. Historically, property control has not posed any significant challenges related to Logan's operations.

## 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

### 4.1 Topography, Elevation, and Vegetation

Topography of the area surrounding the Logan County Complex is typical of the Central Appalachian Plateau, being rugged and deeply dissected by v-shaped river valleys, and generally flanked by steeply sided upland regions, with occasional gentle slopes in select areas. The drainage system in the region tends to be mostly dendritic in nature. Surface elevations near the mine complex range from approximately 823 meters above sea level in upland regions to roughly 338 meters at stream level. The Property is moderately to heavily vegetated, with oak-hickory forests as the dominant forest type and northern hardwood forest being less prominent. The Property is not situated near any major urban centers, and the surrounding area is rural.

### 4.2 Access and Transport

Access to the Logan Mine property consists of primary, secondary, and unimproved roads, forming a well-developed transportation network. Highway 119 is the primary highway in the area running southwest to northeast from the Kentucky-West Virginia line through Mingo, Logan, and Boone Counties. Secondary roads Route 16 and Route 10 provide the most direct access through the Property running east-west across the leased area. Numerous other secondary and unimproved

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Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

roads provide direct access to the mine property, some being state- and county-maintained. These roads typically stay open throughout the year. Additionally, private access roads to existing mines provide transport corridors, and more such roads may be developed as needed. The Coronado-owned Saunders Preparation Plant services the mines. The ROM coal is delivered from the Lower War Eagle Mine via overland conveyor, all remaining production is or will be delivered to the plant site by truck.

#### 4.3 Proximity to Population Centers

The Logan property lies near the town of Lorado in Logan County, West Virginia, approximately 145 kilometers southeast of Huntington, West Virginia and 129 kilometers south-southwest of Charleston, West Virginia. As of the 2020 census, Logan County had a population of 32,567 residents, Boone County had 21,809 residents, and Wyoming County had 21,382 residents.

#### 4.4 Climate and Length of Operating Season

The region's climate is classified as humid, sub-tropical with four distinct seasons: warm summers, cold winters, and moderate fall and spring seasons. Precipitation in the region occurs throughout the year with the most rain falling in spring and the early months of summer. Average yearly rainfall is 67.69 centimeters. Summer months typically begin in late May and end in early September and range in average temperature from 53 to 84 degrees Fahrenheit (or 11.6 to 28.9 degrees Celsius). Winters typically begin in mid to late November and run until mid to late March with average temperatures ranging from 26 to 57 degrees Fahrenheit (or -3.3 to 13.9 degrees Celsius). Precipitation in the winter typically comes in the form of snowfall or as a wintery mix (sleet and snow) with severe snowfall events occurring occasionally. Seasonal variations in climate typically do not affect underground mining in West Virginia. However, weather events could potentially incumber surface mining and preparation plant operations on a very limited basis, typically lasting less than a few days.

#### 4.5 Infrastructure

The Logan Mine Complex has sources of water, power, personnel, and supplies readily available for use. Personnel have historically been sourced from the surrounding communities in Logan, Boone, Wyoming, and Mingo counties, and have proven to be adequate in numbers to operate past and current mines. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices and is comprised of a strong talent pool of experienced miners. Water is sourced locally from Buffalo Creek Public Service District and electricity is sourced from **American Electric Power (AEP)**. The service industry in the areas surrounding the mine complex has historically provided supplies, equipment repairs and fabrication, etc. The Coronado-owned Saunders Preparation plant services the mines and operates at a rate of 952 tph. The Coronado-owned Elk Lick Loadout serves as the primary means of shipment and is connected to a CSX rail line, which either serves the domestic market directly, or transports the coal to the Pier 9 and Dominion terminals at Norfolk, Virginia for overseas shipment.

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P0C9/20

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

## 5 History

### 5.1 Previous Operation

The Logan County properties were started in 1945 by **Lorado Mining Company** were sold to **Buffalo Mining Company** in 1964 and then to **Pittston Coal Company** (**Pittston**) in 1971. Pittston operated the properties until the early 1990's. After being idle for a period, the properties were then sold to **Addington Resources** in 2004. **Imagin Natural Resources** acquired the properties in 2007, and subsequently sold them to Cliffs in 2011, which in turn sold the properties to Coronado in 2014.

Coronado produced approximately 1.8 Mt in 2016, 2.6 Mt in 2017, 2.6 Mt in 2018, 2.7 Mt in 2019, 1.6 Mt in 2020, 1.9 Mt in 2021, and 2.1 Mt in 2022.

### 5.2 Previous Exploration

The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado.

Drill records indicate that independent contract drilling operators have typically been engaged to carry out drilling on the Properties. Geophysical logging was typically performed by outside logging firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a significant number of the past exploration holes and gas wells, and currently logs most of the recently drilled holes.

## 6 Geological Setting, Mineralization and Deposit

### 6.1 Regional, Local and Property Geology

The Property lies in the Central Appalachian Coal basin in the Appalachian Plateau physiographic province.

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DC9C1D20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

**Figure 6-1: Coal Basins & Logan Property Location**

![img-1.jpeg](img-1.jpeg)

Coal deposits in the eastern USA are the oldest and most extensively developed in the country. The coal deposits on the Properties are Carboniferous in age, being of the Pennsylvanian system. Overall, these Carboniferous coals contain two-fifths of the USA's bituminous coal deposits and extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known as the *Appalachian Basin*. The Appalachian Basin is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of varying economic significance.

Within the Central Appalachian Basin, seams of economic significance typically range between 0.3 meters and 1.8 meters in thickness, with relatively little structural deformation. Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent.

The coal-bearing formations of interest at Logan is of the lower section of the Kanawha Formation, which comprise a major portion of the exposed ridges. The coal-bearing Formation includes sedimentary sequences of sandstones, siltstones, shales, and mudstones with minor occurrences of siderite, limestone and flint clay.

Coronado mines several horizons within the Kanawha formation. The horizons are as follows: Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton, Lower

MARSHAL MILLER ASSOCIATES, INC.

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P0C9/20

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede, Chilton-A, Chilton, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, No. 2 Gas, Upper Powellton, Lower Powellton, Eagle, and Lower War Eagle seams demonstrate mining potential on this property.

Logan currently has four active underground mines and one active surface mine. The Toney Fork mine is a surface mine, while the North Fork Winifrede, Eagle No. 1, Muddy Bridge and Lower War Eagle are underground mines. The active Toney Fork surface mine has historically mined multiple seams including the Upper Winifrede, Lower Winifrede, Upper Clarion Rider, Upper Clarion, Lower Clarion, Lower Coalburg, Upper Coalburg, Upper Stockton, Lower Stockton, Chilton-A, and Lower Dorothy Seams. Future surface mine reserve production at Logan is anticipated to focus on those seams having the best opportunity for sale into the metallurgical coal markets, namely the Lower Coalburg seam and below. The Powellton No. 1 Mine is projected to extract the Lower and Upper Powellton jointly in some areas, while other areas are projected to extract only the Lower Powellton due to seam splitting. The Eagle No. 1 and Muddy Bridge Mines are projected to extract the No. 2 Gas seam. The Lower War Eagle mine is projected to extract the Lower War Eagle seam.

## 6.2 Mineralization

The generalized stratigraphic columnar section in *Figure 6-1* demonstrates the vertical relationship of the principal coal seams and rock formations on the Property.

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![PSTS 2010 logo]() PSTS 2010

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

**Figure 6-2: Logan Stratigraphic Column**

![img-2.jpeg](img-2.jpeg)

(not to scale)

### 6.3 Deposits

The coal produced at Logan Mine complex is typically high-volatile (typically 28 percent or greater volatile matter content) bituminous coal. Seam quality varies with distance from the cropline, so some seams will be shipped into both the thermal and metallurgical markets depending on mining method and ultimate quality. Saleable product from the surface operations is projected to be sold primarily into the metallurgical coal market; however, some production is planned to be sold into the thermal coal market due to quality limitations. Underground coal is sold almost exclusively in the metallurgical markets.

## 7 Exploration

### 7.1 Nature and Extent of Exploration

The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado.

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D-1963/20

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-R 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Diamond core, rotary, and gas well drilling are the three primary types of exploration on the Property. Drill hole collar elevations and total depths vary by hole due to the hilly terrain of the Property. Data for correlation and mining conditions are derived from core descriptions and geophysical logging (e-logging). Coal quality analyses were also employed during the core exploration process. A total of 1,131 core and rotary holes have been drilled for exploration purposes on and around the leased property.

In 2022, Coronado completed four exploration holes, incorporated herein. Two of the new holes benefited the deep No. 2 Gas Lower (Eagle seam) reserve, while rock samples for the other two were collected for Acid-Base accounting for surface mine operations.

Drill records indicate that independent contract drilling operators have typically been engaged to carry out drilling on the Property. Geophysical logging was typically performed by outside logging firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a significant number of the past exploration holes and gas wells, and currently logs most of the recently drilled holes.

The location of the drilling is shown on the maps included in Appendix B.

The concentration of exploration varies slightly across the Property. Drilling on the Property is typically sufficient for delineation of potential surface, highwall miner, and deep mineable benches. Core logging is performed by professional geologists in cases where roof and floor strata are of particular interest and in cases where greater resolution and geologic detail are needed. Even so, most of the drill hole data comes from more simplified driller's logs, which often lack specific details regarding geotechnical conditions and specific geology, making correlations and floor and roof conditions more difficult to determine. Geophysical logging (e-logging) techniques, by contrast, document specific details useful for geologic interpretation and mining conditions. Given the variability of data-gathering methods, definitive mapping of future mining conditions may not be possible, but projections and assumptions can be made within a reasonable degree of certainty. A significant effort was put into verifying the integrity of the database records. Once the data was verified, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal seam correlations.

A typical cross-section is shown in Figure 7-1.

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![Logo]() 9x963p210

Comitado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

**Figure 7-1: Logan Cross-Section**

![img-0.jpeg](img-0.jpeg)

Due to the long history of exploration by various parties on the Property, a wide variety of survey techniques exist for documentation of data point locations. Many of the older exploration drill holes appear to have been located by survey and more recently-completed drill holes are often located

MARSHAL MILLER ASSOCIATES, INC.

23

p.96/p.210

Comtrade Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

by high-resolution Global Positioning System (GPS) units. However, some holes appear to have been approximately located using USGS topography maps or other methods which are less accurate. Therefore, discretion by MM&A had to be used regarding the accuracy for the location and ground surface elevation of some of these older drill holes. In instances where a drill hole location (or associated coal seam elevations) appeared to be inconsistent with the overall structural trend (or surface topography for surface-mineable areas), the data point was not honored for geological modeling. Others with apparently minor variances were logically adjusted and then used by MM&A.

Surveying of the underground and surface mined areas has been performed by the mine operators and/or their consulting surveyors. By assignment, MM&A did not verify the accuracy or completeness of the supplied mine maps but accepted this information as being the work of responsible engineers and surveyors, as required by both State and Federal Law.

MM&A compiled comprehensive topographic map files by selecting the best available aerial mapping for each area, surface mine resources and reserves in particular, and filled any gaps with digital USGS topographic mapping.

### 7.2 Non-Drilling Procedures and Parameters

Some analyses, specifically ultimate ash and sulfur types are not as prevalent as others in the testing done on samples recovered by drilling. To supplement the information database, samples have been collected from mine stockpiles and either truck or train shipment samples.

### 7.3 Drilling Procedures

Core drilling methods utilize NX-size (5.4 centimeters) or similar-sized core cylinders to recover core samples, which can be used to delineate geologic characteristics, and for coal quality testing and geotechnical logging. For the core holes, the geophysical logs are especially useful in verifying the core recovery of both the coal samples (for assurance that sample is representative of the full seam) and of the roof and floor rock samples (for evaluating ground control characteristics of deep mineable coal seams). In addition to the core holes, rotary drilled holes also exist on most of the Properties. Data for the rotary drilled holes is mainly derived from downhole geophysical logs, which are used to interpret coal and rock thickness and depth since logging of the drill cuttings is not reliable.

A wide variety of core-logging techniques exist for the properties. For many of the core holes, the primary data source is a generalized lithology description by the driller, typically supplemented by a more detailed core log completed by a geologist. The Logan drilling logs were provided to MM&A as a geological database. MM&A geologists were not involved in the production of original core logs but did perform a basic check of information within the provided database. Where geophysical logs for such holes are available, they were used by MM&A geologists to verify the coal thickness and core recovery of each seam.

MARSHALL MILLER ASSOCIATES, INC.

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p1c96/p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

### 7.4 Hydrology

Hydrologic testing and forecasting are necessary parts of the permitting process and as such are routinely considered in the mine planning process.

Logan has a lengthy history of operation and five currently active mines with no significant hydrologic concerns or material issues experienced in its history. Future mining is projected to occur in areas exhibiting similar hydrogeological conditions as past mining, including stream undermining and undermining of aquifers. Based upon the successful history of the operation with regards to hydrogeological features, MM&A assumes that the operation will not be hindered by such issues in the future.

### 7.5 Geotechnical Data

Mining plans for potential underground mines were developed by Coronado and modified by MM&A to fit current property constraints. Pillar stability was tested by MM&A using the Analysis of Coal Pillar Stability (ACPS) program that was developed by the National Institute for Occupational Safety and Health (IOSH). MM&A reviewed the results from the ACPS analysis and considered it in the development of the LOM plan. Coal and rock strengths from core testing are used to verify the empirical assumptions integral to ACPS.

## 8 Sample Preparation, Analyses and Security

### 8.1 Prior to Sending to the Lab

Most of the coal samples have been obtained from the Property by subsurface exploration using core drilling techniques. The protocol for preparing and testing the samples has varied over time and is not well documented for the older holes drilled on the Property. Following a process, typical USA core drilling sampling technique is for the coal core sample, once recovered from the core barrel, to be described then wrapped in a sealed plastic sleeve and placed into a wooden core box, which is the length of the sample and covered with a lid so that the core can be delivered to a laboratory in relatively intact condition and with inherent moisture content. Each core sample box is identified with the seam, hole identification number and the sample interval depth scribed on the sample box lid. This process has been the norm for both historical and ongoing exploration activities at Logan.

This work is typically performed by the supervising driller, geologist or company personnel. Samples are most often delivered to the company by the driller after each shift or acquired by company personnel or representatives. Most of the coal core samples were obtained by previous or current operators on the Property. MM&A did not participate in the sample collection and analysis of the core samples. However, it is reasonable to assume, given the sophistication level of the previous operators, that these samples were generally collected and processed under industry best-

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25

p163p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

practices. This assumption is based on MM&A's familiarity with the operating companies and the companies used to perform the analysis.

### 8.2 Lab Procedures

Coal quality testing has been performed over a large number of years by operating companies using different laboratories and testing regimens. Some of the samples have raw analyses and washabilities of the full seam (with coal and rock parting layers co-mingled) and are mainly useful for characterizing the coal quality for projected production from underground and highwall mine operations. Other samples have coal and rock analyzed separately, the results of which can be manipulated to forecast either surface or underground mine quality. Care has been taken to use only those analyses that are representative of the coal quality parameters for the appropriate mining type for each sample.

Standard procedure upon receipt of core samples by the testing laboratory is to log the depth and thickness of the sample, then perform testing as specified by a representative of the operating company. Each sample is then analyzed in accordance with procedures defined under ASTM International (ASTM) standards including, but not limited to; washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (FS) (ASTM D720).

## 9 Data Verification

### 9.1 Procedures of Qualified Person

MM&A reviewed the digital geologic database supplied by Coronado. The database consists of data records, which include drill hole information for holes that lie within and adjacent to the Property and records for numerous supplemental coal seam thickness measurements. For supplemental record verification, copies of each entry were printed, and cross referenced to the original document for verification. Once the initial integrity of the database was established, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal seam correlations. Geophysical logs were used wherever available to assist in confirming the seam correlation and to verify proper seam thickness measurements and recovery of intercepted coal sections and collected samples.

After establishing and/or verifying proper seam correlation, seam data control maps and geological cross-sections were generated and again used to verify seam correlations and data integrity. Once the database was fully vetted, seam thickness, base of seam elevation, roof and floor lithology, and overburden maps were independently generated for use in the mine planning process.

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pcnc9p20

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

### 9.2 Limitations

As with any exploration program, localized anomalies cannot always be discovered. Ideally, the greater the density of the samples taken, the less the risk. Once an area is identified as being of interest for inclusion in the mine plan, additional samples are taken to help reduce the risk in those specific areas. In general, provision is made in the mine planning portion of the study to allow for localized anomalies that are typically classed more as a nuisance than a hindrance.

### 9.3 Opinion of Qualified Person

Sufficient data has been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

## 10 Mineral Processing and Metallurgical Testing

### 10.1 Testing Procedures

Separate tabulations have been compiled for basic chemical analyses (both raw and washed quality), petrographic data, rheological data and chlorine, ash, ultimate and sulfur analysis. Some of the data categories from the analyses are not as prevalent and have been supplemented by samples collected from mine stockpiles and either truck or train shipment samples.

Available coal quality data was tabulated by resource area in a Microsoft® EXCEL workbook and the details of that work are maintained on file at the offices of Coronado and MM&A. These tables also provide basic statistical analyses of the coal quality attributes, including average value; maximum and minimum values; and the sample count (number of samples) available to represent each quality parameter of the seam. Coal samples that were deemed by MM&A geologists to be unrepresentative were not used for statistical analysis of coal quality, as documented in the tabulations. A representative group of drill hole samples from the Properties were then checked against the original drill laboratory reports to verify accuracy and correctness.

The amount and areal extent of coal sampling for geological data is generally sufficient to represent the quality characteristics of the coal horizons and allow for proper market placement of the subject coal seams. For some of the coal deposits, there are considerable laboratory data from core samples that are representative of the full extent of the resource area; and for others there are more limited data to represent the resource area. For example, in the active operations with considerable previous mining, there may be limited quality data within some of the remaining resource areas; however, in those cases the core sampling data can be supplemented with operational data from mining and shipped quality samples representative of the resource area.

MARSHALL MILLER ASSOCIATES, INC.

27

P0C9G9210

Comitudo Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

### 10.2 Relationship of Tests to the Whole

The extensive sampling and testing procedures typically followed in the coal industry result in an excellent correlation between samples and marketable product. Shipped analyses of the coal from Logan were reviewed to verify that the coal quality and characteristics were as expected. The Logan properties have a long history of saleable production, under various owners, in the high-volatile metallurgical and thermal markets, confirming exploration results.

### 10.3 Lab Information

Each sample is analyzed at area Laboratories that operate in accordance with procedures defined under ASTM standards including, but not limited to; washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (ASTM D720).

### 10.4 Relevant Results

No critical factors have been found that would adversely affect the recovery of the Reserve.

## 11 Mineral Resource Estimates

MM&A independently created a geologic model to define the coal resources of Logan. Coal resources were estimated as of December 31, 2022.

### 11.1 Assumptions, Parameters and Methodology

Geological data was imported into Carlson Mining® (formerly SurvCAD®) geological modelling software in the form of Microsoft ® Excel files incorporating drill hole collars, seam and thickness picks, bottom seam elevations and raw and washed coal quality. These data files were validated prior to importing into the software. Once imported, a geologic model was created, reviewed, and verified with a key element being a gridded model of coal seam thickness. Resource tonnes were estimated by using the seam thickness grid based on each valid point of observation and by defining resource confidence arcs around the points of observation. Points of observation for Measured and Indicated confidence arcs were defined for all valid drill holes that intersected the seam using standards deemed acceptable by MM&A based on a detailed geologic evaluation and a statistical analysis of all drill holes within the projected reserve areas as described in Section 11.1.1. The geological evaluation incorporated an analysis of seam thickness related to depositional environments, adjacent roof and floor lithologies, and structural influences.

After validating coal seam data and establishing correlations, the thickness and elevation for seams of economic interest were used to generate a geologic model. Due to the relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds, the principal geological interpretation necessary to define the geometry of the coal deposits is the proper modeling of their thickness and elevation. Both coal thickness and quality data are deemed by

MARSHALL MILLER ASSOCIATES, INC.

28

2x963p20

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

MM&A to be reasonably sufficient within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data.

Table 11-1 below provides the geological mapping and coal tonnage estimation criteria used for the coal resource and reserve evaluation. These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and are typical of mining operations in the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves.

Table 11-1: General Reserve & Resource Criteria

| Item | Parameters | Technical Notes & Exceptions* |
| --- | --- | --- |
| • General Reserve Criteria |  |  |
| Reserve Classification | Reserve and Resource | Coal resources as reported are inclusive of coal reserves. |
| Reliability Categories | Reserve (Proven and Probable) Resource (Measured, Indicated & Inferred) | To better reflect geological conditions of the coal deposits, distance between points of observation is standard USGS (in meters), respectively, for measured and indicated and inferred. |
| Effective Date of Resource Estimate | December 31, 2022 | Coal resources were updated for depletion and non-material resource additions based on information from Coronado. Effective date for coal resources is as of December 31, 2022. |
| Effective Date of Reserve Estimate | December 31, 2022 | Coal reserves were updated for depletion and non-material reserve additions based on information from Coronado. Effective date for coal reserves is as of December 31, 2022. |
| Seam Density | Variable, dependent upon seam characteristics (based on available drill hole quality). In the absence of laboratory data, estimated by (1) assuming specific gravity of 1.30 for coal and 2.25 to 2.5 for rock parting, or (2) 1280 kg/m3 to 1324 kg/m3 for a "clean" seam. |  |
| • Underground-Mineable Criteria |  |  |
| Map Thickness | Total seam thickness |  |
| Minimum Seam Thickness | 0.76 meters (thermal coal); 0.68 meters (metallurgical coal) |  |
| Minimum Mining Thickness | 1.4 to 1.8 meters |  |
| Minimum Total Coal Thickness | 0.76 meters (thermal coal); 0.68 meters (metallurgical coal) |  |
| Minimum In-Seam Wash Recovery | 50 percent; 40 percent where coal is belted directly to preparation plate |  |
| Wash Recovery Applied to Coal Reserves | Based on average yield for drill holes within reserve area, or in the absence of laboratory washability data, based on estimated visual recovery using specific gravities noted above and 95 percent yield on "clean" coal |  |

| Item | Parameters | Technical Notes & Exceptions* |
| --- | --- | --- |
| • Underground-Mineable Criteria |  |  |
| Out-of-Seam Dilution Thickness for Run-of-Mine Tonnes Applied to Coal Reserves | 0.05 meters minimum | 2243 kg/m3 density used for dilution tonnage estimate |
| Mine Barrier | 60.96-meter distance from abandoned mines and sealed or pillared areas; 30.4-meter distance from planned highwall mine panels |  |
| Minimum Reserve Tonnage | 226,796 recoverable tonnes for individual area (logical mining unit) |  |

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29

Ex963p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

| Minimum Overburden Depth | 30.40 meters |  |
| --- | --- | --- |
| Minimum Interval to Rider Coal | Considered on a case-by-case basis, depending on interval lithology, etc. | <1.5 meters are resource |
| Minimum Interval to Overlying or Underlying Reserves | Considered on a case-by-case basis, depending on interval lithology, extent and type of extraction, etc. | Typically, 12.19 meters |
| Minimum Interval to Overlying or Underlying Mixed Areas | Considered on a case-by-case basis, depending on interval lithology, extent and type of extraction, etc. |  |
| Adjustments Applied to Coal Reserves | 6 percent moisture increase; 5 percent loss for preparation plant inefficiency |  |
| Surface Mineable Criteria |  |  |
| Topographic Map Source | Reserves estimated based on aerial topography, where available, and best available aerial topography for other areas. Pre-law highwalls also based on aerial topography, where available |  |
| Map Thickness | Total mineable seam thickness (excluding removal partings) |  |
| Mine Recovery Applied to Coal Reserves | 90 percent; 25 percent for previously underground mixed areas. |  |
| Wash Recovery | Not Applicable for most reserves estimated on a direct-ship basis. Where surface mineable coal is projected to be washed, based on average yield for drill holes within reserve area, or in the absence of laboratory washability data, based on estimated visual recovery using specific gravities noted above and 95 percent yield on "clean" coal |  |
| Minimum Thickness | 0.3 meter for principal seam (principal seam is any that is >0.76 meters from another mineable coal bench) 0.15 meters for a split of a principal seam (split is within 0.76 meters of another mineable coal bench) |  |
| Minimum thickness of recoverable coal within single seam CTR/Area/HWM areas | 0.6 meters |  |
| Removable Rock Parting Thickness | 0.07 meters |  |
| Maximum Cumulative Area Mining Strip Ratio | 30:1 - Area 15:1 - CTR | Exceptions considered for metallurgical grade coal products if deemed economical |
| Design Bench Width for Contour/HWM Areas | 38.1 meters (Contour reserves estimated in conjunction with potential HWM reserves) |  |
| Adjustments Applied to Marketable Coal Reserves | 4.5 percent moisture increase |  |
| Out-of-Seam Dilution Thickness Applied to Coal Reserves | NA | 2% adjustment (addition) made to product coal quality ask to account for dilution |
| Surface Property Control | Reserves considered where surface is controlled; tonnage not estimated or classified as resource where surface is uncontrolled. |  |

MARSHALL MILLER ASSOCIATES, INC.

30

P0C9C9p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

| Item | Parameters | Technical Notes & Exceptions* |
| --- | --- | --- |
| Highwell Miner Reserves |  |  |
| Preservation Depth | 91.4 - 143.8 meters |  |
| Seam Density & Wash Recovery | Similar to underground-minable reserves |  |
| Mine Recovery Applied to Coal Reserves | 40 percent |  |
| Minimum Coal Thickness | 0.6 meter |  |
| Minimum Mining Height | 0.9 meter |  |
| Adjustments Applied to Marketable Coal Reserves | 6 percent moisture increase and 5 percent loss for preparation plant inefficiency |  |
| Out-of-Seam Dilution Thickness Applied to Coal Reserves | 0.9 meter less seam height | 2242 to 2402 kg/m3 density used for dilution tonnage estimate |

Note: Exceptions for application of these criteria to resource and reserve estimation are made as warranted and demonstrated by either actual mining experience or detailed data that allows for empirical evaluation of mining conditions. Final classification of coal reserve is made based on the pre-finability evaluation.

### 11.1.1 Geostatistical Analysis

MM&A completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated and inferred coal resources. Historically, the United States has assumed that coal within 0.4-kilometer of a point of observation represents a measured resource whereas coal between 0.4 kilometer and 1.2 kilometer from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. Per SEC regulations, only measured and indicated resources may be considered for reserve classification, respectively as proven and probable reserves.

MM&A performed a geostatistical analysis test of the Logan data set using the Drill Hole Spacing Analysis (DHSA) method. This method attempts to quantify the uncertainty of applying a measurement from a central location to increasingly larger square blocks and provides recommendations for determining the distances between drill holes for measured, indicated, and inferred resources.

To perform DHSA the data set was processed to remove any erroneous data points, clustered data points, as well as directional trends. This was achieved through the use of histograms, as seen in Figure 11-1, color coded scatter plots showing the geospatial positioning of the borings, Figure 11-2, and trend analysis.

MARSHALMILLER ASSOCIATES, INC.

31

c963p210

Comrade Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Figure 11-1: Histogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan Complex

c963p41i2

Figure 11-2: Scatter plot of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan Complex

c963p41i1

Following the completion of data processing, a variogram of the data set was created, Figure 11-3. The variogram plots average square difference against the separation distance between the data pairs. The separation distance is broken up into separate bins defined by a uniform lag distance (e.g., for a lag distance of 152 meters the bins would be 0 - 152 meters, 153 - 305 meters, etc.). Each pair of data points that are less than one lag distance apart are reported in the first bin. If the data pair is further apart than one lag distance but less than two lag distances apart, then the variance is reported in the second bin. The numerical average for differences reported for each bin is then plotted on the variogram. Care was taken to define the lag distance in such a way as to not overestimate any nugget effect present in the data set. Lastly, modeled equations, often spherical, gaussian, or exponential, are applied to the variogram in order to represent the data set across a continuous spectrum.

MARSHALL MILLER ASSOCIATES, INC.

32

DC9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

**Figure 11-3: Variogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan Complex**

DC9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C9C

The estimation variance is then calculated using information from the modeled variogram as well as charts published by Journel and Huijbregts (1978). This value estimates the variance from applying a single central measurement to increasingly larger square blocks. Care was taken to ensure any nugget effect present was added back into the data. This process was repeated for each test block size.

The final step of the process is to calculate the global estimation variance. In this step the number square blocks that would fit inside the selected study area is determined for each block size that was investigated in the previous step. The estimation variance is then divided by the number of blocks that would fit inside the study area for each test block size. Following this determination, the data is then transformed back to represent the relative error in the 95$^{th}$-percentile range.

*Figure 11-4* shows the results of the DHSA performed on the No. 2 Gas seam data for the Logan Complex. DHSA provides hole to hole spacing values, these distances need to be converted to radius from a central point in order to compare to the historical standards. A summary of the radius data is shown in *Table 11-3*. DHSA prescribes measured, indicated, and inferred drill hole spacings be determined at the 10-percent, 20-percent, and 50-percent levels of relative error, respectively.

MARSHALL MILLER ASSOCIATES, INC.

33

![PSTS logo]() PSTS

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex**

![PSTS logo]() PSTS

**Table 11-2: DHSA Results Summary for Radius from a Central Point**

| Model: | Measured Radial Distance (10% Relative Error) | Indicated Radial Distance (20% Relative Error) | Inferred Radial Distance (50% Relative Error) |
| --- | --- | --- | --- |
|  | (km) | (km) | (km) |
| Gaussian: | 0.99 | 1.66 | 3.94 |
| Spherical: | 0.87 | 1.53 | 3.53 |
| Exponential: | 0.87 | 1.53 | 3.53 |

Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Exponential and Spherical models recommend using a radius of 0.87 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources, the Spherical and Exponential models recommend using a radius of 1.53 kilometers. The historical radius of 1.2 kilometers is therefore also more conservative than the DHSA results for indicated resources. These results have led the QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

## 11.2 Qualified Person's Estimates

Mineral resources representing in-situ coal are estimated Inclusive of Reserve and Exclusive of Reserves. Based on the work and methods described above and detailed geologic modelling of the areas considering all defined parameters, a coal resource estimate, summarized in *Table 11-3*, was prepared as of December 31, 2022, for property controlled by Coronado.

MARSHAL MILLER ASSOCIATES, INC.

34

P 2/2 9/2/20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

**Table 11-3: Coal Resources Summary as of December 31, 2022 (Mt)**

| Area | Coal Resource (Dry Tonnes, In Mts, MT) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | Atk% | Subst% | Yld% |
| Inclusive of Reserves | 127.2 | 40.0 | 0.0 | 167.2 | 24 | 1.0 | 28 |
| Exclusive of Reserves | 45.2 | 37.0 | 3.4 | 85.6 |  |  |  |
| Total 12/31/2022 | 172.5 | 77.0 | 3.4 | 252.8 |  |  |  |

Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.

Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.

Note 3: The Property has 82.2 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December 31, 2022.

## 11.3 Resources Exclusive of Reserves

The Property contains multiple resource blocks which were not deemed to exhibit reserve potential at the time of the study. These underground-mineable resources, formally identified as resources exclusive of reserves, are from the No. 2 Gas, Lower Powellton, Peerless, Lower Winifrede, Middle Cedar Grove and Beckley coal seams. There are also surface mineable resources exclusive of reserves in various seams. Reasons which may preclude elevation of resources to reserves include, but are not limited to:

1. Unfavorable economics at the PFS level, yet economics could become attractive in the future under different market conditions.
2. Exclusion from LOM planning by mining operator due to remaining resource blocks which are relatively small, isolated blocks and not currently attractive from an operational perspective.

### 11.3.1 Initial Economic Assessment

MM&A completed an initial economic assessment to determine the potential economic viability of resources exclusive of reserves. Unlike the economic analysis presented in Section 19 developed to test reserves, the initial economic assessment below is presented on a real basis in 2023 dollars. MM&A applied relevant technical factors to estimate potential saleable tonnes without the resource blocks, should the resources be extracted via deep, continuous mining methods or surface area methods. MM&A developed cash cost profiles for the resource blocks, including direct cash costs (labor, supplies, roof control, maintenance and repair, power, and other); washing, trucking, materials handling, general and administrative, and environmental costs; and indirect cash costs (royalties, production taxes, property tax, insurance). Costs were developed based off relevant cost drivers (per-meter, per-bank cubic meter, per-raw-tonne, per-clean-tonne). Additionally, MM&A estimated capital costs to extract resources. Capital costs associated with mine development were amortized across the resource's potential saleable tonnages. Additional non-cash items (depreciation of equipment and depletion) and cash costs were compared to an assumed sale price of $154 per tonne (FOB loadout) for underground-mineable resources, representing the long-term average price forecast for HVB provided by Coronado. Surface resources were assessed at a sales price of $83 per tonne (FOB loadout) based on estimated historical pricing for Coronado's surface operations. The results of the analysis are shown below and demonstrate potential profitability on a fully loaded cost basis. Detailed summaries are shown in Appendix D.

MARSHALMILLER ASSOCIATES, INC.

35

![PSTS logo]() PSTS 2020

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 11-4: Results of Initial Economic Assessment**

| Mine | Resource Block | Direct Cash | Transportation, Washing, Easier, G&A | Indirect | Non-Cash | Total Cost | Fully Lauded P&L |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Torrey Fork #2 | N2G | $66.67 | $17.34 | $19.81 | $16.50 | $120.32 | $34.01 |
| Pardee | N2G | $73.46 | $20.85 | $19.81 | $11.60 | $125.72 | $28.60 |
| Sugar Camp | N2G | $92.16 | $25.16 | $19.81 | $9.30 | $146.51 | $7.82 |
| Lower Powellton | LPOW | $71.00 | $18.22 | $19.81 | $7.50 | $116.53 | $37.80 |
| Lower Powellton | LPOW | $74.31 | $18.99 | $19.81 | $19.19 | $132.30 | $22.02 |
| N2G Peerless | Peer | $95.07 | $15.53 | $19.81 | $15.81 | $146.22 | $8.11 |
| Beckley | Bec | $64.83 | $16.72 | $19.81 | $16.06 | $117.42 | $36.90 |
| Middle Cedar Grove | MCG | $68.56 | $18.21 | $19.81 | $35.73 | $142.30 | $12.02 |
| Ramaco | N2G | $62.22 | $21.52 | $19.81 | $29.31 | $132.86 | $21.46 |
| Lower Winifrede | LWIN | $56.79 | $20.02 | $19.81 | $12.69 | $109.31 | $45.01 |
| Powellton No. 1 | UPOW | $60.30 | $21.11 | $19.81 | $7.50 | $108.72 | $45.61 |
| Thermal Area Mines (S) | S | $49.96 | $6.34 | $12.73 | $7.50 | $76.52 | $6.15 |

**Figure 11-5: Results of Initial Economic Assessment**

![PSTS logo]() PSTS 2020

## 11.4 Resources Inclusive of Reserves

The *Inclusive of Reserves* in-place resource account for 66-percent of the total 252.8 million estimated in-situ resource. Recoverable reserves for both surface and underground mine methods are derived from the *Inclusive of Reserve* 167.2 million in-situ resource. Logan reserves are discussed further in *Section 12*, Mineral Reserve Estimates below.

MARSHALMILLER ASSOCIATES, INC.

36

P0C9G9210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

## 11.5 Qualified Person's Opinion

While there is some level of stratigraphically controlled seam-thickness variability due to seam splitting, sand channels, etc., the coal seams on the mine property in Logan County demonstrate reasonable thickness consistency according to the classification system of **measured** (0 - 0.4 kilometer), **indicated** (0.4 to 1.2 kilometers), and **inferred** (1.2 to 4.8 kilometers). MM&A geologists and engineers modeled the deposit and delineated mineable regions to reflect the nature of each seam and the practicality of mining constraints. Based on MM&A's geostatistical analysis, it would be possible to extend the measured, indicated and inferred arcs slightly beyond historically accepted practices due to consistent geological settings. The QP's have again elected not to extend arc distances, introducing a level of conservatism in measured and indicated coal classification.

Based on the data review, the attendant work done to verify the data integrity and the creation of an independent geologic model, the QPs believe this is a fair and accurate representation of the Logan coal resources.

## 12 Mineral Reserve Estimates

### 12.1 Assumptions, Parameters and Methodology

Coal Reserves are classified *approven* or *probable* considering "modifying factors" including mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors.

> **Proven Coal Reserves** are the economically mineable part of a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

> **Probable Coal Reserves** are the economically mineable part of an indicated coal resource, and in some circumstances a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

Upon completion of delineation and calculation of coal resources, MM&A generated a LOM plan for Logan. The footprint of each reserve area is shown on the maps in *Appendix B*. The Mine plan was generated based on the forecast mine plan and permit plan provided by Coronado with modifications by MM&A where necessary due to current property control limits, modifications to geologic mapping, or other factors determined during the evaluation.

Carlson Mining software was used to generate the LOM plan for Logan. The mine plan was sequenced based on productivity schedules provided by Coronado. MM&A judged the productivity estimates and plans to be reasonable based on experience and current industry practice.

MARSHALL MILLER ASSOCIATES, INC.

37

gsc0630

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Raw, ROM production data outputs from LOM plan sequencing were processed into Microsoft ® EXCEL spreadsheets and summarized on an annual basis for processing into the economic model. Average seam densities were estimated to determine raw coal tonnes produced from the LOM plan. Average mine recovery and wash recovery factors were applied to determine coal reserve tonnes.

Coal reserve tonnes in this evaluation are reported at a 4.5 percent to 6.0 percent moisture and represent the saleable product from the Property.

Pricing data as provided by Coronado is described in *Section 16.2*. The pricing data assumes respective HVA, HVB, specialty markets and thermal FOB-mine prices of approximately $192, $170, and $227 per metric tonne for calendar year 2023. HVA, HVB, and thermal prices respectively decrease to approximately $151, $132, and $83 per metric tonne through year 2027, and then increase to $271, $237, and $150 per metric tonne through year 2056.

The coal resource mapping and estimation process, described in this report was used as a basis for the coal reserve estimate. Proven and probable coal reserves were derived from the defined coal resource considering relevant processing, economic (including technical estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic, and regulatory factors and are presented on a moist, recoverable basis.

As is customary in the US, the categories for proven and probable coal reserves are based on the distances from valid points of measurement as determined by the QPs for the area under consideration. For this evaluation, measured resource, which may convert to a proven reserve, is based on a 0.4-kilometer radius from a valid point of observation.

Points of observation include exploration drill holes, gas wells, and mine measurements which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. Once the geologic model was completed, a statistical analysis, described in *Section 11.1.1* was conducted and a 0.4-kilometer radius from a valid point of observation was selected to define Measured Resources.

Likewise, the distance between 0.4 and 1.2 of a kilometer radius was selected to define Indicated Resources. Indicated Resources may convert to Probable Reserves.

Inferred Resources (greater than a 1.2-kilometer radius from a valid point of observation) have been excluded from Reserve consideration.

## 12.2 Mineral Reserves

Logan reserves were derived from multiple coal seams located on the Property and shown in *Figure 7.1*. Reserves are estimated for both surface and underground mine methods. Surface reserves were estimated for three designated mine areas: Toney Fork, Buffalo Creek South, and Sugar Camp.

MARSHALL MILLER ASSOCIATES, INC.

30

P0263p210

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Underground reserves were derived from six seams including the Upper Winifrede, Chilton (Williamson), Upper Powellton, Lower Powellton, No. 2 Gas-Lower (Eagle) and Lower War Eagle. The Mt of demonstrated reserves are sited in the discussion below. *Table 12-2* shows the demonstrated tonnage by Proven and Probable category.

Individual seam maps are included in *Appendix B* herein.

### **12.2.1 Surface Reserves**

Surface coal reserves of the Property include an estimated 32.5 Mt. Each surface mine area -- Tony Fork, Buffalo Creek South and Sugar Camp -- includes coal reserves from multiple seams. Two of the three surface reserve areas, Toney Fork and Buffalo Creek South, include both permitted and non-permitted tonnages, where Sugar Camp tonnage is not permitted. The Property has five surface mine permits for contour and highwall mining. Even so, in 2022 there was minor surface mine activity on just two of the five surface mine permits at Toney Fork Mine No. 3 and Elk Lick.

#### **12.2.1.1 Toney Fork Surface**

Toney Fork surface area is located north of Buffalo Creek on the north side of the Property. The Toney Fork drainage bisects much of the area which includes contour and highwall miner reserve from six seams. The Toney Fork reserve includes 11.3 Mt of both permitted and not-permitted status. There is one active permit -- Toney Fork Mine No 3 (S-5007-09). In 2022, few tons were mined from this permit.

Mine depletion from surface and underground mining, seam dependent, exists in all seams of the Toney Fork reserve which include the Upper Coalburg, Lower Coalburg, Lower Dorothy, Chilton A, Upper Winifrede and Lower Winifrede seams.

#### **12.2.1.2 Buffalo Creek South**

Buffalo Creek South surface area includes an estimated 15.0 Mt from projected contour and highwall mines. The reserve total includes both permitted and not-permitted tonnages. Permitted tonnages are estimated from four surface mine permits -- North Fork Winifrede Contour (S-5004-17), Middle Fork Surface (S-5004-22), and two at Elk Lick (S-5014-10 & S-5008-22). In 2022, a few tonnes were mined and only at Elk Lick.

The highwall mineable tonnage is estimated for six seams with adequate seam heights which include the Lower Coalburg, Lower Dorothy, Chilton, Chilton A, Buffalo Creek and the Upper Winifrede. Contour mine tonnage is derived from the highwall mine seams, along with four additional seams with acceptable seam thickness. They include the Lower Clarion, Upper Stockton, Lower Stockton and Upper Coalburg. Mine depletion to various extents exists in the Buffalo Creek South seams.

#### **12.2.1.3 Sugar Camp Surface**

Sugar Camp surface area is a ridge above Sugar Camp Branch tributary of Huff Creek. The Sugar Camp reserve includes 6.2 Mt with a suitable surface mine strip ratio. Proposed surface mining

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P 0530/20

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-R 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

includes reserve from 12 seams beginning with the Chilton A seam down to the S80 seam, each with an acceptable seam height. The seams included are Chilton A, Upper Winifrede, Lower Winifrede, Chilton, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, S132 seam, S120 seam, S110 seam, S84 seam and S80 seam. No mine depletion exists in the seams of the reserve on the ridge.

### 12.2.2 Underground Reserves

Underground coal reserves of the Property include an estimated 38.1 Mt derived from the small above-drainage deposits in the Upper Winifrede seam along with larger seam deposits of the deeper Chilton, Upper Powellton, Lower Powellton, No. 2 Gas-Lower (Eagle) and Lower War Eagle seams. Active underground mines are operating in the Upper Winifrede, No. 2 Gas-Lower and the Lower War Eagle seams.

#### 12.2.2.1 Upper Winifrede (No 8) Seam

The Upper Winifrede seam includes two underground reserves, the permitted North Fork Mine (U-5009-19) and a not-permitted proposed Upper Winifrede mine. The active North Fork Mine is situated on a narrow ridge between two drainages, has an average seam thickness of 1.42 meters, and includes an estimated 0.2 Mt. The Proposed Upper Winifrede mine reserve displays some seam splitting, has an average seam thickness of 1.64 meters, and includes an estimated 1.8 Mt. On the Property, the Upper Winifrede seam has been extensively mined from both surface and underground mining.

#### 12.2.2.2 Chilton (Williamson) Seam

The Chilton seam reserve includes an estimated 5.4 Mt from two proposed mine areas: Camp Branch and Elk Lick. The average seam height for the two areas is 1.17 meters and 1.06 meters, respectively. On the Property, the Chilton seam has been extensively mined, mainly by underground mining.

#### 12.2.2.3 Upper Powellton (Upper Alma)

The Powellton No 1 Mine permit provides access to the remaining 3.6 Mt of the Upper Powellton reserve. The seam has an average thickness of nearly 1.12 meters. The mine is bound by the property extent to the northeast and thin coal from a seam split to the west. The south end of Mine No. 1 is mined out. Elsewhere, no prior Upper Powellton seam mining is noted on the Property.

#### 12.2.2.4 Lower Powellton (Lower Alma)

The Lower Powellton seam reserve includes an estimated 5.1 Mt from a proposed mine area situated north of Toney Fork. In the mapped resource area, the interval to the overlying Upper Powellton seam is in a range of 5.1 to 7.2 meters. Therefore, only resources (exclusive of reserves) are projected below the Upper Powellton underground mine where the two seams overlap. The Lower Powellton seam has an average reserve thickness of 0.89 meters and is bound by property control to the north, by low coal to the west and south and from overmining in the Upper Powellton seam to the east. No prior Lower Powellton seam mining is noted on the Property.

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P0963p210

Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

### 12.2.2.5 No. 2 Gas-Lower (Eagle)

The No 2 Gas-Lower seam reserve includes an estimated 15.5 Mt. The demonstrated total includes both permitted and not permitted tonnes. Two active mines access the reserve -- the Eagle No. 1 / Toney Fork Mine (U-5013-11) from Toney Fork Drainage and the Muddy Bridge 1 & 2 Mine (U-5034-96, U-5035-96) from Muddy Bridge Branch of Huff Creek. Mine boundaries of the two mines are immediately adjacent to one another and mine plans maximize the mineable area. The average seam height is 1.00 meter and 1.52 meters for the Eagle No. 1 and Muddy Bridge mines, respectively. On the Property, the No. 2 Gas-Lower reserve is limited by low coal thickness to the east and seam outcrop along large drainages elsewhere. Previous underground mining of the seam is mapped immediately west of the Property.

### 12.2.2.6 Lower War Eagle

The Lower War Eagle seam reserve includes an estimated 6.5 Mt. One underground Lower War Eagle mine (U-4002-99B) provides seam access from the portal located along Huff Creek. Mapped mine depletion is from within the existing mine. The Lower War Eagle reserve extent is limited to the north by low coal.

## 12.3 Qualified Person's Estimates

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tonnes presented in *Table 11-3*, and not in addition to coal resources. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The coal reserves, as shown in *Table 12-2*, are based on a technical evaluation of the geology and a preliminary feasibility study of the coal deposits. The extent to which the coal reserves may be affected by any known environmental, permitting, legal, title, socio-economic, marketing, political, or other relevant issues has been reviewed rigorously. Similarly, the extent to which the estimates of coal reserves may be materially affected by mining, metallurgical, infrastructure and other relevant factors has also been considered. Coal reserves are presented on a ROM basis in *Table 12-1*.

MARSHALL MILLER ASSOCIATES, INC.

41

![PSTS logo]()

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 12-1: Coal Reserves Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)**

| Area / Mine | Demonstrated Coal Reserves (Mt, Moist ROM) |  |  |  |  |  |  | Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  |  |  |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased | Ash | Sulfur | Vol |
| Logan Mine Complex | 101.4 | 36.7 | 138.1 | 37.3 | 100.8 | 0.0 | 138.1 | 51 | 0.9 | 19 |

In the financial analysis some of the projected mines were not economically viable. The tonnes projected to be mined from these locations have not been included in the Reserve Base.

**Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)**

| Property | Demonstrated Coal Reserves (Wet Tons, Wetbed or Direct Shipped, MT) |  |  |  |  |  |  | Quality (Dry Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  |  |  |  |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased | % | Sulfur % | Vol % |
| Logan County Complex | 53.3 | 17.4 | 70.6 | 32.0 | 38.1 | 0.0 | 70.68 | 6.9 | 36 |  |

Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 6-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting.

The results of this TRS define an estimated 70.6 Mt of proven and probable marketable coal reserves. Of that total, 75 percent are proven, and 25 percent are probable. All 70.6 Mt are leased coal reserves and are assigned. Approximately 61.6 Mt of reserves are considered suitable for the metallurgical coal market and 9.0 Mt are projected to be sold into the thermal coal market.

## 12.4 Qualified Person's Opinion

The estimate of coal reserves was determined in accordance with the JORC Code along with SEC Regulation S-K 1300.

The LOM mining plan for Logan was prepared to the level of preliminary feasibility. Mine projections were prepared, and timing scheduled to match production with coal seam characteristics. Production timing was carried out from current locations to depletion of the coal reserve area. Coal reserve estimates could be materially affected by the risk factors described in *Section 22.2*.

Based on the Preliminary Feasibility Study and the attendant Economic Review, the QPs believe this is a fair and accurate calculation of the Logan coal reserves.

## 13 Mining Methods

Nine underground and three surface mining areas were modeled and tested economically. Once the Resources were calculated, mine plans were created to project operating each resource area to depletion, with crews and equipment scheduled to move to subsequent mining areas as depletion occurs. Underground mine operations are projected to be exhausted in 2045, surface mines deplete in 2055 and the highwall miners finish in 2056.

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P 0530

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

### 13.1 Geotech and Hydrology

Mining plans for potential underground mines were developed by Coronado and MM&A. Pillar stability was tested by MM&A using the Analysis of Coal Pillar Stability (ACPS) program that was developed by the National Institute for Occupational Safety and Health (IOSH). MM&A reviewed the results from the ACPS and ALPS analysis and considered them in the development of the LOM plan.

For the HWM operation, Mining cuts are approximately 2.9 meters wide, and cuts are typically laid out on approximately 5.03-meter centers. A 2.1-meter to 2.4-meter solid coal fender is left in place between cuts. The mining plan provides that larger barrier pillars be provided periodically, depending on overburden depth and characteristics and the immediate roof composition, typically after 15 to 20 cuts. Although this plan, with minor variations, is common throughout Appalachia, specific rock and coal strength information is used to verify whether or not this plan provided a sufficient factor of safety.

Hydrology has not been an issue of concern at Logan. Based on numerous site visits to both the surface and underground portions of the Property by the QPs, it has been determined that this is not a significant concern. Mining of future reserves is projected to occur in areas which exhibit similar hydrogeological characteristics as those formerly mined areas.

### 13.2 Production Rates

Operations at Logan by Coronado and its predecessors have been on-going for many years. The mine plan and productivity expectations reflect historical performance and efforts have been made to adjust the plan to reflect future conditions. MM&A is confident that the mine plan is reasonably representative to provide an accurate estimation of coal reserves. Mine development and operation have not been optimized within the TRS.

Carlson Mining software was used by MM&A to generate mine plans for the mineable coal seams. Mine plans were sequenced based on productivity schedules provided by Coronado, which were based on historically achieved productivity levels. All production forecasting ties assumed production rates to geological models as constructed by MM&A's team of geologists and mining engineers.

The projected underground mines are set up similarly to the four currently active operations. Each mine is scheduled to operate one to three production sections. All sections are configured as full supersections with two continuous miners per section. In all cases, mines are forecasted to produce coal two or three shifts each day. In most cases the third shift is reserved for maintenance and belt and power moves. Production is scheduled Monday through Friday each week, and every other Saturday.

Three surface resource areas were modeled. Mining operations are projected to utilize area mining as well as contour mining (CTR) methods with an emphasis on creating highwall for highwall mining

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Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

activity. The projected operations will employ two existing front-end loaders capable of a combined production rate of approximately 8,900 bcm/hr with supplemental assistance of 6 dozers that can generate an additional 700 bcm/hr providing their spoil placement does not interfere with planned highwall mining activity. The older, higher-hour front end loader will be replaced in early 2023 with a higher production hydraulic excavator that will increase the capability of the loading machines to 11,300 bcm/hr. The dozers will continue supplementing the loading production on a periodic basis as described previously. The potential production level of combined machines is not projected to be achieved until 2024 and not consistently until 2027 due to lack of sufficient working areas. Sufficient reserves allow mining to continue to the year 2055.

The models assume that the operations will work two, 10-hour production shifts, 5 days per week plus every other Saturday, with sufficient staffing to float vacation during the year. A total of 82 employees are assumed for the surface mines at full production.

Coals from the surface operations are hauled to the loadout for direct ship or to the preparation plant for washing ultimately to be blended to shipment's specifications. Saleable product from the surface operations is projected to be sold primary into the thermal coal market on a raw basis; however, some production is planned to be washed for the metallurgical coal market.

The three areas planned for highwall mining are assumed to be mined by a contractor; therefore, the contractor costs included in the financial model assume that the contractor is responsible for staffing those operations along with providing necessary equipment capital.

Spoil for final highwall reclamation is expected to come from strategic placement of spoil on pre-existing benches by haul trucks such that they are within the push distance of the reclamation dozer.

### 13.3 Mining Related Requirements

#### 13.3.1 Underground

A mine plan with sequenced mining projections was prepared for each logical mining unit. For each mine plan, the appropriate number of production units is selected for the resource area, and a productivity level assigned, expressed in meters of advance per unit-shift of production. The productivity is based on the equipment and personnel configuration, mining height and expected physical conditions.

#### 13.3.2 Surface Mine

A mine plan with sequenced mining projections was prepared for each logical mining unit. The mobile equipment spreads selected are representative of Coronado's equipment fleets and deemed to be appropriate for the local mining conditions.

#### 13.3.3 HWM

Contract HWM units are available for assignment to contour surface mining pits in the Logan County Division. HWM substantially increases coal recovery from contour mining benches and is ideally

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44

P0C9G9210

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

suited for coal resource areas characterized by thin coal seams and irregular or narrow boundaries that are not well-suited for underground mining. The contour mining bench will extend into the highwall to the maximum overburden stripping ratio that is economically feasible or the minimum bench requirement for operation of the HWM unit.

## 13.4 Required Equipment and Personnel

### 13.4.1 Underground Mines

#### 13.4.1.1 *Powellton No. 1*

The Powellton No. 1 Mine is temporarily inactive. It is scheduled to resume production with one continuous mine section in the second quarter of 2024 with an additional continuous mining section coming online in the fourth quarter of 2024. The Upper Powellton seam is accessed via a shallow slope and crop. This mine produces metallurgical coal from leased mineral.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday and every other Saturday. On each day, two production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The production section is configured as a full super section with two continuous miners. Productivity is planned at the rate of 61.0 meters of advance and retreat per shift of operation. A total of 116 employees are assigned to the mine.

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops for each operating section. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside, where it is transported via overland conveyor to the preparation plant and load-out.

The Powellton No. 1 Mine is temporarily an inactive facility; however, all necessary infrastructure and utilities remain in place. All necessary permits have been obtained. Estimated expenditures for site closure and reclamation are included in the financial model for this site. Expected annual production averages approximately 350,000 marketable tonnes. The mine is scheduled to terminate during 2034.

#### 13.4.1.2 *Lower War Eagle*

The Lower War Eagle Mine is active with two production sections. The Lower War Eagle seam is accessed via an existing slope. This mine is a metallurgical coal operation with all remaining production on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday and every other Saturday. On each day, three production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine

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Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

conveyor belt and power moves. The sections are configured as super sections with two continuous miners available for production. Productivity is planned at the rate of 79.2 meters of advance and retreat per shift of operation. A total of 139 employees are assigned to the mine.

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops for each operating section. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is transported to the preparation plant and load-out via overland conveyor.

The Lower War Eagle Mine is an operating facility; all necessary infrastructure and utilities are in place. All necessary permits have been obtained. Estimated expenditures for site closure and reclamation are included in the financial model for this site. Expected annual production averages approximately 479,000 marketable tonnes. The mine is scheduled to terminate during 2036.

#### **13.4.1.3 Eagle No. 1/Toney Fork #1**

The Eagle No. 1 (Toney Fork #1) Mine is an active mine in the Eagle (No. 2 Gas Lower) seam with two production sections. This mine is a metallurgical coal operation on leased mineral property and is accessed via drift entries from the outcrop.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday and every other Saturday. On each day, three production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. Both sections are full super sections with two continuous miners per section. Productivity is planned at the rate of 64.0 meters of advance per shift (76.2 meters of retreat) for the super sections. A total of 137 employees are assigned to the mine.

The principal production equipment per section includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out.

The Eagle No. 1 Mine is an operating facility; all necessary infrastructure and utilities are in place. All necessary permits have been obtained; the underground footprint area expansion is pending final approval. Estimated expenditures for mine closure and site reclamation are included in the financial model.

Expected annual production averages approximately 517,000 marketable tonnes.

The mine is scheduled to terminate during 2045.

MARSHALL MILLER ASSOCIATES, INC.

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Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

#### 13.4.1.4 Muddy Bridge

The Muddy Bridge Mine is an active mine in the Eagle (No. 2 Gas Lower) seam. This mine is a metallurgical coal operation on leased mineral property and is accessed via drift entries from the outcrop.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, two production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as full super sections with two continuous miners available for production on each section. Productivity is planned at the rate of 76.2 meters of advance and retreat per shift of operation. A total of 115 employees are assigned to the mine.

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops for each operating section. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside, where it is stacked on the ground to await truck transport to the Lower War Eagle mine for placement onto the overland conveyor leading to the preparation plant and load-out.

The Muddy Bridge Mine is an operating facility; all necessary infrastructure and utilities are in place. All necessary permits have been obtained. Coal mining permits are routinely obtained. Estimated expenditures for mine closure and site reclamation are included in the financial model.

Expected annual production averages approximately 603,000 marketable tonnes at steady state production levels.

The mine is scheduled to terminate during 2028.

#### 13.4.1.5 Elklick Chilton

The proposed Elklick Chilton Mine is scheduled to begin production in 2029. The Chilton seam is accessed via drift entry. The seam is above drainage. This mine is projected to be a metallurgical coal operation on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, one production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as full super sections with two continuous miners available for production on each section. Productivity is planned at the rate of 73.2 meters of advance (109.8 meters of retreat) per shift of operation. A total of 70 employees are assigned to the mine.

MARSHALL MILLER ASSOCIATES, INC.

47

![P2020 logo]() 2020

Comitê Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out.

The Elklick Chilton mine is a permitted mine with surface infrastructure in place. The proposed mine is located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Estimated expenditures for mine closure and site reclamation are included in the financial model.

Expected annual production averages approximately 301,000 marketable tonnes at steady state production levels.

The mine is scheduled to begin production in 2029 and terminate during 2041.

#### **13.4.1.6 Camp Branch Chilton**

The Camp Branch Chilton Mine is proposed mine in the Chilton seam which is accessed via drift entry from the outcrop and is scheduled to begin production in 2029. This mine is a metallurgical coal operation on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, one production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as full super sections with two continuous miners available for production on each section. Productivity is planned at the rate of 73.2 meters of advance (109.8 meters of retreat) per shift of operation. A total of 70 employees are assigned to the mine.

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out.

Due to the projected starting date for the Camp Branch Chilton Mine, no detailed design of infrastructure or surface facilities has been completed to date. The proposed mine is located in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient population base within commuting distance of the proposed operation; no Camp or Town construction will be required. Estimated mine access and utility capital expenditures are included in the financial model for the mine.

MARSHALL MILLER ASSOCIATES, INC.

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Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

The proposed Camp Branch Chilton Mine has an existing permit. Estimated expenditures for mine closure and site reclamation are included in the financial model.

Expected annual production averages approximately 321,000 marketable tonnes at steady state production levels.

The mine is scheduled to begin production in 2029 and terminate during 2033.

#### **13.4.1.7 *Winifrede***

The active Winifrede (North Fork) Mine is located in the Upper Winifrede seam and is accessed via drift along the outcrop. This mine is a metallurgical coal operation on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, one production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The section is configured as a super section with two continuous miners per section available for production. Productivity is planned at 38.1 meters to 45.1 meters of advance (53.4 meters to 63.1 meters of retreat) per shift. A total of 47 employees are assigned to the mine.

Principal production equipment per section includes two continuous miners, two roof bolters, four shuttle cars, and one scoop. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out.

The active Winifrede Mine at North Fork is permitted. Estimated expenditures for mine closure and site reclamation are included in the financial model.

Expected annual production averages approximately 190,000 marketable tonnes at steady state levels.

The mine is scheduled to terminate during 2023.

#### **13.4.1.8 *Lower Powellton***

The proposed Lower Powellton Mine is scheduled to begin production in 2033. The Lower Powellton seam is accessed via a proposed drift along the outcrop. This mine is projected to be a metallurgical coal operation on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, two production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine

MARSHALL MILLER ASSOCIATES, INC.

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Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

conveyor belt and power moves. Both sections are configured as a super section with two continuous miners per section available for production. Productivity is planned at 73.2 meters of advance per shift (85.4 meters of retreat per shift). A total of 123 employees are assigned to the mine during steady state production.

Principal production equipment per section includes two continuous miners, two roof bolters, four shuttle cars, and one scoop. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out. The truck haul cost is estimated to be $1.99 per tonne.

Due to the projected starting date for the Lower Powellton Mine, no detailed design of infrastructure or surface facilities has been completed to date. The proposed mine is located in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient population base within commuting distance of the proposed operation; no Camp or Town construction will be required. Estimated mine access and utility capital expenditures are included in the financial model for the mine.

Due to the projected start-up date of the Lower Powellton Mine, no permit work has been completed to date. The proposed mine is located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Coal mining permits are routinely obtained. Estimated expenditures for mine closure and site reclamation are included in the financial model for each mine or plant site.

Expected annual production averages approximately 501,000 marketable tonnes at steady state levels.

The mine is scheduled to begin production in 2033 and terminate during 2044.

#### **13.4.1.9 Upper Winifrede**

The proposed Upper Winifrede Mine is scheduled to begin production in 2037. The Upper Winifrede seam is accessed via a proposed drift along the outcrop. This mine is projected to be a metallurgical coal operation on leased mineral property.

Production is scheduled for approximately 265 days each year, which represents production on Monday through Friday plus every other Saturday. On each day, one production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as full super sections with two continuous miners available for production on each section. Productivity is planned at the rate of 73.2 meters of advance per shift of operation. A total of 70 employees are assigned to the mine.

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P0963p210

Comitê Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out. The truck haul cost is estimated to be $4.03 per tonne.

Due to the projected starting date for the Upper Winifrede Mine, no detailed design of infrastructure or surface facilities has been completed to date. The proposed mine is located in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient population base within commuting distance of the proposed operation; no Camp or Town construction will be required. Estimated mine access and utility capital expenditures are included in the financial model for the mine.

Due to the projected start-up date of the Upper Winifrede Mine, no permit work has been completed to date. The proposed mine is located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Coal mining permits are routinely obtained. Estimated expenditures for mine closure and site reclamation are included in the financial model for each mine or plant site.

Expected annual production averages approximately 413,000 marketable tonnes at steady state levels.

The mine is scheduled to begin production in 2037 and terminate during 2041.

At the underground mines, ventilation fans are installed to provide a sufficient volume of air to ventilate production sections, coal haulage and transport entries, battery charging stations, and transformers in accordance with approved plans. High-voltage cables deliver power throughout the mine where transformers reduce voltage for specific equipment requirements. *The Mine Improvement and New Emergency Response Act of 2006 (MINER Act)* requires that carbon monoxide detection systems be installed along mine conveyor belts and that electronic two-way tracking and communications systems be installed throughout underground mines. Water is required to control dust at production sections and along conveyor belts, and to cool electric motors. Water is available from nearby sources and is distributed within the mine by pipelines as required.

### 13.4.2 Surface Mines and Highwall Miners

Three surface resource areas were modeled. Mining operations are projected to utilize area mining as well as contour mining (*CTR*) methods with an emphasis on creating highwall for highwall mining activity. The projected operations will employ two existing front-end loaders capable of a combined production rate of approximately 8,900 bcm/hr with supplemental assistance of 6 dozers that can generate an additional 700 bcm/hr providing their spoil placement does not interfere with planned highwall mining activity. The older, higher-hour front end loader will be replaced in early 2023

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P0263p210

Comitado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

with a higher production hydraulic excavator that will increase the capability of the loading machines to 11,300 bcm/hr. The dozers will continue supplementing the loading production on a periodic basis as described previously. The potential production level of combined machines is not projected to be achieved until 2024 and not consistently until 2027 due to lack of sufficient working areas. Sufficient reserves allow mining to continue to the year 2055.

The models assume that the operations will work two, 10-hour production shifts, 5 days per week plus every other Saturday, with sufficient staffing to float vacation during the year. A total of 82 employees are assumed for the surface mines at full production.

It is assumed that most of the spoil movement goes through a shovel or loader bucket and is eventually returned to the pit for final reclamation. The dozer's primary responsibility is cutting the initial benches for the drill and shaping the reclaimed contour highwall.

All highwall mining is assumed to be performed by a contractor. The contractor is responsible for staffing those operations along with providing necessary equipment capital.

Spoil for final highwall reclamation is expected to come from strategic placement of spoil on pre-existing benches by haul trucks such that they are within the push distance of the reclamation dozer.

#### **13.4.2.1 Toney Fork**

Toney Fork surface mining operations are projected to be mined from 2028 to 2055, with emphasis placed on preparing space for HWM operations. Expected production for the operations averages approximately 232,000 marketable tonnes.

The Toney Fork HWM operates from 2028 to 2056 and mines an additional 172,000 marketable tonnes at steady state levels.

#### **13.4.2.2 Buffalo Creek South**

The Buffalo Creek South surface and/or HWM mining operations are projected to operate between 2023 and 2055, with emphasis placed on preparing space for HWM operations. Expected surface production for the operations totals approximately 246,000 marketable tonnes at steady state levels. The Buffalo Creek HWM mines an additional 212,000 marketable tonnes at steady state levels.

#### **13.4.2.3 Sugar Camp**

Sugar Camp surface mining operations are projected to be mined from 2028 to 2055. Expected production for the operations average approximately 180,000 marketable tonnes.

The Sugar Camp HWM operates from 2028 to 2056 and mines an additional 46,000 marketable tonnes.

MARSHALL MILLER ASSOCIATES, INC.

52

![PSTS 2020 logo]() PSTS 2020

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

As shown in *Tables 13-1 through 13-3*, the areas planned for underground production continue until 2045, whereas surface and auger/HWM production is projected to finish in 2056. Clean coal production varies directly with coal thickness in the case of the underground mines, and overburden removal for the surface mines.

**Table 13-1: Underground Summary of Production by Year (000)**

| Mins Name | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Camp Br Chilton | 0 | 0 | 0 | 0 | 0 | 0 | 321 | 355 |
| Eagle No. 1 (Toney Fork) | 561 | 566 | 545 | 571 | 536 | 609 | 613 | 477 |
| Elk Lick Chilton | 0 | 0 | 0 | 0 | 0 | 0 | 202 | 249 |
| Lower Powellton | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Lower War Eagle | 398 | 472 | 452 | 446 | 444 | 493 | 509 | 482 |
| Powellton No. 1 | 0 | 135 | 359 | 378 | 374 | 438 | 432 | 436 |
| Muddy Br No.2 Gas | 605 | 598 | 618 | 592 | 520 | 714 | 0 | 0 |
| Upper Winifrede | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Winifrede (Chilton Rider) | 219 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,783 | 1,770 | 1,974 | 1,988 | 1,874 | 2,254 | 2,077 | 1,999 |

MARSHAL MILLER ASSOCIATES, INC.

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Ex963p210

Comitado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

| Mine Name | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Camp Br Chilton | 348 | 283 | 300 | 0 | 0 | 0 | 0 | 0 |
| Eagle No. 1 (Toney Fork) | 468 | 482 | 466 | 470 | 456 | 506 | 407 | 545 |
| Elk Lick Chilton | 262 | 280 | 291 | 299 | 241 | 294 | 336 | 355 |
| Lower Powellton | 0 | 0 | 33 | 245 | 492 | 510 | 499 | 511 |
| Lower War Eagle | 545 | 561 | 490 | 462 | 468 | 322 | 0 | 0 |
| Powellton No. 1 | 315 | 210 | 204 | 347 | 0 | 0 | 0 | 0 |
| Muddy Br No.2 Gas | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Upper Winifrede | 0 | 0 | 0 | 0 | 0 | 0 | 493 | 505 |
| Winifrede (Chilton Rider) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,938 | 1,817 | 1,784 | 1,823 | 1,657 | 1,682 | 1,736 | 1,916 |
| Mine Name | 2030 | 2040 | 2044 | 2042 | 2043 | 2044 | 2045 | 2046 |
| Camp Br Chilton | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Eagle No. 1 (Toney Fork) | 551 | 524 | 478 | 482 | 510 | 506 | 427 | 0 |
| Elk Lick Chilton | 320 | 328 | 351 | 0 | 0 | 0 | 0 | 0 |
| Lower Powellton | 509 | 513 | 495 | 569 | 666 | 52 | 0 | 0 |
| Lower War Eagle | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Powellton No. 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Muddy Br No.2 Gas | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Upper Winifrede | 347 | 307 | 142 | 0 | 0 | 0 | 0 | 0 |
| Winifrede (Chilton Rider) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,726 | 1,672 | 1,466 | 1,051 | 1,177 | 550 | 427 | 0 |

Table 13-2: Surface Summary of Production by Year (000)

| Mine Name | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Toney Fork Surf | 0 | 0 | 0 | 0 | 0 | 234 | 234 | 232 |
| Buffalo Cr South Area | 298 | 458 | 521 | 509 | 526 | 207 | 207 | 205 |
| Sugar Camp Area 1 | 0 | 0 | 0 | 0 | 0 | 181 | 181 | 180 |
| Total | 298 | 458 | 521 | 509 | 526 | 622 | 622 | 618 |
| Mine Name | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 |
| Toney Fork Surf | 231 | 231 | 231 | 231 | 233 | 233 | 231 | 232 |
| Buffalo Cr South Area | 205 | 204 | 205 | 205 | 206 | 206 | 205 | 205 |
| Sugar Camp Area 1 | 179 | 179 | 179 | 179 | 181 | 181 | 179 | 180 |
| Total | 616 | 613 | 616 | 616 | 620 | 620 | 616 | 618 |
| Mine Name | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 |
| Toney Fork Surf | 233 | 234 | 232 | 231 | 229 | 232 | 231 | 233 |
| Buffalo Cr South Area | 206 | 207 | 205 | 205 | 203 | 205 | 205 | 206 |
| Sugar Camp Area 1 | 181 | 181 | 180 | 179 | 177 | 180 | 179 | 181 |
| Total | 620 | 622 | 618 | 616 | 609 | 618 | 616 | 620 |
| Mine Name | 2047 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054 |
| Toney Fork Surf | 233 | 232 | 232 | 233 | 234 | 233 | 231 | 229 |
| Buffalo Cr South Area | 206 | 205 | 205 | 206 | 207 | 206 | 205 | 203 |
| Sugar Camp Area 1 | 181 | 180 | 180 | 181 | 181 | 181 | 179 | 177 |
| Total | 620 | 618 | 618 | 620 | 622 | 620 | 616 | 609 |
| Mine Name | 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 |
| Toney Fork Surf | 66 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buffalo Cr South Area | 130 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sugar Camp Area 1 | 51 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 247 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |

MARSHALMILLER ASSOCIATES, INC.

54

gsc9c2p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IORC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Table 13-3: Highwall Summary of Production by Year (000)

| Mine Name | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Totey Fork HWM | 0 | 0 | 0 | 0 | 0 | 173 | 173 | 172 |
| Buffalo Cr South HWM | 134 | 215 | 234 | 117 | 124 | 219 | 219 | 217 |
| Sugar Camp HWM | 0 | 0 | 0 | 0 | 0 | 46 | 46 | 46 |
| Total | 134 | 215 | 234 | 117 | 124 | 438 | 438 | 435 |
| Mine Name | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 |
| Totey Fork HWM | 171 | 171 | 171 | 171 | 173 | 173 | 171 | 172 |
| Buffalo Cr South HWM | 216 | 216 | 216 | 216 | 218 | 218 | 216 | 217 |
| Sugar Camp HWM | 46 | 46 | 46 | 46 | 46 | 46 | 46 | 46 |
| Total | 433 | 432 | 433 | 433 | 437 | 437 | 433 | 435 |
| Mine Name | 2035 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 |
| Totey Fork HWM | 173 | 173 | 172 | 171 | 169 | 172 | 171 | 173 |
| Buffalo Cr South HWM | 218 | 219 | 217 | 216 | 214 | 217 | 216 | 218 |
| Sugar Camp HWM | 46 | 46 | 46 | 46 | 45 | 46 | 46 | 46 |
| Total | 437 | 438 | 435 | 433 | 428 | 435 | 433 | 437 |
| Mine Name | 2045 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054 |
| Totey Fork HWM | 173 | 172 | 172 | 173 | 173 | 173 | 171 | 169 |
| Buffalo Cr South HWM | 218 | 217 | 217 | 218 | 219 | 218 | 216 | 214 |
| Sugar Camp HWM | 46 | 46 | 46 | 46 | 46 | 46 | 46 | 45 |
| Total | 437 | 435 | 435 | 437 | 438 | 437 | 433 | 428 |
| Mine Name | 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 |
| Totey Fork HWM | 170 | 111 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buffalo Cr South HWM | 215 | 101 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sugar Camp HWM | 45 | 30 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 430 | 242 | 0 | 0 | 0 | 0 | 0 | 0 |

## 14 Processing and Recovery Methods

### 14.1 Description or Flowsheet

The Logan County Division includes the Saunders Preparation Plant in addition to the mines. The plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse disposal area. The plant has a feed rate capacity of 1,088 raw tonnes per hour. Primary separation equipment includes a heavy media vessel, heavy media cyclones, classifying cyclones, spirals, flotation cells, and column flotation, supported by the requisite screens, centrifuges, vacuum filters, sumps, pumps, and distribution systems. Coarse and fine refuse are disposed separately in an adjacent refuse area which incorporates slurry cells.

Processes and equipment are typical of those used in the coal industry and are in use in nearly all plants in the Central Appalachian Basin.

### 14.2 Requirements for Energy, Water, Material and Personnel

Personnel have historically been sourced from the surrounding communities in Logan, Boone, Wyoming, and Mingo counties, and have proven to be adequate in numbers to operate past and

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Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

current mines. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices and is comprised of a strong talent pool of experienced miners.

Water is sourced locally from Buffalo Creek Public Service District and/or locally from streams via water withdrawal permits, and electricity is sourced from AEP. The service industry in the areas surrounding the mine complex has historically provided supplies, equipment repairs and fabrication, etc.

## 15 Infrastructure

The Coronado-owned Saunders Preparation Plant services the mines. The ROM coal is delivered from the Lower War Eagle Mine via overland conveyor, all remaining production is or will be delivered to the plant site by truck.

The CSX rail line serves as the main means of transport from the mine complex/loadout.

As an active operation, the necessary support infrastructure for Logan is in place.

As new areas are developed, the infrastructure requirements will change. These changes have been considered in the LOM plans and financial model.

Most of the seams lie below drainage; however, several metallurgical coal seams are situated above drainage. The underground mining resource areas which are located above-drainage require an access road and mine access development along the outcrop, whereas below-drainage mines are accessed based on other proposed surface infrastructure locations and/or surface property control. In some cases, the access and face-up may be developed as part of surface mining activities. A mine transformer and water tank are located at the face-up, along with the mine fan, stacker conveyor, supply facilities, shop, office, and bath house.

The surface mining mobile equipment spreads advance the contour and area mining pits while systematically reclaiming the trailing side of pits where coal has been removed. The coal haul roads are extended and maintained as the pits advance. Support facilities are maintained nearby but away from the active mining, and include storage areas for blasting agents, fuel and lubricants, and mine supplies along with maintenance facilities and offices.

The HWM equipment advances along with the contour mining pits. The rate of advance of contour mining is somewhat constrained by the advancement rate of the HWM. A diesel-powered generator trails the highwall miner and powers the continuous mining unit. Other support facilities are provided along with the contour mining support facilities.

A map of the existing facilities in *Figure 15-1* shows the layout of the required infrastructure.

MARSHALL MILLER ASSOCIATES, INC.

56

ec963p210

Comitado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

Figure 15-1: Logan Surface Facilities

ec963p6611

## 16 Market Studies

### 16.1 Market Description

The quality characteristics for the subject coal resources and coal reserves have been reviewed in detail by MM&A. The drill hole data was utilized to develop average coal quality characteristics for the mining site. These average coal quality characteristics were then utilized as the basis for determining the various markets into which the saleable coal will likely be placed.

The projected quality specifications for the Logan products are as shown in *Table 16-1*.

MARSHALL MILLER ASSOCIATES, INC.

57

P0263p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

**Table 16-1: Quality Specifications by Product**

|  | HVA | HVB | Thermal (A/R) |
| --- | --- | --- | --- |
| Moisture (%) | 7.50 | 8.00 | 7.50 |
| Ash (%) | 7.50 | 8.00 | 12.50 |
| Sulfur (%) | 0.90 | 0.95 | 1.00 |
| Volatile Matter (%) | 32.5 | 37.0 | 36.0 |
| Btu/lb. | N/A | N/A | 12,300 |
| Fluidity (ddpm) | 30,000 | 25,000 | N/A |
| MMR (%) | 1.04 | 0.93 | N/A |
| CSR | 62 | 58 | N/A |
| FSI | 8.00 | 8.00 | N/A |

Note: All Specs are dry basis except Moisture and Thermal

The mine production serves both the high-volatile metallurgical and thermal markets.

## 16.2 Price Forecasts

Coronado provided MM&A with price forecasts for its active operations. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. MM&A utilized this data for price forecasting in financial modeling. Concurrent with aforementioned-quality parameters in the preceding section, production from the proposed operations is assumed to be primarily sold in metallurgical markets with limited thermal sales. Pricing was provided through calendar year 2056.

Coal price forecasts for the Logan products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne.

## 16.3 Contract Requirements

Some contracts are necessary for successful marketing of the coal. For Logan, since all mining, preparation and marketing is done in-house, the remaining contracts required are:

> **Transportation**- The Mine contracts with the CSX Railroad to transport the coal to either the domestic customers or to the Pier 9 and Dominion terminals at Norfolk, Virginia for overseas shipment.

> **Sales**- Sales contracts are a mix of spot and contract sales. With the volatility of the market, long-term contracts are not typically written.

MARSHALL MILLER ASSOCIATES, INC.

50

PACIFIC

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

## 17 Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals

### 17.1 Results of Studies

MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Logan Property in May 2017 on behalf of Coronado. Coronado reports not having conducted such a study since the MM&A studies. The ESA completed by MM&A included a site inspection, review of historical records, a database search of State and Federal regulatory records and interviews to identify potential recognized environmental conditions (*REC*) that may create environmental liability for the sites. MM&A concluded that no long-term liabilities existed at the time of these ESAs.

Based on these former ESAs completed by MM&A, it is the QPs' opinion that Logan has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial models.

### 17.2 Requirements and Plans for Waste Disposal

The original design for the North Fork Refuse Area (*North Fork*) at the Logan Property projected a crest to elevation 686 meters. The present elevation of the deck is ±685 meters. In 2018 MSHA approved an expansion plan to raise the cross-valley crest to elevation 802 meters, and from there converting to a sidehill fill. This will allow for a total volume of 50 million CM which would be sufficient capacity for all the refuse generated by the LOM plan that underpins the current Logan County Division reserves. Further plans for the North Fork site call for conversion of the fill to a total cross-valley configuration, predicated on completion of surface mining on the ridge between North Fork and Middle Fork. This has the potential of providing an additional 10 million CM of capacity.

### 17.3 Permit Requirements and Status

All mining operations are subject to federal and state laws and must obtain permits to operate mines, coal preparation and related facilities, haul roads, and other incidental surface disturbances necessary for mining to occur. Permits generally require that the permittee post a performance bond in an amount established by the regulatory program to provide assurance that any disturbance or liability created during mining operations is properly restored to an approved post-mining land use and that all regulations and requirements of the permits are fully satisfied before the bond is returned to the permittee. Significant penalties exist for any permittee who fails to meet the obligations of the permits including cessation of mining operations, which can lead to potential forfeiture of the bond. Any company, and its directors, owners and officers, which are subject to bond forfeiture can be denied future permits under the program. $^{1}$

$^{1}$ Monitored under the Applicant Violator System (AVS) by the Federal Office of Surface Mining.

MARSHALL MILLER ASSOCIATES, INC.

59

P0C9/20

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IOBC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

New permits or permit revisions will occasionally be necessary to facilitate the expansion or addition of new mining areas on the properties, such as amendments to existing permits and new permits for mining of reserve areas. Exploration permits also are required. Property under lease includes provisions for exploration among the terms of the lease. New or modified mining permits are subject to a public advertisement process and comment period, and the public is provided an opportunity to raise objections to any proposed mining operation. MM&A is not aware of any specific prohibition of mining on the subject property and given sufficient time and planning, Coronado should be able to secure new permits to maintain its planned mining operations within the context of current regulations. Necessary permits are in place to support current production on the properties, but future permits are required to maintain and expand production. Portions of the properties are located near local communities. Regulations prohibit mining activities within 91.4 meters of a residential dwelling, school, church, or similar structure unless written consent is first obtained from the owner of the structure. Where required, such consents have been obtained where mining is proposed beyond the regulatory limits.

Coronado has obtained all mining and discharge permits to operate its mines and processing, loadout or related facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Logan, along with all coal producers, is subject to a level of uncertainty regarding future clean water permits due to United States Environmental Protection Agency (EPA) and United States Fish and Wildlife (USFW) involvement with state programs.

The Mining permits currently held by Logan are shown in Table 17-1.

MARSHALL MILLER ASSOCIATES, INC.

60

gsc0026210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Table 17-1: Logan Mining Permits

| Type | Permit ID | Permit Name | $ Bond | Current Status | Issued Date | Expiration Date | Hectares | NPDES |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Other | 0001984 | North Fork Refuse | $1,033,200 | Renewed | 4/11/1984 | 4/11/2024 | 116.03 | WV0095699 |
| Other - Loadout Only | 0009283 | Elk Lick Deck | $33,000 | Renewed | 6/10/1983 | 6/10/2023 | 13.31 | WV1023071 |
| Other | 0009883 | Saunders Prep Plant | $223,200 | Renewed | 6/24/1983 | 6/24/2023 | 36.04 | WV0095699 |
| Other - Refuse Disposal | 0012383 | Middle Fork Refuse | $364,800 | Renewed | 9/27/1983 | 9/27/2023 | 46.13 | WV0096156 |
| Other - Loadout Only | 0500513 | Torrey Fork Loadout | $32,000 | Renewed | 9/11/2014 | 9/11/2024 | 12.67 | WV1028081 |
| Other - Refuse Disposal | 0501108 | Elklick Branch Hardroad Refuse | $281,600 | Renewed | 11/13/2008 | 11/13/2023 | 5.83 | WV1028043 |
| Coal Surface Mine | S500417 | North Fork Windtide Contour Mine | $390,000 | Not Started | 2/13/2018 | 2/13/2023 | 50.59 | WV1028438 |
| Coal Surface Mine | S500615 | Torrey Fork A-Ridge Surface Mine |  | Phase 1 Released | 2/24/2016 | 2/24/2026 | 15.8 | WV1028278 |
| Coal Surface Mine | S500709 | Torrey Fork Surface Mine No. 3 | $2,625,000 | Renewed | 11/20/2013 | 11/20/2023 | 340.83 | WV1019902 |
| Coal Surface Mine | S501210 | Torrey Fork West Surface Mine | $1,670,000 | Inactive | 2/29/2012 | 2/29/2022 | 134.3 | WV1024998 |
| Coal Surface Mine | S501410 | Elklick Surface Mine | $2,760,000 | Inactive | 8/16/2013 | 8/16/2023 | 327.47 | WV1025015 |
| Coal Surface Mine | S503395 | TONY FORK SURFACE #2 | $5,605,000 | Renewed | 5/28/1998 | 5/28/2023 | 453.61 | WV1016750 |
| Coal Underground | U004485 | Dingess Br. No. 1 | $0 | Completely Released | 6/12/1985 | PHB Released | 4.05 | WV1008340 |
| Coal Underground | U400299 | Paymer Branch Mine No. 1 | $81,000 | Renewed | 4/5/2002 | 4/5/2027 | 10.01 | WV1010728 |
| Coal Underground | U500109 | Chilton Deep Mine No. 1 | $30,000 | Inactive | 1/31/2011 | 1/31/2026 | 5.53 | WV1019821 |
| Coal Underground | U500789 | WA #1 Mine | $0 | Completely Released | 7/31/1990 | PHB Released | 0 | WV0096385 |
| Coal Underground | U500919 | North Fork Windtide Deep Mine | $12,240 | New | 3/5/2020 | 3/5/2025 | 2.21 | WV1030990 |
| Coal Underground | U501311 | Eagle No. 1 Mine | $91,000 | Not Started | 5/20/2013 | 5/20/2023 | 7.19 | WV1025139 |
| Coal Underground | U502008 | Dingess Br-Chilton Mine No. 2 | $42,920 | Phase 1 Released | 10/10/2008 | PHB Released | 11.62 | WV1029908 |
| Coal Underground | U501392 | ALMA NO. 1 MINE | $283,400 | Renewed | 3/5/1995 | 3/5/2025 | 39.43 | WV1013488 |
| Coal Underground | U500686 | Camp Branch Deep Mine | $96,200 | Renewed | 1/26/1987 | 1/26/1997 | 26.24 | WV0093122 |
| Coal Surface Mine | S500615 | Torrey Fork A-Ridge Surface Mine | $80,000 | Phase 1 Released | 2/24/2016 | 2/24/2026 | 15.8 | WV1028278 |
| Coal Underground | U501015 | CB Chilton #1 Mine | $10,600 | Not Started | 12/28/2016 | 12/28/2026 | 1.68 | WV1028316 |
| Coal Underground | U503496 | Muddy Bridge Branch #1 | $35,280 | Renewed | 8/4/1997 | 8/4/2022 | 5.46 | WV1016054 |
| Coal Underground | U503596 | Muddy Bridge Branch #2 | $65,520 | Renewed | 8/4/1997 | 8/4/2022 | 10.35 | WV1016054 |
| River Deck | 810-8037 | Big Sandy Deck | $210,700 | In-Active | 7/10/1986 | 7/10/2021 | 2.99 | KYG040724 |
| Coal Surface Mine | S500422 | Middle Fork Surface Mine | ? | Pending | Pending | Pending | 81.73 | WV1031198 |
| Coal Surface Mine | S500822 | Elklick Contour Surface mine | ? | Pending | Pending | Pending | 182.45 | WV1031228 |

Notes:

1. Permits containing refuse placement.

2. Does not include prospect permits.

MARSHAL MILLER ASSOCIATES, INC.

61

![M&A logo]() M&A  
2019

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the IORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

## 17.4 Local Plans, Negotiations or Agreements

MM&A found no indication of agreements beyond the scope of Federal or State Regulations.

## 17.5 Mine Closure Plans

Applicable regulations require that mines be properly closed, and reclamation commenced immediately upon abandonment. In general, site reclamation includes removal of structures, backfilling, regrading, and revegetation of disturbed areas. For surface mines, the majority of the expense for backfilling and regrading is completed as part of ongoing mining operations, with only reclamation of final pits and HWM benches required at end-of-mine life. Sediment control is required during the establishment of vegetation, and bond release generally requires a minimum five-year period of site maintenance, water sampling, and sediment control following mine completion. This requirement is reduced to two years for certain operations involving re-mining. Reclamation of underground mines includes closure and sealing of mine openings such as portals and shafts in addition to the items listed above.

Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial models. As with all mining companies, an accretion calculation is performed annually so the necessary Asset Retirement Obligations (ARO) can be shown as a Liability on the Balance Sheet.

## 17.6 Qualified Person's Opinion

The Logan complex is an operating facility; all necessary permits for current production have been obtained. The QPs know of no reason that any permits revisions that may be required cannot be obtained.

Estimated expenditures for site closure and reclamation are included in the financial model for this site.

## 18 Capital and Operating Costs

### 18.1 Capital Cost Estimate

The production sequence selected for a property must consider the proximity of each reserve area to coal preparation plants, river docks and railroad loading points, along with suitability of production equipment to coal seam conditions. The in-place infrastructure was evaluated, and any future needs were planned to a level suitable for a Preliminary Feasibility Study and included in the Capital Forecast.

Coronado provided MM&A with an inventory of operating equipment available at Logan. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's

MARSHALL MILLER ASSOCIATES, INC.

62

DC9C3p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment. As one mine is depleted, the equipment is moved to its replacement.

A summary of the estimated capital for the Property is provided in *Figure 18-1* below.

**Figure 18-1: CAPEX**

DC9C3p1511

## 18.2 Operating Cost Estimate

Coronado provided historical and a preliminary 5-year projection of operating costs for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed a personnel schedule for the mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof control costs and other mine supply costs experienced at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

Other cost factors were developed for coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees.

Mandated Sales Related Costs such as Black Lung Excise are summarized in *Table 18-1*.

MARSHALL MILLER ASSOCIATES, INC.

63

![LOGO](ex963p210)

Comitado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IOBC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

MARSHAL MILLER ASSOCIATES, INC.

64

Ex963p210

Coronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IOBC Code and United States SEC Regulation S-R 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Table 18-1: Estimated Coal Production Taxes and Sales Costs

| Description of Tax or Sales Cost | Basis of Assessment | Cost |
| --- | --- | --- |
| Federal Black Lung Excise Tax - Underground | Per Tonne | $1.21 |
| Federal Black Lung Excise Tax - Surface | Per Tonne | $0.61 |
| Federal Black Lung Excise Tax - Highwall Miner | Per Tonne | $0.61 |
| Federal Reclamation Fees - Underground | Per Tonne | $0.13 |
| Federal Reclamation Fees - Surface | Per Tonne | $0.31 |
| Federal Reclamation Fees - Highwall Miner | Per Tonne | $0.31 |
| West Virginia Reclamation Tax - Underground | Per Tonne | $0.308 |
| West Virginia Reclamation Tax - Surface | Per Tonne | $0.308 |
| West Virginia Reclamation Tax - Highwall Miner | Per Tonne | $0.308 |
| West Virginia Severance Tax | Percentage of Revenue | 1 to 5% |
| Royalties - Underground | Percentage of Revenue | 5 to 8.5% |
| Royalties - Surface | Percentage of Revenue | 9% |
| Royalties - Highwall Miner | Percentage of Revenue | 9% |

Notes: 1. Federal black lung excise tax is paid only on coal sold domestically. MM&A assumed 45%

of total coal sales to be domestic in the economic analysis discussed below.

A summary of the projected Operating Costs is in Table 18-2.

Table 18-2: Logan Operating Costs

|  | Total | YR 12/31 2021 | YR 12/31 2024 | YR 12/31 2025 | YR 12/31 2026 | YR 12/31 2027 | YR 12/31 2028 | YR 12/31 2029 | YR 12/31 2030 | Remaining LOM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROM Production |  |  |  |  |  |  |  |  |  |  |
| Tonnes | 140.8 | 5.3 | 6.0 | 7.2 | 7.1 | 7.3 | 7.1 | 6.8 | 6.9 | 3.4 |
| Yield | 50.15% | 41.78% | 40.92% | 37.67% | 36.89% | 34.67% | 46.77% | 46.43% | 44.46% | 55.70% |
| Saleable Production |  |  |  |  |  |  |  |  |  |  |
| Tonnes | 70.6 | 2.2 | 2.4 | 2.7 | 2.6 | 2.5 | 3.3 | 3.1 | 3.1 | 1.9 |
| Thermal Tonnes | 4.79 | 0.09 | 0.14 | 0.16 | 0.15 | 0.16 | 0.15 | 0.15 | 0.15 | 0.14 |
| Domestic Met Tonnes | 65.84 | 2.13 | 2.31 | 2.57 | 2.46 | 2.37 | 3.16 | 2.99 | 2.90 | 1.73 |
| Export Met Tonnes | - | - | - | - | - | - | - | - | - | - |
| Total Saleable Tonnes | 70.63 | 2.22 | 2.44 | 2.73 | 2.61 | 2.52 | 3.31 | 3.14 | 3.05 | 1.9 |
| Cash Costs per Tonnes: |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $83.08 | $73.59 | $71.70 | $73.57 | $75.45 | $80.17 | $65.86 | $73.71 | $77.65 | $87.30 |
| Processing and Transport | $20.11 | $20.58 | $19.71 | $19.53 | $20.03 | $21.76 | $17.49 | $17.61 | $18.65 | $20.49 |
| Sales Related Costs | $16.97 | $14.47 | $13.29 | $13.39 | $12.93 | $14.12 | $14.54 | $15.27 | $15.61 | $18.20 |
| O&A | $3.21 | $3.69 | $3.22 | $2.97 | $3.10 | $3.21 | $3.23 | $3.21 | $3.21 | $3.21 |
| Total Cash Costs | $123.37 | $112.33 | $107.92 | $109.46 | $111.51 | $119.26 | $101.08 | $109.79 | $115.12 | $129.19 |

* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

## 19 Economic Analysis

### 19.1 Assumptions, Parameters and Methods

A pre-feasibility LOM plan was prepared by MM&A for the Logan operations. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing

MARSHALL MILLER ASSOCIATES, INC.

65

PACP20

Coronado Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the IORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

was carried out from 2023 to depletion (exhaustion) of the coal reserve areas, which is projected for the year 2056. All costs and prices are based on 2022 nominal United States dollars.

The Mine plan, productivity expectations and cost estimates generally reflect historical performance by Coronado and efforts have been made to adjust plans and costs to reflect future conditions. MM&A is confident that the mine plan and financial model are reasonably representative to provide an accurate estimation of coal reserves.

Capital schedules were developed by MM&A for mine development, infrastructure, and on-going capital requirements for the life of the mine. Staffing levels were prepared, and operating costs estimated by MM&A. MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs.

The preliminary feasibility financial model, prepared for this TRS, was developed to test the economic viability of the coal reserve area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations, but are intended to prove the economic viability of the estimated coal reserves. All costs and prices are based on 2022 nominal United States dollars assuming a 2% inflation rate.

On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the purpose of classifying coal reserves. The project cash flows, excluding debt service, are calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis services, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal black lung tax, Federal and State reclamation taxes, property taxes, local transportation prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, income taxes and State severance taxes. Coronado's historical costs provided a useful reference for MM&A's cost estimates.

Sales revenue is based on the metallurgical coal price information provided to MM&A by Coronado.

Projected debt service is excluded from the P&L and cash flow model in order to determine Enterprise Value.

The financial model expresses coal sales prices, operating costs, and capital expenditures in current day dollars without adjustment for inflation. Capital expenditures and reclamation costs are included based on engineering estimates for each mine by year. The Coronado division's existing allocations of administrative costs are continued in the future projections.

Coronado will pay royalties for the various current and projected operations. The royalty rates vary by mining method and location. The royalty rates for Logan are estimated to be 5 to 9% of the sales revenue.

MARSHALL MILLER ASSOCIATES, INC.

66

P0C9G9210

Coronado Global Resources Inc.^{}[] Statement of Coal Resources and Reserves for the^{}[] ^{}[] Logan County Complex in Accordance with^{}[] ^{}[] the JORC Code and United States SEC Regulation S-K 1300 as of^{}[] ^{}[] December 31, 2022^{}[] ^{}[] Central Appalachian Coal Basin^{}[] ^{}[] West Virginia, USA

The projection model also includes consolidated income tax calculations at the Coronado level, incorporating statutory depletion calculations, as well as state income taxes, and a federal tax rate of 21%. To the extent the mine generates net operating losses for tax purposes, the losses are carried over to offset future taxable income. The terms “cash flows” and “project cash flows” used in this report refer to after tax cash flows.

Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from a peak of 3.3 million tonnes in 2028 to a low of 1.0 million tonnes in 2054. Projected consolidated revenue ranges from $151.9 million to $480.3 million at a steady state. Revenue totals $11.4 billion for the project’s life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending. Consolidated cash flow from operations peaks at $110.1 million in 2038 and totals $2.5 billion over the project’s life. Capital expenditures total $190.2 million from 2023 through 2027 and $1.2 billion over the project’s life.

Coal price forecasts for coal products were prepared by Coronado for its proposed operations. Such prices were used for the revenue input into the financial model. Sales variable costs such as production royalties and severance taxes were based upon the revenue input.

## 19.2 Results

The pre-feasibility financial model, prepared by MM&A for this TRS, was developed to test the economic viability of each coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, as may be required for financing of any current or future mining operations contemplated but are intended to prove the economic viability of the estimated coal reserves. Optimization of the LOM plan was outside the scope of the engagement.

*Figure 19-1* shows the annual variance of cash costs per ton. *Table 19-1* shows LOM tonnage, P&L, and EBITDA for Logan.

MARSHALL MILLER ASSOCIATES, INC.

67

![prs63p210 logo]()

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Figure 19-1: Cash Costs per Tonne**

![prs63p7751 logo]()

As shown above, Logan's average cash cost ranges between approximately $101 and $147 per tonne for most of the operating period.

**Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)**

|  | LOM Tonnes | LOM Pre-Tax P&L | P&L Per Tonne | LOM EBITDA | EBITDA Per Tonne |
| --- | --- | --- | --- | --- | --- |
| Deep Mines |  |  |  |  |  |
| Camp Br Chilton | 1,607 | $21,157 | $13.16 | $51,064 | $31.77 |
| Eagle No. 1 (Toney Fork) | 11,806 | $18,727 | $1.59 | $220,119 | $18.65 |
| Elk Lick Chilton | 3,809 | $76,902 | $20.19 | $146,959 | $38.58 |
| Lower Powellton | 5,095 | $112,692 | $22.12 | $224,168 | $44.00 |
| Lower War Eagle | 6,544 | $102,095 | $15.60 | $227,269 | $34.73 |
| Powellton No. 1 | 3,629 | $52,199 | $14.38 | $122,643 | $33.80 |
| Muddy Br No.2 Gas | 3,647 | $166,946 | $45.77 | $212,139 | $58.16 |
| Upper Winifrede | 1,794 | $61,150 | $34.09 | $95,271 | $53.12 |
| Winifrede (Chilton Rider) | 219 | $9,021 | $41.19 | $12,795 | $58.42 |
| Consolidated Deep Mines | 38,158 | $620,890 | $16.27 | $1,312,426 | $34.40 |
| Surface Mines |  |  |  |  |  |
| Toney Fork Surf | 6,338 | $106,288 | $16.77 | $245,407 | $38.72 |
| Buffalo Cr South Area | 7,990 | $27,941 | $3.50 | $203,185 | $25.43 |
| Sugar Camp Area 1 | 4,911 | $(100,944) | $(20.55) | $48,015 | $9.78 |
| Surface Mines Consolidated | 19,239 | $33,285 | $1.73 | $496,606 | $25.01 |
| HWM Operations |  |  |  |  |  |
| Toney Fork HWM | 4,919 | $330,409 | $67.17 | $361,920 | $73.57 |
| Buffalo Cr South HWM | 7,004 | $434,033 | $61.97 | $474,305 | $67.73 |
| Sugar Camp HWM | 1,314 | $82,843 | $63.05 | $91,260 | $69.45 |
| HWM Consolidated | 13,237 | $847,285 | $64.01 | $927,575 | $70.07 |
| Grand Total | 70,626 | $1,501,460 | $21.26 | $2,736,607 | $38.75 |

\* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

As shown in *Table 19-1*, the Logan Complex shows positive EBITDA over the LOM. Overall, Coronado's consolidated operations show positive LOM P&L and LOM EBITDA of $1.5 billion and

MARSHALMILLER & ASSOCIATES, INC.

68

![P2C963p7R10 logo]()

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

$2.7 billion, respectively. A summary of the key financial performance metrics projected through 2030 is provided below in *Table 19-2*.

**Table 19-2: Summary of Logan Key Financial Performance Metrics (2023-2030)**

|  | Total | YE 12/31 2023 | YE 12/31 2024 | YE 12/31 2025 | YE 12/31 2026 | YE 12/31 2027 | YE 12/31 2028 | YE 12/31 2029 | YE 12/31 2030 | Remaining LOM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROM Production Tonnes | $46.8 | 5.3 | 6.0 | 7.2 | 7.1 | 7.3 | 7.1 | 6.8 | 6.9 | 3.4 |
| Yield | 50.15% | 41.78% | 40.92% | 37.67% | 36.89% | 34.67% | 46.77% | 46.43% | 44.46% | 55.70% |
| Saleable Production Tonnes | 70.6 | 2.2 | 2.4 | 2.7 | 2.6 | 2.5 | 3.3 | 3.1 | 3.1 | 1.9 |
| Thermal Tonnes | 4.79 | 0.09 | 0.14 | 0.16 | 0.15 | 0.16 | 0.15 | 0.15 | 0.15 | 0.14 |
| Domestic Met Tonnes | 65.84 | 2.13 | 2.31 | 2.57 | 2.46 | 2.37 | 3.16 | 2.99 | 2.90 | 1.73 |
| Export Met Tonnes | - | - | - | - | - | - | - | - | - | - |
| Total Saleable Tonnes | 70.63 | 2.22 | 2.44 | 2.73 | 2.61 | 2.52 | 3.31 | 3.14 | 3.05 | 1.9 |
| Cash Costs per Tonne: |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $83.88 | $73.59 | $71.70 | $73.57 | $75.45 | $80.17 | $65.86 | $73.71 | $77.65 | $87.30 |
| Processing and Transport | $20.11 | $20.58 | $19.71 | $19.53 | $20.03 | $21.76 | $17.49 | $17.61 | $18.65 | $20.49 |
| Sales Related Costs | $16.97 | $14.47 | $13.29 | $13.39 | $12.93 | $14.12 | $14.54 | $15.27 | $15.61 | $18.20 |
| G&A | $3.21 | $3.69 | $3.22 | $2.97 | $3.10 | $3.21 | $3.21 | $3.21 | $3.21 | $3.21 |
| Total Cash Costs | $123.37 | $112.33 | $107.92 | $109.46 | $111.51 | $119.26 | $101.89 | $109.79 | $115.12 | $129.19 |
| EBITDA per Tonne | $38.75 | $69.72 | $32.66 | $24.91 | $24.85 | $19.38 | $40.61 | $30.85 | $28.39 | $41.21 |
| Expansion CapEx ($M) | $- | $- | $- | $- | $- | $- | $- | $- | $- | $- |
| Maintenance CapEx ($M) | $1,212.8 | $64.5 | $46.2 | $35.1 | $24.7 | $19.5 | $54.7 | $76.7 | $30.9 | $33.1 |
| Total CapEx | $1,212.8 | $64.5 | $46.2 | $35.1 | $24.7 | $19.5 | $54.7 | $76.7 | $30.9 | $33.1 |

\* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

After Tax Cash Flows were developed in order to calculate the NPV for this Property. The NPV is estimated to be $366.6 million at a discount rate of 10.0%. A summary of the Logan after-tax cash flow is shown in *Table 19-3*.

MARSHALMILLE & ASSOCIATES, INC.

69

Ex90/p20

Comtrade Global Resources Inc.

Statement of Coal Resources and Reserves for the

Logan County Complex in Accordance with

the IOBC Code and United States SEC Regulation S-K 1300 as of

December 31, 2022

Central Appalachian Coal Basin

West Virginia, USA

Table 19-3: Project Cash Flow Summary ($000)

|  | Total | YE12/31 2023 | YE12/31 2024 | YE12/31 2025 | YE12/31 2026 | YE12/31 2027 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 70,626 | 2,215 | 2,444 | 2,738 | 2,614 | 2,524 |
| Total Revenue | $11,449,478 | $403,255 | $343,593 | $366,750 | $356,408 | $349,974 |
| EBITDA | $2,736,607 | $154,435 | $79,831 | $67,982 | $64,942 | $48,930 |
| Net Income | $1,271,269 | $93,455 | $33,975 | $22,180 | $21,044 | $7,422 |
| Net Cash Provided by Operating Activities | $2,455,780 | $98,886 | $84,666 | $64,481 | $60,927 | $49,298 |
| Purchases of Property, Plant, and Equipment | $(1,212,814) | $(64,541) | $(46,249) | $(35,126) | $(24,721) | $(19,540) |
| Net Cash Flow | $1,242,966 | $34,345 | $38,417 | $29,354 | $36,206 | $29,758 |
|  | YE12/31 2028 | YE12/31 2029 | YE12/31 2030 | YE12/31 2031 | YE12/31 2032 | YE12/31 2033 |
| Production & Sales tonnes | 3,315 | 3,138 | 3,052 | 2,987 | 2,862 | 2,833 |
| Total Revenue | $469,730 | $441,352 | $437,982 | $436,621 | $425,513 | $428,277 |
| EBITDA | $134,632 | $96,812 | $86,647 | $88,298 | $85,099 | $81,695 |
| Net Income | $76,870 | $40,290 | $35,152 | $37,612 | $33,266 | $22,374 |
| Net Cash Provided by Operating Activities | $102,420 | $94,319 | $82,136 | $80,835 | $79,110 | $77,163 |
| Purchases of Property, Plant, and Equipment | $(54,676) | $(76,748) | $(30,875) | $(25,919) | $(58,356) | $(77,043) |
| Net Cash Flow | $47,743 | $17,571 | $51,261 | $54,916 | $20,754 | $119 |
|  | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 | YE12/31 2038 | YE12/31 2039 |
| Production & Sales tonnes | 2,872 | 2,714 | 2,739 | 2,785 | 2,969 | 2,783 |
| Total Revenue | $445,485 | $422,500 | $431,983 | $440,845 | $480,253 | $458,789 |
| EBITDA | $108,745 | $74,857 | $97,015 | $103,374 | $125,905 | $107,907 |
| Net Income | $53,277 | $22,619 | $43,055 | $45,843 | $62,109 | $46,564 |
| Net Cash Provided by Operating Activities | $92,575 | $73,923 | $84,785 | $93,567 | $110,105 | $102,650 |
| Purchases of Property, Plant, and Equipment | $(60,090) | $(30,525) | $(49,809) | $(65,949) | $(56,676) | $(42,223) |
| Net Cash Flow | $32,485 | $43,398 | $34,975 | $27,618 | $53,429 | $60,427 |
|  | YE12/31 2040 | YE12/31 2041 | YE12/31 2042 | YE12/31 2043 | YE12/31 2044 | YE12/31 2045 |
| Production & Sales tonnes | 2,733 | 2,519 | 2,100 | 2,214 | 1,611 | 1,476 |
| Total Revenue | $459,598 | $431,586 | $365,532 | $393,908 | $289,596 | $269,978 |
| EBITDA | $104,671 | $94,788 | $81,444 | $105,980 | $58,696 | $83,754 |
| Net Income | $47,235 | $41,064 | $39,833 | $60,889 | $23,010 | $51,731 |
| Net Cash Provided by Operating Activities | $96,543 | $88,891 | $75,724 | $90,314 | $63,837 | $71,484 |
| Purchases of Property, Plant, and Equipment | $(29,343) | $(33,901) | $(27,895) | $(23,194) | $(29,298) | $(22,073) |
| Net Cash Flow | $67,200 | $54,990 | $47,828 | $67,120 | $34,540 | $49,411 |
|  | YE12/31 2046 | YE12/31 2047 | YE12/31 2048 | YE12/31 2049 | YE12/31 2050 | YE12/31 2051 |
| Production & Sales tonnes | 1,057 | 1,057 | 1,053 | 1,053 | 1,057 | 1,061 |
| Total Revenue | $194,175 | $198,147 | $201,437 | $205,554 | $210,544 | $215,652 |
| EBITDA | $52,251 | $53,459 | $54,370 | $59,571 | $58,316 | $59,618 |
| Net Income | $28,842 | $28,388 | $27,184 | $31,758 | $28,651 | $30,020 |
| Net Cash Provided by Operating Activities | $52,854 | $48,225 | $49,193 | $53,061 | $49,045 | $52,351 |
| Purchases of Property, Plant, and Equipment | $(18,702) | $(21,272) | $(25,945) | $(30,072) | $(22,359) | $(22,221) |
| Net Cash Flow | $34,152 | $26,953 | $23,248 | $22,990 | $26,686 | $30,131 |
|  | YE12/31 2052 | YE12/31 2053 | YE12/31 2054 | YE12/31 2055 | YE12/31 2056 | YE12/31 2057 |
| Production & Sales tonnes | 1,057 | 1,049 | 1,037 | 677 | 242 | - |

MARSHALL MILLER ASSOCIATES, INC.

70

![PC 963p210 logo]()

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

|  | YE12/31 2058 | YE12/31 2059 | YE12/31 2060 | YE12/31 2061 | YE12/31 2062 | YE12/31 2063 |
| --- | --- | --- | --- | --- | --- | --- |
| Total Revenue | $219,229 | $222,017 | $223,966 | $151,873 | $57,377 | $- |
| EBITDA | $71,599 | $60,514 | $60,792 | $48,780 | $20,900 | $- |
| Net Income | $45,345 | $29,161 | $30,508 | $22,011 | $9,180 | $(339) |
| Net Cash Provided by Operating Activities | $60,653 | $56,148 | $54,570 | $47,692 | $20,671 | $(3,597) |
| Purchases of Property, Plant, and Equipment | $(24,540) | $(27,137) | $(12,933) | $(11,318) | $(11,544) | $- |
| Net Cash Flow | $36,113 | $29,011 | $41,637 | $36,374 | $9,127 | $(3,597) |
|  | YE12/31 2058 | YE12/31 2059 | YE12/31 2060 | YE12/31 2061 | YE12/31 2062 | YE12/31 2063 |
| Production & Sales tonnes | - | - | - | - | - | - |
| Total Revenue | $- | $- | $- | $- | $- | $- |
| EBITDA | $- | $- | $- | $- | $- | $- |
| Net Income | $(174) | $(89) | $(46) | $(0) | $(0) | $(0) |
| Net Cash Provided by Operating Activities | $(1,835) | $(936) | $(954) | $- | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $(1,835) | $(936) | $(954) | $- | $- | $- |

\* The Financial model includes 0.001 million tonnes of inferred coal production. Inferred coal represents 0.000001% of the total production, and none of this coal was included in the estimate of reserves.

### 19.3 Sensitivity

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

**Figure 19-2: Sensitivity of NPV**

![img-0.jpeg](img-0.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

MARSHALMILLE & ASSOCIATES, INC.

71

PACIFIC

Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Logan County Complex in Accordance with  
the JORC Code and United States SEC Regulation S-K 1300 as of  
December 31, 2022  
Central Appalachian Coal Basin  
West Virginia, USA

## 20 Adjacent Properties

### 20.1 Information Used

No Proprietary information associated with neighboring properties was used as part of this study.

## 21 Other Relevant Data and Information

MM&A performed a previous audit of all the Properties in year 2017 for Coronado based on SEC Industry Guide 7 standards. In addition, MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Property in 2017 on behalf of Coronado. MM&A has subsequently conducted Joint Ore Reserve Committee (JORC) compliant resource and reserve assessments of the Logan County assets as of: (1) December 31, 2017, (2) December 31, 2020, and (3) December 31, 2021. By assignment, the JORC assessment included a preliminary feasibility level study of the subject coal reserves, encompassing detailed mine planning and cost analysis through depletion of Logan's JORC-compliant coal reserves. MM&A utilized these former preliminary feasibility studies as the basis of an updated study which meets those standards set forth by the SEC.

## 22 Interpretation and Conclusions

### 22.1 Conclusion

Sufficient data has been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating and capital cost estimates are sufficient to support the classification of coal reserves provided herein.

This geologic evaluation conducted in conjunction with the preliminary feasibility study is sufficient to conclude that the 70.6 Mt of marketable coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

### 22.2 Risk Factors

Risks have been identified for operational, technical and administrative subjects addressed in the Pre-Feasibility Study. A risk matrix has been constructed to present the risk levels for all the risk factors identified and quantified in the risk assessment process. The risk matrix and risk assessment

MARSHALL MILLER ASSOCIATES, INC.

72

P0263p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

process are modelled to that presented in the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

The purpose of the characterization of the project risk components is to inform the project stakeholders of key aspects of the Coronado projects that can be impacted by events whose consequences can affect the success of the venture. The significance of an impacted aspect of the operation is directly related to both the probability of occurrence and the severity of the consequences. The initial risk for a risk factor is herein defined as the risk level after the potential impact of the risk factor is addressed by competent and prudent management utilizing control measures readily available. Residual risk for a risk factor is herein defined as the risk level following application of special mitigation measures if management determines that the initial risk level is unacceptable. Initial risk and residual risk can be quantified numerically, derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

The probability and consequence parameters are subjective numerical estimates made by practiced mine engineers and managers. Both are assigned values from 1 to 5 for which the value 1 represents the lowest probability and least consequence, and the value 5 represents the highest probability and greatest consequence. The products which define the Risk Level are classified from very low to very high.

Risk Level Table (R = P x C)

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Risk aspects identified and evaluated during this assignment total 13. No residual risks are rated Very High. One (1) residual risk is rated High. Eight (8) of the risk aspects could be associated with Moderate residual risk. Four (4) of the risk aspects were attributed Low or Very Low residual risks.

### 22.2.1 Governing Assumptions

The listing of the aspects is not presumed to be exhaustive. Instead that listing is presented based on the experiences of the contributors to the TRS.

1. The probability and consequence ratings are subjectively assigned, and it is assumed that this subjectivity reasonably reflects the condition of the active and projected mine operations.
2. The Control Measures shown in the matrices presented in this chapter are not exhaustive. They represent a condensed collection of activities that the author of the risk assessment section has observed to be effective in coal mining scenarios.

MARSHALL MILLER ASSOCIATES, INC.

73

P0C9C9210

Comitado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

3. Mitigation Measures listed for each risk factor of the operation are not exhaustive. The measures listed, however, have been observed by the author to be effective.
4. The monetary values used in ranking the consequences are generally-accepted quantities for the coal mining industry.

### 22.2.2 Limitations

The risk assessment proposed in this report is subject to the limitations of the information currently collected, tested, and interpreted at the time of the writing of the report.

### 22.2.3 Methodology

The numerical quantities (i.e., risk levels) attributable to either “initial” or “residual” risks are derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

$$R = P \times C$$

Where: R = Risk Level
P = Probability of Occurrence
C = Consequence of Occurrence

The Probability (P) and Consequence (C) parameters recited in the formula are subjective numerical estimates made by practiced mine engineers and managers. Both P and C are assigned integer values ranging from 1 to 5 for which the value 1 represents the lowest probability and least consequence, and the value 5 represents the highest probability and greatest consequence. The products (R = P x C) which define the Risk Level, are thereafter classified from very low to very high.

Risk Level Table

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Very high initial risks are considered to be unacceptable and require corrective action well in advance of project development. In short, measures must be applied to reduce very high initial risks to a tolerable level.

As shown and discussed above, after taking into account the operational, technical, and administrative actions that have been applied or are available for action when required, the residual risk can be determined. The residual risk provides a basis for the management team to determine if the residual risk level is acceptable or tolerable. If the risk level is determined to be unacceptable, further actions should be considered to reduce the residual risk to acceptable or tolerable levels to provide justification for continuation of the proposed operation.

MARSHALL MILLER ASSOCIATES, INC.

74

P0C9C9210

Comitê Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

## 22.2.4 Development of the Risk Matrix

Risks have been identified for the technical, operational, and administrative subjects addressed in the TRS. The risk matrix and risk assessment process are modelled to that presented in the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

### 22.2.4.1 Probability Level Table

Table 22-1: Probability Level Table

| Category | Probability Level (P) |  |  |
| --- | --- | --- | --- |
| 1 | Remote | Not likely to occur except in exceptional circumstances. | <10% |
| 2 | Unlikely | Not likely to occur; small in degree. | 10 - 30% |
| 3 | Possible | Capable of occurring. | 30 - 60% |
| 4 | Likely | High chance of occurring in most circumstances. | 60 - 90% |
| 5 | Almost Certain | Event is expected under most circumstances; impossible to avoid. | >90% |

The lowest rated probability of occurrence is assigned the value of 1 and described as remote, with a likelihood of occurrence of less than 2 percent. Increasing values are assigned to each higher probability of occurrence, culminating with the value of 5 assigned to incidents considered to be almost certain to occur.

### 22.2.4.2 Consequence Level Table

Table 22-2 lists the consequence levels.

MARSHALL MILLER ASSOCIATES, INC.

75

2013/20

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 22-2: Consequence Level Table**

| Category | Severity of the Event | Financial Impact of the Event | Correlation of Events in Key Elements of the Project Program to Event Severity Category |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | Unplanned Loss of Production (Impact on Commercial Operations) | Events Impacting on the Environment | Events Affecting the Program's Social and Community Relations | Resultant Regulatory / Sequexion Risk | Events Affecting Occupational Health & Safety |
| 1 | Insignificant | < USD $0.5 million | ≤ 12 hours | Insignificant loss of habitat; no irreversible effects on water, soil and the environment. | Occasional nuisance impact on travel. | - | Event recurrence avoided by corrective action through established procedures (Engineering, guarding, training). |
| 2 | Minor | USD $0.5 million to $2.0 million | ≤ 1 day | No significant change to species populations; short-term reversible perturbation to ecosystem function. | Persistent nuisance impact on travel. Transient adverse media coverage. | - | First aid - lost time. Event recurrence avoided by corrective action through established procedures. |
| 3 | Moderate | USD $2.0 million to $10.0 million | ≤ 1 week | Appreciable change to species population; medium-term (≤10 years) detriment to ecosystem function. | Measurable impact on travel and water/air quality. Significant adverse media coverage / transient public outrage. | Uncertainty securing or retaining essential approval / license. Change to regulations (tax; bonds; standards). | Medical Treatment - permanent incapacitation. Avoiding event recurrence requires modification to established corrective action procedures. |
| 4 | Major | USD $10.0 million to $50.0 million | 1 to 2 weeks | Change to species population threatening visibility; long-term (>10 years) detriment to ecosystem function. | Long-term, serious impact on travel and use of water resources; degradation of air quality; sustained and effective public opposition. | Suspension / long-delay in securing essential approval / license. Change to laws (tax; bonds; standards). | Fatality. Avoiding event recurrence requires modification to established corrective action procedures and staff retraining. |
| 5 | Critical | >USD $50.0 million | >1 month | Species extinction; irreversible damage to ecosystem function. | Loss of social license. | Withdraw / failure to secure essential approval / license. | Multiple fatalities. Avoiding event recurrence requires major overhaul of policies and procedures. |

MARSHAL MILLER ASSOCIATES, INC.

76

![Logo]() 9x9G3p210

Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IORC Code and United States SEC Regulation S-K 1300 as of December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

MARSHALL MILLER ASSOCIATES, INC.

77

![PAC logo]() 9x9C9210

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the IORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

The lowest rated consequence is assigned the value of 1 and is described as Insignificant Consequence parameters of which include non-reportable safety incidents with zero days lost accidents, no environmental damage, loss of production or systems for less than one week and cost of less than USD $0.5 million. Increasing values are assigned to each higher consequence, culminating with the value of 5 assigned to critical consequences, the parameters of which include multiple-fatality accidents, major environmental damage, and loss of production or systems for longer than one month and cost of greater than USD $50.0 million.

# **Composite Risk Matrix R = P x C and Color-Code Convention**

The risk level, defined as the product of probability of occurrence and consequence, ranges in value from 1 (lowest possible risk) to 25 (maximum risk level). The values are color-coded to facilitate identification of the highest risk aspects.

**Table 22-3: Risk Matrix**

| P x C = R |  | Consequence (C) |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Insignificant | Minor | Moderate | Major | Critical |
|  |  | 1 | 2 | 3 | 4 | 5 |
| Probability Level (P) | Remote 1 | 1 | 2 | 3 | 4 | 5 |
|  | Unlikely 2 | 2 | 4 | 6 | 8 | 10 |
|  | Possible 3 | 3 | 6 | 9 | 12 | 15 |
|  | Likely 4 | 4 | 8 | 12 | 16 | 20 |
|  | Almost Certain 5 | 5 | 10 | 15 | 20 | 25 |

# **22.2.5 Categorization of Risk Levels and Color Code Convention**

Very high risks are considered to be unacceptable and require corrective action. Risk reduction measures must be applied to reduce very high risks to a tolerable level.

# **22.2.6 Description of the Coal Property**

The Logan Mine Complex (*Logan*) is located in Logan, Boone, and Wyoming Counties, West Virginia -is an active operation with four underground mines and one surface mine. Active underground operations within the Logan Mine Complex all utilize continuous mining production sections. Large mining operations are conducted at the Muddy Bridge, Eagle No. 1 Mine and Lower War Eagle Mine. Coronado also operates a single section active underground room-and-pillar section in the North Fork Winifrede Mine. Other operations are projected on relatively small reserve blocks to be developed sequentially to sustain production levels as each reserve is depleted. The method

MARSHALMILLER ASSOCIATES, INC.

79

![PSTS logo]() PSTS

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

provides continuity, preserving skilled work groups and enabling effective utilization of production equipment. Mines located above drainage have access via drift entries. A few of the coal seams are below drainage and are accessed with slopes and shafts or box cuts.

The Logan Mine Complex also includes one active surface mine (Toney Fork) and one idle surface mine (Elklick). Both area and contour surface mining are employed. Highwall mining is conducted by contract operators. The surface operations are relatively small and developed sequentially to sustain production levels. Similar to the underground operations, the method provides continuity while preserving skilled work groups and enabling effective utilization of production equipment. The surface mining methods selected utilize hydraulic shovels, front-end loaders, large tractors and rock trucks for overburden removal.

### 22.2.7 Summary of Residual Risk Ratings

Each risk factor is numbered, and a risk level for each is determined by multiplying the assigned probability by the assigned consequence. The risk levels are plotted on a risk matrix to provide a composite view of the Coronado risk profile. The average risk level is 7.7, which is defined as Moderate.

**Table 22-4: Risk Assessment Matrix**

| Consequence |  | Risk Assessment Matrix |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | <10% Remote | 10-30% Unlikely | 30-60% Possible | 60-90% Likely | >90% Almost Certain |
| Critical | >$50 MM | 8, 9 |  |  |  |  |
| Major | $10-50MM |  |  |  | 6 |  |
| Moderate | $2-10 MM | 12 |  | 1, 2, 3, 4 |  |  |
| Minor | $0.5-$2 MM |  |  | 13 | 5, 10 | 7 |
| Low | <$0.5 MM |  |  | 11 |  |  |

### 22.2.8 Risk Factors

A high-level approach is utilized to characterize risk factors that are generally similar across a number of the active and proposed mining operations. Risk factors that are unique to a specific operation or are particularly noteworthy are addressed individually.

MARSHALL MILLER ASSOCIATES, INC.

79

![P2020 logo]()

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

### 22.2.8.1 Geological and Coal Resource

Coal mining is accompanied by risk that, despite exploration efforts, mining areas will be encountered where geological conditions render extraction of the resource to be uneconomic, or that coal quality characteristics disqualify the product for sale into target markets.

Offsetting the geological and coal resource risk are the massive size of the controlled property which allows large areas to be mined sufficiently away from areas where coal quality and mineability may be less favorable. In addition, several mines are designed to operate with multiple production sections, which lessens the immediate impact when one section encounters difficulties. The large reserve areas also provide a mitigation strategy of developing an additional (spare) section at each mine, or additional mines, which can be activated when adverse conditions are encountered, thereby maintaining consistent production and quality. The spare section or mines require additional mine extension cost but increase flexibility and performance consistency.

The larger reserve areas will be developed with multiple production sections and the small, replacement production reserve areas provide ready access to alternative locations if geological and coal resource characteristics require abandonment of an active production area.

**Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Recoverable coal tonnage recognized to be significantly less than previously estimated. | Reserve base is adequate to serve market commitments and respond to opportunities for many years. Local adverse conditions may increase frequency and cost of production unit relocation. | Previous and ongoing exploration and extensive regional mining history provide a high level of confidence of coal seam correlation, continuity of the coal seams, and coal resource tonnes. | 4 | 4 | 16 | Optimize mine plan to increase resource recovery; develop mine plan to provide readily available alternate mining locations to sustain expected production level. | 3 | 3 | 9 |
| Coal quality locally proves to be lower than initially projected. | If uncontrolled, production and sale of coal that is out of specification can result in rejection of deliveries, cancellation of coal sales agreements and damage to reputation. | Exploration and vast experience and history in local coal seams provide confidence in coal quality; limited excursions can be managed with careful product segregation and blending. | 3 | 5 | 16 | Develop mine plan to provide readily available alternate mining locations to sustain expected production level; modify coal sales agreements to reflect coal quality. | 3 | 3 | 9 |

### 22.2.8.2 Environmental

MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Logan County Property in May 2017 on behalf of Coronado. MM&A concluded that no long-term liabilities existed at the time of this ESA.

Water quality and other permit requirements are subject to modification and such changes could have a material impact on the capability of the operator to meet modified standards or to receive

MARSHALL MILLER ASSOCIATES, INC.

80

![P2C 963p210 logo]()

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the IORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

new permits and modifications to existing permits. Permit protests may result in delays or denials to permit applications.

Environmental standards and permit requirements have evolved significantly over the past 50 years and to-date, mining operators and regulatory bodies have been able to adapt successfully to evolving environmental requirements.

**Table 22-6: Environmental (Risks 3 and 4)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Environmental performance standards are modified in the future | Delays in receiving new permits and modifications existing permits; cost of testing and treatment of soil and soils | Work with regulatory agencies to understand and influence final standards; implement testing, treatment and other actions to comply with new standards. | 3 | 4 | 12 | Modify mining and reclamation plans to improve compliance with new standards while reducing cost of compliance. | 3 | 3 | 9 |
| New permits and permit modifications are increasingly delayed or denied. | Interruption of production delayed implementation of replacement production from new mines. | Comply quickly with testing, treatment and other actions required; continue excellent compliance performance within existing permits. | 3 | 4 | 12 | Establish and maintain close and constructive working relationships with regulatory agencies, local communities and community action groups. | 3 | 3 | 9 |

### 22.2.8.3 Regulatory Requirements

Federal and state health and safety regulatory agencies occasionally amend mine laws and regulations. The impact is industry-wide. Mining operators and regulatory agencies have been able to adapt successfully to evolving health and safety requirements.

**Table 22-7: Regulatory Requirements (Risk 5)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Federal and state mine safety and health regulatory agencies amend mine laws and regulations. | Cost of training, materials, supplies and equipment; modification of mine examination and production procedures; modification of mining plans. | Participate in hearings and workshops when possible to facilitate understanding and implementation; work cooperatively with agencies and employees to facilitate implementation of new laws and regulations. | 4 | 3 | 12 | Familiarity and experience with new laws and regulations results in reduced impact to operations and productivity and improved supplies and equipment options. | 4 | 2 | 8 |

### 22.2.8.4 Market and Transportation

Most of the current and future production is expected to be directed to domestic and international metallurgical markets. Historically the metallurgical markets have been cyclical and highly volatile. Thermal coal markets are also cyclical and domestic markets have been adversely affected by competition from natural gas and subsidized renewable energy sources and regulation.

MARSHALL MILLER ASSOCIATES, INC.

81

![LOGO](ex963p210)

Comitado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the IOBC Code and United States SEC Regulation S-K 1300 as of
December 31, 2022
Central Appalachian Coal Basin
West Virginia, USA

MARSHAL MILLER ASSOCIATES, INC.

82

![PSTS logo]() PSTS 2020

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the IORC Code and United States SEC Regulation S-R 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 22-8: Market and Transportation (Risk 6)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Volatile coal prices directly and preciprously. | Loss of revenue adversely affects profitability; reduce cash flow may disrupt capital expenditures plan. | Cost control measures implemented; capital spending deferred. | 4 | 5 |  | High-cost operations closed, and employees temporarily furloughed. | 4 | 4 | 13 |

Occasional delay or interruption of rail, river and terminals service may be expected. The operator can possibly minimize the impact of delays by being a preferred customer by fulfilling shipment obligations promptly and maintaining close working relationships.

**Table 22-9: Market and Transportation (Risk 7)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Rail or river transport is delayed; storage and shipping access at river and ocean terminals is not available. | Fulfillment of coal sales agreements delayed; limited coal storage at mines may increase cost of rehandling production may be temporarily idled. | Provide adequate storage capacity at mines; coordinate continuously with railroad and shipping companies to respond quickly and effectively to changing circumstances. | 5 | 3 | 16 | Provide back-up storage facility along with personnel, equipment and rehandle plan to sustain production and fulfill sales obligations timely. | 5 | 2 | 10 |

#### 22.2.8.5 Mining Plan

Occupational health and safety risks are inherent in mining operations. Comprehensive training and retraining programs, internal safety audits and examinations, regular mine inspections, safety meetings, along with support of trained fire brigades and mine rescue teams are among activities that greatly reduce accident risks. Employee health monitoring programs coupled with dust and noise monitoring and abatement reduce health risks to miners.

As underground and surface mines are developed and extended, observation of geological, hydrogeological and geotechnical conditions leads to modification of mine plans and procedures to enable safe work within the mine environments.

Highlighted below are selected examples of safety and external factors relevant to Coronado operations.

##### 22.2.8.5.1 Methane Management

Coalbed methane is present in coal operations below drainage. Often the methane concentration in shallow coal seams is at such low levels that it can be readily managed with frequent testing and monitoring, vigilance and routine mine ventilation. Very high methane concentrations may be present at greater depths. High methane concentrations may require degasification of the coal

MARSHALL MILLER ASSOCIATES, INC.

83

![PSTS logo]() PSTS

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

seam to assure safe mining. Due to the seams being targeted and their depths, excessive methane is not expected to be encountered at Logan.

**Table 22-10: Methane Management (Risk 8)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Remitted Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Methane hazard is present in mines operating below drainage. | Injury or loss of life; possible ignition of gas and mine explosion; potential loss of mine and equipment; temporarily or permanently additional mine fire, mine power, ventilation, monitoring and examination requirements. | Low to moderate levels can be managed with frequent examinations, testing and monitoring within the mine ventilation system. Excellent rock dust maintenance minimizes explosion propagation risk should an ignition occur. | 1 | 5 | 5 | Very high-level methane concentrations may require coal seam degasification and/or gas degasification if long-salt or pillar extraction methods are employed. | 1 | 5 | 5 |

### 22.2.8.5.2 Mine Fires

Mine fires, once common at mine operations, are rare today. Most active coal miners have not encountered a mine fire. Vastly improved mine power and equipment electrical systems, along with safe mine practices reduce mine fire risks. Crew training and fire brigade support and training improve response for containment and control if a fire occurs. Spontaneous combustion within coal mines, which is the source of most fires that occur today, is not expected to commonly occur at the Logan property. When spontaneous combustion conditions are present, monitoring systems are employed for early detection and mine plans are designed to facilitate isolation, containment and rapid extinguishment.

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84

![PSTS logo]() PSTS

Comitê Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 22-11: Mine Fires (Risk 9)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Mine fire at underground or surface mine operation. | Injury or loss of life; potential loss of mine temporarily or permanently; damage to equipment and mine infrastructure. | Inspection and maintenance of mine power, equipment and mine infrastructure; good housekeeping; frequent examination of conveyor belt entries; prompt removal of accumulations of combustible materials. | 1 | 5 | 5 | If spontaneous combustion conditions are present, enhanced monitoring and examination procedures will be implemented; mine design will incorporate features to facilitate isolation, containment and extinguishment of spontaneous combustion locations. | 1 | 5 | 5 |

### 22.2.8.5.3 Highwall Failure

Contour surface mining, area surface mining and highwall mining all expose miners and production equipment to the risk of highwall failure. The highwall can be designed to incorporate safety precautions to address geotechnical and hydrogeological concerns. Drilling and blasting design can be modified to fit soil and strata conditions to enhance highwall stability. Foremen and crews are trained to examine the highwalls frequently to observe changes and indications of failure. Highwall designs incorporate adequate web thickness and safety pillar width to assure highwall stability.

**Table 22-12: Highwall Failure (Risk 10)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Highwall failure occurs surface or highwall mining operations. | Injury or loss of life; catastrophic damage to equipment; production interruption. | Regular inspection for change and signs of failure; conservative design of HMM web thickness and safety pillar width; conservative wall slope and bench width in design. | 4 | 3 | 12 | Optimize drilling and blasting plan; increase safety factors for wall slope and bench width; install instrumentation and frequent survey to detect movement; dewater to reduce wall pressure. | 4 | 2 | 3 |

### 22.2.8.5.4 Availability of Supplies and Equipment

The industry has periodically experienced difficulty receiving timely delivery of mine supplies and equipment. Availability issues often accompanied boom periods for coal demand. Any future delivery of supplies and equipment delays are expected to be temporary with limited impact on production.

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![P logo]() 9x963p210

Comitado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

**Table 22-13: Availability of Supplies and Equipment (Risk 11)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Disruption of availability for supplies and equipment. | Temporary interruption of production. | Force majeure provision coal sales agreements to limit liability for delayed or lost sales. | 3 | 2 | 8 | Work closely with customers to assure delayed coal delivery rather than cancelled sales; monitor external conditions and increase inventory of critical supplies; accelerate delivery of equipment when possible. | 3 | 1 | 3 |

# **22.2.8.5.5 Labor**

Work stoppage due to labor protests are considered to be unlikely and accompanied by limited impact should it occur. Excellent employee relations and communications limit the exposure to outside protesters. Loss of supervisors and skilled employees to retirement is inevitable; the impact can be lessened with succession planning and training and training and mentorship of new employees.

**Table 22-14: Labor - Work Stoppage (Risk 12)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Work stoppage due to strikes, slowdowns or secondary boycott activity. | Loss of production and coal sales; damaged customer employee relations; reputed loss. | Maintain excellent employee relations and communications; maintain frequent customer communications. | 2 | 3 | 6 | Develop plan for employee communications and legal support to minimize impact of secondary boycott activities. | 1 | 3 | 9 |

**Table 22-15: Labor - Retirement (Risk 13)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Retirement of supervisors and skilled employees. | Loss of leadership and critical skills to sustain high levels of safety, maintenance and productivity. | Monitor demographics closely and maintain communications with employees who are approaching retirement age; maintain employee selection and training programs. | 3 | 3 | 6 | Maintain selection of candidates and implementation of in-house or third-party training for electricians and mechanics; develop employee mentoring program. | 3 | 2 | 6 |

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86

![PSTS logo]() PSTS 2020

Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Logan County Complex in Accordance with  
 the JORC Code and United States SEC Regulation S-K 1300 as of  
 December 31, 2022  
 Central Appalachian Coal Basin  
 West Virginia, USA

## 23 Recommendations

Coronado is continuing to work both internally and with outside assistance to further define their Resource Base and to Optimize the LOM Plan.

## 24 References

Publicly available information from various State and Federal agencies was used where relevant.

## 25 Reliance on Information Provided by the Registrant

A summary of the information provided by Coronado relied upon by MM&A for the purposes of this TRS is provided in *Table 25-1*.

**Table 25-1: Information from Registrant Relied Upon by MM&A**

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Marketing | Long-term price forecast used in financial projections | 16.2 |
| Legal | Mineral control and surface control rights as shown on maps | 3.2, 3.3 |
| Environmental | Permit and bonding information | 17.3 |

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© 2020/0730

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Appendix C

# Glossary of Abbreviations and Definitions

| Abbreviation | Definition |
| --- | --- |
| AIPG | American Institute of Professional Geologists |
| ARMPS | Analysis of Retreat Mining Pillar Stability |
| ASTM | ASTM International |
| AVS | Applicant Violator System |
| bcm | Bank cubic meters |
| Btu/lb. | British Thermal Unit per pound |
| CAP | Caterpillar Inc. |
| C.P.G. | Certified Professional Geologist |
| Carlson | Carlson Mining - formerly SurvCAD® - a prevalent software package used for modeling in the Appalachian region |
| CFR | Code of Federal Regulations |
| Coronado | Coronado Global Resources Inc. |
| CSR | Codes of State Rules |
| CSX | CSX Corporation, a rail-based freight transportation company |
| CTR | Contour mining |
| Demonstrated reserves | Demonstrated reserves are the sum of proven and probable reserves. |
| DEP | Department of Environmental Protection |
| EBITDA | Earnings before Interest, Taxes, Depreciation, and Amortization |
| EOM | End-of-mine reclamation |
| EPA | United States Environmental Protection Agency |
| ESA | Limited Phase I Environmental Site Assessment |
| EVR | Estimated Visual Recovery |
| Feasibility Study | “...comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors together with any other relevant operational factors, and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. According to the proposed definition, the results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. Thus, a feasibility study is more comprehensive, with a higher degree of accuracy, and yielding results with a higher level of confidence, than a pre-feasibility study.” |
| Hitachi | Hitachi Construction Machinery Co., Ltd. |
| HWM | Highwall mining |
| In situ | Its natural position; said specific of a rock, soil, or fossil when in the situation in which was originally formed or deposited |
| Indicated Resources | Indicated resources are those lying between 0.4-kilometer and 1.2-kilometer radius from such an observation point and reported herein as in-situ mineral resources. |
| Inferred Resources | Inferred resources lie more than a 1.2-kilometer radius from a valid point of measurement but less than 4.8 kilometers from one, and reported herein as in-situ mineral resources. |

MARSHALL MILLER ASSOCIATES, INC.

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![Logo]() 0602p20

Appendix C

| Abbreviation | Definition |
| --- | --- |
| JORC Code | Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves |
| Ib. SO 2 / mm Btu | Pounds per sulfur dioxide per million British thermal units |
| LJ Hughes | LJ Hughes & Sons, Inc. - drilling Company |
| LOM | Life-of-mine |
| M&R | Maintenance and repair |
| M.B.A. | Master of Business Administration |
| Measured Resources | Measured resources are those lying within 0.4-kilometer radius from a valid point of measurement and reported herein as in-situ mineral resources. |
| MINER Act | Mine Improvement and New Emergency Response Act of 2006 |
| Mineral Reserve | “...the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes dilution materials and allowances for losses, which occur when the material is mined or extracted and is defined by studies at Preliminary Feasibility or Feasibility level as appropriate that include Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction of the mineral reserve is economically viable under reasonable investment and marketing assumptions”. |
| Mineral Resource | “...a concentration or occurrence of solid material of economic interest or on the Earth’s crust in such form, grade or quality that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.” |
| MM&A | Marshall Miller & Associates, Inc. |
| Modifying Factors | “...considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental compliance, plans, negotiations, or agreements with local individuals or groups and governmental factors.” |
| MRMR | Mineral Resources to Mineral Reserves |
| MSHA | United States Department of Labor Mine Safety and Health Administration |
| MSL | Mean sea level |
| Mt | Million metric tonnes |
| NAIP | National Agricultural Imagery Program |
| NIOSH | National Institute for Occupational Safety and Health |
| NS | Norfolk Southern Corporation, a rail-based freight transportation company |
| O&M | Operating and maintenance |
| OSD | Out-of-seam dilution |
| OSM | U.S. Office of Surface Mining Reclamation and Enforcement |
| P&L | Profit and loss before tax |
| P.E. | Professional Engineer |
| Preliminary Feasibility Study | “...as a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a |

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![WSD logo]() WSD

Appendix C

| Abbreviation | Definition |
| --- | --- |
|  | preferred mining method, or in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. The study's financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. In addition, as noted in the proposed definition of a pre-feasibility study, while a pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study, a pre- feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.' |
| Property(ies) | Bituminous coal deposits located in Boone, Logan, and Wyoming Counties, West Virginia. |
| QP | Qualified Person |
| Qualified Person | '...a person who is a mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant. In addition, the proposed definition requires a qualified person to be an eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared'. |
| Rec. | Recovery |
| RECs | Recognized Environmental Conditions |
| Resource Database | The Resource Database is established by the collection, validation, recording, storing and processing of data and forms the foundation necessary for the estimation of Mineral Resource and Mineral Reserve. A quality assurance and quality control program is essential and must be established to govern the collection of all data. In reporting, a Mineral Resource must meet the minimum requirement of 'reasonable prospects for economic extraction'. This will require the concurrent collection and storage of preliminary economic, mining, metallurgical, environmental, legal and social data and other information for use in the estimation of MRMR. The Resource Database will include both 'primary' (observation and measurement) and 'interpreted' data. It is recommended that data be stored digitally, using a documented, standard format and a reliable storage medium that allows for easy and complete retrieval of the data. |
| ROM | Run-of-mine |
| RPO | Recognized Professional Organizations |
| S-K 1300 | United States Securities and Exchange Commission Regulation S-K 1300 Modernization of Property Disclosures |
| SEC | U.S. Securities and Exchange Commission |
| SMCRA | Surface Mining Control and Reclamation Act of 1977 is the primary federal law that regulates the environmental effects of coal mining in the United States. |
| SME | Society for Mining Engineers |

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Appendix C

| Abbreviation | Definition |
| --- | --- |
| Strip Ratio | Represented by bcm of overburden to recoverable coal tonnes |
| tph | tonnes per hour |
| TRS | Technical Report Summary |
| USA | United States of America |
| USFW | United States Fish and Wildlife |
| USGS | United States Geologic Survey |
| VALMIN Code | Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets |
| VulcanTM | VulcanTM software is a product of MaptekTM, a provider of software for the global mining industry. |

MARSHAL MILLER ASSOCIATES, INC.

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ec063p1260

# APPENDIX

2x963p210

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

### Section 1 Sampling Techniques and Data

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Sampling techniques | > Nature and quality of sampling (e.g. cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sonates, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. > Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. > Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for five assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. | > Most of the coal samples have been obtained from the Properties by subsurface exploration using core drilling techniques. The protocol for preparing and testing the samples has varied over time and is not well documented for the older holes drilled on the Properties. > Typical USA core drilling sampling technique is for the coal core sample, once recovered from the core barrel, to be described then wrapped in a sealed plastic sleeve and placed into a covered core box, which is the length of the sample so that the core can be delivered to a laboratory in relatively intact condition and with original moisture content. > It is reasonable to assume, given the sophistication level of the previous operators, that these samples were generally collected and processed under industry best-practices. This assumption is based on MM&A's familiarity with the operating companies and the companies used to perform the analysis. > Some of the drill holes were air rotary bored and no coal core samples were collected. Seam thickness for rotary-drilled bore holes is verified by calibrated downhole gamma-density logs. > Coal samples that were deemed by MM&A geologists to be unrepresentative were not used for statistical analysis of coal quality, as documented in the tabulations. A representative group of drill hole samples from the Properties were then checked against the original drill laboratory reports to verify accuracy and correctness. |
| Drilling techniques | > Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). | > The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado. The majority of the drilling was accomplished using vertical continuous (diamond) curing or air rotary methods. > Core drilling methods utilize NX-size (5.4 centimeter) or similar-sized core cylinders to recover core samples, which can be used to delineate geologic characteristics, and for coal quality testing and geotechnical logging. > Data for the rotary drilled holes is mainly derived from downhole geophysical logs, which are used to interpret coal and rock thickness and depth since logging of the drill cuttings is not reliable. > Geophysical logging was performed on many of the holes, either by Geological Logging Systems (a division of MM&A), other geophysical logging contractors, and on those properties acquired from CONSOL geophysical logging was often performed by CONSOL's in-house logging services. |
| Drill sample recovery | > Method of recording and assessing core and chip sample recoveries and results assessed. > Measures taken to maximise sample recovery and ensure representative nature of the samples. > Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | > Where available, core recovery thickness of coal samples was reconciled with the thickness interpreted from geophysical logs. > Core recovery of the older coal samples lacking geophysical logs is sometimes not well-documented; however, when the laboratory results for such holes had anomalous values, the data was disqualified and not used. |

MARGINAL MILLS & ASSOCIATES INC.

2

2/19/2020

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Logging | > Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. > Whether logging is qualitative or quantitative in nature. Core (or corean, channel, etc.) photography. > The total length and percentage of the relevant intersections logged. | > A wide variety of core-logging techniques exist for the properties. For many of the core holes, the primary data source is a generalized lithology description by the driller, in some cases supplemented by a more detailed core log completed by a geologist. > The logging of core thickness and depth is quantitative. With the exception of the coal seams, logging of rock strata type is more subjective and best considered as qualitative. |
| Sub-sampling techniques and sample preparation | > If core, whether cut or sawn and whether quarter, half or all core taken. > If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. > For all sample types, the nature, quality and appropriateness of the sample preparation technique. > Quality control procedures adopted for all sub-sampling stages to maximize representativity of samples. > Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. > Whether sample sizes are appropriate to the grain size of the material being sampled. | > Typical US practice in the Appalachian Basin is that core samples for deep mineable core samples are not sawn or subsampled (since seams are not of great thickness and the entire seam is mined and co-mingled). > Oftentimes, core for surface-mineable coal seams are bench sampled separately by the various coal and rock layers (glass). > MM&A has exercised diligence to use only those analyses that are representative of the coal quality parameters for the appropriate mining type for each sample. |
| Quality of assay data and laboratory tests | > The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. > For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. > Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. | > Sample analysis was typically carried out by accredited US laboratories. > Standard procedure upon receipt of core samples by the testing laboratory is to log the depth and thickness of the sample, then perform testing as specified by a representative of the operating company. Each sample is then analyzed in accordance with procedures defined under ASTM International (ASTM) standards including, but not limited to, washability (ASTM D4371), ash (ASTM D3174), sulfur (ASTM D4239), Burells (ASTM D5865), volatile matter (ASTM D3175), Free Swell Index (FS) (ASTM D720). > Geophysical tools are calibrated by the logging company and where possible, validated using a calibration hole. |
| Verification of sampling and assaying | > The verification of significant intersections by either independent or alternative company personnel. > The use of twinned holes. > Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. > Discuss any adjustment to assay data. | > All coal intersection data used to generate the geologic model has been cross referenced with the lithological and geophysical logs by MM&A. > Laboratory quality was adjusted from dry basis to reflect the anticipated marketable product moisture. > Coal quality results were verified by spot-check with laboratory analysis sheets by MM&A before inclusion into the geologic model and use in the resource estimate. |

MARSHAL MILLS ASSOCIATES, INC.

3

2013/09/20

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Location of data points | > Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. > Specification of the grid system used. > Quality and adequacy of topographic control. | > Due to the long history of exploration by various parties on the Properties, a wide variety of survey techniques exist for documentation of data point locations. Many of the older exploration drill holes appear to have been located by ground survey; more recently completed drill holes are often located by high-resolution Global Positioning System (GPS) units. > Grid systems used are typically the State Plane Coordinate System pertinent to each property. > Topography is based on either the USGS topographic 7.5-minute quadrangle maps or on recent aerial photogrammetry as necessary (subject to availability). |
| Data spacing and distribution | > Data spacing for reporting of Exploration Results. > Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. > Whether sample composition has been applied. | > Spacing and distribution of data point information may vary from seam to seam within each mining area. The areas estimated for coal resource and coal reserve tonnes have been limited so that the data spacing and distribution is sufficient to establish the degree of geological continuity appropriate for the estimation and classification of the coal tonnes. > All of the coal resource tonnes are in the measured, indicated, and inferred categories, and all of the coal reserve tonnes are in the proved and probable categories in accordance with the JORC Code and SEC standards. |
| Orientation of data in relation to geological structure | > Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. > If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | > Drill holes have been vertically drilled. No downhole deviation logs have been collected and it is therefore not known if the drill holes have deviated away from vertical. Based on the relatively shallow seam depths, any deviation is expected to be insignificant and immaterial to the geologic characterization of the Property. > The dip of the coal seams is relatively minor and not a material issue for representation of seam thickness or quality. |
| Sample security | The measures taken to ensure sample security. | > Sample handling procedures employed by explorationists follow typical US protocol and should be adequate to insure sample security. |
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. | > MMBA has reviewed all available geological information for the Properties in developing the geologic model. Only that data deemed suitable has been used for the purpose of generating the resource and reserve estimates. |

MARGARAL MILLER ASSOCIATES, INC.

4

2x963p210

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

## Section 2 Reporting of Exploration Results

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Mineral treatment and land tenure status | > Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. > The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. | > The Coronado coal resources are located within three of the United States of America: Virginia; West Virginia; and Pennsylvania. Control of these Properties is governed by many hundreds of agreements. > MM&A has not carried out separate title verification for the coal properties and has not verified losses, deeds, surveys or other property control instruments pertinent to the subject resources. > Coronado has represented to MM&A that it controls the mining rights to the coal deposits as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management. > There are no known legal or environmental encumbrances that would impede development of the subject coal reserves. |
| Exploration done by other parties | > Acknowledgment and appraisal of exploration by other parties. | > The Properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado. > This exploration work was generally performed to prevailing US best practice standards and deemed adequate for the purposes of this TRS. |
| Geology | > Deposit type, geological setting and style of mineralisation. | > The Coronado coal resources are located within the Northern and Central Appalachian Coal Banks. > The coal deposits are Carboniferous in age, being of the Pennsylvania system. > Seam of economic significance typically range between 0.3 meters and 1.8 meters in thickness, with relatively little structural deformation. > Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent. |
| Drill hole information | > A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level - elevation above sea level in meters) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. > If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. | > MM&A reviewed and entered all pertinent data into a digital geologic database for each Coronado property. The database consists of thousands of data records, which include drill hole and supplemental coal seam thickness measurements from outcrop and mine exposures. > All drill holes in the database are provided with a collar elevation and the State Plane Coordinate System easting and northing coordinate. > After MM&A confirmed proper coal seam thickness and correlation, the seam data was modelled and compiled into coal resource maps. > The maps are provided in the TRS; however, a tabulation of the thousands of individual data records is not practical to include. |

MATERIALMILLE ASSOCIATES, INC.

5

2030/20

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Data aggregation methods | In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. | Where a coal seam has been bench sampled (typically for surface mining) the individual analyses for the coal piles are normally weight-averaged to represent the total of recoverable coal. Coal quality summary results have been documented in the TRS. Average coal quality on a per-seam basis is used to represent the coal resources within a given mining area. Average coal quality for each Coronado complex is provided in Tables 1-1, 1-2 and 1-3 of this TRS. No other data aggregations methods are used. |
| Relationship between mineralisation widths and intercept lengths | These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known'). | Coal thickness values from all coal intersections and down hole geophysical logs are considered to be vertical thicknesses. Seam dip of approximately 2.0 to 3.0 degrees has little effect on the vertical thickness of the seam. |
| Diagrams | Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. | Diagrams and maps showing the coal seam intercepts are presented in the TRS. |
| Balanced reporting | Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. | All of the available, qualified exploration data has been included within the tabulations, maps, and diagrams for this TRS. Both coal thickness and quality data are deemed by MM&A to be reasonably sufficient within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data. |
| Other substantive exploration data | Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. | Informational material available from the U.S. Geological Survey and the respective State Surveys was used to assist in the Resource estimate. |
| Further work | The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | Further work is expected to include additional exploration, geotechnical testing, coal quality analyses, and coal property acquisition. |

MARSHALMILLE ASSOCIATES

6

3v963p210

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

# **Section 3 Estimation and Reporting of Mineral Resources**

(Criteria listed in the preceding section also apply to this section.)

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Database integrity | Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. Data validation procedures used. | MM&A confirmed coal seam thickness and correlations in databases used for coal deposit modelling. Representative records were spot-checked for data entry validation. Geophysical logs were used wherever available to assist in confirming the seam correlation and to verify proper seam thickness measurements and recovery of coal samples. |
| Site visits | Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the case. | MM&A is very familiar with the Properties and has conducted multiple site visits throughout the years. |
| Geological interpretation | Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade and geology. | Due to the relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds, the principal geological interpretation necessary to define the geometry of the coal deposits is the proper modeling of their thickness and elevation. Both coal thickness and quality data are deemed by MM&A to be reasonable within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data. |
| Dimensions | The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. | The subject coal resource areas mostly exist in discreet, individual deposits of highly variable dimensions, shapes and depth below the ground surface. Such factors are best depicted in the maps contained in the TRS. Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of the TRS. |
| Estimation and modelling techniques | The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. The assumptions made regarding recovery of by-products. Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of selective mining units. Any assumptions about correlation between variables. Description of how the geological interpretation was used to control the resource estimates. Discussion of basis for using or not using grade cutting or capping. The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. | Geological data was imported into Carbon Mining ® (formerly SurvCAD ® ) geological modelling software in the form of Microsoft ® Excel files incorporating drill hole collars, seam and thickness picks, bottom seam elevations and row and washed coal quality. These data files were validated prior to importing into the software. Once imported, a geologic model was created. The geological model was verified and reviewed. Resources were estimated by defining seam thickness at each point of observation and by defining resource confidence arcs around the points of observation. Points of observation for Measured and Indicated confidence arcs were defined for all drill holes that intersected the seam. As prescribed by the common United States classification system the following distances from points of observation were used to define the corresponding Resource category arcs: Inferred Resources - greater than 3,960 feet (1.2 kilometers) but less than 15,840 feet (4.8 kilometers) Indicated Resources - 3,960 feet (1.2 kilometers) Measured Resources - 1,320 feet (0.4 kilometers) The use of the standards commonly used in the United States are appropriate and customary for this resource jurisdiction and deposition type. |

MARSHA MILLER ASSOCIATES INC.

7

2013/03/20

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole Spacing Analysis (DHS) method. Based on MM&A's analysis, it would be possible to extend the measured, indicated and inferred area slightly beyond historically accepted practices due to consistent geological settings. The QP's have elected not to extend arc distances, introducing a level of conservation in the coal classification. |
| Moisture | Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. | Coal resource tonnes are presented on a dry, in-situ basis. Reserve tonnes are presented on a moist basis at anticipated product moisture ranging from 4.0 to 6.0 percent. Moisture content based on historic analyses of shipped coal. |
| Cut-off Parameters | The basis of the adopted cut-off grade(s) or quality parameters applied. | The cut-off parameters were tailored for each of the Coronado properties to be in accordance with mining/processing capabilities and market conditions prevalent at each operation. Examples include minimum recoverable coal thickness, acceptable ash content and wash recovery, and manageable overburden to coal ratio for surface minable coal. Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of this TRS. These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and other mining operations of the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves. |
| Mining factors or assumptions | Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilutions. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. | Mining factors such as dilution, mining and washing recovery are variable and have been applied at the coal deposits at each operation based on site-specific characteristics. Details of the factors are cited within the TRS. Factors that would typically preclude conversion of a coal resource to coal reserve include the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of access; insufficient exploration; or uncontrolled surface property for areas of proposed for surface mining. While such factors were used to preclude the conversion of a very limited number of coal resources to coal reserves in this report, the extensive history of mining on the Properties would suggest that there are reasonable prospects for eventual economic extraction of all coal resources under favorable market conditions. |
| Metallurgical factors or assumptions | The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. | The products mined from coal resources controlled by Coronado can be sold into high-, mid-, and low-volatile metallurgical coal markets because of their inherent quality characteristics. Run-of-mine production is washed at the coal preparation plants as needed for quality control. Coronado may blend production from multiple sources to manage ash and sulfur content along with the rheological and petrographic characteristics of the shipped products. |
| Environmental factors or assumptions | Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. | MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Buchanan property in April 2016, and on the Logan County and Greenbrier Properties in May 2017 on behalf of Coronado. Coronado reports not having conducted such a study since the MM&A studies. The ESAs completed by MM&A included a site inspection, review of historical records, a database search of State and Federal regulatory records and interviews to identify potential recognized environmental conditions (RECs) that may create environmental liability for the sites. MM&A identified one REC at Greenbrier associated with stained soil and gravel near a furlong and maintenance area. Coronado reported to MM&A that satisfactory clean-up efforts were completed at Greenbrier. |

MARGARAL MILLE & ASSOCIATES INC.

8

g3w3p2i0

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | Based on these former ESAs completed by MM&A, it is MM&A's opinion that Coronado has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the TRS financial models. |
| Bulk density | Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vogt, porosity, etc), moisture and differences between rock and alteration zones within the deposit. Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. | Laboratory derived seam densities measured in specific gravity were used where available. As needed, these data were supplemented by estimated seam density values based on the relative proportion of coal and non-coal material within the seam (typically at 1.30 and 2.25 specific gravity, respectively). Average seam density was determined for each coal deposit and used to convert coal volumes into coal tonnage estimates. |
| Classification | The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). Whether the result appropriately reflects the Competent Person's view of the deposit. | The Resource has been classified based on suitable distances from points of observations prescribed in the common United States classification system. The use of the United States standards is appropriate and customary for this resource jurisdiction and deposition type. MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole Spacing Analysis (DISA) method. Based on MM&A's analysis, it would be possible to extend the measured, indicated and inferred area slightly beyond historically accepted practices due to consistent geological settings. The QP's have elected not to extend arc distances, introducing a level of conservation in the coal classification. All relevant factors have been accounted for and reflect the Competent Person's view of the deposit. |
| Audits or reviews | The results of any audits or reviews of Mineral Resource estimates. | MM&A completed prepared a statement of coal resources and reserves for the Properties in accordance with the JORC Code as of December 31, 2017. MM&A also subsequently updated the estimate of resources and reserves for depletion as of December 31, 2018, December 31, 2019, December 31, 2020 and December 31, 2021. MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S. Securities and Exchange Commission (SEC) Industry Guide 7 and USGS Circular 891 standards. Earlier audits were performed by various independent consultants for predecessors-in-title to Coronado and at various levels of detail depending on the clients concerns and the allowed time for completion. Previous audits and reviews defined the primary coal resource areas and estimated the recoverable tonnes for each seam based on the expected mining methods. Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado, which encompass portions of the Properties included in this TRS. |
| Discussion of relative accuracy/ confidence | Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. | The relative accuracy of and confidence in the coal tonnage and quality estimates provided herein are judged to be in conformance with current industry best practices. The representation of average coal quality characteristics should be understood to represent a reasonably representative sampling that is generally indicative of coal quality and does not represent a statistically rigorous approach to coal quality modeling. Resource estimation has been completed using standard coal estimation methods which are deemed appropriate for this deposit. |

MARSHAL MILLS & ASSOCIATES, INC.

9

p360p210

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > The statement should specify whether it relates to global or local estimates, and, if local, state the relevant messages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. > These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. |  |

### Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in the preceding section also apply to this section.)

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Mineral Resource estimate for conversion to Ore Reserves | > Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. > Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves. | > The coal resource estimate was prepared as part of the report Coronado Global Resources Inc. Statement of Coal Resources and Reserves in Accordance with JORC Code and United States SEC Standards as of December 31, 2022 - Northern and Central Appalachian Coal Banks - Virginia, West Virginia and Pennsylvania, USA - February 2023 prepared by MM&A. > The resource estimation criteria were developed by MM&A based on the capabilities of the mining equipment used within the production model and on industry-accepted standards to assure that the basic geologic characteristics of the coal resources are in reasonable conformity with those to be mined and marketed by Coronado. > Coal resources generally are reported inclusive of the coal reserves. In some cases, resources are reported in addition to coal reserves. Tables 1-1 and 11-3 of the TRS clearly identify resources “inclusive of mine plan” from which coal reserves were estimated along with those resources “exclusive of mine plan” from which no reserves were estimated. |
| Site visits | > Comment on any site visits undertaken by the Competent Person and the outcome of those visits. | > MM&A is very familiar with the Properties and has conducted multiple site visits throughout the years. |
| Study status | > The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves. > The Code requires that a study to at least Pre-Fossibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered. | > A preliminary feasibility LOM plan was prepared by MM&A for active and proposed mines. > This geologic evaluation conducted in accordance with JORC and SEC standards and in conjunction with the preliminary feasibility study is sufficient to conclude that the surface, highwall mine and underground coal reserves identified on the Properties are economically mineable under reasonable expectations of market prices for thermal and metallurgical coal products, estimated operation costs, and capital expenditures. > The pre-fossibility financial models, prepared by MM&A for this TRS, was developed to test the economic viability of each coal resource area. > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors). |
| Cut-off parameters | > The basis of the adopted cut-off grade(s) or quality parameters applied. | > The cut-off parameters were tailored for each of the Coronado properties to be in accordance with mining/ processing capabilities and market conditions prevalent at each operation. > Examples include minimum recoverable coal thickness, acceptable ash content and wash recovery, and manageable overburden to coal ratio for surface mineable coal. > Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters listed in Section 11.1 of this TRS. |

MARGARAL MILLS & ASSOCIATES INC.

10

2x90p20

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Mining factors or assumptions |  | > These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and are typical of mining operations in the Central Appalachian coal basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves. |
|  | > The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimization or by preliminary or detailed design). | > After validating coal seam data and establishing correlations, the thickness and elevation for seams of economic interest were used to generate a geologic model. > A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2023 to depletion (exhaustion) of the coal reserve areas. |
|  | > The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. | > The room-and-pillar mining method was selected to model the underground mining resources, utilizing continuous miners for coal extraction, shuttle cars for production section haulage and roof boilers for roof control, with the exception that the Buchanan Mine also uses longwall shearers, armored face conveyors, and hydraulic self-advancing roof support. The resource areas located above drainage are relatively small and often have irregular boundaries. The Buchanan Mine in Buchanan County, Virginia is the only active longwall mine currently being operated by Coronado. > The Coronado underground mining resource areas which are located above-drainage require an access road and mine access development along the outcrop, whereas below-drainage mines are accessed via shaft or slope based on other proposed surface infrastructure locations and/or surface property control. > The surface mining method selected utilizes highly productive hydraulic shovels, front-end loaders, large tructures and rock trucks for overburden removal. The mobile equipment spreads adapt readily to winding coal outcrops for contour surface mining and are effective for point-removal and area mining applications. > Application of highwall and auger mining units is an effective method to recover coal resources not suitable for underground mining and under excessive cover for surface mining. |
|  | > The assumptions made regarding geotechnical parameters (e.g. pit slopes, slope sizes, etc.), grade control and pre-production drilling. | > Mining plans for potential underground mines were developed by MM&A. Pillar stability was tested by MM&A using the Analysis of Coal Pillar Stability (ACP) program that was developed by the National Institute for Occupational Safety and Health (NOSH). > Coronado mine shuttles approved mining plans from United States Department of Labor Mine Safety and Health Administration (USHA) that define safety parameters for the highwalls developed during contour and area mining. MM&A's planning model does not require input of specific highwall design parameters, but provides for timing of mining within mine plan polygons that is representative of the operation performance attained at Central Appalachia surface mines. > Highwall and auger mining is conducted under highwalls designed and constructed to meet MSHA permit requirements. To better assure highwall stability and safety during highwall coal extraction, MSHA requires that coal feeders, or stumps, be left in place between successive cuts. Periodic barrier pillars must be left in place as an additional safeguard. MM&A has adjusted the expected mining recovery for highwall and auger mining resources to reflect highwall stability and safety requirements. |
|  | > The major assumptions made and Mineral Resource model used for pit and slope optimization (if appropriate). | > Underground Mining Resources: For metallurgical resources, minimum coal seam thickness extends down to between 0.6 and 1.2 meters and a minimum overburden (depth of cover) of 30.5 meters. A 61-meter horizontal distance is maintained from abandoned mines and sealed or pillared areas, and a 30-meter horizontal distance is maintained from planned highwall mine panels. Mine recovery is reduced when a rider coal seam is present within a 1.5- to 3.0-meter interval above the coal |

MARSHAL MILLER ASSOCIATES, INC.

11

2/9/2020

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | seam. No mining is projected when the interval between overlying and underlying reserves is less than 12 meters. > Surface Mining Resources: For classification as a surface-mineable resource, a seam must be at least 0.3 meters in thickness as a stand-alone (principle) seam and 0.15 meters in thickness when less than 0.8 meters from a principal seam. The maximum cumulative area mining strip ratio is generally 20:1 for thermal coal and 30:1 for metallurgical coal. Some areas were assessed for their economic viability at higher ratios, and were included as reserves if deemed economic. For contour surface mining, a minimum of 30-meter bench is provided to support HWM. > HWM and Auger Mining Resources: HWM cut depth (penetration) is established at a maximum of 244 meters. The minimum mineable coal thickness is limited at 0.6 meters. For coal seams less than 0.8 meters thick, roof and/or floor characteristics must allow OSD cutting to maintain a 0.8-meter minimum cutting height. Auger mining cut depth is established at an average of 91 meters. The minimum mineable coal thickness is limited at 0.5 meters. |
|  | > The mining dilution factors used. | > Underground Mining Reserves: The planning model assigns minimum mining heights of 1.4 to 1.8 meters for mains and panel development. At the Buchanan Mine, a minimum mining height of 1.8 meters was used due to the longwall mining method being employed. For coal seams thinner than the assigned mining height, the difference between the coal seam height and assigned mining height consists of OSD. In all cases a minimum of 0.05 meters of OSD was assumed, with the exception of the Mon Valley mines, where a minimum 0.15 meters of OSD was assumed due to weaker floor strata. > Surface Mining Reserves: Area mining is generally limited to a cumulative overburden ratio of 30:1 and a 15:1 ratio for contour mining. Exceptions were considered for mining of metallurgical grade coal where deemed economical. It is assumed that careful cleaning of exposed coal pits will result in minimal OSD. > HWM and Auger Mining Reserves: The mining plan assumes that the HWM cutting height is a minimum of 76 to 99 centimeters for clearance purposes. When the coal seam is less than 76 to 99 centimeters thick, OSD assumed and included in the ROM product. Because the auger has very limited OSD cutting ability, it is assumed that an appropriate auger diameter will be chosen based on the coal seam thickness and that OSD will be minimal. |
|  | > The mining recovery factors used. | > Underground Mining Reserves: Mine recovery generally varies between 40 and 60 percent for continuous mining panels, and 100 percent for longwall. > Surface Mining Reserves: Mining recovery is 90 percent for virgin areas. Mining recovery is reduced where second mining is projected in previously underground and auger mined areas. > HWM and Auger Mining Reserves: A mine recovery of 40 percent has been applied for HWM. A mine recovery of 35 percent has been applied for auger mining. |
|  | > Any minimum mining widths used. | > Underground Mining Reserves: Typical entry width is 5.8 to 6.1 meters. |
|  | > The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion. | > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors). > Mine plan LOM tonnage includes inferred coal and these areas that do not meet the minimum coal thickness requirement for classification as reserve. Inferred coal represents approximately 0.6% of the LOM production for Mon Valley and 0.000001% of the total LOM production for Logan. None of this coal was included in the estimate of reserves. |

MARGARAL MILLS ASSOCIATES, INC.

12

2/9/2020

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > The infrastructure requirements of the selected mining methods. | > Underground Mining Resources: The continuous mining method provides for the extraction of coal from the production faces using continuous miners (and longwall shearing machine at Buchanan) and haulage using shuttle cars or battery haulers to a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor. A chain conveyor is used to remove coal from the longwall face at the Buchanan Mine for placement onto the conveyor belt which is ultimately delivered to an underground storage bunker. Roof-holding machines are used to install roof bolts, and battery scoops are available to clean the mine entries and assist in delivery of mine supplies to work areas. Surface ventilation fans are installed as needed to provide a sufficient volume of air to ventilate production sections, coal haulage and transport entries, battery charging stations, and transformers in accordance with approved plans. > Coronado currently operates three coal preparation plants, one each at the Buchanan, Logan County and Greenbrier Divisions. The Buchanan Plant operates at a feed rate of approximately 907 raw tonnes per hour (tph), whereas the Saunders Plant (Logan County Division) has a nominal feed rate of 816 tph, and the Mountaineer Plant (Greenbrier Division) operates at 544 tph. MM&A has included capital estimates for construction of additional coal preparation plants at the Russell County and Miss Valley Complex for the purposes of this TRS. > Surface Mining Resources: The surface mining mobile equipment spreads advance the contour and area mining pits while systematically reclaiming the trailing side of pits where coal has been removed. The coal haul roads are extended and maintained as the pits advance. Support facilities are maintained nearby but away from the active mining, and include storage areas for blasting agents, fuel and lubricants, and mine supplies along with maintenance facilities and offices. Most of the surface mine production is transported to a loading point for crushing, blending and direct-shipment to customers. > HWM and Auger Resources: The HWM equipment advances along with the contour mining pits. The rate of advance of the contour mining is governed by the advancement rate of the HWM. A diesel-powered generator trails the highwall miner and powers the continuous mining unit. Other support facilities are provided along with the contour mining support facilities. HWM production is all transported by truck to the coal preparation plant for washing. |
| Metallurgical factors or assumptions | > The metallurgical process proposed and the appropriateness of that process to the style of mineralisation. | > Coarse material is washed in a heavy medium vessel. Intermediate-size material is washed in heavy medium cyclones. Fine material is washed using conventional fresh flotation cells. |
|  | > Whether the metallurgical process is well-tested technology or novel in nature. | > Processes are typical of those used in the coal industry and are in use at adjacent coal processing plants. |
|  | > The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied. | > The quality characteristics for the subject coal resources and coal reserves have been reviewed in detail by MM&A. The drill hole data were utilized to develop average coal quality characteristics mining site. These average coal quality characteristics were then utilized as the basis for determining the various markers into which the suitable coal will likely be placed. |
|  | > Any assumptions or allowances made for deleterious elements. | > No significant effects on product quality are anticipated from dilution material; float product quality was used to model final product quality. |
|  | > The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole | > No bulk sample or pilot scale work has been completed. |

MARGARAL MILLS & ASSOCIATES, INC.

13

2/6/2020

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet specifications? | > Notwithstanding the complexity of the coal quality data set, the seams of the central and northern Appalachian coalfields have a long history of providing both high-flavor thermal coals and high-, mid- and low-volatile coking coals with favorable metallurgical properties. |
| Environmental | > The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported. | > MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Buchanan property in April 2016, and on the Logan County and Greenbrier Properties in May 2017 on behalf of Coronado. > MM&A identified one REC at Greenbrier associated with stained soil and gravel near a fueling and maintenance area. Coronado reported to MM&A that satisfactory clean-up efforts were completed at Greenbrier. > Based on these former ESAs completed by MM&A, it is MM&A's opinion that Coronado has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the TRS financial models. |
| Infrastructure | > The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed. | > Coronado currently operates one surface mine (Toney Fork Mine at the Logan Mine Complex); Coronado also controls the idle Midland Surface Mine at the Greenbrier Mine Complex. > Coronado operates five underground mines as follows: Buchanan Mine at the Buchanan Mine Complex; Windfrode, Eagle No. 1, Muddy Bridge and Lower War Eagle Mines in the Logan Mine Complex; the Mountaineer #1 Mine at the Greenbrier Mine Complex is currently idle. > All ROM production is currently planned for either truck transportation from the mines to the processing or shipping facilities, or in some cases there is either a current or planned mine mouth preparation plant and barge/oil loading facility. > There is a network of public highways that provide serviceable coal haul routes and private, internal roads on the Properties would be developed as may be needed. Rail service to the Properties is most readily provided by NS and CSX with connections to both domestic consumers and international trans-shipment points. NS truck is located across the Monongahela River from the proposed Panghum Hollow load-out facility. Coal would be shipped to customers via barge and rail and sold as both metallurgical and thermal products. |

MARSHAL MILLER ASSOCIATES INC.

14

g1963p210

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Costs | The derivation of, or assumptions made, regarding projected capital costs in the study. The methodology used to estimate operating costs. | Coronado provided historical and 5-year budget operating costs for its active mines for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed personnel schedules for each mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof control costs and other mine supply costs at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs. Surface mine direct operating costs were developed as a function of overburden ratio for repair and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies and services. Operating costs for highwall mines are based on costs per ROM tonne estimates. Other cost factors were developed for coal preparation plant processing, refuse handling, coal loading, trucking, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black lung excise tax, and federal and state reclamation fees. Capital schedules were developed by MM&A for mine development, infrastructure, and on-going capital requirements for the life of each projected mine. Staffing levels were prepared and operating costs estimated by MM&A for each projected mine. MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs. |
|  | Allowances made for the content of deleterious elements. | No allowances have been made for deleterious elements; no impact to quality from deleterious elements is anticipated. |
|  | The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co-products. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | Derivation of transportation charges. | Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. | MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs. All ROM production is currently planned for either truck transportation from the mines to the processing or shipping facilities, or in some cases there is either a current or planned mine mouth preparation plant and barge/rail loading facility. |

MARGARAL MILLS ASSOCIATES, INC.

15

2013/03/20

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  | > The allowances made for royalties payable, both Government and private. | > Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for state severance taxes, the federal black hang excise tax, and federal and state reclamation fees. |
| Revenue factors | > The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. | > Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | > The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products. | > Coal sales prices as defined above. All reported reserves are on a marketable basis. |
| Market assessment | > The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future. | > Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
|  | > A customer and competitor analysis along with the identification of likely market windows for the product. | > All of the mine production serves metallurgical and thermal markets. The metallurgical coal is marketed as high-volatile (typically 28 percent or greater volatile matter content); mid-volatile (typically 23- to 27-percent volatile matter content) and low-volatile (typically less than 23 percent volatile matter content) products. > Raw ROM production that requires washing is currently processed through Coronado owned and operated coal preparation plants. > ROM coal that does not require further processing is delivered directly to the loading points for mixing and delivery to customers. Coronado has access to two rail-loading points serviced by the Norfolk Southern Corporation and two rail-loading points serviced by CSX Corporation . |
|  | > Price and volume forecasts and the basis for these forecasts. | > Carbon Mining was used by MM&A to generate mine plans for underground- and surface-mineable coal seams. Underground mine plans were sequenced based on productivity schedules provided by Coronado, which were based on historically achieved productivity levels. Surface mine plans were generated under productivity assumptions (bank cubic yard per shift) as provided by Coronado and reviewed by MM&A, again based heavily on productivity levels achieved by Coronado. All production forecasting ties assumed production rates to geological models as constructed independently by MM&A's team of geologists and mining engineers. > Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. |
| Economic | > The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. | > On an uncovered basis, the NPV of the project cash flows after taxes was estimated for the purpose of classifying coal reserves. The project cash flows, excluding debt service, are calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs. |

MARSHAL MILLS & ASSOCIATES, INC.

16

g1963p210

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis services, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal black long tax, Federal and State reclamation taxes, property taxes, local transportation prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, income taxes and State severance taxes. Coronado's historical costs provided a useful reference for MM&A's cost estimates. > Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. Coal price forecasts for the various products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne. MM&A utilized this data for price forecasting in financial modeling. > All costs and prices are based on 2022 nominal United States dollars. > A pre-fousibility LOM plan was prepared by MM&A for active and proposed mines. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2023 to depletion (exhaustion) of the coal reserve areas, which is projected for the year 2100. > The all-mines average cash cost ranges between approximately $65 and $317 per tonne for most of the operating period. |
|  | > NPV ranges and sensitivity to variations in the significant assumptions and inputs. | > An estimate of NPV at a base discount rate of 10.0% was included in Section 19 of the TRS. > NPV of the Buchanan, Russell, Mon Valley, Logan and Greenbrier Properties was estimated to be $1,562 billion, $92.2 million, $168.3 million, $366.6 million and $62.7 million, respectively. > The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range. |
| Social | > The status of agreements with key stakeholders and matters leading to social license to operate. | > Portions of the properties are located near local communities. Regulations prohibit mining activities within 91 meters of a residential dwelling, school, church, or similar structure unless written consent is first obtained from the owner of the structure. Where required, such consents have been obtained where mining is proposed beyond the regulatory limits. |
| Other | To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: > Any identified material naturally occurring risks. > The status of material legal agreements and marketing arrangements. | > No material naturally occurring risks have been identified. > The Coronado coal resources are located in Buchanan, Russell and Tazewell Counties, Virginia; Greenbrier, Logan, Boone, Wyoming and Greenbrier Counties, West Virginia; Allagherry, Washington and Westmoreland Counties, Pennsylvania. > MM&A has not carried out separate title verification for the coal properties and has not verified leases, deeds, surveys or other property control instruments pertinent to the subject resources. > Coronado has represented to MM&A that it controls the mining rights to the reserves as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral. |

MARSHAL MILLER ASSOCIATES, INC.

17

g1963p210

Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management. |
|  | > The status of government agreements and approvals critical to the viability of the project, such as mineral easement status and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Fraudibility or Fraudibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third part on which extraction of the reserve is contingent. | > Coronado has obtained all mining and discharge permits to operate 34 underground mines, 13 surface mines, and 18 processing, loadout or related facilities. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Coronado, along with all Central and Northern Appalachian basin coal producers, is subject to a level of uncertainty regarding future clean water permits due to United States Environmental Protection Agency (EPA) involvement with state programs. |
| Classification | > The basis for the classification of the Ore Reserves into varying confidence categories. Whether the result appropriately reflects the Competent Person's view of the deposit. The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). | > Measured and indicated resources have been converted to proved and probable reserves, respectively. > None of the probable coal reserves have been derived from measured resources. > In a limited number of cases where there was only very limited data available to demonstrate the metallurgical suitability of a given coal deposit, that deposit was classified as a probable reserve instead of a proved reserve. > The results of this TRS define an estimated total initial ROM recoverable ore (coal) reserve estimate of 551 million tonnes for Coronado as follows: a) Buchanan = 154 Mt b) Logan = 138 Mt c) Greenbrier = 12 Mt d) Russell = 50 Mt e) Mon Valley = 197 Mt > Coronado controls a total of 334 Mt (moist basis) of marketable coal reserves for Coronado as of December 31, 2022 (total may not add due to rounding). Of that total, 74 percent are proved, and 26 percent are probable. Total reserves by complex are as follows: a) Buchanan = 93 Mt b) Logan = 71 Mt c) Greenbrier = 7 Mt d) Russell = 30 Mt e) Mon Valley = 134 Mt |
| Audits or reviews | > The results of any audits or reviews of Ore Reserve estimates. | > MM&A completed prepared a statement of coal resources and reserves for the Properties in accordance with the JORC Code as of December 31, 2017. MM&A also subsequently updated the estimate of resources and reserves for depletion as of December 31, 2018, December 31, 2019, December 31, 2020 and December 31, 2021. > MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S. Securities and Exchange Commission of Industry Guide 7 standards. Earlier audits were performed by various independent consultants for predecessors-in-title to Coronado and at various levels of detail depending on the clients concerns and the allotted time for completion. Previous audits and reviews defined the primary coal resource areas and estimated the recoverable tonnes for each seam based on the expected mining methods. > Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado, which encompass portions of the Properties included in this TRS. |

MARGARAL MILLER ASSOCIATES, INC.

18

2x963p210

Statement of Coal Resources and Reserves
in Accordance with SEC and the IORC Code as of December 31, 2021
Northern and Central Appalachian Coal Banks -
Virginia, West Virginia and Pennsylvania, USA

Appendix E: IORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
| Discussion of relative accuracy/ confidence | > Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. > The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. > Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. | > Operations on the Properties by Coronado and its predecessors have been on-going for many years. > MM&A is confident that the mine plans and financial models are reasonably representative to provide an accurate estimation of coal reserves. > Mine development and operation have not been optimized within the TRS. > Proved and probable coal reserve were derived from the defined in-situ coal resource considering relevant processing, economic (including independent estimates of capital, revenue and cost), marketing, legal, environmental, socioeconomic, and regulatory factors on a global scale as current local data reflects the global assumptions. The major risk factors for the active Coronado mines and future resource development are summarized below: > Mine Accidents > Highwall Failure. Highwall failures are likely to result in a temporary mine closure and should not have a material impact on the mine sustainability. The risk is considered to be probable. > Adverse Geological Conditions. Adverse geological conditions include such conditions as faults and sandstone washouts. The risk is considered to be probable. The impact is expected to be temporary with little material impact on mine sustainability. > Environmental Risk. Numerous federal and state permits are required to operate coal mines and mine surface facilities. Permitting rules are complex and may change over time, making compliance difficult or impossible. > Water Quality. Permit requirements to fulfill Clean Water Act obligations are subject to modification. The probability of water quality changes having a material impact on mine operations is possible. As a contemporary example, the selenium discharge issue that affects western Canadian and Central Appalachian Basin operators has only recently emerged as a concern and its ultimate impact has not been determined. > New Permits. Permit protests by environmental groups and individuals can contribute to permit delays or denial and increase the cost of permitting and delay development. Surface mining activities, coal refuse disposal and construction of access roads in mountainous terrain often require storage of material in valley fills. Authority to dispose of fill material into waters of the United States must be granted by the United States Army Corps of Engineers [CO] . COE permits are increasingly difficult to obtain. > Regulatory Requirements. Adverse impact from regulatory changes is considered to be probable. The impact will likely affect the broader industry and is not expected to result in mine closure. > Market Risk. Metallurgical and thermal coal markets ultimately depend upon the global steel and thermal coal demand and are considered to be volatile. Currently, the US coal market has seen a decline in demand for thermal coal due to thermal plant closures, as a result of new air and water pollution regulations, and competition from other commodities used for power generation such as natural gas. This has resulted in an overall decline in CAPP coal production. Continued regulatory changes and declining demand could result in material changes in domestic and global coal markets. The impact cannot be predicted at this time; however, while MM&A expects the coal reserve within this TRS to remain economically viable throughout the life of the projected mines, the LOM financial model is very sensitive to changes in coal sales price and therefore market risk is not insignificant. |

MARSHAL MILLS & ASSOCIATES, INC.

19

2/96/2020

Statement of Coal Resources and Reserves  
 in Accordance with SEC and the JORC Code as of December 31, 2021  
 Northern and Central Appalachian Coal Banks -  
 Virginia, West Virginia and Pennsylvania, USA

# Appendix E: JORC Table 1

| Criteria | JORC Code explanation | Commentary |
| --- | --- | --- |
|  |  | > Labor Risk. Work stoppage due to organized labor protests is considered to be unlikely and not likely to lead to permanent mine closure. The mines are likely to suffer the loss of key supervisors and skilled employees due to retirement as the workforce ages. The problem is industry-wide and the impact is expected to be temporary and have no sustained impact on coal production. > Availability of Equipment and Supplies. Risk of equipment and supply availability is likely to be temporary and should not have a sustained adverse impact on the production of coal. > Transportation Delay. Interruption of coal transport services by river or rail is considered to be probable but unlikely to have a sustained impact on coal production. |
|  | > It is recognized that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. | > Mine plans, productivity expectations and cost estimates generally reflect historical performance and efforts have been made to adjust plans and costs to reflect future conditions. |

MARGARET, MILLER & ASSOCIATES, INC.

20

## Exhibit 96.4

2064p1.0

# Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

February 2023

Prepared for:
Coronado Global Resources Inc.
100 Bill Baker Way
Beckley, West Virginia 25801

Prepared by:
MARSHALMILLE & ASSOCIATES, INC.
582 Industrial Park Road
Bluefield, Virginia 24605
www.mmal.com

sc064p20

p.p. Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

## Statement of Use and Preparation

This Technical Report Summary (TRS) was prepared by Marshall Miller & Associates, Inc. (MM&A) for the sole use of Coronado Global Resources Inc. (Coronado) and its affiliated and subsidiary companies and advisors. Copies or references to information in this report may not be used without the written permission of Coronado.

This report provides a statement of coal resources and coal reserves for Coronado, as defined under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the United States Securities and Exchange Commission (SEC). Subject to the comments below, this report was also prepared in accordance with the Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code).

The statement is based on information provided by Coronado and reviewed by Qualified Persons (QPs) who are full-time employees of MM&A.

As noted above, this report is a "Public Report" for the purposes of the VALMIN Code. However, in accordance with paragraph 12.1 of the VALMIN Code, it is noted that this report is not a "Valuation of Mineral Assets", and it also does not comply with the following requirements that apply to "Technical Assessments" (as defined in the VALMIN Code):

This report does not include a determination of the status of tenure (as required by paragraph 7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by Coronado's legal advisors.

This report does not include separate commentary on the reasonableness and quality of the Resources and Reserves estimates and the basis on which they have been reported (as required by paragraph 7.3 of the VALMIN Code). MM&A did not consider that this was appropriate in circumstances where MM&A was engaged for the specific purpose of preparing those estimates. However, MM&A notes that, in accordance with its usual practice, a separate team of MM&A employees undertook a peer review of this report and confirmed that both the process followed by the authors of this report and the estimates prepared were reasonable and comply with the requirements of the JORC Code.

MARSHALL MILLER & ASSOCIATES, INC.

1

![LOGO]

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

The information in this TRS related to coal resources and reserves is based on, and fairly represents, information compiled by the QPs. At the time of reporting, MM&A's QPs have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity they are undertaking to qualify as a QP as defined by Regulation S-K 1300 and the JORC Code. Each QP consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

**Marshall Miller & Associates, Inc. (MM&A)** hereby consents to the use of the information contained in this report dated December 31, 2022, relating to estimates of coal resources and coal reserves controlled by Coronado.

Qualified Person: /s/ Marshall Miller & Associates, Inc.

Date: February 15, 2023

MARSHALL MILLER & ASSOCIATES, INC.

2

![Logo]() sc064p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

## Table of Contents

| 1 | Executive Summary | 1 |
| --- | --- | --- |
| 1.1 | Property Description | 1 |
| 1.2 | Ownership | 2 |
| 1.3 | Geology | 2 |
| 1.4 | Exploration Status | 3 |
| 1.5 | Operations and Development | 3 |
| 1.6 | Mineral Resource | 3 |
| 1.7 | Mineral Reserve | 4 |
| 1.8 | Capital Summary | 5 |
| 1.9 | Operating Costs | 5 |
| 1.10 | Economic Evaluation | 6 |
| 1.10.1 | Discounted Cash Flow Analysis | 10 |
| 1.10.2 | Sensitivity Analysis | 10 |
| 1.11 | Permitting | 11 |
| 1.12 | Conclusion and Recommendations | 11 |
| 2 | Introduction | 12 |
| 2.1 | Registrant and Terms of Reference | 12 |
| 2.2 | Information Sources | 12 |
| 2.3 | Personal Inspections | 14 |
| 3 | Property Description | 14 |
| 3.1 | Location | 14 |
| 3.2 | Titles, Claims or Leases | 14 |
| 3.3 | Mineral Rights | 14 |
| 3.4 | Encumbrances | 15 |
| 3.5 | Other Risks | 15 |
| 4 | Accessibility, Climate, Local Resources, Infrastructure and Physiography | 15 |
| 4.1 | Topography, Elevation and Vegetation | 15 |
| 4.2 | Access and Transport | 16 |
| 4.3 | Proximity to Population Centers | 16 |
| 4.4 | Climate and Length of Operating Season | 16 |
| 4.5 | Infrastructure | 16 |
| 5 | History | 17 |
| 5.1 | Previous Operation | 17 |
| 5.2 | Previous Exploration | 17 |
| 6 | Geological Setting, Mineralization and Deposit | 17 |

MARSHAL MILLER ASSOCIATES INC.

i

ec964p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

| 6.1 | Regional, Local and Property Geology | 17 |
| --- | --- | --- |
| 6.2 | Mineralization | 18 |
| 6.3 | Deposits | 20 |
| 7 | Exploration | 20 |
| 7.1 | Nature and Extent of Exploration | 20 |
| 7.2 | Non-Drilling Procedures and Parameters | 21 |
| 7.3 | Drilling Procedures | 21 |
| 7.4 | Hydrology | 22 |
| 7.5 | Geotechnical Data | 22 |
| 8 | Sample Preparation, Analyses and Security | 23 |
| 8.1 | Prior to Sending to the Lab | 23 |
| 8.2 | Lab Procedures | 23 |
| 9 | Data Verification | 24 |
| 9.1 | Procedures of Qualified Person | 24 |
| 9.2 | Limitations | 24 |
| 9.3 | Opinion of Qualified Person | 24 |
| 10 | Mineral Processing and Metallurgical Testing | 25 |
| 10.1 | Testing Procedures | 25 |
| 10.2 | Relationship of Tests to the Whole | 25 |
| 10.3 | Lab Information | 25 |
| 10.4 | Relevant Results | 26 |
| 11 | Mineral Resource Estimates | 26 |
| 11.1 | Assumptions, Parameters and Methodology | 26 |
| 11.1.1 | Geostatistical Analysis | 27 |
| 11.2 | Qualified Person's Estimates | 31 |
| 11.3 | Qualified Person's Opinion | 31 |
| 12 | Mineral Reserve Estimates | 31 |
| 12.1 | Assumptions, Parameters and Methodology | 31 |
| 12.2 | Qualified Person's Estimates | 33 |
| 12.3 | Qualified Person's Opinion | 34 |
| 13 | Mining Methods | 34 |
| 13.1 | Geotech and Hydrology | 35 |
| 13.2 | Production Rates | 35 |
| 13.3 | Mining Related Requirements | 37 |
| 13.4 | Required Equipment and Personnel | 37 |
| 13.4.1 | Mine: Pangburn | 37 |
| 13.4.2 | Mine: Shaner | 39 |

MARSHA MILLER ASSOCIATES INC.

ii

ec964p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

| 13.4.3 | Mine: Fallowfield | 40 |
| --- | --- | --- |
| 14 | Processing and Recovery Methods | 41 |
| 14.1 | Description or Flowsheet | 41 |
| 14.2 | Requirements for Energy, Water, Material and Personnel | 41 |
| 15 | Infrastructure | 42 |
| 16 | Market Studies | 43 |
| 16.1 | Market Description | 43 |
| 16.2 | Price Forecasts | 43 |
| 16.3 | Contract Requirements | 44 |
| 17 | Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals | 44 |
| 17.1 | Results of Studies | 44 |
| 17.2 | Requirements and Plans for Waste Disposal | 44 |
| 17.3 | Permit Requirements and Status | 44 |
| 17.4 | Local Plans, Negotiations or Agreements | 45 |
| 17.5 | Mine Closure Plans | 46 |
| 17.6 | Qualified Person's Opinion | 46 |
| 18 | Capital and Operating Costs | 46 |
| 18.1 | Capital Cost Estimate | 46 |
| 18.2 | Operating Cost Estimate | 47 |
| 19 | Economic Analysis | 48 |
| 19.1 | Assumptions, Parameters and Methods | 48 |
| 19.2 | Results | 50 |
| 19.3 | Sensitivity | 55 |
| 20 | Adjacent Properties | 56 |
| 20.1 | Information Used | 56 |
| 21 | Other Relevant Data and Information | 56 |
| 22 | Interpretation and Conclusions | 56 |
| 22.1 | Conclusion | 56 |
| 22.2 | Risk Factors | 56 |
| 22.2.1 | Governing Assumptions | 57 |
| 22.2.2 | Limitations | 58 |
| 22.2.3 | Methodology | 58 |
| 22.2.4 | Development of the Risk Matrix | 58 |
| 22.2.5 | Categorization of Risk Levels and Color Code Convention | 61 |
| 22.2.6 | Description of the Coal Property | 61 |
| 22.2.7 | Summary of Residual Risk Ratings | 62 |

MARSHA MILLER ASSOCIATES INC.

iii

ec964p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

22.2.8 Risk Factors...62
23 Recommendations ...68
24 References ...68
25 Reliance on Information Provided by the Registrant ...69

# FIGURE (EN REPORT)

Figure 1-1: Mon Valley Complex Property Location Map...2
Figure 1-2: CAPEX...5
Figure 1-3: OPEX...6
Figure 1-4: Sensitivity of NPV...11
Figure 6-1: Stratigraphic Column ...19
Figure 7-1: Mon Valley Cross-Section ...21
Figure 11-1: Histogram of the Total Seam Thickness for the Upper Freeport Seam Present in the
Mon Valley Complex ...28
Figure 11-2: Scatter plot of the Total Seam Thickness for the Upper Freeport Seam Present in the
Mon Valley Complex ...28
Figure 11-3: Variogram of the Total Seam Thickness for the Upper Freeport Seam Present in the
Mon Valley Complex ...29
Figure 11-4: Result of DHSA for the Upper Freeport Seam Present in the Mon Valley Complex ...30
Figure 13-1: Proposed Pangburn Plant and Mine Site Infrastructure ...39
Figure 18-1: CAPEX...47
Figure 19-1: Cash Costs per Tonne ...51
Figure 19-2: Sensitivity of NPV...55

# TABLE (EN REPORT)

Table 1-1: Coal Resources Summary as of December 31, 2022 ...3
Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)...4
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt) ...4
Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)...7
Table 1-5: Project Cash Flow Summary (000)...7
Table 2-1: Information Provided to MM&A by Coronado ...13
Table 11-1: General Reserve and Resource Criteria ...27
Table 11-2: DHSA Results Summary for Radius from a Central Point ...30
Table 11-3: Coal Resources Summary as of December 31, 2022 ...31
Table 12-1: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt) ...33
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt) ...34
Table 13-1: Production Summary by Mine by Year (000)...36
Table 16-1: Quality Specifications by Product ...43
Table 18-1: Estimated Coal Production Taxes and Sales Costs...48
Table 18-2: Mon Valley Operating Costs ...48
Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)...51
Table 19-2: Summary of Mon Valley Key Financial Performance Metrics (2023-2030)...52
Table 19-3: Project Cash Flow Summary (000)...52
Table 22-1: Probability Level Table ...59

MARSHALL MILLER ASSOCIATES INC.

iv

![Logo]() 0064p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

Table 22-2: Consequence Level Table ...60
Table 22-3: Risk Matrix ...61
Table 22-4: Risk Assessment Matrix ...62
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2) ...63
Table 22-6: Environmental (Risks 3 and 4) ...64
Table 22-7: Regulatory Requirements (Risk 5) ...64
Table 22-8: Market and Transportation (Risks 6 and 7) ...65
Table 22-9: Market and Transportation (Risk 8) ...65
Table 22-10: Methane Management (Risk 9) ...66
Table 22-11: Mine Fires (Risk 10) ...67
Table 22-12: Availability of Supplies and Equipment (Risk 11) ...67
Table 22-13: Labor - Work Stoppage (Risk 12) ...68
Table 22-14: Labor - Retirement (Risk 13) ...68
Table 25-1: Information from Registrant Relied Upon by MM&A ...69

Appendices

A ...MM&A Qualifications
B ...Maps
C ...Glossary of Terms
D ...JORC Table 1

MARSHA MILLER ASSOCIATES INC

v

sc064p20

p.p. Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

# 1 Executive Summary

## 1.1 Property Description

**Coronado Global Resources Inc.** (*Coronado*) authorized **Marshall Miller & Associates, Inc.** (M&A) to prepare this Technical Report Summary (TRS) of its controlled coal resources and reserves for the Mon Valley Complex in southwestern Pennsylvania (Mon Valley or the *Property*). An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. The report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves* (IORC Code) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission** (SEC). This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets* (VALMIN Code).

The Mon Valley property is comprised of three separate reserve holdings, namely, the Pangburn, Shaner and Fallowfield proposed underground mines in the Upper Freeport seam. All three respective reserve areas are greenfield sites and are undeveloped. The three mines have been projected to operate independently, with production initially beginning at Pangburn. Shaner is projected to come online as replacement production for Pangburn, and Fallowfield represents expanded Mon Valley production after Pangburn is in full production. In addition to the individual mine/plant sites, a barge loading dock on the Monongahela River adjacent to the Pangburn site is proposed and will be used to ship clean coal for all three mines. Each mine site will include a coal preparation plant and all necessary surface facilities.

Coal resources and coal reserves are herein reported in metric units of measurement and are rounded to millions of metric tonnes ( *Mt* ).

The Mon Valley properties are located approximately 16 kilometers to 32 kilometers southeast of Pittsburgh, Pennsylvania (see *Figure 1-1*). The property is composed of 41,615 total hectares, of which 1,339 are leased from private landholders under two leases, and 40,276 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, both of the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2100.

MARSHALL MILLER & ASSOCIATES, INC.

1

![LOGO](v5064p2i0)

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

**Figure 1-1: Mon Valley Complex Property Location Map**

![img-0.jpeg](img-0.jpeg)

## 1.2 Ownership

Mineral rights for the Property were formerly controlled by **Consolidation Coal Company(CONSOL)**.
Coronado acquired the Mon Valley properties from CONSOL in March 2016.

## 1.3 Geology

There are currently no active operations in the Mon Valley complex. Strata of economic interest for
this TRS are of the Pennsylvanian-age Allegheny Formation, and the subject Upper Freeport seam is
the principal coal seam of interest for Coronado. The Upper Freeport seam has been mined
extensively in the region. The seam is situated below drainage throughout the Property and will be
accessed by constructed mine shafts and slopes.

MARSHALL MILLER ASSOCIATES INC

2

![Scotia 2020 logo]() scotia2020

![Coronado Global Resources Inc. logo]()  
 pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

## 1.4 Exploration Status

The Property has been explored extensively, largely by drilling using continuous coring method, rotary drilling, and by downhole geophysical methods. The majority of the data was acquired or generated by previous owners of the Property. These sources comprise the primary data used in the evaluation of the coal resources and coal reserves on the Property. MM&A examined the data available for the evaluation and incorporated all pertinent information into this TRS. Where data appeared to be anomalous or not representative, that information was excluded from the digital databases and subsequent processing by MM&A.

Ongoing exploration has been carried out by Coronado since acquiring the Mon Valley properties.

## 1.5 Operations and Development

Coronado currently has no active operations in the Mon Valley complex. The mines will produce coal that is suitable for the high-volatile metallurgical coal markets.

The preliminary design for the Pangburn mine surface facilities was provided by Coronado. The facilities include offices, warehouses, shops, a bathhouse for personnel, a preparation plant to process run-of-mine (*ROM*) coal, a refuse area with a designed capacity of approximately 35 million refuse tonnes, raw coal storage at the plant totaling approximately 100,000 tonnes, clean coal storage at the plant site of approximately 54,000 tonnes, and three clean coal stockpiles adjacent to the dock loading facility on the Monongahela River. The three river stockpiles have a designed capacity of approximately 266,000 tonnes. Processes are expected to be typical of those used at operating coal-processing plants and the coal industry in general. The river dock is anticipated to also support production from the planned Fallowfield and Shaner operations. Room-and-pillar mining will be employed at these properties.

## 1.6 Mineral Resource

Mineral resources, representing in-situ coal from a portion of which reserves are derived, are presented below. A coal resource estimate, summarized in *Table 1-1*, was prepared as of December 31, 2022, for property controlled by Coronado.

**Table 1-1: Coal Resources Summary as of December 31, 2022**

| Area | Coal Resource (Dry Tonnes, In Situ, MJ) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | Ash% | Subur% | VM% |
| Inclusive of Reserves | 291.0 | 213.5 | 9.3 | 513.8 | 31 | 1.4 | 26 |
| Exclusive of Reserve | 0.0 | 0.0 | 0.0 | 0.0 |  |  |  |
| Total 12/31/2022 | 291.0 | 213.5 | 9.3 | 513.8 |  |  |  |

Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.

Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.

Note 3: The Mon Valley properties do not have any resource tonnes exclusive of reserves as of December 31, 2022.

MARSHALL MILLER ASSOCIATES, INC.

3

![Scotia 2020 logo]()

![Coronado Global Resources Inc. logo]()pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

## 1.7 Mineral Reserve

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tonnes presented in *Table 1-1*, and not in addition to coal resources. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The Resource estimate has been used as the basis for this Reserve calculation, which utilizes a reasonable Preliminary Feasibility Study, a Life-of-Mine (LOM) Mine Plan and practical recovery factors. Production modeling was completed with an effective start date of May 1, 2032.

Factors that would typically preclude conversion of a coal resource to coal reserve include the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of access; geological encumbrances associated with overlying and underlying strata; seam thinning; structural complication; and insufficient exploration have all been considered. Reserve consideration excludes those portions of the resource area which exhibit the aforementioned geological and operational encumbrances.

**Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)**

| Area / Mine | Demonstrated Coal Reserves (Mt, Moist ROM) |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Quality (Dry) |  |  |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased | Ash | Sulfur | Vol |
| Mon Valley | 113.9 | 83.2 | 197.1 | 0.0 | 197.1 | 195.7 | 1.4 | 37 | 1.2 | 23 |

Coal reserves are presented on a ROM basis in *Table 1-2*. Proven and probable coal reserves were derived from the defined in-situ coal resource considering relevant processing, economic (including technical estimates of capital, revenue, and cost), marketing, legal, environmental, socioeconomic, and regulatory factors. The proven and probable coal reserves on the Property are summarized below in *Table 1-3*.

**Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)**

| Property | Demonstrated Coal Reserves (Wet Zone, Weighed or Direct Shipyard, Mf) |  |  |  |  |  |  | Quality (Dry Basis) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Ash% | Sulfur% | Vol% |
|  | Proven | Probable | Total | Surface | UG | Owned | Leased |  |  |  |
| Mon Valley | 77.8 | 56.6 | 134.4 | 0.0 | 134.4 | 133.4 | 1.0 | 0 | 1.2 | 25 |

Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled at 6-percent. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting. Life-of-mine sulfur for Pangborn is an estimated 1.21%; however, overall Mon Valley Complex reserve average is 1.36% sulfur.

In summary, Coronado controls a total of 134.4 Mt (moist basis) of marketable coal reserves at Mon Valley, as of December 31, 2022. Of that total, 58 percent are proven, and 42 percent are probable. There are 133.4 Mt of owned coal reserves and 1.0 Mt of leased coal reserves. All of the Mon Valley

MARSHAL MILLER ASSOCIATES INC.

4

![WCC 964p20 logo]() WCC 964p20

pupCoronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

reserves are considered suitable for the metallurgical coal market. All of the Mon Valley reserves are unassigned.

## 1.8 Capital Summary

The MM&A financial model includes provisions for operating equipment at the proposed Mon Valley operations. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment. A summary of the estimated capital for the Property is provided in *Figure 1-2* below.

**Figure 1-2: CAPEX**

![img-0.jpeg](img-0.jpeg)

## 1.9 Operating Costs

MM&A used the Coronado historical and/or budget cost information for comparable operations as a reference and developed personnel schedules for the mine and support facilities. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare, and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof control costs and other mine supply costs at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

MARSHALL MILLER ASSOCIATES INC.

5

![VC064p210 logo]() VC064p210

pupCoronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

Operating-cost factors were also developed for the coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for the federal black lung excise tax, and federal reclamation fees.

A summary of the projected operating costs for the Property is provided in *Figure 1-3*.

**Figure 1-3: OPEX**

![img-1.jpeg](img-1.jpeg)

## 1.10 Economic Evaluation

The pre-feasibility financial model prepared for this TRS was developed to test the economic viability of each coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations contemplated for the Coronado properties, but are intended to establish the economic viability of the estimated coal reserves. Cash flows are simulated on an annual basis in nominal dollars assuming a 2% inflation rate based on projected production from the coal reserves. The discounted cash flow analysis presented herein is based on an effective date of January 1, 2023.

On an un-levered basis, the net present value ( *NPV* ) of the project cash flow after taxes represents the Enterprise Value of the project. The project cash flow, excluding debt service, is calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal black lung tax, Federal reclamation taxes, property taxes, coal production royalties, and income taxes.

MARSHALL MILLER ASSOCIATES, INC.

6

![sc064p210 logo]()

![p&P logo]()  
 **p&P**  
 Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

Table 1-4 shows LOM tonnage, profit & loss P&L, and earnings before income tax, depreciation & amortization (EBITDA) for each proposed Coronado mine at Mon Valley.

**Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)**

|  | LOM Tonnes* | LOM Per Tax P&L | P&L Per Tonne | LOM EBITDA | EBITDA Per Tonne |
| --- | --- | --- | --- | --- | --- |
| Pangburn | 14,576 | $387,034 | $26.92 | $998,549 | $69.46 |
| Fallowfield | 72,640 | $9,545,381 | $131.41 | $11,922,910 | $164.14 |
| Shaner | 48,294 | $3,824,932 | $79.20 | $4,964,384 | $102.80 |
| Consolidated PA Deep Mines | 135,309 | $13,757,346 | $101.67 | $17,885,844 | $132.18 |

Note: *Financial model includes 0.9 million tonnes of inferred coal production. Inferred coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

As shown in Table 1-4, all of the mines analyzed show positive EBITDA over the LOM. Overall, Coronado's consolidated operations show positive LOM P&L and LOM EBITDA of $13.8 billion and $17.9 billion, respectively.

Coronado's consolidated Mon Valley cash flow summary in nominal dollars assuming a 2% inflation rate, excluding debt service, is shown in Table 1-5 below.

**Table 1-5: Project Cash Flow Summary (000)**

|  | Total | YE12/31 2027 | YE12/31 2028 | YE12/31 2029 | YE12/31 2030 | YE12/31 2031 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 135,311 | - | - | - | - | - |
| Total Revenue | $37,567,900 | $- | $- | $- | $- | $- |
| EBITDA | $12,956,210 | $(388) | $(388) | $(388) | $(388) | $(388) |
| Net Income | $5,500,454 | $(388) | $(388) | $(388) | $(388) | $(388) |
| Net Cash Provided by Operating Activities | $9,101,755 | $(388) | $(388) | $(388) | $(388) | $(328) |
| Purchases of Property, Plant, and Equipment | $(3,799,269) | $- | $(5,533) | $(31,868) | $(36,156) | $(233,778) |
| Net Cash Flow | $5,302,486 | $(388) | $(5,921) | $(32,256) | $(36,544) | $(234,106) |
|  | YE12/31 2032 | YE12/31 2033 | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 |
| Production & Sales tonnes | 399 | 1,810 | 1,875 | 1,950 | 2,029 | 2,030 |
| Total Revenue | $54,019 | $249,974 | $264,268 | $281,660 | $297,887 | $304,147 |
| EBITDA | $25,792 | $134,660 | $143,768 | $156,696 | $168,610 | $172,267 |
| Net Income | $(55,860) | $50,305 | $57,801 | $63,866 | $62,105 | $73,365 |
| Net Cash Provided by Operating Activities | $20,744 | $112,463 | $139,070 | $147,100 | $143,903 | $154,203 |
| Purchases of Property, Plant, and Equipment | $(223,890) | $(6,093) | $(1,522) | $(23,061) | $(19,766) | $(224,451) |
| Net Cash Flow | $(203,146) | $106,370 | $137,548 | $124,039 | $124,137 | $(70,247) |

MARSHALL MILLER ASSOCIATES, INC.

7

xci64p210

pupCommado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 2,062 | 1,960 | 1,762 | 2,366 | 1,804 | 1,724 |
| Total Revenue | $315,229 | $305,758 | $280,640 | $384,512 | $299,179 | $291,805 |
| EBITDA | $178,445 | $166,211 | $140,888 | $208,852 | $148,775 | $133,692 |
| Net Income | $57,967 | $72,886 | $45,385 | $92,177 | $64,942 | $53,969 |
| Net Cash Provided by Operating Activities | $165,161 | $154,094 | $130,479 | $163,610 | $106,491 | $111,512 |
| Purchases of Property, Plant, and Equipment | $(202,332) | $(18,063) | $(15,711) | $(22,144) | $(8,827) | $(14,141) |
| Net Cash Flow | $(37,170) | $136,031 | $114,769 | $141,466 | $97,664 | $97,370 |
|  | YE12/31 2021 | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 |
| Production & Sales tonnes | 1,717 | 1,641 | 1,719 | 1,657 | 1,582 | 1,704 |
| Total Revenue | $296,479 | $289,255 | $309,181 | $304,039 | $296,312 | $325,698 |
| EBITDA | $135,584 | $128,438 | $141,700 | $136,176 | $128,554 | $149,022 |
| Net Income | $67,285 | $78,524 | $86,380 | $81,215 | $75,423 | $86,668 |
| Net Cash Provided by Operating Activities | $115,188 | $109,995 | $111,937 | $112,263 | $106,871 | $118,353 |
| Purchases of Property, Plant, and Equipment | $(106,672) | $(33,173) | $(3,370) | $(5,687) | $(21,727) | $(45,062) |
| Net Cash Flow | $8,515 | $76,822 | $108,559 | $106,575 | $85,144 | $73,291 |
|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| Production & Sales tonnes | 1,656 | 1,732 | 1,702 | 1,596 | 1,642 | 1,750 |
| Total Revenue | $322,894 | $344,510 | $345,451 | $330,631 | $347,164 | $377,485 |
| EBITDA | $144,852 | $159,462 | $158,323 | $145,127 | $155,737 | $176,479 |
| Net Income | $83,039 | $106,381 | $104,840 | $90,665 | $96,667 | $115,492 |
| Net Cash Provided by Operating Activities | $120,921 | $126,371 | $126,005 | $119,262 | $124,313 | $138,665 |
| Purchases of Property, Plant, and Equipment | $(25,998) | $(4,218) | $(20,921) | $(39,520) | $(28,042) | $(37,598) |
| Net Cash Flow | $94,923 | $122,153 | $105,084 | $79,742 | $96,271 | $101,067 |
|  | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 | YE12/31 2014 |
| Production & Sales tonnes | 1,751 | 2,609 | 3,576 | 3,732 | 3,846 | 3,762 |
| Total Revenue | $385,399 | $586,004 | $819,598 | $872,775 | $917,689 | $916,057 |
| EBITDA | $180,413 | $271,312 | $391,520 | $425,108 | $454,572 | $448,794 |
| Net Income | $139,507 | $127,958 | $209,809 | $227,665 | $251,397 | $234,738 |
| Net Cash Provided by Operating Activities | $160,731 | $227,264 | $308,925 | $347,214 | $369,575 | $374,330 |
| Purchases of Property, Plant, and Equipment | $(549,006) | $(91,928) | $(36,973) | $(45,463) | $(22,284) | $(131,772) |
| Net Cash Flow | $(388,274) | $135,335 | $271,952 | $301,751 | $347,291 | $242,558 |
|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| Production & Sales tonnes | 3,488 | 3,390 | 3,466 | 3,397 | 2,961 | 2,826 |
| Total Revenue | $866,529 | $859,453 | $896,756 | $896,840 | $797,498 | $776,640 |
| EBITDA | $406,027 | $398,694 | $424,167 | $429,339 | $389,140 | $382,069 |
| Net Income | $203,176 | $262,307 | $274,392 | $274,792 | $235,580 | $226,904 |
| Net Cash Provided by Operating Activities | $352,593 | $331,050 | $333,667 | $341,553 | $322,289 | $312,496 |
| Purchases of Property, Plant, and Equipment | $(58,035) | $(25,972) | $(64,621) | $(60,161) | $(120,574) | $(57,818) |
| Net Cash Flow | $294,558 | $305,078 | $269,045 | $281,391 | $281,715 | $254,678 |

MARSHALL MILLER ASSOCIATES, INC.

II

xci64p210

pupCommado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 2,479 | 2,318 | 2,289 | 1,438 | 1,988 | 1,993 |
| Total Revenue | $695,232 | $663,381 | $668,340 | $428,531 | $604,475 | $618,406 |
| EBITDA | $345,064 | $315,895 | $324,744 | $177,919 | $303,204 | $313,068 |
| Net Income | $200,677 | $180,616 | $183,214 | $102,106 | $185,575 | $200,522 |
| Net Cash Provided by Operating Activities | $290,478 | $265,928 | $264,648 | $126,035 | $207,165 | $242,028 |
| Purchases of Property, Plant, and Equipment | $(118,193) | $(38,552) | $(41,672) | $(26,538) | $(44,402) | $(30,383) |
| Net Cash Flow | $172,285 | $227,376 | $222,976 | $99,497 | $162,763 | $211,645 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,822 | 2,098 | 2,055 | 2,107 | 1,883 | 2,129 |
| Total Revenue | $576,706 | $614,741 | $614,611 | $642,871 | $586,223 | $676,320 |
| EBITDA | $282,323 | $306,812 | $304,834 | $325,855 | $282,672 | $345,761 |
| Net Income | $178,585 | $209,539 | $202,684 | $211,767 | $179,763 | $230,583 |
| Net Cash Provided by Operating Activities | $227,691 | $232,044 | $237,019 | $247,117 | $225,397 | $251,932 |
| Purchases of Property, Plant, and Equipment | $(3,360) | $(3,428) | $(42,925) | $(75,556) | $(16,116) | $(6,493) |
| Net Cash Flow | $224,330 | $228,617 | $194,094 | $171,561 | $209,281 | $245,439 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,937 | 1,723 | 2,242 | 1,568 | 2,285 | 1,637 |
| Total Revenue | $627,878 | $570,149 | $756,717 | $540,176 | $803,092 | $587,274 |
| EBITDA | $307,130 | $261,187 | $301,089 | $241,080 | $421,465 | $261,759 |
| Net Income | $201,018 | $156,255 | $247,475 | $139,739 | $281,600 | $160,070 |
| Net Cash Provided by Operating Activities | $248,316 | $207,078 | $272,041 | $211,121 | $285,491 | $228,402 |
| Purchases of Property, Plant, and Equipment | $(25,860) | $(72,719) | $(39,361) | $(12,940) | $(20,396) | $(34,296) |
| Net Cash Flow | $214,456 | $134,359 | $232,679 | $198,181 | $265,095 | $194,106 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,982 | 1,477 | 1,857 | 1,616 | 1,993 | 1,385 |
| Total Revenue | $725,512 | $551,606 | $707,457 | $628,246 | $790,874 | $528,487 |
| EBITDA | $356,300 | $233,497 | $334,352 | $278,449 | $389,504 | $199,352 |
| Net Income | $224,911 | $128,018 | $209,340 | $168,393 | $251,821 | $107,463 |
| Net Cash Provided by Operating Activities | $252,946 | $200,997 | $235,620 | $222,633 | $275,062 | $188,238 |
| Purchases of Property, Plant, and Equipment | $(42,736) | $(61,764) | $(27,589) | $(31,659) | $(4,613) | $(38,355) |
| Net Cash Flow | $210,209 | $139,233 | $208,030 | $190,974 | $270,449 | $149,882 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,637 | 1,612 | 1,747 | 1,355 | 1,731 | 1,752 |
| Total Revenue | $676,274 | $679,478 | $751,249 | $594,733 | $775,168 | $900,781 |
| EBITDA | $301,607 | $299,832 | $348,917 | $215,004 | $356,524 | $378,911 |
| Net Income | $176,267 | $169,679 | $213,755 | $117,501 | $219,452 | $235,930 |
| Net Cash Provided by Operating Activities | $211,547 | $229,125 | $256,552 | $190,242 | $246,204 | $284,008 |
| Purchases of Property, Plant, and Equipment | $(81,778) | $(76,560) | $(4,993) | $(5,093) | $(47,001) | $- |
| Net Cash Flow | $129,769 | $152,566 | $251,558 | $185,149 | $199,203 | $284,008 |

MARSHALL MILLER ASSOCIATES, INC.

9

![sc064p20 logo]()

![pupCoronado Global Resources Inc. logo]()  
 **pupCoronado Global Resources Inc.**  
 **Statement of Coal Resources and Reserves for the**  
 **Mon Valley Complex Upper Freeport Holdings**  
 **in Accordance with the JORC Code and**  
 **United States SEC Regulation S-K 1300 as of December 31, 2022**  
 **Northern Appalachian Coal Basin**  
 **Pennsylvania, USA**

|  | YE12/31 2000 | YE12/31 2009 | YE12/31 2100 | YE12/31 2100 | YE12/31 2100 | YE12/31 2103 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 1,387 | 916 | 393 | - | - | - |
| Total Revenue | $646,856 | $435,993 | $198,649 | $- | $- | $- |
| EBITDA | $266,452 | $177,489 | $71,896 | $- | $- | $- |
| Net Income | $157,157 | $132,037 | $52,032 | $- | $- | $- |
| Net Cash Provided by Operating Activities | $224,663 | $61,085 | $(105,016) | $- | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $224,663 | $61,085 | $(105,016) | $- | $- | $- |

- Financial model includes 0.9 million tonnes of inferred coal production. Inferred coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

Consolidated cash flows are driven by annual sales tonnage, which grows from 0.4 million tonnes in 2032 to a peak of 3.8 million tonnes in 2060. Between years 2061 and 2090, sales ranges from 1.5 million to 2.7 million tonnes and between years 2091-2100, sales range from 0.4 million tonnes to 1.3 million tonnes. Projected consolidated revenue grows from $54.0 million in 2032 to a peak of $917.7 million in 2060. Revenue totals $37.6 billion for the project's life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending. Consolidated cash flow from operations peaks at $374.3 million in 2061 and totals $9.1 billion over the project's life. Capital expenditures total $531.2 million during the first five years and $3.8 billion over the project's life.

### 1.10.1 Discounted Cash Flow Analysis

Cash flow after tax, but before debt service, generated over the life of the project was discounted to NPV at a 10.0% discount rate, which represents Coronado's estimate of the nominal dollar, risk adjusted weighted average cost of capital (WACC) for likely market participants if the subject reserves were offered for sale. On an un-levered basis, the NPV of the project cash flows represents the Enterprise Value of the project and amounts to $168.3 million. The pre-feasibility financial model prepared for the TRS was developed to test the economic viability of each coal resource area. The NPV estimate was made for purposes of confirming the economics for classification of coal reserves and not for purposes of valuing Coronado or its Mon Valley assets. Mine plans were not optimized, and actual results of the operations may be different, but in all cases, the mine production plan assumes the properties are under competent management.

### 1.10.2 Sensitivity Analysis

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

![Marshall Miller Associates Inc. logo]() MARSHAL MILLER ASSOCIATES INC.

10

![VCS64p210 logo]()

![Coronado Global Resources Inc. logo]()  

pp Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

**Figure 1-4: Sensitivity of NPV**

![VCS64p1911 logo]()

![img-2.jpeg](img-2.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

### 1.11 Permitting

Due to the projected start-up date of the Mon Valley mines, initial-stage permit work has been completed to date; however, no permit applications have been submitted to the state or federal regulatory agencies. The proposed mines are located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Coal mining permits are routinely obtained; a 2 to 3-year lead time is recommended. Estimated expenditures for mine closure and site reclamation are included in the financial model for each mine or plant site. MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. All coal producers are subject to a level of uncertainty regarding future clean water permits due to **United States Environmental Protection Agency (EPA)** and **United States Fish and Wildlife (USFW)** involvement with state programs.

### 1.12 Conclusion and Recommendations

Sufficient data has been obtained through various exploration, sampling programs, and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data are of sufficient quantity and reliability to reasonably support the coal-resource and coal-reserve estimates in this TRS.

MARSHALL MILLER ASSOCIATES, INC.

11

![Logo]() sc064p20

The Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating- and capital-cost estimates are sufficient to support the classification of coal reserves provided herein.

This geologic evaluation conducted in conjunction with the preliminary feasibility study concludes that the 134.4 Mt of marketable underground coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

## 2 Introduction

### 2.1 Registrant and Terms of Reference

This report was prepared for the sole use of **Coronado Global Resources Inc. (Coronado)** and its affiliated and subsidiary companies and advisors. An updated TRS was prepared in February 2023 due to material differences in the key financial modifying factors including coal sales price assumptions, operating costs and capital costs from December 31, 2021 to December 31, 2022. Coal sales price assumptions are discussed in *Sections 12 and 16* of the TRS, while operating costs and capital costs are discussed in *Sections 18 and 19* of the TRS. The report provides a statement of coal resources and coal reserves for Coronado, as defined under the *Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)* as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the **United States Securities and Exchange Commission (SEC)**. This report was also prepared in accordance with the *Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code)*.

The Mon Valley property is comprised of three separate reserve holdings, namely, the Pangburn, Shaner and Fallowfield proposed underground mines in the Upper Freeport seam.

The report provides a statement of coal resources and coal reserves for Coronado at the Property. Exploration results and Resource calculations were used as the basis for the mine planning and the preliminary feasibility study completed to determine the extent and viability of the reserve.

Coal resources and coal reserves are herein reported in metric units of measurement and are rounded to millions of metric tonnes (Mt).

### 2.2 Information Sources

This TRS is based on information provided by Coronado and reviewed by MM&A. Sources of data and information are listed below in *Table 2-1*:

MARSHALL MILLER ASSOCIATES INC.

12

ec964p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

**Table 2-1: Information Provided to MM&A by Coronado**

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Geological | Geologic data including digital databases and original source data including geologist logs, driller's logs, geophysical logs | 9.1 |
| Coal Quality | Database of coal quality information supplemented with original source laboratory sheets where available | 10.1 |
| Mining | Historical productivities and manpower from operating and future Coronado mines | 13.2, 13.4 |
| Coal Preparation | Flow sheet and other information representing current and future methods of coal processing | 14.1 |
| Waste Disposal | Engineering data and estimates representing remaining capacities for coarse and fine coal waste disposal | 17.2 |
| Costs | Historical and budgetary operating cost information used to derive cost drivers for reserve financial modeling | 18.2 |
| Economic | WACC and inflation rate used in discounted cash flow analysis | 19.1, 19.2, 19.3 |

Note: While the sources of data listed in Table 2-1 are not exhaustive, they represent a significant portion of information which supports this TRS. MM&A reviewed the provided data and found it to be reasonable prior to incorporating it into the TRS. The TRS contains "forward-looking information" including forecasts of productivity and annual coal production, operating and capital cost estimates, coals sales price forecasts, the assumption that Coronado will continue to acquire necessary permits, and other assumptions. The TRS statements and conclusions are not a guarantee of future performance and under reliance should not be placed on them. The ability of Coronado to recover the estimated coal reserves is dependent on multiple factors beyond the control of MM&A including, but not limited to geologic factors, mining conditions, regulatory approvals, and changes in regulations. In all cases, the plans assume the Property is under competent management.

Coronado engaged MM&A to conduct a coal resource and reserve evaluation of the Coronado coal properties as of December 31, 2022, the effective date of this TRS for Mon Valley. For the evaluation, the following tasks were to be completed:

> Conduct a site visit to the projected resource/reserve area;
> Process the information supporting the estimation of coal resources and reserves into geological models;
> Develop life-of-reserve mine (LOM) plans and financial models;
> Hold discussions with Coronado company management; and
> Prepare and issue a TRS providing a statement of coal resources and reserves which would include:
- A description of the mines and facilities.
- A description of the evaluation process.
- An estimation of coal resources and reserves with compliance elements as stated under the JORC Code and the SEC Regulation S-K 1300.

MARSHAL MILLER ASSOCIATES INC.

13

m0649210

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Mon Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

### 2.3 Personal Inspections

MM&A is very familiar with the Mon Valley properties, having provided a variety of geological and engineering evaluations of the subject property and neighboring properties in recent years. No facilities are constructed on the properties.

### 3 Property Description

### 3.1 Location

The Mon Valley Complex will include the Pangburn, Shaner, and Fallowfield underground mines in the Upper Freeport coal seam. The properties are located approximately 22.5 kilometers southeast of Pittsburgh.

The property is located in Allegheny, Washington, and Westmoreland Counties, Pennsylvania. Mining operations here have not yet been initiated. The Property is located on portions of eight United States Geological Survey(USGS) quadrangles: Irwin; Glassport; Monongahela; Donora; Smithton; California; Ellsworth; and Hackett. The coordinate system and datum used for the model of Mon Valley and the subsequent maps were produced in the Pennsylvania State Plane South system, NAD 27.

### 3.2 Titles, Claims or Leases

The property is composed of 41,615 total hectares, of which 1,339 are leased from private landholders under two leases, and 40,276 hectares are owned by Coronado. Subject to Coronado's exercising its renewal rights thereunder, both of the leases expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2100. MM&A has not carried out a separate title verification for the coal properties and has not verified leases, deeds, surveys, or other property-control instruments pertinent to the subject resources. Tenure was separately reviewed by Coronado's legal advisors. Coronado has represented to MM&A that it controls the mining rights to the reserves as shown on its property maps, and MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are developed under responsible and experienced management.

### 3.3 Mineral Rights

Coronado supplied property control maps to MM&A related to properties for which mineral and/or surface property are controlled by Coronado. While MM&A accepted these representations as being true and accurate, MM&A has no knowledge of past property boundary disputes or other concerns, through past knowledge of the Property, that would signal concern over future mining operations or development potential.

MARSHA MILLER ASSOCIATES INC.

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![Creative Commons License Icon]() CC-BY-SA

---

pp Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA---

Property control in Appalachia can be intricate. Coal-mining properties are typically composed of numerous property tracts which are owned and/or leased from both land-holding companies and private individuals or companies. It is common to encounter severed ownership, with different entities or individuals controlling the surface and mineral rights. Mineral control in the region is typically characterized by leases or ownership of larger tracts of land, with surface control generally comprised of smaller tracts, particularly in developed areas.

Legal mining rights may reflect a combination of fee or mineral ownership and fee or mineral leases of coal lands through various surface and mineral lease agreements.

Control of the surface property is necessary to conduct surface mining but is not necessary to conduct underground mining. Given that the vicinity of the Mon Valley properties has an extensive history of coal mining, Coronado and its predecessors have a successful history of obtaining any necessary rights and the associated permits to mine.

### 3.4 Encumbrances

No Title Encumbrances are known. By assignment, MM&A did not complete a query related to Title Encumbrances.

### 3.5 Other Risks

There is always risk involved in property control. Coronado and its predecessor, CONSOL, have both had their legal teams examine the deeds and title control in order to minimize the risk.

## 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

### 4.1 Topography, Elevation and Vegetation

Topography of the area surrounding the proposed Mon Valley complex is typical of the Northern Appalachian Plateau consisting of broad river valleys and rolling hills, with some upland regions. Surface elevations near the Property range from approximately 396 meters above sea level in upland regions to approximately 220 meters at stream level. The property is moderately vegetated by primarily oak hardwood forests, but the majority of the land is developed for farm and residential use. The property is situated near the major urban center of Pittsburgh, PA and is considered suburban.

---

MARSHAL MILLER ASSOCIATES INC.

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sc064p20

pupCormado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 4.2 Access and Transport

There is general access to the Mon Valley property via a well-developed network of primary, secondary, and unimproved roads. The Monongahela and Youghiogheny Rivers traverse the Property from south to north. There are numerous four-lane limited-access roads situated within or adjacent to the Property as well as a network of improved two-lane state and county roads. U.S. Interstate 70 and Pennsylvania Route 51 traverse the Fallowfield and Pangburn properties, respectively. Numerous secondary and unimproved roads provide direct access to the mine property, some being state- and town-maintained. These roads typically stay open throughout the year. There are numerous transportation/logistical options for shipping product. The primary means of transport for produced coal would be by barge on the Monongahela River/Ohio River system. Additionally, a CSX rail line located along the banks of the Monongahela River would provide another option for the shipment of coal.

## 4.3 Proximity to Population Centers

The Mon Valley property lies near the communities of Bentleyville, Lockview, Monongahela, Elizabeth, Suterville, and Irwin, Pennsylvania approximately 16 kilometers to 32 kilometers southeast of Pittsburgh, and 16 kilometers to 32 kilometers from Washington and McKeesport, Pennsylvania. As of the 2020 census Pittsburgh had a population of 302,971 residents; McKeesport, 18,825; and Washington, 13,176.

## 4.4 Climate and Length of Operating Season

The climate of the region is classified as warm-summer humid continental with four distinct seasons: warm summers, cold winters, and moderate fall and spring seasons. Precipitation in the region is consistent throughout the year with the most rain falling in spring and the early months of summer. Average yearly rainfall is 53.1 centimeters. Summer months typically begin in late May and end in early September and range in average temperature from 51 to 84 degrees Fahrenheit (or 10.6 to 28.9 degrees Celsius). Winters typically begin in mid to late November and run until mid to late March with average temperatures ranging from 22 to 50 degrees Fahrenheit (or -5.6 to 10 degrees Celsius). Precipitation in the winter typically comes in the form of snowfall or as a wintery mix (sleet and snow) with severe snowfall events occurring occasionally. Seasonal variations in climate typically do not affect underground mining in Pennsylvania. However, weather events could potentially negatively impact efficiency of surface and preparation plant operations on a very limited basis, typically lasting less than a few days.

## 4.5 Infrastructure

The Mon Valley property has sources of water, power, personnel, and supplies readily available for use. Personnel have historically been sourced from the surrounding communities in Allegheny, Washington, and Westmoreland Counties, and have proven to be adequate in numbers to operate the mines. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners. Water is expected to be sourced locally from nearby public water sources or rivers. Electricity is anticipated to be sourced from **West Penn Power (West Penn)** or **Duquesne Light (Duquesne Light)**. The service industry in the areas surrounding the

MARSHA MILLER ASSOCIATES, INC.

16

![Creative Commons License Icon]() CC-BY-NC

p.p. Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

proposed mine complex has historically provided supplies, equipment repairs and fabrication, etc. Barge transport on the Monongahela River/Ohio River system will serve as the main means of product transport from the mine, and currently serve as a means of coal transportation for neighboring Pittsburgh seam operations. Rail access is provided by a **CSX Corporation** [S] rail line.

## 5 History

### 5.1 Previous Operation

The property was formerly controlled by **Consolidation Coal Company** [CONSOL]. Historic underground operations were active in the area in the early 1900's and contour surface mining operations were performed in the 1950 to 1960 era. Coronado acquired the properties from CONSOL in March 2016.

### 5.2 Previous Exploration

The properties have been extensively explored by subsurface drilling efforts carried out by numerous entities, most of which were completed prior to acquisition by Coronado. The majority of the drilling was accomplished using vertical continuous (diamond) coring and air rotary methods.

Drill records indicate that independent contract drilling operators have been engaged periodically to carry out exploration drilling on the properties. Geophysical logging on those properties acquired from CONSOL was often performed by both CONSOL's in-house logging services and outside logging firms.

## 6 Geological Setting, Mineralization and Deposit

### 6.1 Regional, Local and Property Geology

The property lies in the Northern Appalachian Coal basin in the Appalachian Plateau physiographic province. The coal deposits in the eastern USA are the oldest and most extensively developed coal deposits in the country. The coal deposits on the properties are Carboniferous in age, being of the Pennsylvanian system. Overall, these Carboniferous coals contain roughly two-fifths of the bituminous coal deposits in the United States and extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known as the *Appalachian Basin*. The Appalachian Basin is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of varying economic significance.

---

MARSHALL MILLER ASSOCIATES, INC.

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![Creative Commons License Icon]() CC-BY-NC-SA

---

pp. Colorado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

Seams of economic significance typically range between 0.3 meters to 1.8 meters in thickness, with relatively little structural deformation. Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent.

Seams of the Allegheny Formation have historically been mined in the Pennsylvania region with the Upper Freeport seam being one of the principal seams in the formation. Coal from the area has historically sold in thermal and metallurgical markets.

Future operations at the Mon Valley properties will extract the Upper Freeport coal seam, which covers large areas of Pennsylvania, Ohio, Maryland, and West Virginia. The Upper Freeport seam is situated at the top of the Allegheny Group of the middle Pennsylvanian period (307-315 million years ago). The top of the Upper Freeport seam is commonly used as the marker between the top of the Allegheny Formation and the overlying Upper Pennsylvanian Conemaugh Group. The Allegheny Formation is made up of laminated cyclothemic sequences of coal, shale, limestone, and clay. The Upper Freeport seam lies generally around 183 meters below the Pittsburgh seam. Deposits associated with the Upper Freeport are often irregular and dislocated deposits (formed in domed peat swamps commonly referred to as “peat islands”).

The primary structural controls on the Upper Freeport coal basin are localized syn-depositional anticlines and synclines that directly influence the accumulation of peat bogs. These structures create gently folded and rolling coal strata. The axis of the Waynesburg and Port Royal (Irwin) synclines pass through the center and eastern portions of the properties with a trend and incline to the Northeast. The Amity, Murrysville, and Belle Vernon anticlines (listed from west to east) reside to the center and western portions of the properties. These anticlines often coincide with thicker coal seams where peat accumulated in domes along the anticlinal crest. It is understood that local anticlines represent the upthrown side of syn-depositionally active deep faults. Inversely, fluvial channel sediments were deposited on the structural downthrown side within synclines.

Within the Pangburn, Shaner, and Fallowfield mine-plan areas, the Upper Freeport is typically 183 meters to 335 meters below the ground surface. Mine access is therefore to be provided by shaft and slope development. The planned Pangburn shaft depth is approximately 195 meters in depth. The shaft depths at the projected locations for the Shaner and Fallowfield shafts range from approximately 232 meters to 268 meters.

## 6.2 Mineralization

The coal to be produced at The Mon Valley Complex is typically high volatile (>31% volatile matter) bituminous coal.

---

MARSHALL MILLER ASSOCIATES, INC.

18

ec964p2i0

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

The generalized stratigraphic columnar section in Figure 6-1 demonstrates the vertical relationship of the principal coal seams and rock formations on the Property.

Figure 6-1: Stratigraphic Column

![img-0.jpeg](img-0.jpeg)

(not to scale)

MARSHA MILLER ASSOCIATION

19

0264p20

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Man Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

### 6.3 Deposits

Historic underground mining has occurred in the overlying Pittsburgh Seam on this property. Contour surface mining on the Pittsburgh and Redstone outcrop has occurred within the areas projected for the coal refuse disposal area, the slope portal area and the preparation plant area. The three proposed mines (Pangburn, Shaner, and Fallowfield) are all projected to be deep mines in the Upper Freeport seam. Mining is projected in areas where the total seam thickness exceeds 1.2 meters. Areas of sandstone washout and seam thinning have been excluded from projections by MM&A personnel. Additional exploration could identify additional geologically limiting features, which could alter the proposed mine plan. The Upper Freeport seam in the projected areas ranges from 0.7 meters to 3.1 meters thick and averages 1.95 meters thick.

## 7 Exploration

### 7.1 Nature and Extent of Exploration

Extensive exploration in the form of subsurface drill efforts has been carried out on the Property by numerous entities, most of which efforts were completed prior to the acquisition by Coronado. Diamond core and rotary drilling are the primary types of exploration on the Property. Data for correlation and mining conditions are derived from core descriptions and geophysical logging (e-logging). Coal quality analyses were also employed during the core exploration process. A total of approximately 750 core and rotary holes have been drilled for exploration.

The location of the drilling is shown on the maps included in Appendix B.

The concentration of exploration varies slightly across the Property. Drilling on the Property is typically sufficient for delineation of potential underground mineable benches. Core logging is carried out by professional geologists in cases where roof and floor strata are of particular interest and in cases where greater resolution and geologic detail are needed. Generally speaking, however, most drill hole data come from simplified driller's logs, which often lack specific details regarding geotechnical conditions and specific geology, making correlations and floor and roof conditions difficult to determine. Geophysical logging (e-logging) techniques, by contrast, document specific details useful for geologic interpretation and mining conditions. Given the variability of data-gathering methods, definitive mapping of future mining conditions may not be possible, but projections and assumptions can be made within a reasonable degree of certainty.

A significant effort was put into verifying the integrity of the database. Once this was established, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal seam correlations. A typical cross-section is shown in Figure 7-1.

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v0964p210

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Mon Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

Figure 7-1: Mon Valley Cross-Section

v0964p2910

Due to the long history of exploration by various parties on the Property, a wide variety of survey techniques exist for documentation of data point locations. Many of the older exploration drill holes appear to have been located by survey and more recently-completed drill holes are often located by high-resolution Global Positioning System (GPS) units. However, some holes appear to have been approximately located using USGS topography maps or other methods which are less accurate. Therefore, discretion had to be used regarding the accuracy for the location and ground surface elevation of some of these older drill holes. In instances where a drill hole location (or associated coal seam elevations) appeared to be inconsistent with the overall structural trend (or surface topography for surface-mineable areas), the data point was not honored for geological modeling. Others with apparently minor variances were adjusted and then used by MM&A.

Surveying of the underground and surface mined areas has been performed by the mine operators and/or their consulting surveyors. By assignment, MM&A did not verify the accuracy or completeness of supplied mine maps but accepted this information as being the work of responsible engineers and surveyors.

MM&A compiled comprehensive topographic map files by selecting the best available aerial mapping for each area and filling any gaps with digital USGS topographic mapping.

### 7.2 Non-Drilling Procedures and Parameters

All pertinent data used to characterize the coal resources and coal reserves have been acquired via exploration-based drilling methods. The region has historically produced and sold Upper Freeport-based coal into metallurgical and thermal markets, enhancing the confidence of the marketability and quality of the resource.

### 7.3 Drilling Procedures

Core drilling methods utilize NX-size (~5.4 centimeter) or similar-sized core cylinders to recover core samples, which can be used to delineate geologic characteristics, for coal-quality testing, and for

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0264p20

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Mon Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

geotechnical logging. With core holes, geophysical logs are especially useful in verifying the core recovery of both the coal samples (for assurance that the sample is representative of the full seam) and of the roof and floor rock samples (for evaluating ground control characteristics of deep mineable coal seams). In addition to the core holes, rotary-drilled holes also exist on most of the Property. Data for the rotary-drilled holes are mainly derived from downhole geophysical logs, which are used to interpret coal and rock thickness and depth, since logging of the drill cuttings is unreliable. Exploratory drilling generally requires drilling to depths of over 152 meters to penetrate the target coal seam at Mon Valley.

A wide variety of core-logging techniques exist for the properties. For many of the core holes, the primary data source is a generalized lithology description by the driller, typically supplemented by a more detailed core log completed by a geologist. These drilling logs were provided to MM&A as a geological database. MM&A geologists were not involved in the production of original core logs but did perform a basic check of information within the provided database. Where geophysical logs for such holes were available, they were used by MM&A geologists to verify the coal thickness and core recovery of seams.

### 7.4 Hydrology

Based on historical successful production of Upper Freeport, and stratigraphically proximal seams in the region, the Mon Valley Complex is not expected to have hydrologic concerns of material issue. Future mining is projected to occur in areas exhibiting similar hydrogeological conditions as past mining, including stream undermining and undermining of aquifers. Based upon the successful history of mining in the region with regards to hydrogeological features, MM&A assumes that the operations will not be hindered by such issues.

The Pittsburgh seam has been mined extensively above the Upper Freeport seam on the Property. The interval (approximately 183 meters) between the seams is anticipated to be adequate to minimize inflow of water to the planned operations from the overlying Pittsburgh works.

### 7.5 Geotechnical Data

Mining plans for potential underground mines were developed by Coronado and modified by MM&A to fit current property constraints. Pillar stability was tested by MM&A using the Analysis of Coal Pillar Stability (ACPS) program that was developed by the National Institute for Occupational Safety and Health (NIOSH). MM&A reviewed the results from the ACPS analysis and considered them in the development of the LOM plan.

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ec964p20

The Colorado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 8 Sample Preparation, Analyses and Security

### 8.1 Prior to Sending to the Lab

Most of the coal samples have been obtained from the Property by subsurface exploration using core drilling techniques. The protocol for preparing and testing the samples has varied over time and is not well documented for the older holes drilled on the Property. Typical core-drilling sampling methods for coal in the United States involves drilling through the seam, removing the core from the barrel, describing the lithology, wrapping the sample in a sealed plastic sleeve and placing it lengthwise into a covered core box, and carefully marking hole ID and depth intervals on each box and lid, allowing the core to be delivered to a laboratory in correct stratigraphic order, and with original moisture content. This process has been the norm for both historical and ongoing exploration activities at the Property.

This work is typically performed by the supervising driller, geologist, or company personnel. Samples are most often delivered to the company by the driller after each shift or acquired by company personnel or representatives. Most of the coal core samples were obtained by previous or current operators on the Property. MM&A did not participate in the collection, sampling and analysis of the core samples. However, it is reasonable to assume, given the consistency of quality from previous operators, that these samples were generally collected and processed under industry best practices. This assumption is based on MM&A's familiarity with the operating companies and the companies used to perform the analyses.

### 8.2 Lab Procedures

Coal quality testing has been performed over many years by operating companies using different laboratories and testing regimens. Some of the samples have raw analyses and washabilities on the full seam (with coal and rock parting layers co-mingled) and are mainly useful for characterizing the coal quality for projected production from underground mining. Other samples have coal and rock analyzed separately, the results of which can be manipulated to forecast either surface or underground mining quality. Care has been taken to use only those analyses that are representative of the coal quality parameters for the appropriate mining type for each sample. Unlike many Appalachian properties, Mon Valley only has interest in one deep seam; therefore, the analyses have likely been completed following a consistent protocol.

Standard procedure upon receipt of core samples by the testing laboratory is to log the depth and thickness of the sample, then perform testing as specified by a representative of the operating company. Each sample is then analyzed in accordance with procedures defined under **ASTM International (ASTM)** standards including, but not limited to; washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (FS) (ASTM D720).

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0264p20

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Man Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

# 9 Data Verification

## 9.1 Procedures of Qualified Person

MM&A reviewed the digital geologic database supplied by Coronado. The database consists of data records, which include drill hole information for holes that lie within and adjacent to the Property and records for numerous supplemental coal seam thickness measurements. Upon completion of the database verification, copies of each entry were printed, and cross referenced to the original document for verification. Once the initial integrity of the database was established, stratigraphic columnar sections were generated using cross-sectional analysis to establish or confirm coal-seam correlations. Geophysical logs were used wherever available to assist in confirming the seam correlation and to verify proper seam thickness measurements and recovery of coal samples.

After establishing and/or verifying proper seam correlation, seam data control maps and geological cross-sections were generated and again used to verify seam correlations and data integrity. Once the database was fully vetted, seam thickness, base-of-seam elevation, roof and floor lithology, and overburden maps were independently generated for use in the mine planning process.

## 9.2 Limitations

As with any exploration program, localized anomalies cannot always be discovered. The greater the density of the samples taken, the less the risk. Once an area is identified as being of interest for inclusion in the mine plan, additional samples are taken to help reduce the risk in those specific areas. In general, provision is made in the mine planning portion of the study to allow for localized anomalies that are typically classed more as a nuisance than a hindrance.

## 9.3 Opinion of Qualified Person

Sufficient data has been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

MARSHA MILLER ASSOCIATES INC.

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![Creative Commons License Icon]() CC-BY-NC

---

pp Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 10 Mineral Processing and Metallurgical Testing

### 10.1 Testing Procedures

Separate tabulations have been compiled for basic chemical analyses (both raw and washed quality), petrographic data, rheological data and chlorine, ash, ultimate and sulfur analysis.

Available coal quality data was tabulated by resource area in a Microsoft® EXCEL workbook and the details of that work are maintained on file at the offices of Coronado and MM&A. These tables also provide basic statistical analyses of the coal quality data sets, including average value; maximum and minimum values; and the number of samples available to represent each quality parameter of the seam. Coal samples that were deemed by MM&A geologists to be unrepresentative were not used for statistical analysis of coal quality, as documented in the tabulations. A representative group of drill hole samples from the Property were then checked against the original drill laboratory reports to verify accuracy and correctness.

The amount and areal extent of coal sampling for geological data is generally sufficient to represent the quality characteristics of the coal horizons and allow for proper market placement of the subject coal seams. For some of the coal deposits there are considerable laboratory data from core samples that are representative of full extent of the resource area; and for others there are more limited data to represent the resource area. For example, in the active operations with considerable previous mining, there may be limited quality data within some of the remaining resource areas; however, in those cases the core sampling data can be supplemented with operational data from mining and shipped quality samples representative of the resource area.

### 10.2 Relationship of Tests to the Whole

The extensive sampling and testing procedures typically followed in the coal industry result in an excellent correlation between samples and marketable product. The Upper Freeport seam has a long history of saleable production in the high-volatile metallurgical and thermal markets, consistent with exploration results. Degradation of coking coal characteristics over time is not anticipated to be an issue.

### 10.3 Lab Information

Each sample is analyzed at area Laboratories that operate in accordance with procedures defined under ASTM standards including, but not limited to; washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (ASTM D720).

---

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![Creative Commons License: CC BY-NC-SA]() CC-BY-NC-SA

The  
International Conference on  
Coal Resources and Resources for the  
Man Valley Complex Upper-Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 10.4 Relevant Results

No critical factors have been found that would adversely affect the recovery of the Reserve.

## 11 Mineral Resource Estimates

MM&A independently created a geologic model to define the coal resources at the Property. Coal resources were estimated as of December 31, 2022.

### 11.1 Assumptions, Parameters and Methodology

Geological data was imported into Carlson Mining® (formerly SurvCAD®) geological modelling software in the form of Microsoft ® Excel files incorporating, drill hole collars, seam and thickness picks, bottom seam elevations and raw and washed coal quality. These data files were validated prior to importing into the software. Once imported, a geologic model was created, reviewed, and verified with a key element being a gridded model of coal seam thickness. Resource tonnes were estimated by using the seam thickness grid based on each valid point of observation and by defining resource confidence arcs around the points of observation. Points of observation for Measured and Indicated confidence arcs were defined for all valid drill holes that intersected the seam using standards deemed acceptable by MM&A based on a detailed geologic evaluation and a statistical analysis of all drill holes within the projected reserve areas as described in *Section 11.1.1*. The geological evaluation incorporated an analysis of seam thickness related to depositional environments, adjacent roof and floor lithologies, and structural influences.

After validating coal seam data and establishing correlations, the thickness and elevation for seams of economic interest were used to generate a geologic model. Due to the relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds, the principal geological interpretation necessary to define the geometry of the coal deposits is the proper modeling of their thickness and elevation. Both coal thickness and quality data are deemed by MM&A to be reasonably sufficient within the resource areas. Therefore, there is a reasonable level of confidence in the geologic interpretations required for coal resource determination based on the available data and the techniques applied to the data.

*Table 11-1* below provides the geological mapping and coal tonnage estimation criteria used for the coal resource and reserve evaluation. These cut-off parameters have been developed by MM&A based on its experience with the Coronado properties and are typical of mining operations in the Northern Appalachian Coal Basin. This experience includes technical and economic evaluations of numerous properties in the region for the purposes of determining the economic viability of the subject coal reserves.

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26

![MUSIC logo]() mcs64p20

![PepCoronado Global Resources Inc. logo]()  
 pepCoronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Table 11-1: General Reserve and Resource Criteria**

| Criteria | Description | Reference Notes & Exceptions |
| --- | --- | --- |
| • General Reserve Criteria |  |  |
| Reserve Classification | Reserve and Resource |  |
| Reliability Categories | Reserve (Proven and Probable) | To better reflect geological conditions of the coal deposits, distance between points of observation are standard USGS (in meters), respectively, for measured and indicated and inferred. |
| Effective Date of Resource Estimate | December 31, 2022 |  |
| Effective Date of Reserve Estimate | December 31, 2022 |  |
| Seam Density | Variable, dependent upon seam characteristics (based on available drill hole quality). In the absence of laboratory data, estimated by (1) assuming specific gravity of 1.30 for coal and 2.25 to 2.5 for rock parting, or (2) 1280 kg/m 3 to 1324 kg/m 3 for a 'clean' seam. |  |
| • Underground-Mineable Criteria |  |  |
| Map Thickness | Total seam thickness |  |
| Minimum Seam Thickness | 1.2 meters (locally <1.2 m for limited areas integral to the mine plan) | Panghuni was mapped at 0.92-meter cutoff in conjunction with Coronado mine plan. |
| Minimum Mining Thickness | 1.4 meters |  |
| Minimum In-Seam Wash Recovery | 40 percent |  |
| Wash Recovery Applied to Coal Reserves | Based on average yield for drill holes within reserve area, or in the absence of laboratory washability data, based on estimated visual recovery using specific gravities noted above and 95 percent yield on 'clean' coal |  |
| Out-of-Seam Dilution Thickness for Run-of-Mine Tonnes Applied to Coal Reserves | 0.95 meters minimum | 2243 kg/m 3 density used for dilution tonnage estimate |
| Mine Barrier | 61-meter distance from abandoned mines and sealed or pillared areas. |  |
| Adjustments Applied to Coal Reserves | 6 percent moisture increase; 5 percent preparation plant inefficiency |  |

Note: Exceptions for application of these criteria to resource and reserve estimation are made as warranted and demonstrated by either actual mining experience or detailed data that allows for empirical evaluation of mining conditions. Final classification of coal reserve is made based on the pre- feasibility evaluation.

### 11.1.1 Geostatistical Analysis

MM&A completed a geostatistical analysis on drill holes within the reserve boundaries to determine the applicability of the common United States classification system for measured and indicated and inferred coal resources. Historically, the United States has assumed that coal within 0.4-kilometers of a point of observation represents a measured resource whereas coal between 0.4 kilometers and 1.2 kilometers from a point of observation is classified as indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. Per SEC regulations, only measured and indicated resources may be considered for reserve classification, respectively as proven and probable reserves.

MM&A performed a geostatistical analysis test of the Mon Valley data set using the Drill Hole Spacing Analysis *DHSA* method. This method attempts to quantify the uncertainty of applying a measurement from a central location to increasingly larger square blocks and provides recommendations for determining the distances between drill holes for measured, indicated, and inferred resources.

MARSHALL MILLER ASSOCIATES, INC.

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vc064p2i0

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Mon Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

To perform DHSA the data set was processed to remove any erroneous data points, clustered data points, as well as directional trends. This was achieved through the use of histograms, as seen in Figure 11-1, color coded scatter plots showing the geospatial positioning of the borings, Figure 11-2, and trend analysis.

Figure 11-1: Histogram of the Total Seam Thickness for the Upper Freeport Seam Present in the Mon Valley Complex

![img-0.jpeg](img-0.jpeg)

Figure 11-2: Scatter plot of the Total Seam Thickness for the Upper Freeport Seam Present in the Mon Valley Complex

![img-1.jpeg](img-1.jpeg)

Following the completion of data processing, a variogram of the data set was created, Figure 11-3. The variogram plots average square difference against the separation distance between the data pairs. The separation distance is broken up into separate bins defined by a uniform lag distance (e.g., for a lag distance of 152 meters the bins would be 0 - 152 meters, 153 - 305 meters, etc.). Each pair of data points that are less than one lag distance apart are reported in the first bin. If the data pair is further apart than one lag distance but less than two lag distances apart, then the variance is reported in the second bin. The numerical average for differences reported for each bin is then plotted on the variogram. Care was taken to define the lag distance in such a way as to not overestimate any nugget effect present in the data set. Lastly, modeled equations, often spherical, gaussian, or exponential, are applied to the variogram in order to represent the data set across a continuous spectrum.

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v0964p210

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Mon Valley Complex Upper Freeport Holdings

in Accordance with the IOBC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

Figure 11-3: Variogram of the Total Seam Thickness for the Upper Freeport Seam Present in the Mon Valley Complex

![img-2.jpeg](img-2.jpeg)

The estimation variance is then calculated using information from the modeled variogram as well as charts published by Journel and Huijbregts (1978). This value estimates the variance from applying a single central measurement to increasingly larger square blocks. Care was taken to ensure any nugget effect present was added back into the data. This process was repeated for each test block size.

The final step of the process is to calculate the global estimation variance. In this step the number square blocks that would fit inside the selected study area is determined for each block size that was investigated in the previous step. The estimation variance is then divided by the number of blocks that would fit inside the study area for each test block size. Following this determination, the data is then transformed back to represent the relative error in the 95th-percentile range.

Figure 11-4 shows the results of the DHSA performed on the Upper Freeport data for the Mon Valley Complex. DHSA provides hole to hole spacing values, these distances need to be converted to radius from a central point in order to compare to the historical standards. A summary of the radius data is shown in Table 11-2. DHSA prescribes measured, indicated, and inferred drill hole spacings be determined at the 10-percent, 20-percent, and 50-percent levels of relative error, respectively.

MARSHALL MILLER ASSOCIATES INC.

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![VCS64p210 logo]()

![PGC logo]()  
 **PGC**  
 **CORNADO Global Resources Inc.**  
 **Statement of Coal Resources and Reserves for the**  
 **Mon Valley Complex Upper Freeport Holdings**  
 **in Accordance with the JORC Code and**  
 **United States SEC Regulation S-K 1300 as of December 31, 2022**  
 **Northern Appalachian Coal Basin**  
 **Pennsylvania, USA**

**Figure 11-4: Result of DHSA for the Upper Freeport Seam Present in the Mon Valley Complex**

![img-3.jpeg](img-3.jpeg)

**Table 11-2: DHSA Results Summary for Radius from a Central Point**

| Model | Observed Annual Distance (10% Relative Error) (km) | Observed Annual Distance (20% Relative Error) (km) | Observed Annual Distance (50% Relative Error) (km) |
| --- | --- | --- | --- |
| Gaussian: | 0.72 | 1.42 | 3.53 |
| Spherical: | 0.72 | 1.42 | 3.53 |
| Exponential: | 0.75 | 1.43 | 3.49 |

Comparing the results of the DHSA to the historical standards, it is evident that the historical standards are more conservative than even the most conservative DHSA model with regards to determining measured resources. The Gaussian and Spherical models recommend using a radius of 0.72 kilometers for measured resources compared to the historical value of 0.4 kilometers. With respect to indicated resources the DHSA falls in line closely with the historical standards. The Exponential model recommends using a radius of 1.43 kilometers, while the Spherical and Gaussian models recommend a radius of 1.42 kilometers, respectively. These values line up closely with the historical radius of 1.2 kilometers. These results have led the QPs to report the data following the historical classification standards, rather than use the results of the DHSA.

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![Wiley logo]() wci64p20

The Colorado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

## 11.2 Qualified Person's Estimates

Mineral resources, representing in-situ coal from a portion of which reserves are derived, are presented below. Based on the work described and detailed modelling of the areas considering all the parameters defined, a coal resource estimate, summarized in *Table 11-3*, was prepared as of December 31, 2022, for property controlled by Coronado.

**Table 11-3: Coal Resources Summary as of December 31, 2022**

| Area | Coal Resource (Dry Tonnes, In Situ, M) |  |  |  | Resource Quality (Dry) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Measured | Indicated | Inferred | Total | Ash% | Sulfur% | VM% |
| Inclusive of Reserve | 291.8 | 213.5 | 9.3 | 513.8 | 31 | 1.4 | 26 |
| Exclusive of Reserve | 0.0 | 0.0 | 0.0 | 0.0 |  |  |  |
| Total 12/31/2022 | 291.8 | 213.5 | 9.3 | 513.8 |  |  |  |

Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are derived.

Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.

Note 3: The Mon Valley properties do not have any resource tonnes exclusive of reserves as of December 31, 2022.

## 11.3 Qualified Person's Opinion

While there is some level of stratigraphically controlled seam-thickness variability due to sand channels, etc., the Upper Freeport coal seam on the mine property at Mon Valley demonstrate reasonable thickness consistency according to the classification system of **measured** (0 kilometers - 0.4 kilometers), **indicated** (0.4 kilometers to 1.2 kilometers), and **inferred** (1.2 kilometers to 4.8 kilometers). MM&A geologists and engineers modeled the deposit and delineated mineable regions to reflect the nature of each seam and the practicality of mining constraints. Based on MM&A's geostatistical analysis, it would be possible to extend the measured, indicated and inferred arcs slightly beyond historically accepted practices due to consistent geological settings. The QPs have again elected not to extend arc distances, introducing a level of conservatism in measured and indicated coal classification.

Based on the data review, the attendant work done to verify the data integrity and the creation of an independent geologic model, the QPs believe this is a fair and accurate representation of the Mon Valley coal resources.

## 12 Mineral Reserve Estimates

### 12.1 Assumptions, Parameters and Methodology

Coal Reserves are classified *as proven* or *probable* considering 'modifying factors' including mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors.

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ec964p20

p.p. Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

> **Proven Coal Reserves** are the economically mineable part of a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

> **Probable Coal Reserves** are the economically mineable part of an indicated coal resource, and in some circumstances a measured coal resource, adjusted for diluting materials and allowances for losses when the material is mined. It is based on appropriate assessment and studies in consideration of and adjusted for reasonably assumed modifying factors. These assessments demonstrate that extraction could be reasonably justified at the time of reporting.

Upon completion of delineation and calculation of coal resources, MM&A generated a LOM plan for each of the projected mines within the Mon Valley Complex. The footprint of each reserve area is shown on the maps in *Appendix B*. The mine plans were generated based on the forecast mine plan and permit plan provided by Coronado with modifications by MM&A where necessary due to current property control limits, modifications to geologic mapping, or other factors determined during the evaluation.

Carlson Mining software was used to generate the LOM plan for Mon Valley. The mine plan was sequenced based on productivity schedules provided by Coronado. MM&A determined the productivity estimates and plans to be reasonable based on experience and current industry practice.

At the Mon Valley mines, a minimum mining height of 1.4 meters was generally used due to the continuous mining method being employed; however, Pangburn was mapped at a 0.92-meter cutoff in conjunction with the Coronado mine plan. For coal seams thinner than the assigned mining height, the difference between the coal seam height and assigned mining height consists of out-of-seam dilution (OSD). Mine recovery generally varies between 40 percent and 55 percent for continuous mining panels. Plant recovery is a function of in-seam recovery, OSD and plant efficiency factor, which is set at 95 percent. Typical entry width is 5.8 meters.

Raw, ROM production data outputs from LOM plan sequencing were processed into Microsoft ® EXCEL spreadsheets and summarized on an annual basis for processing into the economic model. Average seam densities were estimated to determine raw coal tonnes produced from the LOM plan. Average mine recovery and wash recovery factors were applied to determine coal reserve tonnes.

Coal reserve tonnes in this evaluation are reported at a 6.0 percent moisture and represent the saleable product from the Property.

Pricing data as provided by Coronado is described in *Section 16.2*. The pricing data assumes HVB domestic and export FOB-mine prices of approximately $130 and $114 per metric tonne for calendar year 2028. HVB domestic and export prices respectively increase to approximately $204 and $178 per metric tonne through year 2050, and then increased by 2% annual inflation thereafter.

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32

![SocGAP20 logo]()

![PepComando Global Resources Inc. logo]()  
 pepComando Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

The coal resource mapping and estimation process, described in the report, was used as a basis for the coal reserve estimate. Proven and probable coal reserves were derived from the defined coal resource considering relevant processing, economic (including technical estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic, and regulatory factors and are presented on a moist, recoverable basis.

As is customary in the USA, the categories for proven and probable coal reserves are based on the distances from valid points of measurement as determined by the QPs for the area under consideration. For this evaluation, measured resource, which may convert to a proven reserve, is based on a 0.4-kilometer radius from a valid point of observation.

Points of observation include exploration drill holes, degas holes, and mine measurements which have been fully vetted and processed into a geologic model. The geologic model is based on seam depositional modeling, the interrelationship of overlying and underlying strata on seam mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc. Once the geologic model was completed, a statistical analysis, described in *Section 11.1.1* was conducted and a 0.4-kilometer radius from a valid point of observation was selected to define Measured Resources.

Likewise, the distance between 0.4 and 1.2 of a kilometer radius was selected to define Indicated Resources. Indicated Resources may convert to Probable Reserves

Inferred Resources (greater than a 1.2-kilometer radius from a valid point of observation) are to be excluded from Reserve consideration.

## 12.2 Qualified Person's Estimates

Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource tons presented in *Table 11-3*, and not in addition to coal resources. Coal reserves are presented on a ROM basis in *Table 12-1*. Proven and probable coal reserves were derived from the defined coal resource considering relevant mining, processing, infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic and regulatory factors. The coal reserves, as shown in *Table 12-2*, are based on a technical evaluation of the geology and a preliminary feasibility study of the coal deposits. The extent to which the coal reserves may be affected by any known environmental, permitting, legal, title, socio-economic, marketing, political, or other relevant issues has been reviewed rigorously. Similarly, the extent to which the estimates of coal reserves may be materially affected by mining, metallurgical, infrastructure and other relevant factors has also been considered.

**Table 12-1: Coal Summary (ROM Basis (Moist)) as of December 31, 2022 (Mt)**

| Area / Mine | Decommissioned Coal Reserves (Mt, Moist ROM) |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Quality (Dry) |  |  |
|  | Proved | Probable | Total | Surface | UG | Owned | Leased | Ash | Sulfur | Vol |
| Mon Valley | 113.9 | 83.2 | 197.1 | 0.8 | 197.1 | 195.7 | 1.4 | 37 | 1.4 | 23 |

MARSHALL MILLER ASSOCIATES, INC.

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![Scales of justice icon]() sc6640

pupCormado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2022 (Mt)**

| Property | Demonstrated Coal Reserves (Wet Tons, Washed or Dried Shipped, Mt) |  |  |  |  |  | Quality (Dry Basis) |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | By Reliability Category |  |  | By Mining Type |  | By Control Type |  | Ash% | Surface% | Vol% |
|  | Proven | Probable | Total | Surface | UG | Owned | Leased |  |  |  |
| Mon Valley | 77.8 | 56.6 | 134.4 | 0.0 | 134.4 | 133.4 | 1.0 | 8 | 1.4 | 35 |

Note: Marketable reserve values are reported on a moist basis, including a combination of surface and inherent moisture. The combination of surface and inherent moisture is modeled at 6-percent. Actual product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the modeled moisture values provide a level of conservation for reserve reporting.

The results of this TRS define an estimated 134.4 Mt of proven and probable marketable coal reserves. Of that total, 58 percent are proven, and 42 percent are probable. There are 133.4 Mt of owned coal reserves and 1.0 Mt of leased coal reserves. All of the Mon Valley reserves are considered to be suitable for the metallurgical coal market. All of the Mon Valley reserves are unassigned.

### 12.3 Qualified Person's Opinion

The estimate of coal reserves was determined in accordance with the JORC Code along with SEC Regulation S-K 1300.

The LOM mining plans for Mon Valley were prepared to the level of preliminary feasibility. Mine projections were prepared, and timing scheduled to match production with coal seam characteristics. Production timing was carried out from current locations to depletion of the coal reserve area. Coal reserve estimates could be materially affected by the risk factors described in Section 22.2.

Based on the Preliminary Feasibility Study and the attendant Economic Review, the QPs believe this is a fair and accurate calculation of the Mon Valley coal reserves.

## 13 Mining Methods

Three separate underground mine areas were modeled and tested economically for the Mon Valley Complex. Once the Resources were calculated, mine plans were created to project operating each resource area to depletion, with crews and equipment scheduled to move to subsequent mining areas as depletion occurs. Underground mine operations are projected to be exhausted in 2100.

MARSHALL MILLER ASSOCIATES, INC.

34

ec964p20

The Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

### 13.1 Geotech and Hydrology

Mining plans for potential underground mines were developed by Coronado and MM&A. Pillar stability was tested by MM&A using the *Analysis of Coal Pillar Stability (ACPS)* program that was developed by the **National Institute for Occupational Safety and Health (NIOSH)**. MM&A reviewed the results from the ACPS analysis and considered them in the development of the LOM plan.

Hydrology is not expected to be an issue of concern at Mon Valley. Extensive mining has occurred in the Pittsburgh seam, 183 meters above the Upper Freeport horizon. The Upper Freeport coal has been mined in the region-based on successful historical mining in comparable geologic settings, material impacts related to hydrology are not anticipated to be of concern.

### 13.2 Production Rates

The Mon Valley Complex is not yet active, with three distinct mines and preparation plants planned. The mine plan and productivity expectations reflect historical performance of similar operations and efforts have been made to adjust the plan to reflect future conditions. MM&A is confident that the mine plan is reasonably representative to provide an accurate estimation of coal reserves. Mine development and operation has not been optimized within the TRS.

Production is scheduled for approximately 273 days each year, which represents production on Monday through Friday plus every other Saturday with allowances for holidays. On each day, the continuous mining sections produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as full super sections with two continuous miners per section. Productivity is planned at the rate of 272 meters of advance per shift for the super sections.

Carlson Mining software was used by MM&A to generate mine plans for the underground mineable coal seam. Mine plans were sequenced based on productivity schedules provided by Coronado, which were based on historically achieved productivity levels. All production forecasting ties assumed production rates to geological models as constructed by MM&A's team of geologists and mining engineers.

As shown in *Table 13-1*, the areas planned for underground mines produce coal until 2100. Clean coal production varies directly with coal thickness.

MARSHALL MILLER ASSOCIATES, INC.

35

![sc864p2i0 logo]()

pupCoronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Table 13-1: Production Summary by Mine by Year (000)**

| Mine Name | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Mine Name | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 |
| Pangburn | 0 | 399 | 1,810 | 1,875 | 1,958 | 2,029 | 2,030 | 2,065 |
| Fallowfield | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 367 |
| Total | 0 | 399 | 1,810 | 1,875 | 1,958 | 2,029 | 2,030 | 2,062 |
| Mine Name | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 |
| Pangburn | 1,339 | 637 | 663 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sharer | 620 | 1,125 | 1,763 | 1,804 | 1,724 | 1,717 | 1,641 | 1,719 |
| Total | 1,960 | 1,762 | 2,366 | 1,804 | 1,724 | 1,717 | 1,641 | 1,719 |
| Mine Name | 2047 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sharer | 1,657 | 1,582 | 1,704 | 1,656 | 1,732 | 1,702 | 1,596 | 1,642 |
| Total | 1,657 | 1,582 | 1,704 | 1,656 | 1,732 | 1,702 | 1,596 | 1,642 |
| Mine Name | 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 0 | 0 | 859 | 1,780 | 2,009 | 2,006 | 1,987 | 1,814 |
| Sharer | 1,750 | 1,751 | 1,750 | 1,796 | 1,723 | 1,839 | 1,775 | 1,674 |
| Total | 1,750 | 1,751 | 2,009 | 3,576 | 3,732 | 3,846 | 3,762 | 3,488 |
| Mine Name | 2063 | 2064 | 2065 | 2066 | 2067 | 2068 | 2069 | 2070 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 1,657 | 1,861 | 1,893 | 1,894 | 1,869 | 1,869 | 1,707 | 1,893 |
| Sharer | 1,733 | 1,605 | 1,504 | 1,067 | 957 | 610 | 612 | 395 |
| Total | 3,390 | 3,466 | 3,397 | 2,961 | 2,826 | 2,479 | 2,318 | 2,289 |
| Mine Name | 2071 | 2072 | 2073 | 2074 | 2075 | 2076 | 2077 | 2078 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 1,438 | 1,988 | 1,993 | 1,822 | 1,903 | 1,864 | 1,911 | 1,788 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,438 | 1,988 | 1,993 | 1,822 | 1,903 | 1,864 | 1,911 | 1,788 |
| Mine Name | 2079 | 2080 | 2081 | 2082 | 2083 | 2084 | 2085 | 2086 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 1,931 | 1,757 | 1,563 | 2,034 | 1,423 | 2,073 | 1,485 | 1,798 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,931 | 1,757 | 1,563 | 2,034 | 1,423 | 2,073 | 1,485 | 1,798 |
| Mine Name | 2087 | 2088 | 2089 | 2090 | 2091 | 2092 | 2093 | 2094 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 1,340 | 1,684 | 1,466 | 1,008 | 1,184 | 1,485 | 1,462 | 1,584 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,340 | 1,684 | 1,466 | 1,008 | 1,184 | 1,485 | 1,462 | 1,584 |
| Mine Name | 2095 | 2096 | 2097 | 2098 | 2099 | 2100 | 2101 | 2102 |
| Pangburn | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Fallowfield | 1,229 | 1,570 | 1,590 | 1,258 | 831 | 356 | 0 | 0 |
| Sharer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1,229 | 1,570 | 1,590 | 1,258 | 831 | 356 | 0 | 0 |

MARSHAL MILLER ASSOCIATES, INC.

36

![Creative Commons License Icon]() CC-BY-NC

---

pp. Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

### 13.3 Mining Related Requirements

A mine plan with sequenced mining projections was prepared for each logical mining unit. For each mine plan, the appropriate number of production units is selected for the resource area, and a productivity level assigned, expressed in meters of advance per unit-shift of production. The productivity is based on the equipment and personnel configuration, mining height and expected physical conditions.

### 13.4 Required Equipment and Personnel

Production from the proposed Mon Valley Complex mines will be conducted using the room and pillar method, utilizing continuous miners and haulage using shuttle cars to a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor. Roof-bolting machines are used to support the roof on the continuous miner sections. Roof-bolting machines are used to install roof bolts, and battery scoops are available to clean the mine entries and assist in delivery of mine supplies to work areas. Other supplemental equipment, such as personnel carriers, supply vehicles, etc., are also used daily.

Mine conveyors typically range in width up to 1.5 meters. Multiple belt flights are arranged in series to deliver raw coal to the underground storage. Along the main and sub-main entries and panels, a travel way is provided for personnel and materials by rubber-tired equipment or on rail. The Mon Valley mines will use conveyors to transport ROM coal from the underground production sections to the surface where the coal may be sampled, crushed, washed in the preparation plant, and stockpiled to await shipment.

Surface ventilation fans are installed as needed to provide a sufficient volume of air to ventilate production sections, coal haulage and transport entries, battery charging stations, and transformers in accordance with approved plans. High-voltage cables deliver power throughout the mine where transformers reduce voltage for specific equipment requirements. *The Mine Improvement and New Emergency Response Act of 2006 (MINER Act)* requires that carbon monoxide detection systems be installed along mine conveyor belts and that electronic two-way tracking and communications systems be installed throughout underground mines. Water is required to control dust at production sections and along conveyor belts, and to cool electric motors. Water is available from nearby sources and is distributed within the mine by pipelines as required.

#### 13.4.1 Mine: Pangburn

The Pangburn mine is proposed to start in 2032 with three continuous mining sections. The Upper Freeport seam will be accessed via decline slope and vertical shaft. This mine will produce metallurgical coal from leased and owned mineral.

---

MARSHALL MILLER ASSOCIATES INC.

37

ec964p20

pupCoronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

Production is scheduled for approximately 273 days each year, which represents production on Monday through Friday and every other Saturday. On each day, three production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. Each section is configured as full supersection with two continuous miners available for production. Productivity is planned at the rate of 272 meters of advance per shift for the super sections. A total of 203 employees are assigned to the mine.

Principal production equipment on each section includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is transported via overland conveyor to the proposed Pangburn preparation plant and barge load-out on the Monongahela River. Rail access is provided by a CSX rail line.

The proposed Pangburn mine will be located approximately 1.6 kilometers south of the community of Elizabeth, Pennsylvania. Main paved roads exist both east and west of the site. The proposed dock, located on the western boundary of the proposed Pangburn permit area, is currently used for bulk material transshipment. The area has hosted both industrial and residential development for an extensive time period. No extraordinary measures or expenses will be required to establish infrastructure or utilities at the Pangburn site.

The preliminary design for the Pangburn mine surface facilities was provided by Coronado. The facilities include offices, warehouses, shops, and a bathhouse for personnel; a preparation plant to process ROM coal; a refuse area with a designed capacity of approximately 35 million refuse tonnes; raw coal storage at the plant totaling approximately 100,000 tonnes, clean coal storage at the plant site of approximately 54,000 tonnes, and three clean coal stockpiles adjacent to the dock loading facility on the Monongahela River. The three river stockpiles have a designed capacity of approximately 266,000 tonnes.

A study completed and approved through the **Pennsylvania Department of Environmental Protection** on behalf of Coronado has identified a Preferred Site for refuse disposal at Pangburn with capacity of 22.6 million cubic meters. MM&A's estimated requirements for Pangburn and Shaner combined is 29.7 million tonnes or approximately 13.2 million cubic meters.

The preliminary design layout of the Pangburn facilities is shown *Figure 13-1*.

MARSHALL MILLER ASSOCIATES, INC.

38

![VCS64p210 logo]() VCS64p210

pupCormado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

**Figure 13-1: Proposed Pangburn Plant and Mine Site Infrastructure**

![img-0.jpeg](img-0.jpeg)

#### **13.4.2 Mine: Shaner**

The Shaner mine is a proposed mine in the Upper Freeport seam and is scheduled to begin production in 2038 as the Pangburn reserve is depleted. This mine is a metallurgical coal operation on leased and owned mineral property.

Production is scheduled for approximately 273 days each year, which represents production on Monday through Friday and every other Saturday. On each day, three production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. All three sections are full super sections with two continuous miners per section. Productivity is planned at the rate of 272 meters of advance per shift for the super sections. A total of 203 employees are assigned to the mine.

Principal production equipment per section includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner

MARSHALL MILLER ASSOCIATES, INC.

39

![Logo]() 0x0649210

pupCormado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside and to the preparation plant and load-out.

The Shaner mine will be located approximately 1.6 kilometers north of the community of Suterville, Pennsylvania, between the Youghiogheny and Monongahela Rivers. Numerous improved roads traverse the Property. An additional shaft and slope will be required to access Upper Freeport seam reserves west of the Monongahela River, accessed across the 1$^{st}$ Street bridge and Douglass Run Road. The immediate vicinity of the proposed Shaner surface facilities is well developed; no extraordinary measures or expenses will be required to establish infrastructure or utilities at the Fallowfield site. Due to the projected starting date for the Shaner mine, no detailed design of infrastructure or surface facilities has been completed to date. The proposed mines are located in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient population base within commuting distance of the proposed operations; no Camp or Town construction will be required. Mine opening capital expenditures are included in the MM&A financial model.

Due to the projected start-up date of the Shaner mine, no permit work has been completed to date. The proposed mine is located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Coal mining permits are routinely obtained in this region; a 2-year to 3-year lead time is recommended. Estimated expenditures for mine closure and site reclamation are included in the financial model for each mine or plant site.

Infrastructure for Shaner will resemble that shown in *Figure 13-1* for Pangburn.

#### 13.4.3 Mine: Fallowfield

The Fallowfield mine is proposed to start in 2057 with three production sections. The Upper Freeport seam will be accessed via a decline slope and vertical shaft. This mine will be a metallurgical coal operation on leased and owned mineral property.

Production is scheduled for approximately 273 days each year, which represents production on Monday through Friday and every other Saturday. On each day, three production sections are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as super sections with two continuous miners available for production. Productivity is planned at the rate of 272 meters of advance per shift of operation. A total of 203 employees are assigned to the mine.

Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where it is transported to the Fallowfield preparation plant and truck load-out via overland conveyor.

MARSHALL MILLER ASSOCIATES, INC.

40

![Creative Commons License Icon]() CC-BY-NC-SA

---

pp. Commando Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA---

The Fallowfield property boundary is traversed by the four-lane limited-access Mon-Fayette Expressway in addition to numerous improved roads. Previous mining and coal preparation facilities have existed in the immediate vicinity of the proposed Fallowfield surface facilities. No extraordinary measures or expenses will be required to establish infrastructure or utilities at the Fallowfield site. Due to the projected starting date for the Fallowfield mine, no detailed design of infrastructure or surface facilities has been completed to date. The proposed mines are located in the Appalachian Basin, which has an extensive history (greater than 100 years) of coal mining. There is a sufficient population base within commuting distance of the proposed operations; no Camp or Town construction will be required. Mine opening capital expenditures are included in the MM&A financial model.

Due to the projected start-up date of the Fallowfield mine, no permit work has been completed to date. The proposed mine is located in an area with a long history of coal mining, with numerous permitted operations in close proximity. Coal mining permits are routinely obtained; a two- to three-year lead time is recommended. Estimated expenditures for mine closure and site reclamation are included in the financial model for each mine or plant site.

Infrastructure for Fallowfield will resemble that shown in *Figure 13-1* for Pangburn.

## 14 Processing and Recovery Methods

### 14.1 Description or Flowsheet

Due to the projected starting date for the Mon Valley Complex, only preliminary design of preparation plant or associated material handling facilities has been initiated to date. Coal processing is a well understood science-it is anticipated that typical coal sizing, cleaning and dewatering equipment will be utilized for processing of run-of-mine coal at Pangburn, including combinations of vibratory screens, classifying cyclones, heavy media baths, heavy media cyclones, spirals, froth flotation, and drain-and-rinse screens, screen-bowl centrifuges, among others. No novel technologies will be required to process run-of-mine material.

### 14.2 Requirements for Energy, Water, Material and Personnel

The Mon Valley property has sources of water, power, personnel, and supplies readily available for use. Personnel have historically been sourced from the surrounding communities in Allegheny, Washington, and Westmoreland Counties, and have proven to be adequate in numbers to operate the mines. As mining is common in the surrounding areas, the workforce is generally familiar with mining practices, and many are experienced miners. Water is expected to be sourced locally from nearby public water sources or rivers. Electricity is anticipated to be sourced from West Penn or Duquesne Light. The service industry in the areas surrounding the proposed mine complex has historically provided supplies, equipment repairs and fabrication, etc. Barge transport on the Monongahela River/Ohio River system will serve as the main means of product transport from the

---

MARSHALL MILLER ASSOCIATES, INC.

41

2064p20

pupCormado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

mine, and currently serve as a means of coal transportation for neighboring Pittsburgh seam operations.

## 15 Infrastructure

Due to the projected starting date for the Mon Valley mines, only conceptual design of infrastructure and surface facilities has been completed to date.

The proposed Pangburn mine will be located approximately 1.6 kilometers south of the community of Elizabeth, PA. Main paved roads exist both east and west of the site. The proposed dock, located on the western boundary of the proposed Pangburn permit area, is currently used for bulk material transhipment. The area has hosted both industrial and residential development for an extensive time period. No extraordinary measures or expenses will be required to establish infrastructure or utilities at the Pangburn site.

The Shaner mine will be located approximately 1.6 kilometers north of the community of Suterville, PA, between the Youghiogheny and Monongahela Rivers. Numerous improved roads traverse the Property. An additional shaft and slope will be required to access Upper Freeport seam reserves west of the Monongahela River, accessed across the 1$^{st}$ Street bridge and Douglass Run Road. The immediate vicinity of the proposed Shaner surface facilities is well developed; no extraordinary measures or expenses will be required to establish infrastructure or utilities at the Shaner site.

The Fallowfield property boundary is traversed by the 4-lane limited-access Mon-Fayette Expressway in addition to numerous improved roads. Previous mining and coal preparation facilities have existed in the immediate vicinity of the proposed Fallowfield surface facilities. No extraordinary measures or expenses will be required to establish infrastructure or utilities at the Fallowfield site. Due to the projected starting date for the Fallowfield mine, no detailed design of infrastructure or surface facilities has been completed to date.

A CSX rail line and loadout on the Monongahela River as well as barge transportation on the river are expected to serve as the primary means of transport for produced coal.

MARSHALL MILLER ASSOCIATES, INC.

42

![WIS logo]() wIS64p20

pupCoronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 16 Market Studies

### 16.1 Market Description

The quality characteristics for the subject coal resources and coal reserves have been reviewed in detail by MM&A. The drill hole data were utilized to develop average coal quality characteristics for the mining site. These average coal quality characteristics were then utilized as the basis for determining the various markets into which the saleable coal will likely be placed.

The projected quality specifications for the Mon Valley products are as shown in *Table 16-1*.

**Table 16-1: Quality Specifications by Product**

|  | HVB |
| --- | --- |
| Moisture (%) | 7.50 |
| Ash (%) | 7.50 |
| Sulfur (%) | 1.2 |
| Volatile Matter (%) | 35 |
| Btu/lb. | N/A |
| Fluidity (ddpm) | 26,000 |
| MMR (%) | 0.98 |
| CSR | 55 |
| FSI | 7.50 |

Note: All Specs are dry basis except Moisture. Life-of-mine sulfur for Pangborn is an estimated 1.21%; however, overall Mon Valley Complex reserve average is 1.36% sulfur.

All of the mine production is projected to serve the metallurgical markets. The metallurgical coal is marketed as a high-volatile (typically greater than 31 percent volatile matter content) product on both the domestic and export markets.

### 16.2 Price Forecasts

Coronado provided MM&A with price forecasts for its active operations. Customer coal pricing is derived from market observed forward estimates based on global economic supply and demand analysis which is applied to mine plan sales volumes and product mix and is supplemented with Coronado's in-house knowledge of applicable rail transportation charges, ocean freight charges and port charges. MM&A extrapolated the provided data for the greenfield Mon Valley operations. Concurrent with aforementioned quality parameters in the preceding section, production from the proposed operations is assumed to be sold in high volatile domestic and export coal markets with respective percentages of 66 percent and 34 percent. The pricing data assumes HVB domestic and export FOB-mine prices of approximately $130 and $114 per metric tonne for calendar year 2028. HVB domestic and export prices respectively increase to approximately $204 and $178 per metric tonne through year 2050, and then increased by 2% annual inflation thereafter.

MARSHALL MILLER ASSOCIATES INC.

43

![LOGO]

p.p Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Mon Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

Coal price forecasts for the Mon Valley products were provided by Coronado for various coal markets in terms of US nominal dollars per metric tonne.

### 16.3 Contract Requirements

Some contracts are necessary for successful marketing of the coal. For Mon Valley, since all mining, preparation and marketing is done in-house, the remaining contracts required are:

> **Transportation**- The Mine contracts with barge transportation companies or with CSX Railroad to transport the coal to either of the domestic customers ports for overseas shipments.
> **Handling**- Contracts for loading vessels for export sales are necessary. These are typically handled by annual negotiations based on projected shipments.
> **Sales**- Sales contracts are a mix of spot and contract sales. With the volatility of the market, long-term contracts are not typically written.

## 17 Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individuals

### 17.1 Results of Studies

MM&A is not aware of any Phase I Environmental Site Assessment (ESA) completed on the Mon Valley property on behalf of Coronado. Coronado reports not having conducted such a study. Based on our experience with Coronado, it is the QPs' opinion that Coronado has a generally typical coal industry record of compliance with applicable mining, water quality, and environmental laws. Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial models.

### 17.2 Requirements and Plans for Waste Disposal

A study completed on behalf of Coronado has identified a Preferred Site for refuse disposal at Pangburn with capacity of 22.6 million cubic meters. Estimated requirements for Pangburn and Shaner combined is 29.7 million tonnes or approximately 13.2 million cubic meters. Permitting for such a facility is anticipated to be achievable.

### 17.3 Permit Requirements and Status

All mining operations are subject to federal and state laws and must obtain permits to operate mines, coal preparation and related facilities, haul roads, and other incidental surface disturbances necessary for mining to occur. Permits generally require that the permittee post a performance bond in an amount established by the regulatory program to provide assurance that any disturbance or liability created during mining operations is properly restored to an approved post-mining land use and that all regulations and requirements of the permits are fully satisfied before the bond is returned to the permittee. Significant penalties exist for any permittee who fails to meet the

MARSHALL MILLER ASSOCIATES, INC.

44

![Creative Commons License Icon]() CC-BY-4.0

---

pp Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

obligations of the permits including cessation of mining operations, which can lead to potential forfeiture of the bond. Any company, and its directors, owners, and officers, which are subject to bond forfeiture can be denied future permits under the program. $^{1}$

The refuse disposal area will receive combined coarse refuse from the proposed preparation plant by conveyor belts. The fine material will be processed by filter press technology where the majority of the water is removed. The filter cake material will be placed on the refuse conveyor for disposal with the coarse portion of the refuse material.

New permits or permit revisions will occasionally be necessary to facilitate the expansion or addition of new mining areas on the properties, such as amendments to existing permits and new permits for mining of reserve areas. Exploration permits are also required. Property under lease includes provisions for exploration among the terms of the lease. New or modified mining permits are subject to a public advertisement process and comment period, and the public is provided an opportunity to raise objections to any proposed mining operation. MM&A is not aware of any specific prohibition of mining on the subject property and given sufficient time and planning. Coronado should be able to secure new permits to maintain its planned mining operations within the context of current regulations. Portions of the properties are located near local communities. Regulations prohibit mining activities within 91 meters of a residential dwelling, school, church, or similar structure unless written consent is first obtained from the owner of the structure. Where required, such consents have been obtained where mining is proposed beyond the regulatory limits.

MM&A is unaware of any obvious or current Coronado permitting issues that are expected to prevent the issuance of future permits. Coronado, along with all coal producers, is subject to a level of uncertainty regarding future clean water permits due to **United States Environmental Protection Agency (EPA)** and **United States Fish and Wildlife (SFW)** involvement with state programs.

#### 17.4 Local Plans, Negotiations or Agreements

MM&A found no indication of requirements for agreements beyond the scope of Federal or State Regulations.

$^{1}$ Monitored under the Applicant Violator System (AVS) by the Federal Office of Surface Mining.

MARSHALL MILLER ASSOCIATES, INC.

45

![Creative Commons License: CC BY-NC-SA]() CC-BY-NC-SA

PAPC/Corporated Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 17.5 Mine Closure Plans

Applicable regulations require that mines be properly closed, and reclamation commenced immediately upon abandonment. In general, site reclamation includes removal of structures, backfilling, regrading, and revegetation of disturbed areas. Sediment control is required during the establishment of vegetation, and bond release generally requires a minimum five-year period of site maintenance, water sampling, and sediment control following mine completion. This requirement is reduced to two years for certain operations involving re-mining. Reclamation of underground mines includes closure and sealing of mine openings such as portals and shafts in addition to the items listed above.

Estimated costs for mine closure, including water quality monitoring during site reclamation, are included in the financial model. As with all mining companies, an accretion calculation is performed annually so the necessary Asset Retirement Obligations (ARO) can be shown as a Liability on the Balance Sheet.

## 17.6 Qualified Person's Opinion

The QPs know of no reason that any permits that may be required cannot be obtained.

Estimated expenditures for site closure and reclamation are included in the financial model for these sites.

## 18 Capital and Operating Costs

### 18.1 Capital Cost Estimate

The production sequence selected for a property must consider the proximity of each reserve area to coal preparation plants, river docks and railroad loading points, along with suitability of production equipment to coal seam conditions. The in-place infrastructure was evaluated, and any future needs were planned to a level suitable for a Preliminary Feasibility Study and included in the Capital Forecast.

MM&A developed capital spending estimates for the proposed operations in the Mon Valley Complex. MM&A's capital schedules assume that major equipment rebuilds occur over the course of each machine's remaining assumed operating life. Replacement equipment was scheduled based on MM&A's experience and knowledge of mining equipment and industry standards with respect to the useful life of such equipment.

A summary of the estimated capital for the Property is provided in *Figure 18-1* below.

MARSHALL MILLER ASSOCIATES, INC.

46

ec964p210

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

Figure 18-1: CAPEX

ec964p110

## 18.2 Operating Cost Estimate

Coronado provided a historical summary of operating costs for similar operations for MM&A's review. MM&A used the historical and/or budget cost information as a reference and developed a personnel schedule for the mine. Hourly labor rates and salaries were based upon information contained in Coronado's financial summaries. Fringe benefit costs were developed for vacation and holidays, federal and state unemployment insurance, retirement, workers' compensation and pneumoconiosis, casualty and life insurance, healthcare, and bonuses. A cost factor for mine supplies was developed that relates expenditures to mine advance rates for roof control costs and other mine supply costs experienced at underground mines. Other factors were developed for maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.

Other cost factors were developed for coal preparation plant processing, refuse handling, coal loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were calculated for federal black lung excise tax, and federal reclamation fees. There are currently no state coal severance or reclamation taxes required in Pennsylvania.

Mandated Sales Related Costs such as Black Lung Excise are summarized in Table 18-1.

MARSHALL MILLER ASSOCIATES, INC.

47

![Monsu 2022 logo]()

![Coronado Global Resources Inc. logo]()pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Table 18-1: Estimated Coal Production Taxes and Sales Costs**

| Other Business, Trade & Sales (US$) | Estimated Amount | Total |
| --- | --- | --- |
| Federal Black Lung Excise Tax - Underground | Per Tonne | $1.21 |
| Federal Reclamation Fees - Underground | Per Tonne | $0.13 |
| Royalties - Underground | Percentage of Revenue | 7% |

Note:

1. Federal black lung excise tax is paid only on coal sold domestically. MM&A assumed 45% of total coal sales to be domestic in the economic analysis discussed below.

A summary of the projected Operating Costs is in *Table 18-2*.

**Table 18-2: Mon Valley Operating Costs**

|  | Total | VE 12/31 2021 | VE 12/31 2024 | VE 12/31 2025 | VE 12/31 2026 | VE 12/31 2027 | VE 12/31 2028 | VE 12/31 2029 | VE 12/31 2030 | Estimated LOM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROM Production Tonnes | 198.4 | - | - | - | - | - | - | - | - | 2.9 |
| Yield | 68.19% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 68.19% |
| Saleable Production Tonnes 1 | 135.3 | - | - | - | - | - | - | - | - | 2.0 |
| Thermal Tonnes | - | - | - | - | - | - | - | - | - | - |
| Domestic Met Tonnes | 89.3 | - | - | - | - | - | - | - | - | 1.3 |
| Export Met Tonnes | 46.0 | - | - | - | - | - | - | - | - | 0.7 |
| Total Saleable Tonnes | 135.3 | - | - | - | - | - | - | - | - | 2.0 |
| Cash Costs per Tonne: |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $100.61 | $- | $- | $- | $- | $- | $- | $- | $- | $100.59 |
| Processing and Transport | $37.98 | $- | $- | $- | $- | $- | $- | $- | $- | $37.98 |
| Sales Related Costs | $1.73 | $- | $- | $- | $- | $- | $- | $- | $- | $1.73 |
| G&A | $5.42 | $- | $- | $- | $- | $- | $- | $- | $- | $5.42 |
| Total Cash Costs | $145.74 | $- | $- | $- | $- | $- | $- | $- | $- | $145.72 |

Financial model includes 0.9 million tonnes of interest coal production. Interest coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

## 19 Economic Analysis

### 19.1 Assumptions, Parameters and Methods

A pre-feasibility LOM plan was prepared by MM&A for the proposed Mon Valley operations. MM&A prepared mine projections and production timing forecasts based on coal seam characteristics. Production timing was carried out from 2032 to depletion (exhaustion) of the coal reserve areas, which is projected for the year 2100. All costs and prices are based on 2022 nominal United States dollars.

The Mine plan, productivity expectations and cost estimates generally reflect historical performance by Coronado and efforts have been made to adjust plans and costs to reflect future conditions. MM&A is confident that the mine plan and financial model are reasonably representative to provide an accurate estimation of coal reserves.

MARSHALL MILLER ASSOCIATES INC.

48

m0649210

The Coronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

Capital schedules were developed by MM&A for mine development, infrastructure, and on-going capital requirements for the life of the mine. Staffing levels were prepared, and operating costs estimated by MM&A. MM&A utilized historical cost data provided by Coronado and its own knowledge and experience to estimate direct and indirect operating costs.

The preliminary feasibility financial model, prepared for this TRS, was developed to test the economic viability of the coal reserve area. The results of this financial model are not intended to represent a bankable feasibility study, required for financing of any current or future mining operations, but are intended to prove the economic viability of the estimated coal reserves. All costs and prices are based on 2022 nominal United States dollars assuming a 2% inflation rate.

On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the purpose of classifying coal reserves. The project cash flows, excluding debt service, are calculated by subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct costs include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis services, reclamation and general and administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal black lung tax, Federal reclamation taxes, property taxes, local transportation prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, and income taxes. Coronado's historical costs provided a useful reference for MM&A's cost estimates.

Sales revenue is based on the metallurgical coal price information provided to MM&A by Coronado.

Projected debt service is excluded from the P&L and cash flow model in order to determine Enterprise Value.

The financial model expresses coal sales prices, operating costs, and capital expenditures in current day dollars without adjustment for inflation. Capital expenditures and reclamation costs are included based on engineering estimates for each mine by year. The Coronado division's existing allocations of administrative costs are continued in the future projections.

Coronado will pay royalties for the various current and projected operations. The royalty rates vary by mining method and location. The royalty rates for Mon Valley are estimated to be 7% of the sales revenue.

The projection model also includes consolidated income tax calculations at the Coronado level, incorporating statutory depletion calculations, as well as state income taxes, and a federal tax rate of 21%. To the extent the mine generates net operating losses for tax purposes, the losses are carried over to offset future taxable income. The terms 'cash flows' and 'project cash flows' used in this report refer to after tax cash flows.

Consolidated cash flows are driven by annual sales tonnage, which grows from 0.4 million tonnes in 2032 to a peak of 3.8 million tonnes in 2060. Between years 2061 and 2090, sales ranges from 1.5

MARSHALL MILLER ASSOCIATES, INC.

49

![Logo]() 0264p20

The Colorado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

million to 2.7 million tonnes and between years 2091-2100, sales range from 0.4 million tonnes to 1.3 million tonnes. Projected consolidated revenue grows from $54.0 million in 2032 to a peak of $917.7 million in 2060. Revenue totals $37.6 billion for the project's life.

Consolidated cash flow from operations is positive throughout the projected operating period, with the exception of post-production years, due to end-of-mine reclamation spending. Consolidated cash flow from operations peaks at $374.3 million in 2061 and totals $9.1 billion over the project's life. Capital expenditures total $531.2 million during the first five years and $3.8 billion over the project's life.

Coal price forecasts for coal products were prepared by Coronado for its active operations and modified appropriately by MM&A for its greenfield operations. Such prices were used for the revenue input into the financial model. Sales variable costs such as production royalties were based upon the revenue input.

## 19.2 Results

The pre-feasibility financial model, prepared by MM&A for this TRS, was developed to test the economic viability of each coal resource area. The results of this financial model are not intended to represent a bankable feasibility study, as may be required for financing of any current or future mining operations contemplated but are intended to prove the economic viability of the estimated coal reserves. Optimization of the LOM plan was outside the scope of the engagement.

*Figure 19-1* shows the annual variance of cash costs per ton. *Table 19-1* shows LOM tonnage, P&L, and EBITDA for each proposed Coronado mines in Mon Valley.

MARSHALL MILLER ASSOCIATES, INC.

50

![VCS64p210 logo]()

![Coronado Global Resources Inc. logo]()  
 pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Figure 19-1: Cash Costs per Tonne**

![img-0.jpeg](img-0.jpeg)

As shown above, the mines' average cash cost ranges between approximately $64 and $333 per tonne for most of the operating period.

**Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)**

|  | LOM Tonnage* | LOM Per Tax, P&L | P&L Per Tonne | LOM EBITDA | EBITDA Per Tonne |
| --- | --- | --- | --- | --- | --- |
| Pangburn | 14,376 | $387,034 | $26.92 | $998,549 | $69.46 |
| Fallowfield | 72,640 | $9,545,381 | $131.41 | $11,922,910 | $164.14 |
| Sharer | 48,294 | $3,824,932 | $79.20 | $4,964,384 | $102.80 |
| Consolidated PA Deep Mines | 135,309 | $13,757,346 | $101.67 | $17,885,844 | $132.18 |

Note: *Financial model includes 0.9 million tonnes of inferred coal production. Inferred coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

As shown in *Table 19-1*, the mines show positive EBITDA over the LOM. Overall, Coronado's consolidated operations show positive LOM P&L and LOM EBITDA of $13.8 billion and $17.9 billion, respectively. A summary of the key financial performance metrics projected for years is provided below in *Table 19-2*.

MARSHALL MILLER ASSOCIATES, INC.

51

![sc064p20 logo]()

pupCoronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

**Table 19-2: Summary of Mon Valley Key Financial Performance Metrics (2023-2030)**

|  | Total | Y1 12/31 2023 | Y1 12/31 2024 | Y1 12/31 2025 | Y1 12/31 2026 | Y1 12/31 2027 | Y1 12/31 2028 | Y1 12/31 2029 | Y1 12/31 2030 | Remaining COM Average |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROOM Production Tonnes | 198.4 | - | - | - | - | - | - | - | - | 2.9 |
| Yield | 68.19% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 68.19% |
| Saleable Production Tonnes* | 135.3 | - | - | - | - | - | - | - | - | 2.0 |
| Thermal Tonnes | - | - | - | - | - | - | - | - | - | - |
| Domestic Met Tonnes | 89.3 | - | - | - | - | - | - | - | - | 1.3 |
| Export Met Tonnes | 46.0 | - | - | - | - | - | - | - | - | 0.7 |
| Total Saleable Tonnes | 135.3 | - | - | - | - | - | - | - | - | 2.0 |
| Cash Costs per Tonne: |  |  |  |  |  |  |  |  |  |  |
| Mining Costs | $100.61 | $- | $- | $- | $- | $- | $- | $- | $- | $100.59 |
| Processing and Transport | $37.98 | $- | $- | $- | $- | $- | $- | $- | $- | $37.98 |
| Sales Related Costs | $1.73 | $- | $- | $- | $- | $- | $- | $- | $- | $1.73 |
| G&A | $5.42 | $- | $- | $- | $- | $- | $- | $- | $- | $5.42 |
| Total Cash Costs | $145.74 | $- | $- | $- | $- | $- | $- | $- | $- | $145.72 |
| EBITDA per Tonne | $131.90 | $- | $- | $- | $- | $- | $- | $- | $- | $131.93 |
| Expansion CapEx ($M) | $37.40 | $- | $- | $- | $- | $- | $5.53 | $31.87 | $- | $- |
| Maintenance CapEx ($M) | $3,761.87 | $- | $- | $- | $- | $- | $- | $- | $36.16 | $53.22 |
| Total CapEx | $3,799.27 | $1.02 | $- | $- | $- | $- | $5.53 | $31.87 | $36.16 | $53.22 |

- Financial model includes 0.9 million tonnes of inferred coal production. Inferred coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

After-Tax Cash Flows were developed in order to calculate the NPV for this Property. The NPV is estimated to be $168.3 million at a discount rate of 10.0%. A summary of the Mon Valley after-tax cash flow is shown in *Table 19-3*.

**Table 19-3: Project Cash Flow Summary (000)**

|  | Total | YE12/31 2027 | YE12/31 2028 | YE12/31 2029 | YE12/31 2030 | YE12/31 2031 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 135,311 | - | - | - | - | - |
| Total Revenue | $37,567,900 | $- | $- | $- | $- | $- |
| EBITDA | $12,956,210 | $(388) | $(388) | $(388) | $(388) | $(388) |
| Net Income | $5,500,454 | $(388) | $(388) | $(388) | $(388) | $(388) |
| Net Cash Provided by Operating Activities | $9,101,755 | $(388) | $(388) | $(388) | $(388) | $(328) |
| Purchases of Property, Plant, and Equipment | $(3,799,269) | $- | $(5,533) | $(31,868) | $(36,156) | $(233,778) |
| Net Cash Flow | $5,302,486 | $(388) | $(5,921) | $(32,256) | $(36,544) | $(234,106) |
|  | YE12/31 2032 | YE12/31 2033 | YE12/31 2034 | YE12/31 2035 | YE12/31 2036 | YE12/31 2037 |
| Production & Sales tonnes | 399 | 1,810 | 1,875 | 1,958 | 2,029 | 2,030 |
| Total Revenue | $54,019 | $249,974 | $264,268 | $281,660 | $297,887 | $304,147 |
| EBITDA | $25,792 | $134,660 | $143,768 | $156,696 | $168,610 | $172,267 |
| Net Income | $(55,860) | $50,305 | $57,801 | $63,866 | $62,105 | $73,365 |
| Net Cash Provided by Operating Activities | $20,744 | $112,463 | $139,070 | $147,100 | $143,903 | $154,203 |
| Purchases of Property, Plant, and Equipment | $(223,890) | $(6,093) | $(1,522) | $(23,061) | $(19,766) | $(224,451) |
| Net Cash Flow | $(203,146) | $106,370 | $137,548 | $124,039 | $124,137 | $(70,247) |

MARSHALL MILLER ASSOCIATES INC.

52

xci64p210

pupCormado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 2,062 | 1,960 | 1,762 | 2,366 | 1,804 | 1,724 |
| Total Revenue | $315,229 | $305,758 | $280,640 | $384,512 | $299,179 | $291,805 |
| EBITDA | $178,445 | $166,211 | $140,888 | $208,852 | $148,775 | $133,692 |
| Net Income | $57,967 | $72,886 | $45,385 | $92,177 | $64,942 | $53,969 |
| Net Cash Provided by Operating Activities | $165,161 | $154,094 | $130,479 | $163,610 | $106,491 | $111,512 |
| Purchases of Property, Plant, and Equipment | $(202,332) | $(18,063) | $(15,711) | $(22,144) | $(8,827) | $(14,141) |
| Net Cash Flow | $(37,170) | $136,031 | $114,769 | $141,466 | $97,664 | $97,370 |
|  | YE12/31 2021 | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 |
| Production & Sales tonnes | 1,717 | 1,641 | 1,719 | 1,657 | 1,582 | 1,704 |
| Total Revenue | $296,479 | $289,255 | $309,181 | $304,039 | $296,312 | $325,698 |
| EBITDA | $135,584 | $128,438 | $141,700 | $136,176 | $128,554 | $149,022 |
| Net Income | $67,285 | $78,524 | $86,380 | $81,215 | $75,423 | $86,668 |
| Net Cash Provided by Operating Activities | $115,188 | $109,995 | $111,937 | $112,263 | $106,871 | $118,353 |
| Purchases of Property, Plant, and Equipment | $(106,672) | $(33,173) | $(3,370) | $(5,687) | $(21,727) | $(45,062) |
| Net Cash Flow | $8,515 | $76,822 | $108,559 | $106,575 | $85,144 | $73,291 |
|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| Production & Sales tonnes | 1,656 | 1,732 | 1,702 | 1,596 | 1,642 | 1,750 |
| Total Revenue | $322,894 | $344,510 | $345,451 | $330,631 | $347,164 | $377,485 |
| EBITDA | $144,852 | $159,462 | $158,323 | $145,127 | $155,737 | $176,479 |
| Net Income | $83,039 | $106,381 | $104,840 | $90,665 | $96,667 | $115,492 |
| Net Cash Provided by Operating Activities | $120,921 | $126,371 | $126,005 | $119,262 | $124,313 | $138,665 |
| Purchases of Property, Plant, and Equipment | $(25,998) | $(4,218) | $(20,921) | $(39,520) | $(28,042) | $(37,598) |
| Net Cash Flow | $94,923 | $122,153 | $105,084 | $79,742 | $96,271 | $101,067 |
|  | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 | YE12/31 2014 |
| Production & Sales tonnes | 1,751 | 2,609 | 3,576 | 3,732 | 3,846 | 3,762 |
| Total Revenue | $385,399 | $586,004 | $819,598 | $872,775 | $917,689 | $916,057 |
| EBITDA | $180,413 | $271,312 | $391,520 | $425,108 | $454,572 | $448,794 |
| Net Income | $139,507 | $127,958 | $209,809 | $227,665 | $251,397 | $234,738 |
| Net Cash Provided by Operating Activities | $160,731 | $227,264 | $308,925 | $347,214 | $369,575 | $374,330 |
| Purchases of Property, Plant, and Equipment | $(549,006) | $(91,928) | $(36,973) | $(45,463) | $(22,284) | $(131,772) |
| Net Cash Flow | $(388,274) | $135,335 | $271,952 | $301,751 | $347,291 | $242,558 |
|  | YE12/31 2020 | YE12/31 2019 | YE12/31 2018 | YE12/31 2017 | YE12/31 2016 | YE12/31 2015 |
| Production & Sales tonnes | 3,488 | 3,390 | 3,466 | 3,397 | 2,961 | 2,826 |
| Total Revenue | $866,529 | $859,453 | $896,756 | $896,840 | $797,498 | $776,640 |
| EBITDA | $406,027 | $398,694 | $424,167 | $429,339 | $389,140 | $382,069 |
| Net Income | $203,176 | $262,307 | $274,392 | $274,792 | $235,580 | $226,904 |
| Net Cash Provided by Operating Activities | $352,593 | $331,050 | $333,667 | $341,553 | $322,289 | $312,496 |
| Purchases of Property, Plant, and Equipment | $(58,035) | $(25,972) | $(64,621) | $(60,161) | $(120,574) | $(57,818) |
| Net Cash Flow | $294,558 | $305,078 | $269,045 | $281,391 | $281,715 | $254,678 |

MARSHA MILLER ASSOCIATES, INC.

53

xci64p20

pupCormado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the JORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 2,479 | 2,318 | 2,289 | 1,438 | 1,988 | 1,993 |
| Total Revenue | $695,232 | $663,381 | $668,340 | $428,531 | $604,475 | $618,406 |
| EBITDA | $345,064 | $315,895 | $324,744 | $177,919 | $303,204 | $313,068 |
| Net Income | $200,677 | $180,616 | $183,214 | $102,106 | $185,575 | $200,522 |
| Net Cash Provided by Operating Activities | $290,478 | $265,928 | $264,648 | $126,035 | $207,165 | $242,028 |
| Purchases of Property, Plant, and Equipment | $(118,193) | $(38,552) | $(41,672) | $(26,538) | $(44,402) | $(30,383) |
| Net Cash Flow | $172,285 | $227,376 | $222,976 | $99,497 | $162,763 | $211,645 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,822 | 2,098 | 2,055 | 2,107 | 1,883 | 2,129 |
| Total Revenue | $576,706 | $614,741 | $614,611 | $642,871 | $586,223 | $676,320 |
| EBITDA | $282,323 | $306,812 | $304,834 | $325,855 | $282,672 | $345,761 |
| Net Income | $178,585 | $209,539 | $202,684 | $211,767 | $179,763 | $230,583 |
| Net Cash Provided by Operating Activities | $227,691 | $232,044 | $237,019 | $247,117 | $225,397 | $251,932 |
| Purchases of Property, Plant, and Equipment | $(3,360) | $(3,428) | $(42,925) | $(75,556) | $(16,116) | $(6,493) |
| Net Cash Flow | $224,330 | $228,617 | $194,094 | $171,561 | $209,281 | $245,439 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,937 | 1,723 | 2,242 | 1,568 | 2,285 | 1,637 |
| Total Revenue | $627,878 | $570,149 | $756,717 | $540,176 | $803,092 | $587,274 |
| EBITDA | $307,130 | $261,187 | $301,089 | $241,080 | $421,465 | $261,759 |
| Net Income | $201,018 | $156,255 | $247,475 | $139,739 | $281,600 | $160,070 |
| Net Cash Provided by Operating Activities | $248,316 | $207,078 | $272,041 | $211,121 | $285,491 | $228,402 |
| Purchases of Property, Plant, and Equipment | $(25,860) | $(72,719) | $(39,361) | $(12,940) | $(20,396) | $(34,296) |
| Net Cash Flow | $214,456 | $134,359 | $232,679 | $198,181 | $265,095 | $194,106 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,982 | 1,477 | 1,857 | 1,616 | 1,993 | 1,385 |
| Total Revenue | $725,512 | $551,606 | $707,457 | $628,246 | $790,874 | $528,487 |
| EBITDA | $356,300 | $233,497 | $334,352 | $278,449 | $389,504 | $199,352 |
| Net Income | $224,911 | $128,018 | $209,340 | $168,393 | $251,821 | $107,463 |
| Net Cash Provided by Operating Activities | $252,946 | $200,997 | $235,620 | $222,633 | $275,062 | $188,238 |
| Purchases of Property, Plant, and Equipment | $(42,736) | $(61,764) | $(27,589) | $(31,659) | $(4,613) | $(38,355) |
| Net Cash Flow | $210,209 | $139,233 | $208,030 | $190,974 | $270,449 | $149,882 |
|  | YE12/31 2005 | YE12/31 2006 | YE12/31 2007 | YE12/31 2008 | YE12/31 2009 | YE12/31 2010 |
| Production & Sales tonnes | 1,637 | 1,612 | 1,747 | 1,355 | 1,731 | 1,752 |
| Total Revenue | $676,274 | $679,478 | $751,249 | $594,733 | $775,168 | $900,781 |
| EBITDA | $301,607 | $299,832 | $348,917 | $215,004 | $356,524 | $378,911 |
| Net Income | $176,267 | $169,679 | $213,755 | $117,501 | $219,452 | $235,930 |
| Net Cash Provided by Operating Activities | $211,547 | $229,125 | $256,552 | $190,242 | $246,204 | $284,008 |
| Purchases of Property, Plant, and Equipment | $(81,778) | $(76,560) | $(4,993) | $(5,093) | $(47,001) | $ |
| Net Cash Flow | $129,769 | $152,566 | $251,558 | $185,149 | $199,203 | $284,008 |

MARSHA MILLER ASSOCIATES, INC.

54

![VCS64p210 logo]()

![PGP logo]()  
 **PGP**  
 Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

|  | YE12/31 2000 | YE12/31 2009 | YE12/31 2100 | YE12/31 2101 | YE12/31 2102 | YE12/31 2103 |
| --- | --- | --- | --- | --- | --- | --- |
| Production & Sales tonnes | 1,387 | 916 | 393 | - | - | - |
| Total Revenue | $646,856 | $435,993 | $190,649 | $- | $- | $- |
| EBITDA | $266,452 | $177,489 | $71,896 | $- | $- | $- |
| Net Income | $157,157 | $132,037 | $52,032 | $- | $- | $- |
| Net Cash Provided by Operating Activities | $224,663 | $61,085 | $(105,016) | $- | $- | $- |
| Purchases of Property, Plant, and Equipment | $- | $- | $- | $- | $- | $- |
| Net Cash Flow | $224,663 | $61,085 | $(105,016) | $- | $- | $- |

- Financial model includes 0.9 million tonnes of inferred coal production. Inferred coal represents 0.6% of the total production, and none of this coal was included in the estimate of reserves.

### 19.3 Sensitivity

Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.

**Figure 19-2: Sensitivity of NPV**

![img-0.jpeg](img-0.jpeg)

As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly sensitive to changes in capital cost estimates.

MARSHAL MILLER ASSOCIATES, INC.

55

![Creative Commons License Icon]() CC-BY-4.0

![Coronado Global Resources logo]()  
PepiCoronado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Mon Valley Complex Upper Freeport Holdings  
in Accordance with the JORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

## 20 Adjacent Properties

### 20.1 Information Used

No Proprietary information associated with neighboring properties was used as part of this study.

## 21 Other Relevant Data and Information

MM&A performed a previous audit of the Property in 2017 for Coronado based on SEC Industry Guide 7 standards. MM&A has subsequently conducted Joint Ore Reserve Committee (JORC) compliant resource and reserve assessments of the Mon Valley assets as of: (1) December 31, 2017, (2) December 31, 2020, and (3) December 31, 2021. By assignment, the JORC assessment included a preliminary feasibility level study of the subject coal reserves, encompassing detailed mine planning and cost analysis through depletion of Mon Valley's JORC-compliant coal reserves. MM&A utilized these former preliminary feasibility studies as the basis of an updated study which meets those standards set forth by the JORC Code and SEC.

## 22 Interpretation and Conclusions

### 22.1 Conclusion

Sufficient data has been obtained through various exploration and sampling programs and mining operations to support the geological interpretations of seam structure and thickness for coal horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably support the coal resource and coal reserve estimates in this TRS.

The geological data and preliminary feasibility study, which consider mining plans, revenue, and operating and capital cost estimates are sufficient to support the classification of coal reserves provided herein.

This geologic evaluation conducted in conjunction with the preliminary feasibility study is sufficient to conclude that the 134.4 Mt of marketable underground coal reserves identified on the Property are economically mineable under reasonable expectations of market prices for metallurgical coal products, estimated operation costs, and capital expenditures.

### 22.2 Risk Factors

Risks have been identified for operational, technical and administrative subjects addressed in the Pre-Feasibility Study. A risk matrix has been constructed to present the risk levels for all the risk factors identified and quantified in the risk assessment process. The risk matrix and risk assessment process are modeled to that presented in the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

---

MARSHALL MILLER ASSOCIATES INC.

56

ec964p20

pupCoronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

The purpose of the characterization of the project risk components is to inform the project stakeholders of key aspects of the Coronado projects that can be impacted by events whose consequences can affect the success of the venture. The significance of an impacted aspect of the operation is directly related to both the probability of occurrence and the severity of the consequences. The initial risk for a risk factor is herein defined as the risk level after the potential impact of the risk factor is addressed by competent and prudent management utilizing control measures readily available. Residual risk for a risk factor is herein defined as the risk level following application of special mitigation measures if management determines that the initial risk level is unacceptable. Initial risk and residual risk can be quantified numerically, derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

The probability and consequence parameters are subjective numerical estimates made by practiced mine engineers and managers. Both are assigned values from 1 to 5 for which the value 1 represents the lowest probability and least consequence, and the value 5 represents the highest probability and greatest consequence. The products, which define the Risk Level, are classified from very low to very high.

Risk Level Table (R = P x C)

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Risk aspects identified and evaluated during this assignment total 13. No residual risks are rated Very High. Four (4) residual risks are rated High. Six (6) of the risk aspects could be associated with Moderate residual risk. Three (3) of the risk aspects were attributed Low or Very Low residual risks.

#### 22.2.1 Governing Assumptions

The listing of the aspects is not presumed to be exhaustive. Instead that listing is presented based on the experiences of the contributors to the TRS.

1. The probability and consequence ratings are subjectively assigned, and it is assumed that this subjectivity reasonably reflects the condition of the active and projected mine operations.
2. The Control Measures shown in the matrices presented in this chapter are not exhaustive. They represent a condensed collection of activities that the author of the risk assessment section has observed to be effective in coal mining scenarios.
3. Mitigation Measures listed for each risk factor of the operation are not exhaustive. The measures listed, however, have been observed by the author to be effective.
4. The monetary values used in ranking the consequences are generally-accepted quantities for the coal mining industry.

MARSHA MILLER ASSOCIATES INC.

37

![Logo]() sc064p20

p.p. Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

### 22.2.2 Limitations

The risk assessment proposed in this report is subject to the limitations of the information currently collected, tested, and interpreted at the time of the writing of the report.

### 22.2.3 Methodology

The numerical quantities (i.e., risk levels) attributable to either “initial” or “residual” risks are derived by the product of values assigned to probability and consequence ranging from very low risk to very high risk.

$$R = P \times C$$

Where:  $R$  = Risk Level  
  $P$  = Probability of Occurrence  
  $C$  = Consequence of Occurrence

The Probability (P) and Consequence (C) parameters recited in the formula are subjective numerical estimates made by practiced mine engineers and managers. Both P and C are assigned integer values ranging from 1 to 5 for which the value 1 represents the lowest probability and least consequence, and the value 5 represents the highest probability and greatest consequence. The products ( $R = P \times C$ ) which define the Risk Level, are thereafter classified from very low to very high.

**Risk Level Table**

| Risk Level (R) |
| --- |
| Very Low (1 to 2) |
| Low (3 to 5) |
| Moderate (6 to 11) |
| High (12 to 19) |
| Very High (20 to 25) |

Very high initial risks are considered to be unacceptable and require corrective action well in advance of project development. In short, measures must be applied to reduce very high initial risks to a tolerable level.

As shown and discussed above, after taking into account the operational, technical, and administrative actions that have been applied or are available for action when required, the residual risk can be determined. The residual risk provides a basis for the management team to determine if the residual risk level is acceptable or tolerable. If the risk level is determined to be unacceptable, further actions should be considered to reduce the residual risk to acceptable or tolerable levels to provide justification for continuation of the proposed operation.

### 22.2.4 Development of the Risk Matrix

Risks have been identified for the technical, operational, and administrative subjects addressed in the TRS. The risk matrix and risk assessment process are modeled to that presented in the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).

MARSHALL MILLER ASSOCIATES INC.

58

![Social media icons]() socialmedia

pupCormado Global Resources Inc.  
Statement of Coal Resources and Reserves for the  
Man Valley Complex Upper Freeport Holdings  
in Accordance with the IORC Code and  
United States SEC Regulation S-K 1300 as of December 31, 2022  
Northern Appalachian Coal Basin  
Pennsylvania, USA

### 22.2.4.1 Probability Level Table

**Table 22-1: Probability Level Table**

| Category | Probability Level (P) |  |  |
| --- | --- | --- | --- |
| 1 | Remote | Not likely to occur except in exceptional circumstances. | <10% |
| 2 | Unlikely | Not likely to occur; small in degree. | 10 - 30% |
| 3 | Possible | Capable of occurring. | 30 - 60% |
| 4 | Likely | High chance of occurring in most circumstances. | 60 - 90% |
| 5 | Almost Certain | Event is expected under most circumstances; impossible to avoid. | >90% |

The lowest rated probability of occurrence is assigned the value of 1 and described as remote, with a likelihood of occurrence of less than 2 percent. Increasing values are assigned to each higher probability of occurrence, culminating with the value of 5 assigned to incidents considered to be almost certain to occur.

### 22.2.4.2 Consequence Level Table

Table 22-2 lists the consequence levels.

MARSHALL MILLER ASSOCIATES, INC.

59

xq064p210

pupCoronado Global Resources Inc.

Statement of Coal Resources and Reserves for the

Max Valley Complex Upper Freeport Holdings

in Accordance with the IORC Code and

United States SEC Regulation S-K 1300 as of December 31, 2022

Northern Appalachian Coal Basin

Pennsylvania, USA

Table 22-2: Consequence Level Table

| Category | Severity of the Event | Financial Impact of the Event | Correlation of Events in Key Elements of the Project Program to Event Severity Category |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | Unplanned Loss of Production (Impact on Commercial Operations) | Events Impacting on the Environment | Events Affecting the Program's Social and Community Relations | Resultant Regulatory / Sewerage Risk | Events Affecting Occupational Health & Safety |
| 1 | Insignificant | < USD $0.5 million | ≤ 12 hours | Insignificant loss of habitat; no irreversible effects on water, soil and the environment. | Occasional nuisance impact on travel. | - | Event recurrence avoided by corrective action through established procedures (Engineering, guarding, training). |
| 2 | Minor | USD $0.5 million to $2.0 million | ≤ 1 day | No significant change to species populations; short-term reversible perturbation to ecosystem function. | Persistent nuisance impact on travel. Transient adverse media coverage. | - | First aid - lost time. Event recurrence avoided by corrective action through established procedures. |
| 3 | Moderate | USD $2.0 million to $10.0 million | ≤ 1 week | Appreciable change to species population; medium-term (≤10 years) detriment to ecosystem function. | Measurable impact on travel and water/air quality. Significant adverse media coverage / transient public outrage. | Uncertainty securing or retaining essential approval / license. | Medical Treatment - permanent incapacitation. Avoiding event recurrence requires modification to established corrective action procedures. |
|  |  |  |  |  |  | Change to regulations (tax; bonds; standards). |  |
| 4 | Major | USD $10.0 million to $50.0 million | 1 to 2 weeks | Change to species population threatening viability; long-term (>10 years) detriment to ecosystem function. | Long-term, serious impact on travel and use of water resources; degradation of air quality; sustained and effective public opposition. | Suspension / long-delay in securing essential approval / license. | Fatality. Avoiding event recurrence requires modification to established corrective action procedures and staff retraining. |
|  |  |  |  |  |  | Change to laws (tax; bonds; standards). |  |
| 5 | Critical | >USD $50.0 million | >1 month | Species extinction; irreversible damage to ecosystem function. | Loss of social license. | Withdraw / failure to secure essential approval / license. | Multiple fatalities. Avoiding event recurrence requires major overhaul of policies and procedures. |

MARSHALMILLE & ASSOCIATES, INC.

60

![DRAFT logo]() DRAFT

PepCormado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

The lowest rated consequence is assigned the value of 1 and is described as Insignificant Consequence, parameters of which include non-reportable safety incidents with zero days lost accidents, no environmental damage, loss of production or systems for less than one week and cost of less than USD $0.5 million. Increasing values are assigned to each higher consequence, culminating with the value of 5 assigned to critical consequences, the parameters of which include multiple-fatality accidents, major environmental damage, and loss of production or systems for longer than one month and cost of greater than USD $50.0 million.

### Composite Risk Matrix R = P x C and Color-Code Convention

The risk level, defined as the product of probability of occurrence and consequence, ranges in value from 1 (lowest possible risk) to 25 (maximum risk level). The values are color-coded to facilitate identification of the highest risk aspects.

**Table 22-3: Risk Matrix**

| P x C = R |  | Consequence (R) |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Insignificant | Minor | Moderate | Major | Critical |
|  |  | 1 | 2 | 3 | 4 | 5 |
| Probability Level (P) | Remove 1 | 1 | 2 | 3 | 4 | 5 |
|  | Unlikely 2 | 2 | 4 | 6 | 8 | 10 |
|  | Possible 3 | 3 | 6 | 9 | 12 | 15 |
|  | Likely 4 | 4 | 8 | 12 | 16 | 20 |
|  | Almost Certain 5 | 5 | 10 | 15 | 20 | 25 |

#### 22.2.5 Categorization of Risk Levels and Color Code Convention

Very high risks are considered to be unacceptable and require corrective action. Risk reduction measures must be applied to reduce very high risks to a tolerable level.

#### 22.2.6 Description of the Coal Property

The Mon Valley Reserve (including Pangburn, Shaner and Fallowfield Areas) is located in Allegheny, Washington, and Westmoreland Counties, Pennsylvania. Mon Valley underground operations are projected to commence in 2032 at the Mon Valley Complex in the large Upper Freeport seam reserve area. Three mines are planned, and each will utilize continuous mining methods. The initial operation is designated as the Pangburn Mine; subsequently, the Shaner Mine is projected for 2038 and followed by the Fallowfield Mine in 2057. The operations are projected to utilize continuous mining production sections. The method provides continuity, preserving skilled work groups and enabling effective utilization of production equipment. The Upper Freeport seam is below drainage and therefore all mines will be accessed with slopes and shafts.

MARSHALL MILLER ASSOCIATES, INC.

61

![Logo]()2014/20

pupCoronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

### 22.2.7 Summary of Residual Risk Ratings

Each risk factor is numbered, and a risk level for each is determined by multiplying the assigned probability by the assigned consequence. The risk levels are plotted on a risk matrix to provide a composite view of the Coronado risk profile. The average risk level is 8.4, which is defined as Moderate.

**Table 22-4: Risk Assessment Matrix**

| Consequence | Risk Factor |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | <10% Remote | 10-30% Unlikely | 30-60% Possible | 60-90% Likely | >90% Almost Certain |  |
| Critical | >$50 MM | 9, 10 |  |  |  |  |
| Major | $10-50MM |  | 4 | 1, 2, 3 | 6 |  |
| Moderate | $2-10 MM |  | 12 |  |  |  |
| Minor | $0.5-$2 MM |  |  | 7, 13 | 5 | 8 |
| Low | <$0.5 MM |  |  | 11 |  |  |

### 22.2.8 Risk Factors

A high-level approach is utilized to characterize risk factors that are generally similar across a number of the active and proposed mining operations. Risk factors that are unique to a specific operation or are particularly noteworthy are addressed individually.

#### 22.2.8.1 Geological and Coal Resource

Coal mining is accompanied by risk that, despite exploration efforts, mining areas will be encountered where geological conditions render extraction of the resource to be uneconomic, or that coal quality characteristics disqualify the product for sale into target markets.

To illustrate these points, the Upper Freeport coal seam deposits at Mon Valley are examined. The coal is deposited in large, elliptical pods. During deposition, the raised peat deposits were surrounded by areas void of peat and deposited instead with dirt, clay, and stream channels. Consequently, the perimeter of the peat, and consequent coal deposits may contain significantly higher concentration of ash and sulfur, and reduced product yield. The perimeter deposits may also be affected by immediate roof and floor conditions that adversely affect mining cost and productivity. Meandering sandstone channels may reduce coal seam thickness by scouring action at the top of the coal seam and support the migration of sulfur to the Upper Freeport seam.

MARSHALL MILLER ASSOCIATES INC.

42

![WCSG4210 logo]()

![Coronado Global Resources Inc. logo]()pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

Offsetting the geological and coal resource risk are the massive size of the controlled property which allows large areas to be mined in the three designated mine areas sufficiently away from areas where coal quality and mineability are less favorable. In addition, the mines are designed to operate with multiple production sections, which lessens the immediate impact when one section encounters difficulties. The large reserve areas also provide a mitigation strategy of developing an additional (spare) section at each mine which can be activated when adverse conditions are encountered, thereby maintaining consistent production and quality. The spare section requires additional mine extension cost but increases flexibility and performance consistency.

**Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Recoverable coal tares recognized to be significantly less than previously estimated. | Reserve base is adequately served market commitments and respond to opportunities for many years. Local adverse conditions may increase frequency and cost production unit relocations. | Previous and ongoing exploration and extensive regional mining history provide a high level of confidence of coal seams, and coal resource tonnes. | 4 | 4 | 10 | Optimize mine plan to increase resource recovery; develop mine plan to provide readily available alternate mining locations to sustain expected production level. | 3 | 4 | 12 |
| Coal quality locally proves to be lower than initially projected. | If uncontrolled, production sale of coal that is out of specification can result in rejection of deliveries, cancellation of coal sales agreements and damage to reputation. | Exploration and vast experience and history in local coal seams provide confidence in coal quality; limited excursions can be managed with careful product segregation and blending. | 3 | 5 | 15 | Develop mine plan to provide readily available alternate mining locations to sustain expected production level; modify coal sales agreements to reflect coal quality. | 3 | 4 | 12 |

#### 22.2.8.2 Environmental

Water quality and other permit requirements are subject to modification and such changes could have a material impact on the capability of the operator to meet modified standards or to receive new permits and modifications to existing permits. Permit protests may result in delays or denials to permit applications.

MARSHAL MILLER ASSOCIATES INC.

43

![WIS logo]() wIS64p20

pupCormado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Men Valley Complex Upper Freeport Holdings  
 in Accordance with the JORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

Environmental standards and permit requirements have evolved significantly over the past 50 years and to-date, mining operators and regulatory bodies have been able to adapt successfully to evolving environmental requirements.

The Residual Risk has is projected to be slightly higher for the PA reserves due to the proximity of the rivers and the residual environmental complaints, in the vicinity, left from mining in the past.

**Table 22-6: Environmental (Risks 3 and 4)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Environmental performance standards are modified in the future | Delays in receiving new permits and modifications to existing permits; cost of testing and treatment of water and soils | Work with regulatory agencies to understand and enhance final standards; implement testing, treatment and other actions to comply with new standards. | 3 | 4 | 12 | Modify mining and reclamation plans to improve compliance with new standards while reducing cost of compliance. | 3 | 4 | 12 |
| New permits and permit modifications are increasingly delayed or denied. | Interruption of production and delayed implementation of replacement production from new mines. | Comply quickly with testing, treatment and other actions required; continue excellent compliance performance within existing permits. | 2 | 4 | 8 | Establish and maintain close and constructive working relationships with regulatory agencies, local communities and community action groups. | 2 | 4 | 8 |

### 22.2.8.3 Regulatory Requirements

Federal and state health and safety regulatory agencies occasionally amend mine laws and regulations. The impact is industry-wide. Mining operators and regulatory agencies have been able to adapt successfully to evolving health and safety requirements.

**Table 22-7: Regulatory Requirements (Risk 5)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Federal and state mine safety and health regulatory agencies amend mine laws and regulations. | Cost of training, materials, supplies and equipment; modification of mine examination and production procedures; modification of mining plans. | Participate in hearings and workshops when possible to facilitate understanding and implementation; work cooperatively with agencies and employees to facilitate implementation of new laws and regulations. | 4 | 3 | 12 | Familiarity and experience with new laws and regulations results in reduced impact to operations and productivity and improved supplies and equipment options. | 4 | 2 | 8 |

### 22.2.8.4 Market and Transportation

Most of the current and future production is expected to be directed to domestic and international metallurgical markets. Historically the metallurgical markets have been cyclical and highly volatile.

MARSHALL MILLER ASSOCIATES, INC.

64

![WCS64p20 logo]()

pupCormado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

The Mon Valley business plan assumes that 75 percent of production can be sold into the favorably priced metallurgical market. The mining plan must minimize exposure to the perimeter reserves where quality may not be suitable for the market plan and be flexible to manage exposure to areas where coal quality fails to meet metallurgical standards.

**Table 22-8: Market and Transportation (Risks 6 and 7)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Volatile coal prices drop precipitously. | Loss of revenue adversely affects profitability; reduced cash flow may disrupt capital expenditures plan. | Cost control measures implemented; capital spending deferred. | 4 | 5 | 9 | High-cost operations closed; and employees temporarily furloughed. | 4 | 4 | 16 |
| Coal quality at Mon Valley Upper Freeport mines is not adequate support 100 percent metallurgical sales. | Reduced revenue from a percentage of thermal sales; separates financial performance and expectations. | Lower preparation plant gravities for ash and sulfur reduction; segregate lower quality coal when possible and manage shipped quality by blending. | 3 | 5 | 15 | Adjust mine plan to keep minimize exposure to perimeter coal and sandstone channels; provide spare section to sustain production and quality when low quality areas are encountered. | 3 | 2 | 6 |

Occasional delay or interruption of rail, river and terminals service may be expected. The operator can possibly minimize the impact of delays by being a preferred customer by fulfilling shipment obligations promptly and maintaining close working relationships.

**Table 22-9: Market and Transportation (Risk 8)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Rail or river transport is delayed; storage and shipping access at river and ocean terminals is available. | Fulfillment of coal sales agreements delayed; limited coal storage at mines may increase cost of rehandling; production may be temporarily idled. | Provide adequate storage capacity at mines; coordinate continuously with railroad and shipping companies to respond quickly and effectively to changing circumstances. | 5 | 3 | 15 | Provide back-up storage facility along with personnel, equipment and rehandle plan to sustain production and fulfill sales obligations timely. | 5 | 2 | 10 |

### 22.2.8.5 Mining Plan

Occupational health and safety risks are inherent in mining operations. Comprehensive training and retraining programs, internal safety audits and examinations, regular mine inspections, safety meetings, along with support of trained fire brigades and mine rescue teams are among activities that greatly reduce accident risks. Employee health monitoring programs coupled with dust and noise monitoring and abatement reduce health risks to miners.

MARSHALL MILLER ASSOCIATES INC.

45

![Scotia 2010 logo]()

![Coronado Global Resources Inc. logo]()pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Men Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

As underground mines are developed and extended, observation of geological, hydrogeological and geotechnical conditions lead to modification of mine plans and procedures to enable safe work within the mine environments.

Highlighted below are selected examples of safety and external factors relevant to Coronado operations.

### 22.2.8.5.1 Methane Management

Coalbed methane is present in coal operations below drainage. Often the methane concentration is at such low levels that it can be readily managed with frequent testing and monitoring, vigilance, and routine mine ventilation. Very high methane concentrations may be present at greater depths. High methane concentrations may require degasification of the coal seam to assure safe mining.

**Table 22-10: Methane Management (Risk 9)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Methane hazard is present in mines operating below drainage. | Injury or loss of life; possible ignition of gas and mine explosion; potential loss of mine and equipment temporarily or permanently; additional mine fan, mine power, ventilation, monitoring and examination requirements | Low to moderate levels can be managed with frequent examinations, testing and monitoring within the mine ventilation system. Excellent rock dust maintenance minimizes explosion propagation risk should an ignition occur. | 1 | 5 | 5 | Very high-level methane concentrations may require coal seam degasification and job degasification if longwall or pillar extraction methods are employed. | 1 | 5 | 5 |

### 22.2.8.5.2 Mine Fires

Mine fires, once common at mine operations, are rare today. Most active coal miners have not encountered a mine fire. Vastly improved mine power and equipment electrical systems, along with safe mine practices reduce mine fire risks. Crew training and fire brigade support and training improve response for containment and control if a fire occurs. Spontaneous combustion within coal mines, which is the source of most fires that occur today, is not expected to commonly occur at the Coronado property. When spontaneous combustion conditions are present, monitoring systems are employed for early detection and mine plans are designed to facilitate isolation, containment and rapid extinguishment.

MARSHALL MILLER ASSOCIATES, INC.

66

ec964p20

pupCormado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Man Valley Complex Upper Freeport Holdings
in Accordance with the IORC Code and
United States SEC Regulation S-K 1300 as of December 31, 2022
Northern Appalachian Coal Basin
Pennsylvania, USA

Table 22-11: Mine Fires (Risk 10)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Mine fire at underground or surface mine operations | Injury or loss of life; potential loss of mine temporarily or permanently; damage to equipment and mine infrastructure. | Inspection and maintenance of mine power; equipment and mine infrastructure; good housekeeping; frequent examination of conveyor belt entries; prompt removal of accumulations of combustible materials. | 1 | 5 | 5 | If spontaneous combustion conditions are present, enhanced monitoring and examination procedures will be implemented; mine design will incorporate features to facilitate isolation, containment and extinguishment of spontaneous combustion locations. | 1 | 5 | 5 |

### 22.2.8.5.3 Availability of Supplies and Equipment

The industry has periodically experienced difficulty receiving timely delivery of mine supplies and equipment. Availability issues often accompanied boom periods for coal demand. Any future delivery of supplies and equipment delays are expected to be temporary with limited impact on production.

Table 22-12: Availability of Supplies and Equipment (Risk 11)

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Disruption of availability for supplies and equipment. | Temporary interruption of production. | Fence majeure provision in coal sales agreements to limit liability for delayed or lost sales. | 3 | 2 | 5 | Work closely with customers to assure delayed coal delivery rather than cancelled sales; monitor external conditions and increase inventory of critical supplies; accelerate delivery of equipment when possible. | 3 | 1 | 5 |

### 22.2.8.5.4 Labor

Work stoppage due to labor protests are considered to be unlikely and accompanied by limited impact should it occur. Excellent employee relations and communications limit the exposure to outside protesters. Loss of supervisors and skilled employees to retirement is inevitable; the impact can be lessened with succession planning, training, and mentorship of new employees.

MARSHALL MILLER ASSOCIATES, INC.

47

![SCS 064p20 logo]()

![Coronado Global Resources Inc. logo]()pp Coronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Man Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

These will be new mines in an historically United Mine Workers of America (UMWA) represented area. Newer mines in the area are not represented so the precedent has been set. However, the Residual risk is shown as slightly elevated over some other Coronado properties.

**Table 22-13: Labor - Work Stoppage (Risk 12)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Work stoppage due to strikes, slowdowns or secondary boycott activity. | Loss of production and cost sales; damaged customer employee relations; repulses loss. | Maintain excellent employee relations and communications; maintain frequent customer communications. | 2 | 3 | 6 | Develop plan for employee communications and legal support to minimize impact of secondary boycott activities. | 2 | 3 | 6 |

**Table 22-14: Labor - Retirement (Risk 13)**

| Aspect | Impact | Control Measures | Initial Risk Level |  |  | Mitigation Measures | Residual Risk Level |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | P | C | R |  | P | C | R |
| Retirement of superiors and skilled employees. | Loss of leadership and critical skills to sustain high levels of safety, maintenance and productivity. | Monitor demographics closely and maintain communications with employees who are approaching retirement age; maintain employee selection and training programs. | 3 | 3 | 9 | Maintain selection candidates and implementation of house or third-party training for electricians and mechanics; develop employee mentoring program. | 3 | 2 | 6 |

## 23 Recommendations

Coronado is continuing to work both internally and with outside assistance to further define their Resource Base and to Optimize the LOM Plan.

## 24 References

Publicly available information from various State and Federal agencies was used where relevant.

MARSHALL MILLER ASSOCIATES, INC.

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![Logo]() sc064p20

pupCoronado Global Resources Inc.  
 Statement of Coal Resources and Reserves for the  
 Mon Valley Complex Upper Freeport Holdings  
 in Accordance with the IORC Code and  
 United States SEC Regulation S-K 1300 as of December 31, 2022  
 Northern Appalachian Coal Basin  
 Pennsylvania, USA

## 25 Reliance on Information Provided by the Registrant

A summary of the information provided by Coronado relied upon by MM&A for the purposes of this TRS is provided in *Table 25-1*.

**Table 25-1: Information from Registrant Relied Upon by MM&A**

| Category | Information Provided by Coronado | Report Section |
| --- | --- | --- |
| Marketing | Long-term price forecast used in financial projections | 16.2 |
| Legal | Mineral control and surface control rights as shown on maps | 3.2, 3.3 |
| Environmental | Permit and bonding information | 17.3 |

MARSHAL MILLER ASSOCIATES INC.

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