New Age Exploration Limited provided the following overview of its Lochinvar metallurgical coal project located on the boarder of England and Scotland in the United Kingdom. The project consists of three adjacent exploration and conditional underground mining licences known as Lochinvar, Lochinvar North and Lochinvar South. All three licences are 100% owned by NAE.

In October 2014, NAE completed the initial Lochinvar Scoping Study with Palaris Australia Pty Ltd. (Palaris), which confirmed the potential for a low cost long life 1.9Mtpa long wall mining project to deliver 1.4Mpta metallurgical coal to UK and European markets. The Scoping Study was updated in March 2017 and delivered a robust set of economics highlighted by a post-tax NPV9% of USD 410 million with and IRR of 27% and a payback of 4 years using the prevailing Hard Coking Coal (HCC) spot price US$160/t at the time. A total estimated metallurgical coal resource of 111 Mt1 comprising 49 Mt Indicated Resource and 62Mt Inferred Resource was defined within the Lochinvar licence for the Nine Foot and Six Foot Seams in combination, located within the Lochinvar project area.

The Resource Estimate was based on 9 holes drilled by the National Coal Board (NCB) from 1979 through to 1983 and 10 holes drilled by NAE in 2013 and 2014. An Exploration Target of 31 ­ 64 Mt was also identified which includes both the Lochinvar and Lochinvar South Leases and was reported in the same report as the Resource Estimate.1 A further Exploration Target for the Lochinvar North licence of 77-142 Mt was estimated by Palaris in April 20194. Further details in respect of Exploration Targets, including the level of exploration activity on which the estimates are based, and the exploration intended to test the Exploration Targets.

The potential quantity and quality of the Exploration Targets is conceptual in nature. Insufficient exploration has been undertaken to estimate a Mineral Resource and it is uncertain that further exploration will result in the estimation of a Mineral Resource. Each of the Resource Estimate and the Exploration Targets were reported under the JORC Code (2012).

Historic exploration at Lochinvar commenced in the 1950's by the National Coal Board (NCB), which sank an initial four boreholes. This work proved the existence of the same sequence of thick coals of the Middle Coal Measures, which had been previously mined at Rowanburn colliery, within the Lochinvar North licence. Lochinvar is ideally located to become a supplier of low cost, high volatile metallurgical coal to the European steel industry as a result of: Located 7km from the main West Coast Main Line railway ­ which links directly to UK steel mills and nearby ports to access European market.

Lower labour rates when compared to Australian mining costs. Lochinvar estimated 1.4Mtpa annual production per the Scoping Study completed in 20173 represents ~12% of UK/Europe High Volatile HCC coking coal imports in 2021. Lochinvar coal enjoys a clear distance and freight cost advantage over competing imported coal and the benefit of regular local deliveries reducing customer inventories.

Metallurgical coal prices recently spiked above US$500/t due to supply/demand imbalances post the Russian invasion of Ukraine. This is well above the KPMG long-term forecast of US$150/t, but NAE expect prices to remain elevated for a number of years due to strong demand, ongoing trade imbalances post the Russia/Ukraine war and a lack of investment in new mine capacity due to environmental constraints.