Allegiance Coal Limited announce it has finalised the Project Description for its Tenas Metallurgical Coal Project. The Project Description will be lodged with the relevant government agencies in August 2018 to commence the permitting process. The Project Description will now be fed into the Tenas Definitive Feasibility Study and formally submitted to the relevant government agencies in August 2018. The Tenas DFS is scheduled for completion Fourth Quarter 2018. Several important factors contributed to the Project Description: A clear indication from key stakeholders for the Tenas Project to participate in the British Columbia Environmental Assessment Act's environmental review process (EA process); A desire by the Company's shareholders and its potential joint venture partners that it capitalise on current strong demand and pricing for metallurgical coal to increase planned production beyond that allowed by the sub-EA process; A preference from the local community for the transfer of saleable coal from the coal wash-plant to the rail load-out via a dedicated private haul road rather than a public highway; Canadian National Rail's requirement for a 3.5km train rail loop rather than the 1.5km rail siding agreed to and incorporated into the 2017 PFS; The maximum operating capacity of the coal wash-plant, which was to be operated at 240,000 saleable tonnes per annum, but would have an installed capacity of approximately 750,000 saleable tonnes per annum; preference to retain a small operating footprint; and An objective to maintain a low start-up capital expenditure requirement. The material assumptions supporting the information in this announcement, where relevant and unless otherwise stated, are based on: The Company's first PFS in relation to the Telkwa Metallurgical Coal Project targeting a 1.75Mctpa mine across three coal deposits namely Tenas, Goathorn and Telkwa North (Large Mine PFS), previously announced on 3 July 2017; The Company's second PFS focused solely on the Tenas deposit, previously announced on 11 September 2017; and The updated geological model for the Tenas deposit arising from data collected from the February 2018 drill programme, along with a review of all historical data, previously announced on 18 June 2018, supplemented by the Company's announcement of 26 June 2018.