Bowen Coking Coal Ltd. has announced a significant maiden resource estimate for Hillalong South, the southern part of the Company's Hillalong Project owned 90% by Bowen and 10% by Japanese conglomerate, Sumitomo Corporation. The 44Mt resource was estimated in accordance with the JORC Code (2012) and classified as 26Mt in the Indicated category and 18Mt in the Inferred category. Bowen CEO and Managing Director, Mr. Gerhard Redelinghuys, said the Total Resource for the Hillalong Project was now 87Mt, of which 47Mt is classified in the Indicated category and 40Mt as Inferred. With regard to the Hillalong coal quality, the laboratory data for product quality and washability of Hillalong South in the 2020 exploration program was very encouraging and demonstrated the potential to wash a low ash primary coking coal with secondary PCI coal for a combined yield up to 89% from the holes that were not affected by igneous intrusions1. Sumitomo currently holds 10% of the Hillalong project last year after spending $2.5m during Phase 1 of their farm-in agreement. Phase 2a is currently underway wherein Sumitomo will spend a further $2.5m to earn a further 5% in the project. Sumitomo then have the option to earn an additional 5% in the project by spending another $2.5m on Phase 2b to take their total holding up to 20%. One of the program's key objectives was to demonstrate the seam continuance along the strike length of Hillalong South. The 2019 exploration program encountered the main target seams (Elphinstone and Hynds Upper) between 116m and 167m deep with an average thickness of 5.6m for the Elphinstone seam and 2.5m for the Hynds Upper seam2. A resource estimate was not able to be completed for Hillalong South at the time due to hole HIL011 not intersecting coal, as it was it interpreted to be drilled into a fault. In the most recent program hole HIL055 was drilled close to this location and has encountered both the target seams at a combined thickness of more than 7m which provides a good indication of the seam continuance over the southern area of the Hillalong Project to support this new maiden Resource result. The Hillalong Project comprises EPC2141 and EPC 1824, which are located in the northern Bowen Basin, in central Queensland approximately 100km west-south-west of Mackay and 5km east of Glenden. The Project is 10km by road southeast of Glenden and approximately 65 km by road northwest of Nebo. Access is via the sealed Suttor Development and Collinsville-Elphinstone roads and then via unsealed access roads through pastoral properties. The Hillalong project area lies within the Permo-Triassic Bowen Basin. Coal seams occur within the Rangal Coal Measures and underlying Fort Cooper Coal Measures which are Late Permian in age. Coal seams in the Hillalong South deposit generally dip to the west at with dips from 10 - 45 degrees. The main target seams are the Elphinstone and Hynds Upper seams in the Rangal Coal Measures, which are extensively mined in the area. The drill hole density (core and chip) and a 2D seismic program in the Hillalong South deposit allow for a good level of confidence in seam splitting, seam thickness, coal quality and location of sub-crop lines. Open drill holes in the 2020 and 2021 programs were completed with blade, PCD and hammer bits. Each core hole was drilled at the diameter of 124 mm and core was extracted with a conventional 102 mm core barrel. Chip holes were geologically logged and geotechnical features reported. All holes were geophysically logged and core samples were taken at 0.5 m intervals including roof and floor samples before being dispatched to Bureau Veritas' lab in Mackay. Linear core recoveries of >95% were generally achieved. Samples were analysed by Bureau Veritas according to Australian standards for coal quality testing and, once modelled, has resulted in the raw coal quality. Key raw qualities analysed were moisture, ash, volatile matter, sulphur, CSN and calorific value. Further fast float and washability tests are underway to test potential product qualities. The coal resource has been estimated in accordance with the JORC Code (JORC 2012) and utilising the Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves (Coalfields Geology Council of NSW and the Queensland Mining Council, 2014). Six partly cored boreholes within the Hillalong South area qualified as Points of Observation. Coal quality drilling is located with the maximum distance between Points of Observation of ~500m For the coal resource, qualification for a Point of Observation includes: A cored target coal seam, Geophysically logged, Data points that sufficiently establish seam thickness and quality continuity, Raw coal quality data, and Coal core recovery generally >90%. The seam structural continuity is well supported by the structural drilling and structural interpretation, resulting from the seismic program undertaken by Rio Tinto (2013) and recently by the Company in First Quarter this year. The base of weathering is observed between 25m and 30m. The Resource estimate was constrained (cut-off) according to: Spatial distribution of Points of Observation, Confidence in seam structure and coal quality continuity, Lease boundaries, Depth to seam floor constraints determining potential industry standard extraction method ( 200m to 300m underground assumption), Raw ash values less than 50% adb, Seam thickness greater than 0.3 m for Opencut Resource. Two resource categories (Indicated and Inferred) have been identified within the Hillalong South area, depending on the level of confidence in the seam structure and continuity plus the level of variability in the coal quality data and depth of cover. Drill holes and seismic sections provide the basis for structural/thickness continuity. Points of observation have been used to establish coal quality continuity with drill hole spacing of generally 500m. The assessment of reasonable prospects for eventual economic extraction has been based on a likely scenario of opencut strip mining transitioning to underground mining over time. There appears to be adequate room for all required spoil dumps and on-site infrastructure. The same coal seams have been exploited in numerous surrounding mines and their quality characteristics are very well understood. Raw coal quality results are in line with those observed in the 2020 program. Fast float and washability analysis are underway which will give a more definitive indication of the potential final product quality. Work has already commenced on the second part of the phase 2a program which will target a potential extension of both the Hillalong North and Hillalong South resource areas.