Bowen Coking Coal : Quarterly Activities/Appendix 5B Cash Flow Report

Quarterly Report

For the quarter ended 31 December 2021

onlybowencokingcoal.com.au

usepersonalHighlights For

• Bluff Mine acquisition completed with first coal production targeted for Q1 2022

• Binding agreement signed for the acquisition of the Burton Mine and Lenton Project - completion targeted for Q1 2022

• First coal from Broadmeadow East (part of the Burton Complex) expected Q2 2022
• $11m raised via oversubscribed share placement and $15m debt facility progressed to fully fund initial production at Bluff and Broadmeadow East as metallurgical coal prices hit record levels

Projects

onlyBluff PCI Mine

(ML 80194)

The Bluff Mine (Bluff) is an open cut mine located in the southern Bowen Basin, near the township of Bluff and 20km east of Blackwater. The mine is adjacent to the Blackwater rail line which connects it to the port of Gladstone.

useIn October 2021, Bowen announced it had signed an agreement to acquire Bluff with mining contractor, MACA Ltd, appointed receivers for Carabella. The transaction completed in December 2021 via an issue of Bowen shares to MACA Ltd1.

The coal produced at Bluff is an Ultra-Low Volatile Pulverised Coal Injection (ULVPCI) coal, which typically

attracts a premium in the market for its low ash, high personalenergy and high coke replacement ratio. As of December

2021, ULVPCI was trading at record highs of over US$242 per tonne2.

ForFigure 1. Bluff Mine location

01 Bowen Coking Coal Limited Quarterly Report 31 December 2021

The mine hosts a 13.5 million tonne JORC Resource of ULVPCI which could be mined at a rate of 1.0-1.2 Mtpa Run of Mine over four to six years to supply the global steel industry3. A rapid restart of the mine is underway to maximise exposure to the current high metallurgical coal prices environment.

The Bluff assets include a granted mining lease (ML80194), associated surface infrastructure, 1931ha of grazing land, an approved Environmental Authority to mine to 1.8Mtpa and coal exploration permits EPC1175 and EPC1999.

Bowen has an agreement with the QCoal Group to wash coal from Bluff through their nearby Cook coal handling and processing plant. Negotiations for rail and port access are advanced and strong interest has been received from large regional steel producers with offtake contracts to commence in Q2 2022.

During the quarter, the Company completed the transaction to acquire the Bluff mine and signed a term sheet for $15 million of debt financing from a private credit institution to support the restart of operations at Bluff.

Significant wet weather in the December quarter prevented initial mobilisation and any early works before the end of the year. Off-site work has however advanced significantly with the optimisation of the mine plan and mine redevelopment options. Mobilisation of heavy gear to site is expected early in the new year, weather permitting, post the Christmas wide-load travel restrictions.

The Company has appointed HSE Mining as the contractor to perform the initial works on site to prepare the mine for the recommencement of coal production.

The ULVPCI coal produced at the mine will complement the rest of the Bowen asset portfolio, adding to the product mix of high-quality coal for the steel making industry. The marketing of the Bluff product coal will be handled by the company's 50:50 Marketing Joint Venture with M Resources, a specialist metallurgical coal trading company.

1. Ref ASX Release 29 December - Bluff Mine Update
2. Source S&P Global Platts, International Coal trader (Symbol MCLVA000)
3. Ref ASX Release 26 October 2021 - Option to acquire Bluff Mine Bowen confirms all material assumptions underpinning the production target continue to apply and have not materially changed as per Listing Rule 5.19.2

02 Bowen Coking Coal Limited Quarterly Report 31 December 2021

onlyBurton Lenton Project

(ML 700053, ML 70337, ML 700054, ML 70109, ML 70260, EPC 766, EPC 1675, EPC 865, EPC 857, MDL 349, MDL 315)

The Burton Lenton project is located around 50km south of Bowen's Hillalong Project, and 35km north of the Company's Broadmeadow East Project in the northern

useBowen Basin.

The acquisition of the Burton Coal Mine and New Lenton Project has underpinned Bowen's strategy to become the next significant coking coal producer in the Bowen Basin.

During the quarter, Bowen announced it had signed a binding Share Sale and Purchase Agreement with New Hope

Corporation Limited to purchase their 90% interest in the personalasset. This follows the execution of a binding term sheet in

August 20211.

Lenton is an undeveloped open-cut project with total coal resources of 140 million tonnes (Mt)1. Burton is an adjacent

For

open-cut coal mine currently in care and maintenance which contains three unmined open pit deposits with total coal resources of 64Mt1 and substantial infrastructure, including the 5.5Mtpa Burton Coal Handling and Preparation Plant (CHPP), with a total replacement value of approximately A$300m1.

Post completion at Burton, which is expected in 1Q 2022, the immediate focus will be to recommission the CHPP along with the train load out facility and 350 bed accommodation village and start up coal production from the unmined pits.

The Burton mine has a proven track record for the reliable production of coal that was valued by the steel industry worldwide for its high quality, low ash and low sulphur.

The acquisition underpins Bowen's long-term production plans and provides a hub for future processing of other nearby Bowen projects. It will facilitate the creation of the Burton Complex, which will include Broadmeadow East, targeting up to 5Mtpa1 of long-term Run of Mine production. The initial 1Mtpa of production will be washed through the Fitzroy processing facility, commencing in the first half of 2022.

Burton Processing Plant

1 See ASX Releases 4 August 2021 and 24 December 2021

03 Bowen Coking Coal Limited Quarterly Report 31 December 2021

For personal use only

Broadmeadow East Coking Coal

Mine (ML 70257)

Located around 25km north-east of the coal mining town of Moranbah, Broadmeadow East is a near term mine, with a granted Mining Lease and access to infrastructure.

Studies have indicated a run of mine production target of

0.8 million tonnes per annum (mtpa) to 1.1mtpa over a five- to-seven-year period. Optimisation of these studies are ongoing to accommodate the dynamic price environment and optimum recovery of the resource.

Broadmeadow East forms the first planned pit of the expanded Burton complex. First production will be processed under an infrastructure sharing agreement with Fitzroy (CQ) Pty Ltd, which will fast-track development and minimise the initial capital outlay. Capital raisings in August and November 2021, and drawdown under the debt facility provide sufficient cash resources to fund the commencement of operations, pending final environmental approval1.

The Company eagerly awaits the approval of an amendment to the existing Environmental Authority from the Queensland Department of Environment and Science ("DES") before it can commence mining activities. The Company is in constant discussions with DES and the approval is expected to be obtained in Q1 2022.

During the quarter the Company completed the LOX drilling program which also included 5 coal quality drill holes for marketing and planning around the area south of the powerline. Negotiations are well underway with potential mining contractors and other service providers to facilitate a rapid start-up of operations once the final approvals are in place.

The resource at Broadmeadow East has the flexibility to produce a primary coking coal product of either high quality (7.5% ash, CSN 7.5) or high yield (9.2% ash, CSN 4.5). In both of the primary product cases, the secondary energy coal created from the primary coking coal discard has a calorific value of more than 6,500kcal/kg (ad) which is also a sought- after product for the export coal markets2.

Drilling at Broadmeadow East

1 Ref ASX Release 11 November 2021 - Acquisition and financing of Bluff Mine

2 Average for 6 holes drilled during the 2021 program. See ASX Release 12 February 2021

04 Bowen Coking Coal Limited Quarterly Report 31 December 2021

For personal use only

Hillalong Coking Coal Project

(EPC 1824 | EPC 2141)

Hillalong is located in the northern Bowen Basin approximately 105km west-southwest of Mackay. The tenement is approximately 16km north-west of Rio Tinto's Hail Creek Mine.

In August 2021, Bowen 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.

The 44 million tonne (Mt) resource was estimated in accordance with the JORC Code (2012) and contains 26Mt in the Indicated category and 18Mt in the Inferred category. The Total Resource for the entire Hillalong Project is now 87Mt, of which 47Mt is classified in the Indicated category and 40Mt.

The laboratory data for product coal 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 a secondary PCI coal for a combined yield of up to 89% from the holes that were not affected by igneous instrusions2.

Off-site 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. The program includes seismic acquisition and revised drilling locations to support the outcomes of the latest exploration program. Phase 2A is expected to be completed in the first half of 2022.

Farm-in partner, Sumitomo Corporation, who earned 10% of the project after spending $2.5m on Phase 1 exploration

last year has now spent a further $2.5m to earn a further 5% in the project, bringing their total interest to 15%. At completion of the current Phase 2A program in H1 2022, Sumitomo will have the option to earn an additional 5% of Hillalong by spending another $2.5m on Phase 2B, taking their total holding up to 20%.

Given its close proximity to the Burton Coal Handling and Preparation Plant and infrastructure, Hillalong South has the potential to become a critical building block in the Company's development and growth strategy.

Figure 2. Location of Hillalong Project and its southern and northern areas

1See ASX Release 11 December 2020, 4 May 2020 and 18 November 2019, 31 August 2021 2See ASX Release 27 November 2019, 24 February 2020, 26 March 2020