Ronin Resources Limited provided the following update on its 100% owned Vetas Project. As detailed in recent market updates, the Company has given priority to the preparation and submission of a mine plan (PTO) and the accompanying environmental license application (PMA) modelled on a near-term, low capex mining operation, and seismic interpretation of the Vetas Project. To date, coal quality data made available from trenching and surface samples shows high calorific value coal, in excess of the Colombian thermal export benchmark (API10), which is also low in ash and sulfur.

Samples demonstrate the potential for a direct shipping coal, which would not require washing. As sampled coal was subjected to weathering, true coal quality is potentially slightly-to-moderately better. Samples collected to date support further testing of the coal's suitability for sale in the PCI and Semi Soft Metallurgical Coal Markets.

Compared to other major Colombian producers, where, as a general rule, calorific value and product quality is falling, Vetas Coal may have a market as a blending coal. The Company's December 2021 Prospectus detailed a Use of Funds on the Vetas Project across community & social programs, reinterpretation of existing seismic data, surface mapping, drilling, geochemistry, land taxes, concept mining and environmental assessment. Given the present challenges, the Company has deferred the mapping, drilling and geochemistry programs and prioritized the reinterpretation of existing seismic data, concept mining and environmental assessment.

This reprioritization has resulted in the expansion of the Vetas Project footprint by ~1,600 h.a, through the submission of an additional mining contract applications. Ronin retains a local presence alongside its selected drilling contractor and will initiate its maiden diamond drilling campaign, designed to validate the presence, continuity and correlation of coal seams, and allow the sampling of all seams at depth, when circumstances allow. The Company's revised focus on permitting a near-term, low capex mining operation is made against a strong pricing backdrop which continued throughout the first half of CY 2022, largely driven by concerns over potential disruptions to Russian supply.

In a trend that the Company expects will assist demand for Colombia coal exports, European customers are looking at alternatives to Russian coal supply chains. In a recent market update, the International Energy Agency stated that it expected global coal in CY2022 to increase 0.7% from 2021 levels, following 5.8% growth in 2021 from 2020 levels. At this level, global coal consumption would match the all-time peak reached back in 2013.

Coal indices such as the Newcastle benchmark (NEWC) remain at or near all-time highs, with NEWC currently trading around USD 400/t. Despite significant capital being deployed on low carbon energy generation, industry consultants forecast demand for high-ranking coal, such as that at the Vetas project, remaining out to 2050 and beyond. The Company continues to draw upon the experience of its Directors to seek to opportunistically identify and acquire new business development opportunities. To date Ronin has reviewed a number of opportunities and will keep the market informed as its business development efforts progress.