Ronin Resources Limited provided the following Exploration & Business Development Update. Further to recent announcements, the Company remains onsite alongside its selected drilling contractor finalising preparations for 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. The recent Colombian Presidential elections (29 May 2022) have slowed this process, on account of the run-off election required (19 June 2022) and the election of Colombia's first leftist President.

Separately, the Company continues to draw upon the experience of its Directors to seek to opportunistically identify and acquire new business development opportunities. To date, the Company has reviewed a number of opportunities and high-level due diligence remains ongoing. The Company will keep shareholders informed of its exploration and business development activities.

The Company's primary asset is its 100% interest in the Vetas Project, which consists of c5,000 hectares hosting a shallow, high tonnage coal deposit. 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 has compiled a database of 11 historical coal holes, 32 petroleum holes and 25 seismic lines, to complement its own surface mapping, satellite imagery and sample collection and analysis. Work conducted to date shows three geological formations that host coal within the Vetas Project. Within these formations there are at least five coal-bearing zones.

The most productive coal mines in Colombia are located in the Cesar basin from analogous geological conditions and equivalent coal formations. Contained in Ronin Resources' IPO Prospectus released on the ASX platform on 15 December 2021, Kerry Whitby, the Company's Independent Consulting Geologist, of McElroy Bryan Geological Services has reported a JORC Compliant Exploration Target for the Vetas Project of 20 to 200 million tons, down to a maximum depth of 200 meters, with raw ash typically between 5% and 10%. Most of the exploration target is contained at less than 100m depth.

The Company's maiden diamond drilling campaign is designed to validate the presence, continuity and correlation of coal seams and allow the sampling of all seams at depth. A recent International Energy Agency Press release showed that coal use in power generation remains at or near all-time highs. Following reduced consumption in 2019 and 2020 and driven by a rebound in global economic activity, coal derived power generation increased approximately 9% in 2021.

This increased demand supported the coal price throughout 2021, with coal indices such as the Newcastle benchmark (NEWC) trading above USD 100/t throughout the second half of 2021 and reaching record highs. The first half of CY 2022 has seen a continuation of strong coal prices, largely driven by concerns over potential disruptions to Ukrainian and Russian supply. In a trend that the Company expects will assist demand for Colombia coal exports, European customers are looking at alternatives to their current Russian coal supply chains.

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.