Tigers Realm Coal : 2021 Annual Report

CONTENTS

01

Our Company

02

Highlights 2021

04

Chairman's Review

06

Chief Executive Officer's Report

08

Reserves and Resources

09

Notes to reserves and resources

10

Operations Review

16

Sustainability Overview

21

Financial Report

Forward Looking Statement

This document contains certain forward-looking statements. The words 'expect', 'anticipate', 'estimate', 'intend', 'believe', 'guidance', 'should', 'could', 'may', 'will', 'predict', 'plan', 'targets', and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates provided in this document are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This document contains such statements that are subject to risk factors associated with the mineral and resources exploration, development and production industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to the following risks: dependence on commodity prices, availability of funding, impact of inflation on costs, exploration risks, including the risks of obtaining necessary licenses and diminishing quantities or grades of reserves, risks associated with remoteness, environmental regulation risk, currency and exchange rate risk, political risk, war and terrorism and global economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. No representation, warranty or assurance (express or implied) is given or made in relation to any forward looking statement by any person (including the Company). In particular, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. Actual results, performance or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. The forward-looking statements in this document speak only as of the date of this document. Subject to any continuing obligations under applicable law or any relevant ASX listing rules, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this document to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this document will under any circumstances create an implication that there has been no change in the affairs of TIG since the date of this document.

ABN 50 146 732 561

Tigers Realm Coal

Annual Report 2021

OUR COMPANY

Tigers Realm Coal Limited (Tigers Realm Coal, TIG, or the Company) is an ASX-listed company producing coking and thermal coal from its operations in the Chukotka Autonomous Okrug (District) on Russia's east coast.

TIG's aim is to become a significant producer of coking coal supplying the seaborne markets in Asia. The Company is focused on the further exploration and development of its high-quality coking coal deposits and is committed to creating sustainable benefits for the communities and region in which it operates.

The Company is developing two coking coal projects. The Amaam North project has been operational for five years supplying unwashed coal products to the North Asian steel and thermal coal markets through our own port at Beringovsky, some 35km from the mining operation. The immediately adjacent Amaam project remains in a pre-development stage. The Amaam basin contains significant resources of quality coking coal and adjoins the site of a potential new deep-water port which, if constructed would allow an extended shipping season together with the direct loading of coal cargo to cape sized vessels.

In 2021, the Company further increased annual production to 1,025kt (2020: 792kt) and annual sales to 911kt (2020: 775kt). TIG also increased transshipment volumes to 885kt, an increase of 125kt over the tonnage achieved in 2020 and a record for the Beringovsky port.

Transshipment was carried out using TIG's four 500-tonne barges. In addition to achieving record loading volumes, TIG further reduced transshipment costs.

Despite supply chain logistics challenges and adverse weather conditions the construction of the first processing module of the CHPP was almost completed in 2021.

Strong operational performance was supported by a significant resurgence of the international coal market. The improved market conditions and further increase in sales volumes more than doubled revenue growth for the period.

During 2022 TIG will be primarily focused on the commissioning of the first processing module of the CHPP and shipment of our first cargoes of semi-hard coking coal ("SHCC") during the 2022 shipping season. TIG expects to receive the 5th 500t barge on site by the start of the 2022 shipping season, that will further increase TIG's annual loading capacity.

The Company's registered office is located in Melbourne, Australia. Management is principally located in our offices in Moscow and on site in Chukotka.

Our Values

Four core values underpin everything we do:

• • Respect - treating our people, communities and stakeholders with respect and understanding.

• • Care - for our people and the environment. An overriding commitment to ensuring our people finish work each day without suffering injury or harm. Minimising our impact on the environment.

• • Integrity - being honest and open in the way we communicate and work. Doing what we say we will do.

• • Delivery - Empowering our people to excel. Consistently delivering on our plans and goals.

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HIGHLIGHTS 2021

Notwithstanding many logistics challenges and unusually adverse weather conditions, the CHPP equipment was fully installed in 2021, and the main building was completed and winterized in the March quarter. Completing the CHPP is central to the next phase of our development strategy. TIG expects

it to come fully online in the June quarter.

Tigers Realm CoalAnnual Report 2021

Total Reportable Injury Frequency Rate (TRIFR)Mining Volumes

Sales Volumes

2.58

29%

17.5%

Total Reportable Injury Frequency Rate ("TRIFR") decreased from 3.08 to 2.58

Mining volumes increased year-on-year by 29% from 792kt to 1,025ktSales volumes increased by 17.5% from 775kt to 911kt. The significant increase in mining volumes was enabled as a result of increased production capacity and lower stripping ratio.

TIG Loaded

Decrease Mining Costs1

Transshipment Costs2

885ktA$41.58/t (US$30.43/t)A$6.65/t

TIG loaded 885kt with our own 500-tonne barges. This volume represents a historical record for Beringovsky port and an increase of 21.8% over the previous yearWith the stripping ratio decreasing from 6.1 bcm/t in 2020 to 4 bcm/t in 2021, TIG managed to further decrease mining costs from A$43.68/t (US$31.57/t) in 2020 to A$41.58/t (US$30.43/t) in 2021

Transshipment Costs per tonne continued to decrease coming down by 5%, from A$6.95/t to A$6.65/t

EBITDA

Net Income

A$46.9m

EBITDA improved from negative A$3.8 million to a record A$46.9 million

A$38.0m

Outstanding production and sales results translated into a record Net Income of A$38.0 million

• 1. The average cost per tonne of coal mined includes all costs to mine and haul coal to the stockpile.

• 2. Transshipment costs include costs incurred to transship coal from the stockpile to bulker.

Tigers Realm CoalAnnual Report 2021