The Conuma Story September 28, 2017 Mark Bartkoski, President - PowerPoint PPT Presentation

Building on a Firm Foundation: The Conuma Story September 28, 2017 Mark Bartkoski, President Conuma Coal Resources

Brule Mine Re- Opening Day Sept. 22, 2016 “BUILDING ON A FIRM THE CONUMA STORY FOUNDATION”

WHO IS CONUMA? ❖ Stand-alone Canadian coal company formed in 2016 ➢ Headquarters in Tumbler Ridge, B.C. ➢ Three assets in Peace River Coalfield ➢ Corporate office in Vancouver, B.C. ❖ Founded by individual coal-industry veterans and investors who saw opportunity in late 2015 when metallurgical coal market conditions and asset values were unsustainably low ➢ Acquired assets in N.E. British Columbia in September 2016 when many N. American coal producers were in reorganization ❖ AMCI joined as an investor in September 2016

THE ASSETS • Premium ultra low volatile pulverized coal injection (PCI) product. • Low sulfur and low phosphorous Brule • Trucked to Willow Creek CHPP/loadout for processing and shipping. • Brule began operations September 22, 2016 . • +2.5M tonnes production annually (tpa) • HCC 64 type mid-volatile Wolverine • Low sulfur, low-phosphorous • Began mining Q1 2017. Production rate 1.7M tpa • Tumbler Ridge rail submain rehabilitation completed August 2017; product now ships by rail to Ridley Terminal. • S.W. of Chetwynd, B.C. • High CSR (+70) Mid-vol HCC in evaluation for Willow Creek re-start of operations in 2018.  Premium ULV PCI produced at Willow Cr. • Existing CHPP, rail loadout, all required infrastructure on CN main line makes Willow Cr low-capital intensity re-entry for 1.5M tpa

LOCATION MAP/TRANSPORTATION Alberta • Assets located in British Columbia Peace River Juneau Coalfield (“PRC”) of N.E. British Columbia Peace River Coalfield • Only coal Willow Creek Chetwynd producer Brule operating in PRC Wolverine Tumbler Ridge Ridley Terminal • 600 mile CN rail Prince Rupert Edmonton Prince George corridor from PRC to Ridley T erminal Calgary Vancouver Westshore Terminal E. Kootenay Coalfield Victoria Seattle

KEY MILESTONES 1st cargo of Trucked Wolverine Loaded first PCI first coal HCC April ‘17 Acquired c argo to Japan from Brule assets of to Willow August – Walter Canada Creek Jan 2018 – Tumbler Ridge loadout Wolverine CN rail mine start-up submain rehab completed September October November December Q1 2017 Q2 2017 Q3 2017 Future 2016 2016 2016 2016 First train PROJECTED Willow Cr Wolverine to Ridley Mined CHPP June 2017 – Terminal Willow ~36Kt startup Brule and Creek Wolverine potential ramp ups complete startup Completed 1st full month of operations. Hired team and ~100Kt trained initial Q3 production 150 employees anticipated at 1.2Mt

PEOPLE DRIVING RESULTS 900 780 800 Employee Count 700 Production Tonnes (1000/Mo.) 600 550 500 550 480 500 400 400 413 391 420 272 300 228 272 195 200 145 228 112 117 93 195 145 100 117 35 120 90 50 0 10 SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG Addition 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017 of Willow Creek ✓ Lowest Injury Rate of all B.C. Mining Companies ✓ Hired and trained +500 employees in Year1 ✓ +3.0M tonnes produced 2017 (Up to 6.0Mt capacity possible in 2018 with addition of Willow Creek) ✓ +200 Trains Loaded ✓ +40 Vessels Loaded

WHAT MAKES CONUMA UNIQUE? 1. Loss Prevention Business Model Losses Averted = ✓ Injury Security ✓ Violation Earned ✓ Downtime ✓ Rework/Waste

WHAT MAKES CONUMA UNIQUE? 1. Loss Prevention Business Model 2. Integrity Process Development Plan Mission Statement: Conuma Coal Resources was founded to be a contributor, positive influence and supporter to our community. We are committed to earning security for all of our partners, and to unifying resources and people to build a “first class” organization recognized for character and true integrity.

WHAT MAKES CONUMA UNIQUE? 1. Loss Prevention Business Model 2. Integrity Process Development Plan Mission Statement: SECURITY Workforce, Management, Owners, Community Conuma Coal Resources was founded to be a contributor, positive P rocess PILLAR PILLAR PILLAR influence and supporter to our 1 2 3 community. We are committed to Values earning security for all of our Mission Statement partners, and to unifying resources and people to build a “first class” - Transformation Plan – MVP organization recognized for - Process Refinement - GRM character and true integrity. - Employee Empowerment - RAC

WHAT MAKES CONUMA UNIQUE? 3. Maximizing Opportunities ✓ Market Timing $350 HCC Benchmark Peak Market Coal M&A Period $300 Financial Reorganization period $250 $200 $150 $100 $50 Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17

WHAT MAKES CONUMA UNIQUE? 3. Maximizing Opportunities ✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management Blend Coal – mine separate coal seam layers, homogeneous blending

WHAT MAKES CONUMA UNIQUE? 3. Maximizing Opportunities ✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management ▪ Cast/Dozer Push Overburden Removal Cast Blast D-11 Dozer Push

WHAT MAKES CONUMA UNIQUE? 3. Maximizing Opportunities Brule rule Mine ✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management ▪ Cast/Dozer Push Overburden Removal ▪ Project Excel ▪ Drilling/Major Digger Steering Technology ▪ PM Systems ▪ Swarm Maintenance Wolve lveri rine ne Mine ne ▪ Zero Loss Program ▪ Proactive Environmental Planning ▪ Concentration on Local Hiring ▪ Interactive Training ▪ HWM Potential ▪ Numerous Kaizens ▪ Shared Ownership ▪ Partnerships

WHAT MAKES CONUMA UNIQUE 4. PAYING IT FORWARD – Responsibility/Honor E N V I R O N M E N T A L

Conuma’s Foundation WHAT MAKES CONUMA UNIQUE 4. PAYING IT FORWARD E M P L O Y E E S / F A M I L Y

WHAT MAKES CONUMA UNIQUE? 4. PAYING IT FORWARD C O M M U N I T Y

Conuma’s Foundation WHAT MAKES CONUMA UNIQUE 4. PAYING IT FORWARD S C H O O L S

Conuma’s Foundation WHAT MAKES CONUMA UNIQUE? 4. PAYING IT FORWARD F I R S T N A T I O N S

Conuma’s Foundation WHAT MAKES CONUMA UNIQUE? 4. PAYING IT FORWARD E X T E N D E D F A M I L I E S

ACHIEVEMENTS ACROSS THE BOARD Safety Results Improving Share Bonus 1 7 Employee Trust Job Security 2 8 Quality Applicants Investor Interest 3 9 First Nations Relationship Equipment Availability 10 4 Increased Production Partnerships 5 11 Reduced Costs/Tonne 6

ACHIEVEMENTS ACROSS THE BOARD An awarding partnership between Industry, First Nations and the Environment ▪ Growing Sustainable Communities ▪ Restoring Earth’s Ecological Balance Reclaiming Land for Future Generations ▪

ACHIEVEMENTS ACROSS THE BOARD Investor Interest Safety Results 1 9 First Nations Relationship Employee Trust 2 10 Partnerships Quality Applicants 11 3 Pay It Forward Stories & 12 Equipment Availability 4 Support Increased Production Mayor’s 5 Council Reduced Costs/Tonne 6 Award: Improving Share Bonus 7 “ Walk Job Security The Talk ” 8

CONUMA: BUILT ON A FIRM FOUNDATION We are an example of Industry/Government/Community/First Nations Collaboration Th Than ank k yo you u to to al all l of of our our pa partne rtners rs “On the right foundation business is a win/win” “Integrity in Character Builds Integrity in Process”