December 2016 Qurterly Report

2/2017 - 30 stycznia 2017


NEWS RELEASE | 30 January 2017



Debiensko Hard Coking Coal Project

•Acquisition of a fully permitted, „mine ready” project of significant global scale.

•Transformational acquisition marking Prairie’s entry into the hard coking coal sector, complementing Prairie’s advanced Jan Karski Mine, and creating a multi-project coal development company based in Poland to supply European industry.

•As a brownfield development project, significant historical capital investment positions Debiensko to become a meaningful, near-term regional hard coking coal producer strategically located in the steelmaking heartland of Europe where approximately 80% of current coking coal usage is imported.

•Debiensko already has a 50-year mining concession, established on-site facilities including rail, road and power infrastructure, comprehensive historical drilling data and all environmental consents.

•Through the acquisition, Prairie acquired a highly experienced team of Polish mining specialists including engineers, mine managers, mine planners, geologists, surveyors and environmental specialists that brings substantial synergies to expedite permitting and development of Prairie’s flagship Jan Karski Mine.

•Moving rapidly, a Scoping Study for Debiensko has commenced which will evaluate options for the near term development of profitable coal seams whilst minimising upfront capital costs.

•Results from a fully cored borehole drilled at Debiensko during 2015/16 confirms historical data indicating that Debiensko hosts a range of premium quality hard coking coals comparable to internationally traded benchmark coking coals.

Jan Karski Mine

•Prairie Mining and China Coal signed a landmark Strategic Co-operation Agreement to advance the financing and construction of Prairie’s Jan Karski Mine in Poland.

•Under the terms of the agreement, China Coal and Prairie intend to complete a Bankable Feasibility Study in the second half of the year, which will provide the basis for an EPC contract and a construction-funding package for the Jan Karski Mine.

•China Coal is the second largest coal mining company in China and one of the world’s most advanced and prolific shaft sinking and total underground coal mine construction companies.

•The Strategic Co-operation Agreement demonstrates the increasing economic collaboration between Poland and China following China’s proposed „One Belt, One Road” development strategy and highlights Poland’s importance as a „One Belt Economy” for accessing key European markets.

•Permitting process for the mining concession application continues.


•Coking coal continues to be classified by the European Commission as the third most economically important „critical raw material” for the European economy.

•Cash on hand of A$13.1 million and CD Capital’s right to invest a further A$68 million as a strategic partner places Prairie in an excellent financial position to progress with its planned development activities at Debiensko and the Jan Karski Mine.


Debiensko Hard Coking Coal Project

•Complete a maiden JORC Coal Resource Estimate for Debiensko in the coming days which will support the Scoping Study mine plan.

•Complete the Scoping Study for Debiensko.

•Commence a focused in-fill drill program to increase JORC measured and indicated resources to support future feasibility studies for Debiensko.

•Deliver a re-engineered mine plan to produce a feasibility study to international standards with a focus on near term production at Debiensko.

Jan Karski Mine

•Continue to advance financing discussions with global project finance banks and potential offtakers to structure a development financing package for the Jan Karski Mine.

•Progress with the mining concession process and formally lodge a mining concession application for the Jan Karski Mine.

•Continue other required project development activities including land acquisition at the Jan Karski Mine.

•Continue with Bankable Feasibility Study which is scheduled to be completed in the second half of the year.

For further information contact:

Ben Stoikovich Artur Kluczny Sapan Ghai

Chief Executive Officer Group Executive – Poland Corporate Development

+44 207 478 3900 +48 22 351 73 80 +44 7557 055 166