PRAIRIE MINING LIMITED - Premium Quality Hard Coking Coal Confirmed at Debiensko

POLISH FINANCIAL SUPERVISION AUTHORITY

UNI - EN REPORT No 1 / 2017

Date of issue: 2017-01-23

Short name of the issuer

PRAIRIE MINING LIMITED

Subject

Premium Quality Hard Coking Coal Confirmed at Debiensko

Official market - legal basis

Unofficial market - legal basis

Contents of the report:

PRAIRIE MINING LIMITED NEWS RELEASE | 23 January 2017 PREMIUM QUALITY HARD COKING COAL CONFIRMED AT DEBIENSKO HIGHLIGHTS: • Following the acquisition of the fully permitted Debiensko Hard Coking Coal Project in October 2016, Prairie has recently received results from a fully cored borehole drilled at the Project • The results confirm historical data for the Project which indicate that Debienkso hosts a range of premium quality hard coking coals comparable to internationally traded benchmark coking coals • Given favourable regional supply and demand dynamics, coal of this quality will be in significant demand by steelmakers across Europe and attract premium pricing • Coking coal is classified by the European Commission as a “Critical Raw Material” and of the 80Mt of coking coal consumed in Europe per year, 80% is imported • A maiden JORC Resource Estimate for Debiensko will be announced in the coming weeks to support the Scoping Study mine plan which remains on track for completion during Q1 2017 Prairie Mining Limited (“Prairie” or “Company”) is pleased to announce the results of preliminary coal quality analysis from a borehole drilled at the Company’s Debiensko Hard Coking Coal Project (“Debiensko” or the “Project”) during 2015/2016 by the previous owners. Prairie’s preliminary review of the Debiensko deposit indicates that a range of premium hard coking coals can be produced from the Project that will be in high demand from European steelmakers. Two premium hard coking coal specifications have been delineated at Debiensko, namely Medium volatile matter hard coking coal (“Mid-vol HCC”) and Low volatile matter hard coking coal (“Low-vol HCC”). The borehole was fully cored to 30 m below seam 407/4. All core was subject to detailed logging and core photography. Seam thicknesses and depths have been confirmed by a suite of geophysical logs while coal seams were analysed by accredited laboratories in Poland. Prairie’s CEO Mr. Ben Stoikovich said “The excellent coking coal quality results from Debiensko further reinforce Prairie’s potential to become a key premium hard coking coal supplier to European steelmakers. These initial results confirm that the Debiensko deposit hosts premium coking coals of comparable quality to internationally traded benchmark hard coking coals, and will achieve premium pricing in the market. As we continue to rapidly advance our assessment of Debiensko, we look forward to announcing the Project’s maiden JORC Resource Estimate and subsequent Scoping Study results in the coming weeks.” Debiensko Premium Hard Coking Coal Benchmarking Both Debiensko’s Mid-vol and Low-vol HCC lie within the range of premium hard coking coals produced globally. Indications are that the Mid-vol HCC at Debiensko is present between 850 m to 1,000 m from surface and the Low-vol HCC is present 1,000 m to 1,300 m below surface i.e. at depths similar to adjacent operating mines owned by Jastrzębska Spółka Węglowa S.A. (“JSW”) - the largest coking coal producer in Europe. Medium Volatile Matter Hard Coking Coal The quality of Mid-vol HCC from Debienkso compares favourably with the Australian Goonyella hard coking coal brand, and with medium volatile coals produced in Poland today by JSW. This coal features good rheological properties and coke yield, with reasonably low sulphur levels. Prairie’s assessment is that Mid-vol HCC from the Debiensko project would receive premium pricing in European and international markets. Table 1: Debiensko Medium Volatile Matter Hard Coking Coal Comparison to International Benchmarks Quality Debiensko* (Poland) Goonyella (Australia) Oaky Creek (Australia) Elkview (Canada) Tuhup (Indonesia) Pittston (USA) Borynia-JSW (Poland) Pniowek-JSW (Poland) Ash (%) 3.2 8.9 9.5 9.5 7.0 8.0 8.5 8.5 Volatile Matter (%) 25.0 23.8 24.5 23.5 26.5 26.0 24.8 27.0 Sulphur (%) 0.56 0.56 0.60 0.50 0.70 0.85 0.65 0.60 Phosphorous (P) in Coal (%) 0.025 0.025 0.070 0.07 0.02 0.019 0.059 0.050 Free Swelling Index (FSI) 8½ 8 8½ 7½ 9 8 7½ 8½ CSR (%) 63 66 67 70 60 - - - Fluidity (ddpm) 1200 1100 5000 150 450 - up to 2300 up to 3000 C daf (%) 86 88.4 86.8 81.2 - 88.0 - - Rv Max 1.23 1.17 1.10 1.22 1.18 1.10 1.20 1.10 Vitrinite (%) 78 58 75 55 96 76 - - * Indicative quality Debiensko Mid-vol HCC from washed sample from 401/1 seam at floats

Annexes

File Description

PRAIRIE MINING LIMITED

(fullname of the issuer)

PRAIRIE MINING LIMITED

(short name of the issuer) (sector according to clasification of the WSE in Warsow)

WA 6000 Perth

(post code) (city)

Level 9, BGC Centre, 28 The Esplanade

(street) (number)

[phone] [phone]

(phone number) (fax)

www.pdz.com.au

(e-mail) (web site)

ABN 23008677852

(NIP) (REGON)

SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Date Name Position / Function Signature

2017-01-23 Dylan Browne Company Secretary