Clinch Resources (CLCH) investor relations material

Strategic positioning and market environment

• Recently listed on the Toronto Stock Exchange and commenced coal production ahead of schedule, entering the market during a period of escalating demand and structural supply constraints for metallurgical coal.

• Positioned as a low-cost producer in the bottom quintile of the global cost curve, with significant reserves in West Virginia and a 39% stake in JJ Resources, a high-quality mid-vol met coal asset.

• Plans to ramp up production to 2 million tons annually within 12–18 months, reaching 3 million tons in 24 months, which would make the company the fourth-largest metallurgical coal producer in the U.S.

• Forward pricing curves for met coal are strong, with current prices exceeding initial expectations, reflecting ongoing supply shortages and underinvestment in new projects.

• Added to the U.S. critical minerals list, opening access to federal funding and aligning with national efforts to reshore manufacturing and secure mineral supply chains.

Operational assets and development projects

• Operates multiple mines in close proximity to processing facilities, enabling efficient production and logistics, with three mines coming online in 2024 and a run rate of over 100,000 tons per month expected.

• Utilizes contour and highwall mining methods for cost-effective extraction, supported by recent investments in equipment and infrastructure.

• JJ Resources development project is fully permitted, targeting ultra-low ash carbon for specialty markets, with plans to increase ownership to 50% in the next 6–12 months.

• Formed Aster Resources to bypass traditional trading houses, aiming to expand direct sales and raw material sourcing for the steel industry.

• Engaged in a partnership to extract rare earth elements and critical minerals from tailings, with lithium identified as a key opportunity.

Specialty markets and sustainability initiatives

• Focuses 20% of production on specialty coal markets, including activated carbon, ferroalloys, and silicon metal, leveraging expertise and board experience in these sectors.

• Acquired a 30% stake in Virginia Carbon Products, which produces high-purity carbon, with a $40 million facility planned to support specialty sales.

• Emphasizes land reclamation and environmental stewardship, reclaiming mined land as part of ongoing operations.

• Targets a balanced sales mix of 50% export and 50% domestic, with strong interest from both North American and international steel producers.

• Management team brings deep industry experience, supporting growth and operational excellence.