Tigers Realm Coal : March 2022 Quarterly Production and Activities Report

Tigers Realm Coal (ASX: TIG)

ASX Release - March 2022 Quarterly Report

March 2022 Quarter Operational Activity

Mar-22

Quarter Ended Dec-21

Annual Guidance3

ROM coal mined

Coal delivered to Beringovsky Port Coal loaded

Total coal stocks Waste mined ROM strip ratio2

kt kt kt kt kt bcm bcm : t

297

303

850-1 000

0

155

6

858

567

3.7:1

3.4:1

• 1. Includes coal sold to local companies

• 2. bcm waste: tonne ROM coal

• 3. A high degree of uncertainty exists in relation to all guidance given the consequences of current geopolitical circumstances

Highlights

•  Geopolitical situation - TIG continues to closely monitor the situation arising out of the conflict between Russia and Ukraine. At present we have not experienced a material, direct impact on our business operations.

•  Safety - The cumulative Total Reportable Injury Frequency Rate ("TRIFR") decreased to 2.41 per million hours from 2.58 in the December quarter. No lost time injuries ("LTI") were recorded during the March quarter.

•  Coal Production - 297kt of coal was mined during the March quarter - a 43% increase compared to March quarter 2021, 239kt of which was delivered to port.

•  Port operations - During Q1 2022 TIG started preparations for the 2022 shipping season, which included repair and maintenance as well as dredging activities.

•  CHPP Project - Commissioning works are continuing, and all equipment except the feeder breaker is operating to design. While we work to address the issues with the feeder breaker, we are utilizing another crusher for coal preparation. We have washed approximately 25kt of coal as of 25 April 2022.

•  Sales - 2022 sales guidance is estimated at 850 - 1,000kt

•  Compliance and licencing - The Company is in material compliance with all license obligations.

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Tigers Realm Coal (ASX: TIG)

ASX Release - March 2022 Quarterly Report

Health and Safety

TIG's cumulative TRIFR decreased to 2.41 per million hours worked, from 2.58 as recorded in the December 2021 quarter. No lost time injuries ("LTI") were recorded during the March quarter.

For personal use only

During the March quarter, TIG mined 297kt of ROM coal and delivered 239kt to Port. The overall quarterly mining volume is 43% higher than in Q1 2021. The increase is due to concentrating on Seam 3 and delivering coal to intermediate stockpile for further processing with CHPP and increased mining and haulage capacity compared to the Q1 2021.

CHPP Project

Commissioning works are continuing, and all equipment except the feeder breaker is operating to design. While we work to address the issues with the feeder breaker, we are utilizing another crusher for coal preparation. We have washed approximately 25kt of coal as of 25 April 2022.

Beringovsky Port Operations

During the March quarter TIG has started preparation for the 2022 shipping season, including maintenance of the conveyor and loading system in the port, initial dredging works as well as the necessary minor repairs on the fleet and cranes. Most port personnel started to arrive in Beringovsky in April.

Coal Sales and Marketing

6kt of thermal coal sold to local companies in Q1 2022.

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Tigers Realm Coal (ASX: TIG)

ASX Release - March 2022 Quarterly Report

Sales Guidance

For personal use only

Based on actual performance year to date, current production capacity, as well as investment in additional mining equipment in 2021, the sales target for 2022 is set at 1Mt. In addition to the typical risks and uncertainties related to sales guidance, the current geopolitical uncertainties could impact TIG's ability to meet its sales targets.

Market Outlook

Coking Coal

Coking coal demand has recovered strongly in the global markets since 2021, as the global economy recovered from the Covid-induced slowdown in 2021. A shortage of metallurgical coal, driven by wet weather impacting production in Australia during Q4 2021, and the effects of winter in Canada, USA and Russia, together with a demand recovery, led to prices increasing strongly in the global markets.

The Australian prime low-volatile hard coking coal (PLV) price rose to $400/t by late October and exceeded $600/t shortly after the war commenced between Russia and Ukraine. Currently Australian PLV is priced between $500 and $550 per tonne, PCI at $450/t and SSCC at around $300/t (all FOB). Platts report that Chinese pricing is currently around $350-380/t CFR for hard coking coal. The prices achievable for Russian coal are being significantly discounted from the global seaborne market prices as a result of deep uncertainty around the possible extension to sanctions on both product, vessels and Russian ports.

Looking forward to June 2022, there remains high uncertainty regarding the impact on trade flows caused by sanctions and restrictions on Russian coal sales, affecting all coal producers globally. For the remainder of 2022, it appears likely that most Russian coal will be sold in the Asian market, primarily China and India. It is not clear to what degree the logistics infrastructure in the Russian Far East will be able to accommodate all of the volumes switching from Europe to Asia. In any event, these constraints will not impact TIG as we do not use rail transport to port, and we ship out of our own port.

Thermal Coal

Factors influencing the current market include:

•  disruption in trade flows due to continued Chinese - Australian trade frictions

•  improved demand in China driven by a recovery in industrial production, cold winter, and internal supply restrictions

•  wet weather supply disruptions in Indonesia and Australia

•  significant underperformance in South African exports, driven primarily by poor rail performance

The market pulled back in Q4 2021 as Chinese domestic production increased, and some pricing restrictions were implemented to address what Chinese regulatory authorities determined was an overheated market. However, subsequently some new factors have emerged:

•  Strong demand in the global markets as economies recovered from Covid

•  A ban on Indonesian exports during January (to ensure Producers' Domestic Market Obligations (DMO) were honoured)

•  Ban in Europe on the import of coal from Russia.

In part due to the factors mentioned above, the price dichotomy between China and other markets has shifted such that Chinese coal prices have been lower than the global seaborne market prices during Q1 2022. Chinese imports have decreased, and domestic production mostly filled the gap. As

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Tigers Realm Coal (ASX: TIG)

ASX Release - March 2022 Quarterly Report

an example of this, the official market for thermal coal futures in China (the ZCE) was reported at less than $140/t basis 5500 kcal/kg throughout Q1 2022. In comparison, thermal coal prices for sales to ex-China markets from all major origins increased to unprecedented levels, eg Newcastle 6,000 kcal was over $400/t during in early March and Richards Bay over $350.

For personal use only

Capital Expenditure

Capital expenditure during the March quarter included:

•  1 x Scania truck for coal haulage

•  1 x Liebherr L566 loader

Corporate

Notice of TIG's Annual General Meeting ("AGM") was announced on 22 April, the AGM to be held at 3 pm (Melbourne time) on Monday 23 May, 2022 at the Rendezvous Hotel, 328 Flinders Street, Melbourne.

Board changes

On 17 January 2022 Mitch Jakeman joined the Board as a Non- Executive Director and as a member of both the Nomination and Remuneration Committee and the Audit, Risk and Compliance Committee.

On 3 February 2022 Non- Executive Director Valery Doronin resigned from the Board having been a member since April 2021. Valery was a member of the Audit, Risk and Compliance Committee.

At the completion of the Company's AGM on 23 May 2022 Non- Executive Director Owen Hegarty intends to step down from the Board having completed over 11 years of outstanding service including Chairing and being a member of both the Nomination and Remuneration Committee and the Audit, Risk and Compliance Committee during that time.

Stakeholder relations

In Q1 2022 TIG continued its work in the following areas:

Environment

•  Reports on the organization and results of industrial environmental control for 2021 prepared and sent to Rosprirodnadzor. The reports contain the results of production control in terms of pollutant emissions, incl. the results of instrumental measurements of atmospheric air, the results of laboratory studies of the quality of waste and natural waters, as well as the formation and handling of waste at industrial facilities. During 2021, no exceedances of the maximum permissible values were recorded.

•  Prepared and sent reports on the implementation of plans for water protection measures and information on accounting for the volume of discharges and quality of wastewater to the Water Resources Department for the Chukotka Autonomous Region

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Tigers Realm Coal (ASX: TIG)

ASX Release - March 2022 Quarterly ReportGovernment and community relations

•  Beringovsky Port was included in the list of the core companies in Chukotka in logistics field

•  Project documentation on Beringovsky port reconstruction was approved with Rosmorport

For personal use only

Exploration and Licencing Activities

The Company is in material compliance with all license obligations.

Cash balances

At the end of the quarter, TIG had a cash balance of US$13.6mln in cash with no bank liabilities outstanding.

Capital Structure (as at 31 March 2022)

Ordinary shares on issue: 13,066,702,368

Options on issue: 8,002,000

This announcement has been authorized by the Board of Directors.

Disclaimer

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

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