Bering Coal Basin, Far Eastern Russia

Amaam North Tenement

The Amaam North tenement is located 30km to the north of the Amaam tenement. TIG currently holds an 80% interest in the Amaam North tenement.

The coal formation at Amaam North is synclinal in structure with longitudinal and cross cutting faults, moderate dips at the margins, flatter dips along the axis. Tigers Realm Coal has estimated an Exploration Target of 55 to 490Mt and has completed a drilling program comprising 40 holes on 250mx250m spacing. This program delineated an initial JORC Resource, Deposit F, of 26.8Mt comprising: 7.2Mt Measured (coking); 4.6Mt Indicated (coking); 13.3Mt Inferred (coking); 1.8Mt Inferred (thermal). A PFS was completed in early September 2013 which demonstrated Project F has very attractive economics as an early starter, low capex, low opex project for Tigers Realm Coal. Key metrics of the PFS for Project F include: 1Mtpa of saleable product coal through the existing coal terminal at Beringovsky port only 35km trucking distance away; production from H2 2015, shipping from 2016; low total cash costs of US$75/t FOB including government royalties; NPV of US$177m and IRR of 37% over an 11 year mine life. Project F is only a very small part of the Amaam North tenement.

Amaam Tenement

Amaam consists of one 231km2 tenement (the Zapadny Lease). The project area is 30km from the Bering Sea coast. TIG currently holds an 80% interest in the Amaam Tenement. The Amaam tenement is a multi-seam, moderate dipping deposit within a synclinal basin. Coal is in the Middle Chukchi formation (see Amaam Project Plan below), and is divided into four main areas by north-west trending faults. To date, exploration activities have identified that the highest tonnages of coal are within Areas 3 and 4.

Preliminary analysis of material sourced from Area 3 of the Amaam deposit indicates that the raw coal is described as ASTM rank medium to high volatile coal with an average ash content of approximately 30%. Following a conventional wash process, Amaam coal is expected to exhibit excellent coking qualities with high CSN, high vitrinite and strong fluidity.

The Amaam tenement is located 30km from a potential deep water port site on the Bering Sea coast which will allow Amaam coals ready access to the seaborne coal trade and key Asian markets.

TIG has estimated an Inferred and Indicated Resource at Amaam of 464Mt plus additional exploration target of 120-205Mt. A Pre-feasibility Study was completed in March 2013 which demonstrated Amaam to be a robust project, with combined open pit and underground production of up to 6.5Mtpa, average total cash costs of US$98/t over a 20 year life, an NPV (10% real after tax) of US$885M and IRR of 19%.

Beringovsky Port & Coal Terminal

TIG owns 100% of the Beringovsky Port and Coal Terminal located 35km to the north east of the Amaam North deposit and the proposed Project F mine.

The port is presently fully operational and under the terms of the sales agreement, the port will continue to ship up to 70,000 tonnes of coal annually for the nearby Nagornaya mine and volumes of general cargo.

The Beringovsky Port has historically handled over 700,000 tonnes of coal per year from the Nagornaya mine and the port will be progressively refurbished and expanded over time to at least 1Mtpa capacity.