Quarterly Activities and Cashflow Reports

• First coal to surface achieved in September 2024, targeting commercial production by end of CY2024
• 4 km conveyor system successfully commissioned
• Dartbrook Joint Venture secures US$90 million Senior Debt Facility and A$20 million Junior Debt Facility

Australian Pacific Coal Ltd (AQC) has reported significant progress at the Dartbrook Coal Mine during the September 2024 quarter. The company achieved the key milestone of producing first coal to surface in September 2024, the first time the mine has produced coal since it was placed in care and maintenance in 2006. This marks the start of the ramp-up period to bring the mine into commercial production, which AQC is targeting before the end of 2024. The 4 km conveyor system that transports run-of-mine coal from the underground storage facility to the surface was also successfully commissioned during the quarter. AQC and its joint venture partner Tetra Dartbrook Pty Ltd have secured additional funding to support the ramp-up, with the Senior Debt Facility from Vitol Asia Pte Ltd increased from US$60 million to US$90 million. This is contingent on establishing a A$20 million Junior Debt Facility, which will be funded on a 50:50 basis by AQC and Vitol. AQC completed a A$20 million equity raise in October 2024 to fund its share of the Junior Debt Facility. With these financing arrangements in place, the Dartbrook mine is now fully funded to meet its estimated capital expenditure, working capital, and contingency requirements through the ramp-up phase and into commercial production. The company also reported that coal from the Dartbrook mine conforms to the NEWC 6000 thermal coal specification, and testing for metallurgical coal potential is ongoing. Work continues on the MOD8 submission to extend operations at Dartbrook to 2033.

The Dartbrook Joint Venture is targeting commercial production before the end of CY2024, with the intention of producing unwashed (bypass) coal initially while refurbishment of the CHPP wet plant is completed.

Australian Pacific Coal and the mine Operator, Tetra, will continue to focus on delivering the next series of key milestones, including commercial production, refurbishment of the washplant, and the MOD8 permit extension to 2033. Beyond 2033, there are ample reserves and resources at Dartbrook to enable subsequent extensions.