APRIL 2018

IN THE COMMUNITY Our project is led from our main office in , BC.

There are many technical experts residing in the BRITISH Bulkley Nechako region and we are using that local expertise for our baseline environmental, COLUMBIA archaeology, cultural and exploration programs. Over 40 people from Telkwa, Smithers and the broader region are engaged as members of either TENAS the baseline and/or exploration teams. Included on the project team are wildlife, vegetation and PROJECT soil experts; experts in water, fish resources and atmospheric sciences; archaeology and cultural experts. Several members of the Wet’suwet’en have been a part of the surface, groundwater, hydrology and atmospheric baseline programs.

During construction and eventual operation, we will also hire locally as part of our commitment to create lasting benefits for the local community. TENAS

COMMUNITY MEETINGS Telkwa Coal Limited, Community meetings in advance of the regulatory a wholly-owned review process are planned for the Spring and PROJECT Fall of 2018. There will be additional opportunities subsidiary of for public input and review in 2019 during the Australian-based regulatory review process. and ASX listed We want to hear from the community, so we are Allegiance Coal, is able to fully consider local issues of concern in our proposing to develop and project planning. In addition to these meetings, mine the Telkwa steelmaking we invite you to connect with us. or metallurgical coalfield in CONNECTING ’s northwest region. Web More information, including meeting The coalfield, which contains three an estimated 40-year period. This will be dates will be posted on our project deposits – Tenas, Goathorn and Telkwa further refined as the project undergoes website at www.allegiancecoal.com North – is located in the Bulkley Nechako a comprehensive regulatory review. Email Questions can be sent to region, 20 km south of Smithers and [email protected] The steelmaking coal would be shipped on the 10 km southwest of Telkwa, BC. Phone 778.643.2843 CN rail line to Prince Rupert’s Ridley Terminal has historically occurred for decades for export to steel mills – most likely in Asia. Address 1415 Hankin Avenue, Suite D in the region between 1918 and 1985. Telkwa, BC V0J 2X0 The project and any changes to the planned The pre-feasibility studies prioritized the activities in the future will require Wet’suwet’en, development of the Tenas deposit. The community and regulatory review. feasibility studies underway in 2018 will continue to focus on this deposit. Taking We look forward to having an open dialogue a ‘small mine’ approach would see annual with our neighbours – working to address production of between approximately community questions and developing the 240,000 to 900,000 metric tonnes over Telkwa coalfield responsibly and respectfully.

WWW.ALLEGIANCECOAL.COM WWW.ALLEGIANCECOAL.COM Wet’suwet’en Engagement & Community Dialogue PROPOSED TIMELINE Pre-Application Community Dialogue Regulatory Review Public Consultation

2016 2017 2018 2019 2020 2021

Baseline Pre-Feasibility Studies Feasibility Studies Applications to Regulators Project Decision Mine Operations & Environmental & & Construction Environmental Monitoring Cultural Studies BRITISH PROJECT REVIEW AND PERMITTING OUR COMMITMENTS ALASKA COLUMBIA SMITHERS Telkwa Coal is committed to working with the Wet’suwet’en and the local community to responsibly develop the Tenas project. For us, that means listening HEALTH AND SAFETY and engaging in open dialogue as we proceed with the project review and Safety is a core value of our company. STEWART regulatory process. We believe that all activities can be TENAS The decision on the oversight and scope of our project review is for the government NEW HAZELTON completed with zero harm to personnel DEPOSIT to determine. We are committed to addressing health, environment and community and that all incidents and injuries are SMITHERS PROJECT PRINCE RUPERT questions and minimizing the potential effects of our operations. We will meet the preventable. We will provide resources environmental requirements to operate safely and responsibly for decades to come. AT A TELKWA to manage health and safety and expect TENAS all employees and contractors to share GLANCE We aim to create a positive legacy of mining, collaborating with our neighbours PROJECT in the responsibility. Based on 2017 to develop opportunities that will contribute to building strong, local communities. Pre-Feasibility Studies Closure planning and design will be approved by government and will have community input. BELLA COOLA INDIGENOUS PEOPLE Annual Production 240,000 tonnes Our immediate focus is to complete our baseline and feasibility studies and We acknowledge and respect the continue with our First Nations and community engagement activities. unceded rights, title, interests, culture Mine Life ~ 40 years We are currently assessing and monitoring: and aspirations of the Wet’suwet’en Footprint ~1,000 ha TENAS to 22,000 square km of traditional Baseline Studies Mine Plan Development territory. In April 2016, we signed a Direct Local Employment 40-50, VANCOUVER PROJECT in addition to further employment during • Meteorology & • Geotechnical Aspects Communications and Engagement Agreement as an initial, formal step in the feasibility and construction phases VICTORIA • Surficial Geology & Terrain Mapping • Geology Modeling KM our commitment to the Wet’suwet’en. Indirect Local Employment ~110 0 2.5 5 • Terrain Stability & Natural Hazards • Coal Processing Number of Trains 2 train sets of 23 cars / week • Groundwater & Surface Water • Infrastructure ENVIRONMENT Quality & Quantity • Rail Access Number of Trucks 1 loaded truck and 1 returning PROJECT AREA MAJOR ROAD LAKE / RIVER • Sediment Quality We will ensure that our activities empty truck every hour • Road Access & Bridges are responsible and protective of MINE FOOTPRINT RAILWAY (CNR) • Fisheries & Aquatic Resources Operating Schedule Daytime, 4 days a week • Powerlines the environment. Our design and for pit operations PROPOSED COAL HAUL ROUTE 500KV TRANSMISSION LINE • Vegetation • Reclamation Planning operational activities adhere to the • Wildlife & Effective Mine Closure Coal Processing Conventional plant using water PROPOSED WATER PIPELINE 138KV TRANSMISSION LINE mitigation hierarchy to avoid and and gravity to separate coal • Land Status & Use • Discharges & Treatment Plans minimize impacts, restore on-site from rock and offset, where necessary. • Land Capability Tailings Management Rock separated from the coal STEELMAKING COAL • Archaeology & Cultural Use will be returned to the pit COMMUNITY Steelmaking or metallurgical coal is a necessary ingredient in These activities are required for the Mines Act and Environmental Management Pit Equipment Conventional truck and shovel the production of steel. About 750 kg of coal goes into every Integrity is fundamental to how we Act Permit Applications. surface mine operation tonne of steel produced. In turn, that steel is used for many operate. We will engage with the Transportation Rail – Using existing CN rail line of the fundamental requirements in our daily lives – buildings, Once the studies are complete, we will have a detailed plan of the anticipated community and stakeholders with the to Prince Rupert transportation, heating, healthcare and food production. production and life of mine. We will then submit our various regulatory aim of ensuring the socio-economic Road – Using existing roads, As an example, the steel in an average car contains 650 kg applications based on this information, and commence the regulatory review priorities and goals are understood with potential bypass upgrades of steelmaking coal and a wind turbine contains 142,000 kg. process, likely in 2019. and addressed.

WWW.ALLEGIANCECOAL.COM WWW.ALLEGIANCECOAL.COM Wet’suwet’en Engagement & Community Dialogue PROPOSED TIMELINE Pre-Application Community Dialogue Regulatory Review Public Consultation

2016 2017 2018 2019 2020 2021

Baseline Pre-Feasibility Studies Feasibility Studies Applications to Regulators Project Decision Mine Operations & Environmental & & Construction Environmental Monitoring Cultural Studies BRITISH PROJECT REVIEW AND PERMITTING OUR COMMITMENTS ALASKA COLUMBIA SMITHERS Telkwa Coal is committed to working with the Wet’suwet’en and the local community to responsibly develop the Tenas project. For us, that means listening HEALTH AND SAFETY and engaging in open dialogue as we proceed with the project review and Safety is a core value of our company. STEWART regulatory process. We believe that all activities can be TENAS The decision on the oversight and scope of our project review is for the government NEW HAZELTON completed with zero harm to personnel DEPOSIT to determine. We are committed to addressing health, environment and community and that all incidents and injuries are SMITHERS PROJECT PRINCE RUPERT questions and minimizing the potential effects of our operations. We will meet the preventable. We will provide resources BURNS LAKE environmental requirements to operate safely and responsibly for decades to come. AT A TELKWA to manage health and safety and expect TENAS all employees and contractors to share GLANCE We aim to create a positive legacy of mining, collaborating with our neighbours PROJECT in the responsibility. Based on 2017 to develop opportunities that will contribute to building strong, local communities. Pre-Feasibility Studies Closure planning and design will be approved by government and will have community input. BELLA COOLA INDIGENOUS PEOPLE Annual Production 240,000 tonnes Our immediate focus is to complete our baseline and feasibility studies and We acknowledge and respect the continue with our First Nations and community engagement activities. unceded rights, title, interests, culture Mine Life ~ 40 years We are currently assessing and monitoring: and aspirations of the Wet’suwet’en Footprint ~1,000 ha TENAS to 22,000 square km of traditional Baseline Studies Mine Plan Development territory. In April 2016, we signed a Direct Local Employment 40-50, VANCOUVER PROJECT in addition to further employment during • Meteorology & Climate • Geotechnical Aspects Communications and Engagement Agreement as an initial, formal step in the feasibility and construction phases VICTORIA • Surficial Geology & Terrain Mapping • Geology Modeling KM our commitment to the Wet’suwet’en. Indirect Local Employment ~110 0 2.5 5 • Terrain Stability & Natural Hazards • Coal Processing Number of Trains 2 train sets of 23 cars / week • Groundwater & Surface Water • Infrastructure ENVIRONMENT Quality & Quantity • Rail Access Number of Trucks 1 loaded truck and 1 returning PROJECT AREA MAJOR ROAD LAKE / RIVER • Sediment Quality We will ensure that our activities empty truck every hour • Road Access & Bridges are responsible and protective of MINE FOOTPRINT RAILWAY (CNR) • Fisheries & Aquatic Resources Operating Schedule Daytime, 4 days a week • Powerlines the environment. Our design and for pit operations PROPOSED COAL HAUL ROUTE 500KV TRANSMISSION LINE • Vegetation • Reclamation Planning operational activities adhere to the • Wildlife & Effective Mine Closure Coal Processing Conventional plant using water PROPOSED WATER PIPELINE 138KV TRANSMISSION LINE mitigation hierarchy to avoid and and gravity to separate coal • Land Status & Use • Discharges & Treatment Plans minimize impacts, restore on-site from rock and offset, where necessary. • Land Capability Tailings Management Rock separated from the coal STEELMAKING COAL • Archaeology & Cultural Use will be returned to the pit COMMUNITY Steelmaking or metallurgical coal is a necessary ingredient in These activities are required for the Mines Act and Environmental Management Pit Equipment Conventional truck and shovel the production of steel. About 750 kg of coal goes into every Integrity is fundamental to how we Act Permit Applications. surface mine operation tonne of steel produced. In turn, that steel is used for many operate. We will engage with the Transportation Rail – Using existing CN rail line of the fundamental requirements in our daily lives – buildings, Once the studies are complete, we will have a detailed plan of the anticipated community and stakeholders with the to Prince Rupert transportation, heating, healthcare and food production. production and life of mine. We will then submit our various regulatory aim of ensuring the socio-economic Road – Using existing roads, As an example, the steel in an average car contains 650 kg applications based on this information, and commence the regulatory review priorities and goals are understood with potential bypass upgrades of steelmaking coal and a wind turbine contains 142,000 kg. process, likely in 2019. and addressed.

WWW.ALLEGIANCECOAL.COM WWW.ALLEGIANCECOAL.COM APRIL 2018

IN THE COMMUNITY Our project is led from our main office in Telkwa, BC.

There are many technical experts residing in the BRITISH Bulkley Nechako region and we are using that local expertise for our baseline environmental, COLUMBIA archaeology, cultural and exploration programs. Over 40 people from Telkwa, Smithers and the broader region are engaged as members of either TENAS the baseline and/or exploration teams. Included on the project team are wildlife, vegetation and PROJECT soil experts; experts in water, fish resources and atmospheric sciences; archaeology and cultural experts. Several members of the Wet’suwet’en have been a part of the surface, groundwater, hydrology and atmospheric baseline programs.

During construction and eventual operation, we will also hire locally as part of our commitment to create lasting benefits for the local community. TENAS

COMMUNITY MEETINGS Telkwa Coal Limited, Community meetings in advance of the regulatory a wholly-owned review process are planned for the Spring and PROJECT Fall of 2018. There will be additional opportunities subsidiary of for public input and review in 2019 during the Australian-based regulatory review process. and ASX listed We want to hear from the community, so we are Allegiance Coal, is able to fully consider local issues of concern in our proposing to develop and project planning. In addition to these meetings, mine the Telkwa steelmaking we invite you to connect with us. or metallurgical coalfield in CONNECTING British Columbia’s northwest region. Web More information, including meeting The coalfield, which contains three an estimated 40-year period. This will be dates will be posted on our project deposits – Tenas, Goathorn and Telkwa further refined as the project undergoes website at www.allegiancecoal.com North – is located in the Bulkley Nechako a comprehensive regulatory review. Email Questions can be sent to region, 20 km south of Smithers and [email protected] The steelmaking coal would be shipped on the 10 km southwest of Telkwa, BC. Mining Phone 778.643.2843 CN rail line to Prince Rupert’s Ridley Terminal has historically occurred for decades for export to steel mills – most likely in Asia. Address 1415 Hankin Avenue, Suite D in the region between 1918 and 1985. Telkwa, BC V0J 2X0 The project and any changes to the planned The pre-feasibility studies prioritized the activities in the future will require Wet’suwet’en, development of the Tenas deposit. The community and regulatory review. feasibility studies underway in 2018 will continue to focus on this deposit. Taking We look forward to having an open dialogue a ‘small mine’ approach would see annual with our neighbours – working to address production of between approximately community questions and developing the 240,000 to 900,000 metric tonnes over Telkwa coalfield responsibly and respectfully.

WWW.ALLEGIANCECOAL.COM WWW.ALLEGIANCECOAL.COM