Rising Costs and Permitting Risks Shadow Jameson’s Crown Mountain Upside

Feasibility Update Confirms Robust Economics

Jameson Resources Limited has provided a comprehensive update on the Crown Mountain Hard Coking Coal Project in British Columbia, Canada, reaffirming the project's strong economic fundamentals despite rising costs. Independent technical advisers Allnorth, Sedgman, and Stantec reviewed key inputs from the 2020 Bankable Feasibility Study (BFS), factoring in inflationary pressures, updated coal price forecasts, and currency exchange rates.

The review confirmed that the Proven and Probable Reserves defined in the 2020 BFS remain valid, providing shareholders with assurance of the project's resource base. Notably, the update identified a 28% increase in pre-production capital expenditure, rising from US$309 million to US$394 million, and a 15% increase in operating costs to US$102.79 per tonne FOB Vancouver.

Coal Price Forecasts Drive Value Upside

Despite these cost escalations, the project’s net present value (NPV) has more than doubled. The pre-tax NPV10 increased by 200%, from US$469 million in the 2021 Yield Optimisation Study to US$942 million in the latest update. This uplift is primarily attributed to stronger coal price forecasts, reflecting market concerns over tightening supply of premium steelmaking coal globally.

Jameson’s Chair, Nicole Hollows, highlighted the project's competitive position, noting that Crown Mountain is among the most advanced steelmaking coal projects in Canada. She emphasized the project's cost competitiveness relative to existing and planned producers, underscoring its potential to address medium- and long-term supply shortfalls in premium steelmaking coal.

Strategic Location and Infrastructure Advantages

The Crown Mountain Project benefits from proximity to existing Elk Valley coal mines and established infrastructure, including Canadian Pacific’s common user rail and multiple deep-water ports such as Westshore and Ridley Terminals. The project’s location allows access to skilled labour pools in nearby towns, reducing the need for camp infrastructure.

Environmental permitting is advancing, with the Environmental Assessment undergoing technical review and ongoing engagement with Indigenous Nations. The project has adapted its rail loadout design to respect areas of cultural and archaeological significance, reflecting a commitment to responsible development.

Funding and Future Outlook

Jameson anticipates funding the US$394 million pre-production capital through a combination of equity, debt, and strategic partnerships. Bathurst Resources Limited, holding a 22.2% stake in the project, retains an option to sole fund up to CA$110 million of construction costs to increase its shareholding to 50%. Discussions with potential debt financiers are underway, although no final agreements have been reached.

Looking ahead, Jameson plans further optimisation studies alongside progressing regulatory approvals. The company acknowledges risks including market price volatility, environmental permitting uncertainties, and port capacity availability, but remains confident in the project's substantial value and development prospects.