Bens Creek Regulatory News (BEN)

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

22 May 2024

Bens Creek Group plc("Bens Creek" or the "Company")

Intention to appoint administrators

Corporate update

and

Resignation of Nominated Adviser

Further to the Company's announcements on 16 May 2024 and 21 May 2024, Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, announces that the Board of the Company (the "Board") has, on 21 May 2024, resolved to file a notice to appoint administrators of the Company.

On 15 May 2024, the Company received a redemption notice (the "ACAM Redemption Notice") from ACAM GP Limited, in its capacity as general partner of ACAM LP ("ACAM"). The ACAM Redemption Notice was for the redemption of the principal and outstanding interest pursuant to the c.$7.57 million of unsecured loan notes (the "ACAM Loan Notes") the Company issued to ACAM. Furthermore, on 20 May 2024, the Company received a redemption notice (the "Avani Redemption Notice") from Avani Resources Pte Ltd ("Avani"), the Company's largest shareholder. The Avani Redemption Notice is for the redemption of the outstanding principal and accrued interest pursuant to the c.$6.5 million of unsecured loan notes (the "Avani Loan Notes") the Company issued to Avani in July 2023. The Company is severely cash constrained and due to this cash constraint, the Company is unable to repay the amounts due to ACAM and Avani under the ACAM Loan Notes and the Avani Loan Notes.

Therefore, after detailed consideration of the Company's current financial situation, and absent any viable proposals to deliver a stable solution to the challenges faced by the Company, the Board has now concluded that the Company should consider being placed into administration or undertake an alternative insolvency process in order to protect the interests of creditors and other stakeholders.

In relation to the ongoing Chapter 11 bankruptcy process for the Company's wholly owned US subsidiaries, Ben's Creek Operations WV LLC, Ben's Creek Carbon LLC and Ben's Creek Land WV LLC (together, the "Chapter 11 Companies"), a further court hearing will be held on 6 June 2024 to consider the terms of a final debtor-in-possession financing loan from Avani (the "Avani DIP Facility") which is expected to be in the quantum of US$8.865 million. It is the intention for the proceeds of the Avani DIP Facility to be utilised to conduct and pursue a sale and liquidation process of the Chapter 11 Companies' assets to be completed pursuant to section 363 of the US Bankruptcy Code (the "Section 363 Sale").

It is not known at present how much, if any, value will be returned to shareholders following any administration or alternative insolvency process being undertaken for the Company or the conclusion of the Chapter 11 process for the Chapter 11 Companies.

The Company's ordinary shares remain suspended from trading on AIM.

Resignation of Nominated Adviser

As a result of the Company's intention to appoint administrators, Allenby Capital Limited has informed the Company of its resignation as Nominated Adviser and Joint Broker to Bens Creek with immediate effect. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month from the resignation of the current Nominated Adviser, the admission of the Company's shares to trading on AIM will be cancelled. The Company has no current intention of appointing a replacement Nominated Adviser.

For further information please contact:

Bens Creek Group plc +44 (0) 204 558 2300Adam Wilson, CEOPeter Shea, Chief of Staff

WH Ireland Limited (Broker) Harry Ansell / Katy Mitchell +44 (0) 207 220 1666