PDZ.L Regulatory News (PDZ)

Ash (%)

3.2

8.9

9.5

9.5

7.0

8.0

8.5

8.5

Volatile Matter (%)

25.0

23.8

24.5

23.5

26.5

26.0

24.8

27.0

Sulphur (%)

0.56

0.56

0.60

0.50

0.70

0.85

0.65

0.60

Phosphorous (P) in Coal (%)

0.025

0.025

0.070

0.07

0.02

0.019

0.059

0.050

Free Swelling Index (FSI)

8½

8

8½

7½

9

8

7½

8½

CSR (%)

63

66

67

70

60

-

-

-

Fluidity (ddpm)

1200

1100

5000

150

450

-

up to 2300

up to 3000

C daf (%)

86

88.4

86.8

81.2

-

88.0

-

-

Rv Max

1.23

1.17

1.10

1.22

1.18

1.10

1.20

1.10

Vitrinite (%)

78

58

75

55

96

76

-

-

Ash (%)

9.5

10.0

9.5

8.9

9.0

5.3

10.0

7.8

Volatile Matter (%)

20.5

20.5

19.0

20.5

19.9

18.7

19.3

21.4

Sulphur (%)

0.30

0.60

0.54

0.4

0.71

0.73

0.21

0.56

Free Swelling Index

7½

8½

8½

7

8½

8½

8

7½

Fluidity (ddpm)

128

275

400

300l

1113

100

18

200

C daf (%)

80

89.1

88.6

88.2

91

-

80.8

-

Rv Max

1.5

1.40

1.45

1.26

1.48

1.63

1.50

1.40

Vitrinite (%)

59

68

73

54

70

76

81

-

Ben Stoikovich

Chief Executive Officer

+44 207 478 3900

Artur Kluczny

Group Executive - Poland

+48 22 351 73 80

Sapan Ghai

Corporate Development

+44 207 478 3900

info@pdz.com.au

Table 3: Exploration Target Range

Depth*

Exploration Target Tonnage Range (Mt)

All seams to depth approx. 1,100 m

120 Mt - 150 Mt

Depth 1,100 - 1,250 m

90 Mt - 110 Mt

Total

210 Mt - 260 Mt**

Quality***

Moisture

Ash

Volatile Matter

Sulphur

FSI

Weighted Average Whole

Exploration Target Range (+/-20%)

0.7 - 1.1%

6.3 - 9.5%

18.1 - 27.1%

0.6 - 0.8%

5½ - 8

*Depths are from surface - c250 m above datum

**Figures are reported to the nearest 10 Mt which is deemed appropriate for this level of estimation***Figures are reported to one decimal place which is deemed appropriate for this level of estimation

The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Sampling techniques

· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· There are 25 boreholes within the licence and surrounding area. Twenty of these were drilled in the period from 1954 to 1988 with the remaining four dating from a much earlier period. Of these 18 boreholes penetrate all, or part of the 400 Series Coals subject to this assessment. A shaft geotechnical borehole, Debiensko 12 (D 12) was drilled in 2015/2016 and fully cored to 1,303 m depth, approximately 29 m below seam 407/4.

· Seam thicknesses have been verified from geophysical logs (Gamma, Density) with the exception of Boreholes Szyb Jan III and Szczyglowice III. Data from these boreholes has not been used in the estimation.

· Coal cores were taken from continuous cores in the Carboniferous sections of the boreholes.

· Assessment of coal quality and type is based on the results of laboratory tests of the coal samples taken from the borehole cores.

· All seams equal to, or thicker than 0.40 m were analysed.

· Dirt (rock) partings in-seam less than 0.05 m were included in the coal sample and analysed with the coal.

· Dirt partings equal to, or thicker than 0.05 m were not analysed.

· Average core yield in the historical set used for estimation was variable but deemed fit for purpose in the context of the adjacent workings and efforts have been made to remove anomalous data based on low recoveries.

· All chemical analyses of coal samples were performed by the Analytical Tests Department of Katowice Geological Enterprise.

· Coal cores from Debiensko 12 were tested at The Glowny Instytut Gornictwa (GIG) and at The Centralne Laboratorium Pomiarowo Badawcze (CLPB) during 2016.

Drilling techniques

· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

· The boreholes comprised a combination of open hole and rotary core drilling with continuous coring in the in the coal measure strata. The drilling was carried out by companies from Katowice and Kielce using OP-1200 and ZIF-1200 drilling rigs.

· Core diameters were mostly 85 mm(PQ) or larger and rarely down to 47.4 mm.

· Borehole D 12 was drilled PQ using a double wall core barrel.

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· During the drilling of the boreholes coal samples were collected from the drill core using methods that were standard for the coal industry in Poland.

· Core recovery was determined for the coal samples by measuring the lengths of recovered core and weighing broken/fragmentary core and calculating length to provide an overall recovery length and percentage as compared to the drilling depths. Final checks are provided by comparison with thicknesses determined from the suite of geophysical logs.

· Core recoveries were recorded for each core run and for individual seams.

· There is no known relationship between recovery and quality.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

· The total length and percentage of the relevant intersections logged.

· The cores have been logged and analysed in sufficient detail to support the Resource Assessment. Cores were analysed by laboratories certified to Polish National Standards and the results are considered fit for purpose.

· Detailed borehole records are presented in the "Borehole Documentation" which contains the written description, graphic log (borehole card) and details of analyses and interpretations, including the final accepted seam thicknesses.

· For borehole D12 additional data of photographs of all core and 3 D scans of intact core are available.

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· Due to the historic nature of the drilling sampling techniques are not known in detail. However, the available documentation indicates that these will have followed industry standards which are generally considered to be fit for purpose. Cores were not split but sampled as whole core. As noted above, in-seam partings thicker than 0.05 m were not sampled and analysed.

· Detailed core recovery measurements were made allowing assessment of the representative nature of the core analysed. Quality control procedures relating to other aspects of the analysis are unknown due to the historic nature of the data.

· Borehole D12 coal cores were cleaned, measured, described and photographed before being sealed in plastic and sent to the laboratories for analysis.

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

· Laboratory procedures were to the standard industry practices of the time. These are generally considered to be rigorous and uniform.

· Geophysical logs used in the boreholes include natural gamma, neutron gamma, density (gamma gamma), resistivity and caliper logs. These are of sufficient quality to be used for quantitative (i.e. seam thickness) determinations.

· Boreholes Szyb Jan III and Szczyglowice III have no geophysical logs and the results have been excluded from the database used for modeling.

· Due to the historical nature of the drilling and sampling, no information is available on whether QA/QC procedures were employed during sampling and testing.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· Discuss any adjustment to assay data.

· Geological supervision over all historic drilling works was performed by employees of the Geological Survey Company from Kielce.

· The Geological Survey Company also performed detailed core logging and sampling for macro-flora and macro-fauna examination.

· Twinned boreholes were not used.

· Primary data is held as hard copy (laboratory certificates etc.) and this has been transferred to electronic spreadsheets by NWRK's Polish consultants KPG and subsequently verified by Prairie Mining.

· No adjustments have been made to assay data.

· Borehole D 12 drilling was carried out by PPI Chrobok S. A. and geological supervision and logging by Graft Sp. z.o.o.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Specification of the grid system used.

· Quality and adequacy of topographic control.

· Original data was believed to have been on mixture of local grid data and Poland CS92 grid system however collar positions have been converted to Poland CS2000, zone 6 grid system.

· Detailed topographic maps are available.

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

· The spacing of boreholes is shown on the attached drawings (eg, in the order of 1.2 to 2.7 km), which is considered sufficient to support the Resource Assessment due to the structural control and seam continuity demonstrated by overworking and current workings in adjacent collieries.

· Almost complete structural information is available for Zone A, projected from workings in multiple seams of the 300 Series coals above.

· In seams where analysis was made for more than one ply the samples have been composited using weighted averages.

· In cases were seams contain dirt partings that have not been analysed, dummy values for that parting have been used in the current estimation to compile a weighted average quality for that seam. No other adjustments have been made to the data

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The boreholes are nominally vertical and the coal seams have low to moderate dip and relatively simple structure and so there is no structural or orientation bias to the sampling.

Sample security

· The measures taken to ensure sample security.

· No sample security information exists in the documentation available to review sample security measures which may have taken place during drilling. However, sampling protocols existing at the time are considered to be rigorous and fit for purpose.

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

· Historical sampling and data handling techniques were prescriptive and are considered fit for purpose.

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

· Prairie Mining entered into transaction in October 2016 and is now the beneficial owner of 100% of the shares of NWR Karbonia SA ("NWRK"). NWRK was incorporated on 28 February 2011 in the form of Joint Stock Company (spółka akcyjna), as a legal successor of NWR Karbonia Sp. z o.o. and earlier Karbonia PL Sp. z .o. NWRK's Mining License was issued on 24 June 2008 by the vice Minister of Environment for a period of 50 years and enables conducting mining operations in seams 401/1 to 410. With regard to the mining, Dębieńsko falls within the control of the Regional Mining Authority in Rybnik. The approved co-ordinates for the area are given in the main body of the report

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

· With the exception of the shaft borehole D 12, drilled by NWRK in.2015 the exploration is historical in nature and is described in Section 1 above.

Geology

· Deposit type, geological setting and style of mineralisation.

· The deposit is a Carboniferous hard coal consisting of coal seams separated by units of mudstone and sandstone.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· Borehole details are tabulated in the main body of the report.

· Additional data includes paper copies of workings from adjacent mines, Szczyglowice and Knurow for Seams 401/1, 404/9 and 405.

· Basic coal analyses for workings in Seam 401/1 at Debiensko

· Detailed mine plans for the overworkings in the 300 Series coals (digitised)

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· Coal seams have normally been sampled as one continuous sample. Where the seam has been sampled as two or more plies the sample results have been combined as simple weighted averages. Dirt partings of 5 cm in thickness or less have been sampled with the coal. Partings thicker than 5 cm were not analysed

· No cut off qualities have been used in this assessment.

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

· The boreholes are nominally vertical and the coal seams form part of a stratiform deposit dipping at 2 - 15 degrees.

· Intercept lengths used in the model are drill intercept lengths which have been modelled in 3D removing the need to calculate the true thickness. (Note that thicknesses shown on the Polish documentation have been corrected for dip)

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

· Included in main body of report

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· Not applicable.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· Not applicable.

Further work

· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

· Prairie Mining intends to perform additional drilling to decrease the separation of points of observation and upgrade areas of the deposit to Measured status