Montem confirms Tier 1 Hard Coking Coal at Chinook Vicary

HIGHLIGHTS

Montem receives excellent results from detailed coal quality test work completed on large diameter core samples from Chinook Vicary.

Exceptional coke strength results with CSR values ranging from 67 to 74.

Working section clean coal composite produced high simulated plant yields with low ash: 9.1%; low volatile matter: 21.4%; low total sulphur: 0.48%; favourable rank (RoMax): 1.31%; and outstanding CSR: 70

Chinook Vicary coal attributes fit precisely in the specification range for "Premium Low Vol Hard Coking Coal".

Test work used coal samples from the 2020 Chinook Vicary exploration program which confirmed the occurrence of near surface,structurally thickened zones of coal suitable for future open-cut extraction.

Results confirmed historical coal quality test work and mined product coal specifications; indicating that a significant portion of Chinook Vicary product coals are similar in quality to the globally traded Tier 1 Hard Coking Coals produced at nearby Teck Resources Limited mines in the Elk Valley,and mines in Queensland.

Chinook Vicary,and the entire Chinook Project is within Alberta Coal Policy Category 4 lands. Category 4 lands are areas where surface mining is contemplated.

Montem will use the coal quality results and new geological information from the 2020 exploration program to update the Chinook Vicary JORC Resource Estimate,expected in Q2 2021.

MELBOURNE,Australia,March 4,2021 -- Montem Resources Limited (ASX: MR1) ("Montem" or the "Company") is pleased to announce results of coal quality test work performed on drilling samples from the Chinook Vicary area of its Chinook Project in Q4 CY2020.

Figure 1 - Cross-section B-B showing potential low strip-ratio pit shell at Chinook Vicary

The Chinook Project ("Chinook" or the "Project") in Alberta,Canada is made up of two areas,Chinook Vicary and Chinook South. The Project contains a coal Resource Estimate of 149.1Mt (103.8Mt Indicated and 45.3Mt Inferred) and a coal Exploration Target Estimate of an additional 125Mt to 450Mt1 at Chinook Vicary.

Large diameter core samples,obtained from Montem's exploration drilling at Chinook Vicary in late 2020,have been analysed,with coal quality and carbonization results confirming the occurrence of high quality low volatile Hard Coking Coal (HCC) at Chinook Vicary. Montem completed drilling at Chinook Vicary inside the conceptual open-cut pit shell areas designed during the Chinook Project Scoping Study released in February 2021. These drilling and coal quality results will now be used to complete an update of the JORC Resource Estimate for Chinook Vicary,expected in Q2 2021.

Montem Managing Director and CEO,Peter Doyle said:

"We are excited the Chinook Vicary coal quality results confirm Tier 1 Hard Coking Coal. The historical Vicary mine sold 100% of its product to Japanese steel makers in the 1970's. When we met with these same steel making companies in Tokyo,they remarked on the exceptional quality of the coal from Vicary and showed us the product specification from the old mine. So,we always knew there was potential for high quality coal at Chinook,and we are really pleased to confirm this with the current drilling. To get CSR's over 70 for a low-volatile Hard Coking Coal,puts Vicary firmly in the top bracket of Hard Coking Coal available on the global market."

"The washability results from Seam 2 and Seam 4 are impressive,with simulated plant yields around 75%. Seam 4 in the area drilled was over 15m thick,and accounts for approximately 45% of the total Resource in the Scoping Study Vicary pits. With these results,and the Scoping Study mine plan,the potential for a high quality,low cost,Tier 1 Hard Coking Coal mine is now confirmed."

"The next step,later this year,is to drill out the remaining areas included in the Scoping Study mine plan,and progress to a Pre-Feasibility Study. As the entire Chinook Project lies within Alberta Coal Policy Category 4 lands,we will continue exploration and mine planning. We are excited by Chinook and look forward to the next phase of development."

For full announcement,visit: https://montem-resources.com/investors/announcements2020/2021-2/

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