FISHERS, IN / ACCESSWIRE / January 3, 2019 / American Resources Corporation (OTC PINK: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace with a
primary focus is on the extraction, processing, transportation and selling of metallurgical coal to the steel industry, is pleased
to announce it has entered into a multi-year coal sale agreement with a global buyer of high-quality metallurgical coal. Under the
agreement, American Resources will lengthen and expand its current agreement with this customer to supply at least 50,000 tons per
month of metallurgical coal (or coking coal), used in the process of creating coke necessary for steel making, over the next two
years beginning in March 2019.
American Resources will produce, process, and load the coking coal for transport by rail at its McCoy Elkhorn Coal subsidiary
located in Pike County, Kentucky. The expanded offtake agreement with this customer will have an annual fixed price and will
generate revenue of over $58 million annually for American Resources, with a total contract value of over $111 million over the
two-year term. The contract will reprice in the second year based on market prices and certain pricing collars and also have an
option to expand tonnages. The customer has also provided a capital investment to finish the Carnegie 1 mine rehabilitation and
expansion, as well as production at the company's PointRock mine.
"We're very excited about this expanded partnership," stated Mark Jensen, Chief Executive Officer at American Resources
Corporation. " Having these type of relationships allow us to have our coal broadly distributed to a diverse end-user base and
enables us to execute on our growth objectives with a certain level of visibility. We are actively working to increase the coal
production at our Mine #15, Carnegie 1, and PointRock mines to satisfy this order and other sales opportunities for our
metallurgical business, in addition to completing development of our Carnegie 2 mine to initiate production there as well."
The current contracted tonnages under this agreement represent approximately 30% of McCoy Elkhorn Coal's metallurgical coal
production capabilities based on forecasted capex over the next year.
American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core
mining permits and through identifying strategic, supplemental acquisitions. The company is committed to being one of the lowest
cost operators in CAPP and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The
company's primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal
injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and
southern West Virginia where premium quality metallurgical products are located.
The company's business model is based on running a streamlined and efficient operation to economically extract and deliver
resources to meet its customers' demands. By running operations with low or no legacy costs, American Resources Corporation works
to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure
market.
CONTACT:
Website:
http://www.americanresourcescorp.com
Institutional/Retail/Individual Contact:
RedStone Communications, LLC
Anthony D. Altavilla, President
317-569-1617 - Office
317-590-3780 - cell
tony@redstonecommunications.com
www.redstonecommunications.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks,
uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry
results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking
statements. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of the
Company. The words "believes," "may," "will," "should," "would," "could," "continue," "seeks," "anticipates," "plans," "expects,"
"intends," "estimates," or similar expressions are intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made
only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking
statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will
be achieved.
SOURCE: American Resources Corporation
