American Resources establishes additional cash flow by leasing a non-core mining complex to a third-party operator

American Resource Company (NASDAQ: AREC) (‘American Resources’ or the “Company”), a next-generation, socially responsible supplier of rare earths and critical elements, carbon and advanced carbonaceous materials for the emerging infrastructure and electrification market, today announced that it had entered into a multi-year lease with Deane Mining Complex to a high-quality local third-party operator named Bluegrass Resources.

Mark JensenCEO of American Resource Company commented, “As one of the largest owners of mining infrastructure in our region, we are pleased to have entered into this lease and partnership with a highly reputable local operator. Our Deane Mining complex is a premier asset and a dormant complex, but it is not in our current operating plan, nor in our next phase of growth plans over the next five years. Given the current strength in global carbon markets, this lease allows us to continue to capitalize on the current environment by monetizing our non-core assets, helping to keep the community functioning and delivering additional value to our shareholders. . We have known the owners of Bluegrass Resources for a number of years and are confident in their ability to execute and create value for our shareholders and theirs.

Jason McCoy, Director of Bluegrass Resources, said, “Our team has owned and operated many complexes over the years and, based on our extensive planning and due diligence, the Deane Mining complex is one of the most successful. the American Resources The team has kept this complex in pristine condition and ready for coal, allowing us to move quickly to get the complex back into service and create jobs in the area. I and the rest of the Bluegrass Resources team are excited to start this complex and take advantage of this market structure and environment for our shareholders and American Resources shareholders.’

The Company’s Deane mining complex, located Letcher County, Kentuckycontains a state-of-the-art 800 tonne per hour carbon processing facility, logistics infrastructure including loading of batch weight unit trains onto CSX rail and access to abundant on-site and nearby mining capacity . American Resources acquired the Deane Mining complex in December 2015 from Rhino Resources Partners LP and operated it until 2019.

Under the terms of the third-party lease, American Resources will receive an initial cash payment of $100,000 one month for the first two months, then $20,000 monthly minimum until the start of production. Once in production American Resources will receive the highest of $5.00 per ton or 5% of the gross sales price generated by the Deane mining complex, among other terms of the transaction. The lease term is for five years with renewable options thereafter.

American Resources continues to focus on running efficient, streamlined operations by being a next-generation raw material supplier to the infrastructure and electrification market in the most sustainable way, while helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resource Company works to maximize value for its investors by positioning its extensive asset base to better adapt to a new economy, while being able to adapt its operations to meet the growth of the markets it serves.

On American Resource Company

American Resource Company is a next-generation, environmentally and socially responsible supplier of high-quality raw materials for the new infrastructure market. The Company is focused on the mining and processing of metallurgical carbon, an essential ingredient used in the manufacture of steel, critical minerals and rare earths for the electrification market, and reprocessed metal for recycling. American Resources has a growing portfolio of operations located in the central eastern Appalachian basin Kentucky and from the south West Virginia where deposits of metallurgical carbon and premium rare earth minerals are concentrated.

American Resources has established an agile, low-cost, growth-focused business model that provides a significant opportunity to expand its asset portfolio to meet the growing global infrastructure and electrification markets while continuing to acquire operations and significantly reduce their legacy industrial risks. Its streamlined and efficient operations are able to maximize margins while reducing costs.

On American Rare Earth LLC

American Rare Earth is redefining the way critical elements and rare earths are both mined and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well than waste streams and coal-based by-products to create a low-cost, environmentally friendly circular supply chain. American Rare Earth has developed its innovative and scalable “Capture-Process-Purify” process chain in conjunction with its licensed intellectual property, including 16 patents and technologies, and has sponsored research partnerships with three leading universities to support the growing demand for magnets and batteries from the domestic supply chain. metals.

Special note regarding forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the results, performance or industry achievements or results differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resource Company control. The words “believes”, “may”, “will”, “should”, “would”, “could”, “continue”, “seek”, “anticipate”, “plan”, “expect”, ” intends”, “estimates” or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements included in this press release speak only as of the date of this release. The Company undertakes no 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 occur.


Matt Sheldon

Tel: 917-280-7329

Email: [email protected]

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