American Resources signs offtake, financial partnership with Integrity Coal

American Resources announced that it has signed a carbon offtake agreement along with a non-dilutive financial commitment of $2.5 million with a long-standing customer and premier supplier of metallurgical carbon to the global steel and alloy metal marketplace, Integrity Coal Sales, to start its Carnegie 2 mine. This incremental production will enable the Company to benefit from the current strength in the high vol met carbon market, aligning the risk and return for both Integrity and American Resources. High Vol metallurgical carbon is not burned for energy use. Instead, specific characteristics allow it to be blended with iron to make new steel. This quality of product is in high demand in the current market environment given many of the producers in the U.S. are producing from old mines that are expensive to operate and coming to end-of-life. American Resources is focused on mine plans and operations that are built to be low cost once ramped ranging from 20 to 40+ years while also making them safer and more productive operations. Post initial production ramp Carnegie 2 is anticipating adding $25 to $35 million in additional yearly revenue to the company's top line with attractive margins.