• Proposed Transaction represents a $280 million consideration and assumption of certain debts and environmental reclamation bonds

FISHERS, IN / ACCESSWIRE / October 4, 2023 / American Resources Corporation's (NASDAQ:AREC) ("American Resources" or the "Company") subsidiary American Carbon Corporation ("American Carbon"), an owner and operator of low-cost, high-quality metallurgical and specialty carbon assets, has entered into a letter of intent to sell its carbon mining assets to a strategic party for the total consideration of approximately $280 million. The consideration takes the form of an upfront cash payment at closing, a share of profits generated from operations, an ongoing royalty payment based on carbon sales and minority equity interest upside. The sale includes the assets of American Carbon's McCoy Elkhorn Coal, Perry County Resources and Wyoming County Coal operating subsidiaries including certain debts and environmental reclamation bonds.

Mark Jensen, CEO of American Resources Corporation commented, "As we have been reviewing various offers and opportunities for our carbon mining division, we have remained steadfast on maximizing the value of these assets under a variety of potential transaction structures. We have worked extensively with this potential acquirers over the past several months and believe the framework of this particular LOI represents an attractive return for our shareholders. We believe the asset base is one of the last remaining low cost, highly-scalable metallurgical carbon platforms left in the United States and believe the structure enables the Company to benefit from its growth and cash return while aligning it with a highly strategic suitor to best position it within the global steal making industry."

The letter of intent is non-binding and non-exclusive but is expected to close before year end. The proposed acquirer of the assets has committed to invest the necessary capital to bring additional mines into full production and expand the number of producing mines over American Carbon's extensive infrastructure base including the Company's Wyoming County Coal's premium mid-vol carbon complex. Concurrent with the executed letter of intent, American Resources will continue to advance its Form-10 filing of spinning-off American Carbon out into its own public, pure play metallurgical carbon growth company as an alternative opportunity while also advancing the previously announced letter of intent to sell certain assets associated to its Deane Mining complex towards closing.

About American Resources Corporation

American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About ReElement Technologies LLC

ReElement Technologies LLC is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

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 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 American Resources Corporation's control. 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.

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