To Fellow Shareholders of Bowen Coking Coal (BCB)

Occasionally, I make errors in judgment, and when I do, I prefer to resolve them quietly and in a way that allows everyone to save face.

The share register of Bowen Coking Coal (BCB) includes very experienced and wealthy individuals from the coal industry. It’s a small community, with both advantages and drawbacks.

Filing notices for the removal of certain directors was a significant decision. Ultimately, ongoing losses and questionable strategic decisions demand consequences. Someone had to act, and I hope I wasn’t too late in doing so.

This is my statement to all fellow shareholders of the company.

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To All Shareholders of Bowen Coking Coal Ltd,

I am writing to you as the Managing Director of iolite Capital Management AG, which manages iolite Partners Ltd. ("iolite"). iolite, holding a significant 5% stake in Bowen Coking Coal Ltd ("BCB"), has called for an Extraordinary General Meeting ("EGM") to vote on the removal of Chairman Nicholas Jorss and Non-Executive Director Neville Sneddon from the Board.

Deep concerns about the company's performance and governance compel me to strongly urge you to vote for change by replacing the two longest-serving directors. They bear responsibility for the company’s current situation, and a decisive break from the past is necessary to restore faith in the company’s leadership and move forward.

Current Challenges

Bowen Coking Coal is fundamentally a highly valuable company, with long-life, high-quality, and lower-cost coking coal assets located in Queensland's Bowen Basin, the world's premier source of coking (metallurgical) coal, an essential and irreplaceable component in steel production. With a resource base of hundreds of millions of tons of coking coal and infrastructure valued at over A$500 million, the company has the potential to be worth billions of dollars. The Bowen Basin accounts for 70% of the global seaborne market, and coking coal remains a rare natural resource facing a growing structural demand-supply deficit.

iolite has been a supportive and engaged shareholder of BCB since our initial investment in June 2022. Since, BCB has tapped the capital markets three times, and the share price has plummeted by over 90%.

The rushed development of the Bluff and Broadmeadow East mines led to both being placed into care and maintenance without ever achieving profitability. The profitability of the only remaining active mine, Ellensfield South, remains unproven due to high non-mining costs and logistical issues.

BCB has reported consecutive financial losses: A$8 million for the fiscal year ending June 2022, A$163 million for the fiscal year ending June 2023, and A$65 million for the half-year ending December 2023. These financial struggles occurred during a period of elevated coal prices, while most peers recorded record profits.

Despite a recent quarterly management report asserting that BCB is in its "best operational position," the company still reported negative cash flow of A$17.7 million for the quarter, even with stable production volumes and high coal prices.

Over the past two years, BCB has experienced two CEO changes and the departure of numerous executives due to underperformance. It remains unclear whether the current CEO, Daryl Edwards, is adequately supported and empowered by the board. The company continues to rely heavily on key contract partners who have not visibly contributed to its success.

Given these serious and potentially irreversible issues, Chairman Nicholas Jorss and Non-Executive Director Neville Sneddon are called upon to resign immediately to restore confidence and faith in the company's leadership. While the company has a bright future, a decisive break from the past is long overdue and urgently required to implement the necessary changes.

Path Forward

Righting this ship is entirely possible with a few decisive actions, and iolite has a clear vision of the necessary steps. I am committed to actively moderating and facilitating the essential discussions to ensure progress.

Since Daryl Edwards' appointment as CEO on January 29, 2024, he has made commendable efforts to correct the company’s trajectory. He is widely respected as a dedicated leader who prioritizes the company’s best interests. I propose that Daryl Edwards be elected as a Member of the Board of Directors, in addition to his role as CEO, to empower him to take the decisive actions needed to stabilize the company. A more streamlined leadership structure would significantly enhance his ability to act swiftly and effectively.

I also recommend reinforcing Daryl Edwards with a team of capable and aligned mining executives who can provide hands-on support. Key shareholders are encouraged to nominate experienced mining executives to strengthen the Board of Directors, as qualified candidates are readily available.

As the Investment Manager of a significant shareholder, I have been nominated for election as a director. I am deeply invested in BCB’s turnaround and bring over 20 years of experience in finance and commodities. My expertise as a restructuring specialist and in distressed debt investing equips me to contribute effectively to the company’s recovery. iolite holds a diverse portfolio of commodity-related investments across Australia, Canada, Switzerland, and Africa. Before founding iolite, I held positions at Glencore and several financial institutions, including TPG Credit, Goldman Sachs’ European Special Situations Group, and KPMG Corporate Restructuring. I hold a Master of Science in Business Administration and Economics from the University of St. Gallen (HSG), Switzerland, and completed my master’s thesis under the guidance of Prof. Eli Noam at Columbia University, New York.

While it is regrettable that this course of action has become necessary despite my efforts to resolve the matter discreetly, I firmly believe that a leadership change is essential to protect the interests of all shareholders and secure the company’s future success.

Thank you for your support. Now that the EGM has been called, I encourage you to seize this opportunity to break with the past and clear the path forward.

If you have any questions, please don't hesitate to reach out.

Sincerely,

Robert Leitz

+41 79 227 29 08

info @ iolitecapital.com