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Prairie Mining #PDZ – Appendix 3B – Issue of Performance Rights

7th February 2018 / Leave a comment

Prairie Mining Limited (Company) announces that 1,500,000 unlisted Performance Rights have been issued today to key employees and consultants of the Company pursuant to the Company’s long-term incentive Performance Rights Plan.

No new Ordinary Shares are being issued.

The below figure of 167,498,969 Ordinary Shares can be continued to be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company, under the FCA’s Disclosure and Transparency Rules.

For further information, please contact:

Prairie Mining Limited
Ben Stoikovich, Chief Executive Officer	Tel: +44 207 478 3900
Sapan Ghai, Head of Corporate Development	Email: info@pdz.com.au

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

PRAIRIE MINING LIMITED

ABN

23 008 677 852

We (the entity) give ASX the following information.

Part 1 ‑ All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+Class of +securities issued or to be issued		Performance share rights

2	Number of +securities issued or to be issued (if known) or maximum number which may be issued		1,500,000

3	Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)		Performance share rights which do not have an exercise price but are subject to various performance conditions (including: Jan Karski Construction; Debiensko Feasibility Study; and Debiensko Construction Milestones) to be satisfied prior to the relevant expiry dates between 31 December 2018 and 31 December 2020

4	Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities? If the additional +securities do not rank equally, please state: · the date from which they do · the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment · the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment		No – not listed

5	Issue price or consideration		Nil – see below

6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)		Issue of performance share rights to key employees and consultants of the Company

6a	Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i		No

6b	The date the security holder resolution under rule 7.1A was passed		Not applicable

6c	Number of +securities issued without security holder approval under rule 7.1		Not applicable

6d	Number of +securities issued with security holder approval under rule 7.1A		Not applicable

6e	Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)		Not applicable

6f	Number of +securities issued under an exception in rule 7.2		Not applicable

6g	If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.		Not applicable

6h	If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements		Not applicable

6i	Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements		Rule 7.1 – 24,486,845 Rule 7.1A – Not applicable

7		+Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.	7 February 2018

			Number	+Class
8		Number and +class of all +securities quoted on ASX (including the +securities in section 2 if applicable)	167,498,969	Ordinary Shares
			Number	+Class
9		Number and +class of all +securities not quoted on ASX (including the +securities in section 2 if applicable)	1,400,000 200,000 900,000 700,000 10,925,000 44,776,120 22,388,060 5,711,805	Options exercisable at $0.45 each on or before 30 June 2018 Options exercisable at $0.50 each on or before 31 March 2020 Options exercisable at $0.60 each on or before 31 March 2020 Options exercisable at $0.80 each on or before 31 March 2020 Performance share rights subject to various performance conditions to be satisfied prior to relevant milestones or expiry dates between 31 December 2018 and 31 December 2020 Convertible loan note with a principal amount of $15,000,000, exchangeable into 44,776,120 ordinary shares at a conversion price of $0.335 per share with no expiry date (“Loan Note 1”). Agreement to issue unlisted options exercisable at $0.60 each expiring 3 years after conversion of Loan Note 1. Convertible loan note with a principal amount of $2,627,430, convertible into 5,711,805 ordinary shares at a conversion price of $0.46 per share with no expiry date (“Loan Note 2”)

10		Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Not applicable

Part 2 ‑ Pro rata issue

11	Is security holder approval required?	Not applicable

12	Is the issue renounceable or non-renounceable?	Not applicable

13	Ratio in which the +securities will be offered	Not applicable

14	+Class of +securities to which the offer relates	Not applicable

15	+Record date to determine entitlements	Not applicable

16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?	Not applicable

17	Policy for deciding entitlements in relation to fractions	Not applicable

18	Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.	Not applicable

19	Closing date for receipt of acceptances or renunciations	Not applicable

20	Names of any underwriters	Not applicable

21	Amount of any underwriting fee or commission	Not applicable

22	Names of any brokers to the issue	Not applicable

23	Fee or commission payable to the broker to the issue	Not applicable

24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders	Not applicable

25	If the issue is contingent on security holders’ approval, the date of the meeting	Not applicable

26	Date entitlement and acceptance form and offer documents will be sent to persons entitled	Not applicable

27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders	Not applicable

28	Date rights trading will begin (if applicable)	Not applicable

29	Date rights trading will end (if applicable)	Not applicable

30	How do security holders sell their entitlements in fullthrough a broker?	Not applicable

31	How do security holders sell part of their entitlements through a broker and accept for the balance?	Not applicable

32	How do security holders dispose of their entitlements (except by sale through a broker)?	Not applicable

33	+Issue date	Not applicable

Part 3 ‑ Quotation of securities

You need only complete this section if you are applying for quotation of securities

Type of +securities

(tick one)

(a)

+Securities described in Part 1

(b)

All other +securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35		If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

36		If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over

37		A copy of any trust deed for the additional +securities

Entities that have ticked box 34(b)

38	Number of +securities for which +quotation is sought	Not applicable

39	+Class of +securities for which quotation is sought	Not applicable

40	Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities? If the additional +securities do not rank equally, please state: · the date from which they do · the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment · the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	Not applicable

41	Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another +security, clearly identify that other +security)	Not applicable

		Number	+Class
42	Number and +class of all +securities quoted on ASX (including the +securities in clause 38)	Not applicable	Not applicable

Quotation agreement

1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides.

2 We warrant the following to ASX.

· The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

· There is no reason why those +securities should not be granted +quotation.

· An offer of the ⁺securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

· Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

· If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.

3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

[signed electronically without signature]

Sign here: …………………………………………………… Date: 7 February 2018

(Director/Company secretary)

Print name: Dylan Browne

== == == == ==

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insert number of fully paid +ordinary securities on issue 12 months before the +issue date or date of agreement to issue	151,858,969
Add the following: • Number of fully paid +ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid +ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid +ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	11,500,000 Ordinary shares (3 April 2017) 570,000 ordinary shares (9 June 2017) 2,110,000 ordinary shares (16 June 2017) 1,340,000 ordinary shares (6 July 2017)
Subtract the number of fully paid +ordinary securities cancelled during that 12 month period	Nil
“A”	167,378,969

Step 2: Calculate 15% of “A”
“B”	0.15 [Note: this value cannot be changed]
Multiply “A” by 0.15	25,106,845
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insert number of +equity securities issued or agreed to be issued in that 12 month period not counting those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	120,000 Ordinary shares (17 Mar 2017) 500,000 Incentive options (15 Sep 2017)
“C”	620,000
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	25,106,845
Subtract “C” Note: number must be same as shown in Step 3	620,000
Total [“A” x 0.15] – “C”	24,486,845 [Note: this is the remaining placement capacity under rule 7.1]

Part 2

Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	Not applicable
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply “A” by 0.10	Not applicable
Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used
Insert number of +equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	Not applicable
“E”	Not applicable
Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	Not applicable
Subtract “E” Note: number must be same as shown in Step 3	Not applicable
Total [“A” x 0.10] – “E”	Not applicable Note: this is the remaining placement capacity under rule 7.1A

Prairie Mining #PDZ – December 2017 Quarterly Report

31st January 2018 / Leave a comment

DECEMBER 2017 QUARTERLY REPORT

HIGHLIGHTS FROM AND SUBSEQUENT TO THE QUARTER END:

Debiensko Mine (Premium Hard Coking Coal)

During the quarter Poland’s newly appointed Prime Minister, Mr Mateusz Morawiecki, officially presented the Ministry of Development’s “Program for Silesia” in December 2017 which included a strategy for the re-start of a major coking coal mine in the Upper Silesian region, where Prairie’s Debiensko project is located, and highlighted the positive social and economic impacts that mine development would have on the region
Mine site redevelopment planning continued to advance with completion of initial demolition works, pre-qualification of study contractors, and preparation for an infill drill program to increase JORC Measured and Indicated Resources
Prairie continued discussions with steel makers and coke producers throughout the quarter for future coking coal sales and offtake

Jan Karski Mine (Semi-Soft Coking Coal)

Environmental permitting for Jan Karski advanced following successful submission of the Environmental and Social Impact Assessment to the Lublin Regional Environment Directorate for Environmental Consent
Preparation of the Mining Concession application is underway and anticipated to be lodged during the first quarter of 2018
Prairie initiated public consultations in local municipalities for the development of the Jan Karski Mine, demonstrating that a new mine would bring significant employment opportunities and economic development
China Coal’s technical studies for the construction of the Jan Karski Mine have significantly advanced and Prairie is currently reviewing study documents provided by China Coal. The studies will be revised to incorporate the latest coal quality results from drilling at Jan Karski as well as any conditions stipulated in the Environmental Consent and the Mining Concession to be granted for Jan Karski
During the quarter, Prairie hosted a delegation in Poland including China Coal and Jinan Mine Design Institute during which offers for project works involving Polish subcontractors were finalised

Robust Coking Coal Fundamentals

Hard coking coal prices continued to trade at price levels above US$225/t FOB Australia
Market analysts forecast underinvestment in new coking coal mine development has potential to result in sustained high coking coal prices
European Commission continues to designate coking coal as a Critical Raw Material in its 2017 review
The Polish Government strongly supports development of new, modernised coal mines, as announced in the “Program for Silesia” produced by Poland’s Ministry for Development

Corporate

Prairie remains in a financially strong position with cash reserves of A$15.1 million
With CD Capital’s right to invest a further A$68 million as a cornerstone investor, plus with the Strategic Co-operation Agreement between Prairie and China Coal for financing and construction of Jan Karski, Prairie is well positioned to progress with its planned development activities at Debiensko and Jan Karski

Ben Stoikovich, Chief Executive Officer commented “Following the submission of the ESIA and initiation of public consultations, Prairie continues towards applying for a Mining Concession to commence construction of the Jan Karski Mine together with our strategic partner China Coal. China Coal’s Technical and Economic Studies have progressed positively, and our team is in the process of preparing a full Mining Concession application for Jan Karski. At Debiensko, we continue to plan our mine site redevelopment program in a positive market environment with increased coking coal demand from Europe’s steel producers coupled with reducing European supply. We welcome the news that the Polish government have officially included the re-start of a coking coal mine in the “Program for Silesia”, the region where our Debiensko project is located.“

For further information, please contact:

Prairie Mining Limited	+44 20 7478 3900
Ben Stoikovich, Chief Executive Officer	info@pdz.com.au
Sapan Ghai, Head of Corporate Development

DEBIENSKO MINE

The Debiensko Mine (“Debiensko”) is a fully permitted, hard coking coal project located in the Upper Silesian Coal Basin in the south west of the Republic of Poland. It is approximately 40 km from the city of Katowice and 40 km from the Czech Republic.

Debiensko is bordered by the Knurow-Szczyglowice Mine in the north west and the Budryk Mine in the north east, both owned and operated by Jastrzębska Spółka Węglowa SA (“JSW”), Europe’s leading producer of hard coking coal.

The Debiensko mine was originally opened in 1898 and was operated by various Polish mining companies until 2000 when mining operations were terminated due to a major government led restructuring of the coal sector caused by a downturn in global coal prices. In early 2006 New World Resources Plc (“NWR”) acquired Debiensko and commenced planning for Debiensko to comply with Polish mining standards, with the aim of accessing and mining hard coking coal seams. In 2008, the Minister of Environment of Poland (“MoE”) granted a 50-year mine license for Debiensko.

In October 2016, Prairie (“Prairie” or “Company”) acquired Debiensko with a view that a revised development approach would potentially allow for the early mining of profitable premium hard coking coal seams, whilst minimising upfront capital costs. Prairie has proven expertise in defining commercially robust projects and applying international standards in Poland. The fact that Debiensko is a former operating mine and its proximity to two neighbouring coking coal producers in the same geological setting, reaffirms the significant potential to successfully bring Debiensko back into operation.

Re-start of a Coking Coal mine included in “Program for Silesia” and new political appointments in Poland

Prairie notes that on 11 December 2017, the Polish government appointed a new Prime Minister, Mr Mateusz Morawiecki, who immediately prior to his current role, was Deputy Prime Minister and Minister of Development and Finance in Poland. Prairie also notes that on the 9 January 2018, a new Minister of Environment, Mr Henryk Kowalczyk, was appointed as part of a cabinet reshuffle under the new Prime Minister. In Poland, responsibility for exploration and mining concessions is the responsibility of the Ministry of Environment.

Following his appointment, Prime Minister Mateusz Morawiecki, presented the Polish Ministry of Development’s “Program for Silesia” (“Program”) – a strategic document which anticipated the re-construction of a coking coal mine in the region of Upper Silesia, where Debiensko is located. The Program details the creation of 1,500 direct jobs in the region and indicates the social and economic benefits of re-construction of a coking coal mine, and to potentially be funded by foreign and Polish capital.

Preparation for the Next Phase of Project Studies

Following completion of a 28 shallow geo-technical drill program in the previous quarter, Prairie continued to analyse the drill hole data which will be used for engineering design of foundations of structures associated with the shafts, coal handling and preparation plant (“CHPP”) and other surface facilities. These holes are essential in order to assess the soil conditions, properly design structural foundations and thus provide more accurate pricing in the tenders as required for a feasibility study.

Pre-qualification of contractors for the major components of the next phase of Debiensko studies also continued throughout the quarter including contractors for the:

· In-fill drilling program (to update measured and indicated resources);

· CHPP;

· Shafts and bulk coal winder;

· Desalination plant; and

· Surface facilities.

Demolition works continued throughout the quarter specifically targeting old structures including walkways and old administrative buildings. To date, Prairie has completed demolition works on a number of old surface structures of the former Debiensko mine including the bathhouse, switchgear building and locomotive garage.

Sale of Non-Core Land

Through the acquisition of Debiensko in 2016, Prairie obtained land tenements within the village of Kaczyce which were considered non-core to the construction, restart and operations of the Debiensko Mine. During the quarter, the Company agreed the sale of the non-core land for consideration of PLN1.4 million (~A$500,000). Prairie has received the consideration and ownership of the land is expected to be transferred by the end of the next quarter.

JAN KARSKI MINE

Submission of ESIA & Initiation of Public Consultation

An application for issuing the environmental decision together with the Environmental and Social Impact Assessment (“ESIA”) was submitted to the Regional Director for Environmental Protection (“RDOS”) in Lublin in October 2017. Taking into account the RDOS’s additional comments the motion and ESIA were supplemented in late November 2017. The Environmental Consent process has now officially been initiated by RDOS.

Prairie is now waiting for approval of the ESIA in the form of an Environmental Consent decision, which is the last component to meet all formal requirements to apply for the Mining Concession for construction for the Jan Karski Mine (“Jan Karski”).

As part of the environmental permitting process, Prairie initiated public consultations in three municipalities, including Wierzbica, Siedliszcze and Cyców. Presentations on Jan Karski’s development plans were given by Mr Miroslaw Taras (Prairie’s Group Executive), Witold Wołoszyn (Prairie’s Environmental and Planning Manager) and specialists from the international environmental consulting group, Multiconsult Polska who prepared the ESIA. Key advantages for the local community related to employment opportunities and social benefits associated with the development, construction and operation of Jan Karski including:

· creation of 2,000 direct employment positions and 10,000 indirect jobs for the region once operational;

· increasing skills of the workforce and through the implementation of International Standard training programmes;

· stimulating the development of education, health services and communications within the region; and

· building a mine that creates new employment for generations to come and career paths for families to remain in the region.

China Coal Progress and Financing Discussions

In November 2017, the Company hosted a delegation in Poland including China Coal No.5 Construction Company Ltd (“China Coal”) and the Chinese Government’s officially authorised coal mine design institute Jinan Mine Design Institute, during which locally provided content for construction of Jan Karski was finalised alongside domestic Polish specialists, subcontractors and partners who will provide relevant Polish content.

China Coal’s technical studies for the construction and funding of the Jan Karski Mine have significantly advanced and Prairie is currently reviewing study documents (“Studies”) received from China Coal subsequent to the quarter end. In accordance with the Strategic Co-operation Agreement between Prairie and China Coal, the Studies will form the basis for provision of debt financing out of China for the construction and development of Jan Karski. The Studies are being undertaken in accordance with Chinese official mine design and banking standards for coal mine projects, and to comply with domestic Polish engineering standards and standards for mechanical and electrical equipment. The terms of the Environmental Consent and Mining Concession for Jan Karski will be incorporated into the final engineering design, as well as results from the latest coal quality and hydrogeological drilling works being conducted by the Company.

Prairie and China Coal continue to advance discussions with Chinese banks to provide debt facilities to fund construction of the Project and enter into a complete Engineering, Procurement, and Construction (“EPC”) contract under which China Coal would construct the Jan Karski Mine.

CORPORATE

Financial Position

Prairie has cash reserves of A$15.1 million. With CD Capital’s right to invest a further A$68 million as a cornerstone investor, plus with the Strategic Co-operation Agreement Prairie has with China Coal for financing and construction of Jan Karski, Prairie is in a strong financial position to progress with its planned development activities at Debiensko and Jan Karski.

Forward Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on Prairie’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

APPENDIX 1 – EXPLORATION TENEMENT INFORMATION

As at 31 December 2017, the Company has an interest in the following tenements:

Location	Tenement	Percentage Interest	Status	Tenement Type
Jan Karski, Poland	Jan Karski Mine Plan Area (K-4-5, K-6-7, K-8 and K-9)*	100	Granted	Exclusive Right to apply for a mining concession
Jan Karski, Poland	Kulik (K-4-5)	100	Granted	Exploration
Jan Karski, Poland	Syczyn (K-8)	100	Granted	Exploration
Jan Karski, Poland	Kopina (K-9)	100	Granted	Exploration
Jan Karski, Poland	Sawin-Zachód	100	Granted	Exploration
Debiensko, Poland	Debiensko 1**	100	Granted	Mining
Debiensko, Poland	Kaczyce 1	100	Granted	Mining & Exploration (includes gas rights)

* On 1 July 2015, the Company announced that it had secured the Exclusive Right to apply for a mining concession for Jan Karski. As a result of its geological documentation for the Jan Karski deposit being approved, Prairie is currently the only entity that can lodge a Mining Concession application over Jan Karski within a three (3) year period up and until April 2018. In addition, Prairie has the right to apply for and be granted a mining usufruct agreement for an additional 12 month period that precludes any other parties being granted a licence over all or part of the Jan Karski concessions. Prairie applied for a mining usufruct agreement in December 2017.

The approved geological documentation covers an area comprising of all four of the original exploration concessions granted to Prairie (K-4-5, K-6-7, K-8 and K-9) and includes the full extent of the targeted resources within the mine plan for Jan Karski. In this regard, no beneficial title interest has been surrendered by the Company when the K-6-7 exploration concession expired during the quarter. The Company intends to submit a mining concession application, over the mine plan area at Jan Karski (which includes K-6-7) within the next 12 months. Under Polish mining law, and owing to the Exclusive Right the Company has secured, Prairie is currently the only entity that may apply for and be granted a mining concession with respect to the K-6-7 area (the Exclusive Right also applies to the K-4-5, K-8 and K-9 areas of Jan Karski). There is no requirement for the Company to hold an exploration concession in order exercise the Exclusive Right and apply for a mining concession.

** Under the terms of the Debiensko Mining Concession issued in 2008 by the MoE (which is valid for 50 years from grant date), commencement of production was to occur by 1 January 2018. Not commencing production by January 2018 does not immediately infringe on the validity and expiry date of the current Mining Concession, which is June 2058. However, the concession authority has the right to request the concession holder to reasonably remove any infringements related to non-conformance with the conditions of a Mining Concession and determine a reasonable date for removal of the infringements (under Polish law, the concession authority is required to provide a reasonable timeframe to remedy any non-compliance taking into account the nature of the non-conformance). Failure to remedy the infringements within any reasonable time frame prescribed by the concession authority may lead to commencement of proceedings to limit or withdraw of a concession. In December 2016, the Company submitted an application to the MoE to amend the Debiensko Mining Concession to alter the date for commencement of production from 2018 to 2025, and has provided the MoE with additional information requested. A decision from the MoE is currently pending following a change in the Polish Prime Minister in December 2017 and the appointment of a new Minister of Environment in January 2018.

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity
PRAIRIE MINING LIMITED
ABN		Quarter ended (“current quarter”)
23 008 677 852		31 December 2017

Consolidated statement of cash flows			Current quarter $A’000	Year to date (6 months) $A’000
1.	Cash flows from operating activities		–	–
1.1	Receipts from customers		–	–
1.2	Payments for		(1,339)	(2,954)
	(a) exploration & evaluation		(1,339)	(2,954)
	(b) development		–	–
	(c) production		–	–
	(d) staff costs		(478)	(1,083)
	(e) administration and corporate costs		(200)	(440)
1.3	Dividends received (see note 3)		–	–
1.4	Interest received		83	203
1.5	Interest and other costs of finance paid		–	–
1.6	Income taxes paid		–	–
1.7	Research and development refunds		–	–
1.8	Other (provide details if material) (a) Business development costs (b) Property rental and gas sales		(208) 107	(526) 248
1.9	Net cash from / (used in) operating activities		(2,035)	(4,552)

2.		Cash flows from investing activities	(40)	(62)
2.1		Payments to acquire:
		(a) property, plant and equipment
		(b) tenements (see item 10)	–	–
		(c) investments	–	–
		(d) other non-current assets	–	–
2.2		Proceeds from the disposal of:	272	497
		(a) property, plant and equipment	272	497
		(b) tenements (see item 10)	–	–
		(c) investments	–	–
		(d) other non-current assets	–	–
2.3		Cash flows from loans to other entities	–	–
2.4		Dividends received (see note 3)	–	–
2.5		Other (provide details if material)	–	–
2.6		Net cash from / (used in) investing activities	232	435

3.		Cash flows from financing activities	–	–
3.1		Proceeds from issues of shares	–	–
3.2		Proceeds from issue of convertible notes	–	2,627
3.3		Proceeds from exercise of share options	–	–
3.4		Transaction costs related to issues of shares, convertible notes or options	–	(179)
3.5		Proceeds from borrowings	–	–
3.6		Repayment of borrowings	–	–
3.7		Transaction costs related to loans and borrowings	–	–
3.8		Dividends paid	–	–
3.9		Other (provide details if material)	–	–
3.10		Net cash from / (used in) financing activities	–	2,448

4.		Net increase / (decrease) in cash and cash equivalents for the period	16,943	16,809
4.1		Cash and cash equivalents at beginning of period	16,943	16,809
4.2		Net cash from / (used in) operating activities (item 1.9 above)	(2,035)	(4,552)
4.3		Net cash from / (used in) investing activities (item 2.6 above)	232	435
4.4		Net cash from / (used in) financing activities (item 3.10 above)	–	2,448
4.5		Effect of movement in exchange rates on cash held	–	–
4.6		Cash and cash equivalents at end of period	15,140	15,140

5.	Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1	Bank balances	3,640	5,443
5.2	Call deposits	11,500	11,500
5.3	Bank overdrafts	–	–
5.4	Other (provide details)	–	–
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	15,140	16,943

6.	Payments to directors of the entity and their associates	Current quarter $A’000
6.1	Aggregate amount of payments to these parties included in item 1.2	(169)
6.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	Nil
6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
Payments include executive remuneration (including bonuses), director fees, superannuation and provision of a fully serviced office.

7.	Payments to related entities of the entity and their associates	Current quarter $A’000
7.1	Aggregate amount of payments to these parties included in item 1.2	–
7.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	–
7.3	Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
Not applicable

8.	Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
8.1	Loan facilities	–	–
8.2	Credit standby arrangements	–	–
8.3	Other (please specify)	–	–
8.4	Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation	(1,500)
9.2	Development	–
9.3	Production	–
9.4	Staff costs	(500)
9.5	Administration and corporate costs	(200)
9.6	Other (provide details if material) (a) Business development costs	(200)
9.7	Total estimated cash outflows	(2,400)

10.	Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1	Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	–	–	–	–
10.2	Interests in mining tenements and petroleum tenements acquired or increased	–	–	–	–

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

[lodged electronically without signature]

Sign here: …………………………………………………… Date: 31 January 2018

(Director/Company secretary)

Print name: Dylan Browne

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

WNP Finanse – Polish Mining Giant JSW keen to partner in Debiensko mine project

12th January 2018 / Leave a comment

Polish Mining Giant JSW keen to partner in Debiensko mine project

Article from WNP Finanse

As the new Polish Government continues to progress towards restarting domestic coking coal mines, WNP Finanse reports that Polish mining giant JSW (Jastrzębska Spółka Węglowa) is set to enter refinancing talks in February, with potential partners including EIB and Chinese banks.

JSW’s President Ozon said the company would also be looking at dividends, although that decision would depend on several factors: employee expectations, shareholder expectations, investment needs and prospects related to debt refinancing and obtaining favourable long-term financing.

Referring to the construction of a new coking coal mine in the region, as stipulated in the governmental Program for Silesia, the chairman reminded that the Dębieńsko deposit in question is currently at the discretion of a private company, Prairie Mining #PDZ. Ozon said JSW “are waiting if there is a possibility that we could potentially join the project in some way”. He added that in his assessment, “there is a place on the European market for coking coal from the new mine.”

Source article link here

Prairie Mining #PDZ CEO Ben Stoikovich discusses the company and developments with Jeremy Naylor at IG TV

11th January 2018 / Leave a comment

IG TV’s Jeremy Naylor is joined by Ben Stoikovich, Prairie Mining #PDZ, to discuss its production of coking coal in Poland. It says that it has the economic dynamic that will enable it to undercut almost all other coking coal suppliers.

Prairie Mining #PDZ – Change of Director’s Interest Notice

3rd January 2018 / Leave a comment

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/09/01 Amended 01/01/11

Name of entity Prairie Mining Limited

ABN 23 008 677 852

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Benjamin Stoikovich
Date of last notice	25 August 2017

Part 1 – Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust.

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Direct or indirect interest	Direct and Indirect
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Windellama Capital Limited (Beneficial Interest)
Date of change	31 December 2017
No. of securities held prior to change	A. 1,500,000 (Direct) B. 1,000,000 (Indirect) C. 500,000 (Indirect) D. 640,000 (Indirect) E. 960,000 (Indirect)
Class	A. Ordinary Fully Paid Shares B. Performance Rights – expiry 31 December 2017 C. Performance Rights – expiry 31 December 2018 D. Performance Rights – expiry 31 December 2019 E. Performance Rights – expiry 31 December 2020
Number acquired	Nil
Number disposed	A. Nil B. (1,000,000) C. Nil D. Nil E. Nil
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil – see below
No. of securities held after change	A. 1,500,000 B. Nil C. 500,000 D. 640,000 E. 960,000
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Expiry of Performance Rights

Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract	Not applicable
Nature of interest	Not applicable
Name of registered holder (if issued securities)	Not applicable
Date of change	Not applicable
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed	Not applicable
Interest acquired	Not applicable
Interest disposed	Not applicable
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation	Not applicable
Interest after change	Not applicable

Part 3 – +Closed period

Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required?	Not applicable
If so, was prior written clearance provided to allow the trade to proceed during this period?	Under Prairie Mining’s Securities Trading Policy a director cannot deal in Prairie Mining securities without prior approval. This requirement applies to all dealings, including those outside a Closed Period.
If prior written clearance was provided, on what date was this provided?	Not applicable

Initial notification/Amendment	Initial
LEI	213800EHCGNYSCN9T108
Place of transaction	Australian Securities Exchange (ASX)

Brand CEO Alan Green talks Feedback #FDBK, Petrofac #PFC & Prairie Mining #PDZ on VOX Markets podcast

2nd January 2018 / Leave a comment

Brand CEO Alan Green talks Feedback #FDBK, Petrofac #PFC & Prairie Mining #PDZ with Justin Waite on the VOX Markets podcast. The interview starts at 13 minutes in.

Stocktube – Brand Communications’ Alan Green highlights his small cap stocks to watch in 2018.

29th December 2017 / Leave a comment

Brand Communications’ Alan Green highlights his small cap stocks to watch in 2018.

First on Alan’s hit list is Tertiary Minerals (LON:TYM).

Tertiary’s share price has been on a good run recently since it announced they’d signed an MoU with global commodities group Possehl to enter into an offtake agreement to support the group’s three fluorspar projects.

Possehl, which is part of German-based commodities business Cremer, will provide funds to develop the deposits and for any acquisitions Tertiary may make to bulk them up.

”All of the stars are in a row here and I think Tertiary Minerals are set for a great year in 2018”.

Next on his ‘ones to watch’ is Prairie Mining Ltd (ASX:PDZ).

”They’ve got two key coking coal projects – the flagship of which has been referred to by many in the industry as the most advanced coking coal project in the northern hemisphere, which is quite an accolade when you consider the other mines that are around”.

”Coking coal is a critical mineral … it’s vital for the production of steel and as we know the infrastructure throughout Europe and the UK will require a lot of steel in future – plus we have the burgeoning electric vehicle industry too”.

Shares in Advanced Oncotherapy PLC (LON:AVO), the developer of next-generation proton therapy systems for cancer treatment, shot up nearly 30% earlier this month after they secured £37.4mln of fresh funding, with £30mln of this coming from a new Chinese investor.

Green says ”The company’s at a very exciting phase now but even now it’s still worth around 40 million sterling and each of its machines will sell for around 45 million dollars … so there’s still I believe a tremendous amount of upside to come here”.

”2018 is the home run for them”, Green adds, ”Investors are in for a very exciting year”.

Green also chats through the investment case for Cadence Minerals (LON:KDNC).

Cadence is a mining investment company that’ve recently acquired up to 100% of six prospective hard rock lithium assets in Argentina from Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd.

They’re also invested in Bacanora Minerals Ltd (LON:BCN) who, a few weeks back, published the results of a definitive feasibility study for the Sonora lithium deposit in Mexico that valued it at US$1.25bn.

Plus they also have a stake in European Metal Holdings (LON:EMH) and its Cinovec project in the Czech Republic.

To round things off Alan gives a quick couple of comments on blockchain and crypto-currency and where he reckons there could be opportunities next year.

”The fact that this technology can connect pretty much everyone in the world is massive …and that’s why we’re seeing this huge explosion in the value of crypto-currency”.

Link here to watch on the Stocktube website

Brand CEO Alan Green talks #TYM, #PDZ, #AVO, #KDNC and crypto with Andrew Scott on Proactive Investors

27th December 2017 / Leave a comment

Brand CEO Alan Green talks Tertiary Minerals #TYM, Prairie Mining #PDZ, Advanced Oncotherapy #AVO, Cadence Minerals #KDNC and crypto currency with Andrew Scott at Proactive Investors

Prairie Mining #PDZ – Reports on Payments to Governments

27th December 2017 / Leave a comment

Prairie Mining Limited and its controlled entities provides information in accordance with London Stock Exchange Listing Rule DTR 4.3A in respect of payments made by the Company to governments for the year ended 30 June 2017 and in compliance with The Reports on Payments to Governments Regulations and its amendment in 2015.

The following schedule details payments made to Polish government entities by its wholly owned Polish subsidiaries PD Co sp. z o.o. and Karbonia S.A. Further, due to the operational focus of the Group during the year ended 30 June 2017, the Polish government is the only relevant party to whom payments are made.

	Total Payments 30 June 2017
Reporting Category	PD Co: Jan Karski Mine A$	Karbonia: Debiensko Mine A$	Total A$

Production entitlements	–	–	–
Income Taxes	–	–	–
Royalties	–	–	–
Dividends	–	–	–
Signature/discovery/production bonuses	–	–	–
Licence fees (including mining usufruct payments)	324,215	121,695	445,910
Property taxes to local municipalities	–	342,684	342,684
Infrastructure improvements	–	–	–
			–
Total	324,215	464,379	788,594

This report is also available for download at www.pdz.com.au.

For further information, please contact:

Prairie Mining Limited	Tel: +44 207 478 3900
Ben Stoikovich, Chief Executive Officer	Email: info@pdz.com.au
Sapan Ghai, Head of Corporate Development

DEBIENSKO MINE (Hard Coking Coal)

The Debiensko Mine, is a fully permitted, hard coking coal project located in the Upper Silesian Coal Basin in the south west of the Republic of Poland. It is approximately 40 km from the city of Katowice and 40 km from the Czech Republic.

The Debiensko mine was originally operated by various Polish mining companies until 2000 when mining operations were terminated due to a major government led restructuring of the coal sector caused by a downturn in global coal prices. In early 2006 New World Resources Plc acquired Debiensko and commenced planning for Debiensko to comply with Polish mining standards, with the aim of accessing and mining hard coking coal seams. In 2008, the Minister of Environment of Poland (“MoE”) granted a 50-year mine license for Debiensko.

In October 2016, Prairie acquired Debiensko with a view that a revised development approach would potentially allow for the early mining of profitable premium hard coking coal seams, whilst minimising upfront capital costs. Prairie has proven expertise in defining commercially robust projects and applying international standards in Poland. The fact that Debiensko is a former operating mine and its proximity to two neighbouring coking coal producers in the same geological setting, reaffirms the significant potential to successfully bring Debiensko back into operation.

JAN KARSKI MINE (Semi-Soft Coking Coal)

The Jan Karski Mine is a high-value ultra-low ash semi-soft coking coal project located in the Lublin Province in the south east of the Republic of Poland.

In November 2017, Prairie submitted the Environmental and Social Impact Assessment (“ESIA”) for Jan Karski. Prairie is now waiting for approval of the ESIA in the form of an Environmental Consent decision, which is the last component to meet all formal requirements to apply for the Mining Concession for construction at Jan Karski. Independent environmental consultants have confirmed Prairie has met all pre-requisite requirements and can expect an environmental permit in due course.

Prairie’s strategic partner, China Coal No.5 Construction Company Ltd, is set to complete all Technical and Economic Studies required and considered “bankable” by Chinese financing institutions. The studies will form the basis for provision of debt financing for the construction and development of Jan Karski. Upon completion of the Studies, Prairie and China Coal intend to seek Chinese bank credit approval to fund construction of Jan Karski and enter into a complete Engineering, Procurement, and Construction (“EPC”) contract under which China Coal will construct the Project.

An Independent assessment by specialist coking coal market consultants predicts that the Jan Karski ultra-low ash SSCC would potentially realise a 10% premium to international benchmark prices. Preliminary discussions between Prairie and select European steel makers have confirmed the suitability of ultra-low ash SSCC to be utilised in coke oven blends. Consequently, the Company is currently updating the marketing and sales strategy for the coal which will be produced at Jan Karski and will incorporate this strategy into the Studies.

Prairie Mining #PDZ – Tier 1 assets & perfect macro. Buy at 30p, target price 90p say Beaufort Securities

19th December 2017 / Leave a comment

Prairie Mining recently published an update describing the coking coal macro in Europe and Poland. The release focused on the European Commission’s 2017 critical materials list, the global lack of new coking coal projects, and the Polish government’s support for new modern coal mines. We also note how the new Polish Prime Minister is pushing the Polish-Chinese business agenda, which will benefit Prairie Mining.

Mateusz Morawiecki recently became Prime Minister and he strongly supports Chinese investment into Poland. Amongst other things, he has recently said “to encourage Chinese companies to invest more capital in our country” and “Poland wants to actively participate in the One Belt, One Road project”.

This agenda fits perfectly with Prairie’s strategy of having China Coal construct Jan Karski using low-cost Chinese debt. And we believe support from the new Polish Prime Minister will ensure Jan Karski reaches the point of being fully permitted and funded. As with all major industrial projects, top level government support is essential.

Prairie Mining shares have underperformed our expectations in 2H17 (the shares increased 50% in 1H17). The lack of buying could be due to negative general media surrounding coal. However, Prairie is a coking coal not thermal coal company and has strong political and European macro support . We anticipate 2018 being a good year for Prairie shares and reiterate our BUY recommendation and 90p price target.

Full research note here Beaufort_PDZ_181217

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