Signature Sponsor
American Resources Corporation Files Updated Bid to Purchase Blackjewel, L.L.C. Properties in Eastern United States



August 5, 2019 - American Resources Corporation (NASDAQ:AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical coal to the steel industry, has announced that it has participated in the bidding process for the assets and operations of BlackJewel’s eastern (central Appalachian) division and will be submitting a revised bid. In relation to this process, the following statement is from Mark Jensen, Chief Executive Officer and Chairman of the Board of American Resources Corporation:

“On behalf of American Resources Corporation, we are disappointed to not be initially chosen as the successful primary bidder to purchase the assets of Blackjewel in Kentucky, West Virginia and Virginia. As the qualified backup bid, we believe that our bid is the most comprehensive and competitive as it is the only bid to include the full payment of pre-petition employee compensation of Blackjewel and Revelation Energy for those workers in the central Appalachian division, resulting in approximately $3.65 million being paid to these workers in an expedited structure that would otherwise go unfunded. Our bid also accepts responsibility for more than $200 million in reclamation liability, which prevents that liability from falling to the taxpayers of these states, whereas the other bid only addresses a fraction of this liability. Should our company prevail, we will continue to operate a number of the mines and between the current mines and the redeployment of equipment and infrastructure to existing American Resources / Quest Energy mines, we are confident that the job creation would result in a vast majority of Blackjewel’s workforce being given the opportunity to be employed by our company. We are in the process of revising our bid to increase the amount of our offer, which would further increase our funding of reclamation bonding to ensure environmental compliance. We are hopeful that at tomorrow’s 10:00 a.m. ET hearing in Charleston, West Virginia, the Court will recognize our commitment and the comprehensive value of our bid in finding the best solution and outcome to the employees, the operations, the environment, and stakeholders, and declare us the successful bidder.”