Mr. Kevin Harrigan reports

CORSA COAL ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2023 AND PROVIDES CORPORATE UPDATE

Corsa Coal Corp. has released financial results for the three months ended March 31, 2023. Corsa Coal has filed its unaudited condensed interim consolidated financial statements for the three months ended March 31, 2023, and 2022, and related management's discussion and analysis under its profile on SEDAR.

Unless otherwise noted, all dollar amounts in this news release are expressed in U.S. dollars, and all ton amounts are short tons (2,000 pounds per ton). Pricing and cost per ton information are expressed on a free-on-board (FOB), mine site basis, unless otherwise noted.

Corporate update

The board of directors has appointed Kevin M. Harrigan as president, chief executive officer and a director of the company, and has appointed Daniel M. Bonacci as chief financial officer and corporate secretary of the company, both appointments with immediate effect. Since Feb. 22, 2022, Mr. Harrigan had served as interim president and chief executive officer, and Mr. Bonacci had served as interim chief financial officer.

"Both Mr. Harrigan and Mr. Bonacci have successfully navigated Corsa through a challenging period in 2022 with significantly improved profitability and adjusted [earnings before interest, taxes, depreciation and amortization] for the first quarter of 2023. The board of directors thanks both Mr. Harrigan and Mr. Bonacci for their commitment, dedication and leadership over the past year to improve the financial results of the company. The board is confident in their ability to manage Corsa going forward," said Ronald G. Stovash, chair of the board of directors.

First quarter highlights:

• Key financial results and operational statistics are shown herein.

• Corsa Coal's average realized price for the first quarter 2023 is the approximate equivalent of between $291 and $297 per metric tonne on an FOB vessel basis (2). For the first quarter 2023, Corsa Coal's sales mix included 69 per cent of sales to domestic customers and 31 per cent of sales to international customers.

(1) This is a non-generally accepted accounting principle financial measure.

(2) Similar to most U.S. metallurgical coal producers, Corsa Coal reports sales and costs per ton on an FOB mine site basis and denominated in short tons. Many international metallurgical coal producers report prices and costs on a delivered-to-the-port basis (or FOB vessel basis), thereby including freight costs between the mine and the port. Additionally, Corsa Coal reports sales and costs per short ton, which is approximately 10 per cent lower than a metric tonne. For the purposes of this figure, Corsa Coal has used an illustrative freight rate of $45 to $50 per short ton. Historically, freight rates are attached to the coal market indices, and will adjust as market prices rise and fall. Further adjustments include a vessel freight differential and quality adjustments necessary to evaluate Corsa Coal's price compared with Australian premium low-volatile metallurgical coal. As a note, most published indices for metallurgical coal report prices on a delivered-to-the-port basis denominated in metric tonnes.

Mr. Harrigan commented: "Our profitability improved significantly for the first quarter of 2023 compared to both the first quarter of 2022 and the preceding quarter. It was Corsa's first quarter of positive net income since the fourth quarter of 2021 and our highest adjusted EBITDA since the second quarter of 2019. The first quarter 2023 adjusted EBITDA of $7.1-million (with total EBITDA of $6.0-million) exceeded or was on par with the 12 months total adjusted EBITDA in each of the last three years. This improved profitability was due to the impact of the higher-priced sales contracts and the lowest cash cost per metallurgical ton sold since the fourth quarter of 2021. The combined effect resulted in our largest cash margin per metallurgical ton sold since the first quarter of 2017.

"From an operational standpoint, our cash production cost per ton sold decreased modestly from the first quarter 2022 and was down 9 per cent from the preceding quarter, although it still reflected a number of mining and operational challenges. We consolidated our preparation plant operations early in the quarter and encountered some processing issues and increased idling costs. Our team quickly responded, and these issues were resolved in early February with the plant operating as expected for the remainder of the quarter. The Casselman mine completed the development of the access to the North mine reserves midway through the first quarter. We expect that the conditions will remain favourable in this new area of the mine, and productivity and costs will continue to improve. The Horning mine plan was successfully altered to mine around the geological issues that hampered 2022 production, allowing for the addition of a second production shift midway through the quarter leading to increased availability of Horning's high-quality coal. Our surface operations continued to expose a high wall in preparation for a contract high wall miner to commence mining in the second quarter. This addition is expected to improve surface mine production, support additional spot market sales and lower our cash production costs per ton sold.

"We believe that many of the challenges faced in 2022 are now behind us, and look forward to a year with improved contracted fixed prices, lower cash production costs and expanding margins that builds on the positive momentum that started in the first quarter of this year."

Coal pricing trends and outlook

Price levels opened the first quarter 2023 at $294.50 per metric tonne delivered to the port (FOBT) for spot deliveries of Australian premium low-volatile metallurgical coal and closed the quarter at $301 per mt FOBT. The quarterly average price for the first quarter 2023 was $342.57 per mt FOBT compared with $282.39 per mt FOBT in the fourth quarter 2022, and traded in a range from a high of $390 per mt FOBT to a low of $294.50 per mt FOBT.

The price for spot deliveries of Australian premium low-volatile metallurgical coal opened the second quarter 2023 at $300 per mt FOBT and was trading at $257 per mt FOBT in mid-April, with a high price of $300 per mt FOBT, a low price of $257 per mt FOBT and an average price of $279.37 per mt FOBT during the month. As of mid-April, forward curve pricing for the balance of 2023 is trading at an average of $258.36 per mt FOBT with the fourth quarter at a high of $264 per mt FOBT and the third quarter at a low of $251 per mt FOBT. The forward curve for 2024 indicates pricing at an average of $278 per mt FOBT. Second quarter 2023 hot-rolled steel coil prices decreased in China by 5.8 per cent, decreased in Europe by 1.8 per cent and decreased in the United States by 0.4 per cent. Increased short-term availability of metallurgical coal, economic uncertainty and anticipated summer seasonal impacts put near-term downward pressure on metallurgical coal prices although prices remain significantly above historic levels and are forecasted to rebound.

See risk factors in the company's annual information form dated April 13, 2023, for the year ended Dec. 31, 2022, for an additional discussion regarding certain factors that could impact coal pricing trends and outlook, as well as the company's continuing operations.

Second quarter 2023 update

The company's second quarter 2023 sales volumes are expected to be higher than the first quarter of 2023 due to increased production from its surface mines and higher-than-historical levels. Metallurgical coal selling prices are expected to be slightly higher than the first quarter of 2023 as the company fully recognizes the higher sales prices of its 2023 fixed-price contracts and increases its participation in the metallurgical coal spot market. Cash cost of sales is expected to be lower than in the previous quarter due to increased production from its surface mines and improved mining conditions and efficiencies from its deep mines, but will remain elevated compared with historical levels. Selling, general and administrative expenses are expected to be slightly higher than first quarter 2023 due to increased sales volumes. The main priorities of the company are increasing efficient production, reducing costs and increasing its ability to participate in the metallurgical coal spot market. It is committed to improving the company's balance sheet with minimized downside financial risk but is also focused on organic growth opportunities to complement its existing operations. The company's capital allocation and deployment strategy will be aligned with these priorities and the company's financial position.

Corsa Coal committed over 930,000 tons at an FOB mine price of nearly $179 per ton for the calendar year 2023. The price per ton is the equivalent of $287 per mt FOBT for Australian premium low-volatile metallurgical coal. The volumes and price per ton were impacted by nearly 153,000 carry-over tons, which were priced at the 2022 fixed-price contract rate.

Financial statements and management's discussion and analysis

Refer to Corsa Coal's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2023, and 2022, and related management's discussion and analysis, filed under Corsa Coal's profile on SEDAR, for details of the financial performance of Corsa Coal and the matters referred to in this news release.

Qualified person

All scientific and technical information contained in this news release has been reviewed and approved by David E. Yingling, professional engineer and the company's mining engineer, who is a qualified person within the meaning of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Corsa Coal Corp.

Corsa Coal is a coal mining company focused on the production and sales of metallurgical coal, an essential ingredient in the production of steel. Its core business is producing and selling metallurgical coal to domestic and international steel and coke producers in the Atlantic and Pacific basin markets.

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