Mr. Kevin Harrigan reports

CORSA COAL ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2023

Corsa Coal Corp. has released its financial results for the three and six months ended June 30, 2023. Corsa has filed its unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 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 United States dollars and all ton amounts are short tons (2,000 pounds per ton). Pricing and cost per ton information is expressed on a free-on-board ("FOB"), mine site basis, unless otherwise noted.

Second Quarter Highlights

Key financial results and operational statistics are shown below:

Corsa's average realized price for the second quarter 2023 is the approximate equivalent of between $288 to $294 per metric ton on an FOB vessel basis(2). For the second quarter 2023, Corsa's sales mix included 66% of sales to domestic customers and 34% of sales to international customers.

(1) This is a non-GAAP financial measure.

(2) Similar to most U.S. metallurgical coal producers, Corsa 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 reports sales and costs per short ton, which is approximately 10% lower than a metric ton. For the purposes of this figure, we have used an illustrative freight rate of $45-$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's price compared to 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 tons.

Kevin M. Harrigan, President and Chief Executive Officer of Corsa, commented, "Our second quarter of 2023 continued and accelerated the momentum that we saw in the previous quarter. Sales tons improved 18% and while sales price per ton sold remained consistent, our margins increased considerably as a result of a 12% improvement in cash production cost per ton sold leading to an improvement in net income of over four times that of the first quarter and adjusted EBITDA to over double that of the first quarter. Compared to the second quarter of 2022, the second quarter of 2023 shows sales tons improvement of 22%, sales price per ton sold improvement of 7%, cash production cost per ton sold improvement of 8%, cash margin per ton sold improvement of 90% and overall significant improvements in both net income and adjusted EBITDA."

"The results for the second quarter and the year-to-date 2023 reflect not only the prices achieved through our strategy but more importantly improved operations at all of our mines. Our deep mines performed well with increases in headcount and miner experience as well as improved geological conditions at the Casselman and Horning mines. Production from the surface operations increased as we resumed lower -cost, highwall mining operations during the quarter. We continue to make improvements at each operation with the expectation of further reducing our cash cost of production and remain focused on increasing headcount and training to drive our results."

"During the second quarter, a majority of the cash flows from operations were used to service working capital items and the Company is now in a position to improve liquidity in the second half of 2023."

"Additionally, the Company's directors and officers participated in a stock option exercise in July which was necessary to fund the corporate parent company due to loan covenant restrictions."

"We continue to execute our plan of improving operations, lowering costs and expanding margins which are all necessary to reduce our debt, service our environmental obligations and grow the Company."

Coal Pricing Trends and Outlook

Price levels opened the second quarter 2023 at $300.00/metric ton ("mt") delivered-to-the-port ("FOBT") for spot deliveries of Australian premium low volatile metallurgical coal and closed the quarter at $233.00/mt FOBT. The quarterly average price for the second quarter 2023 was $242.92/mt FOBT compared to $342.57/mt FOBT in the first quarter 2023, and traded in a range from a high of $300.00/mt FOBT to a low of $222.00/mt FOBT.

The price for spot deliveries of Australian premium low volatile metallurgical coal opened the third quarter 2023 at $233.00/ mt FOBT and was trading at $237.00/mt FOBT at the end of July, with a high price of $237.00/mt FOBT, a low price of $221.50/mt FOBT and averaged $232.06/mt FOBT during the month. Forward curve pricing for the balance of 2023 is trading at an average of $244.60/mt FOBT with the fourth quarter at a high of $244.75/mt FOBT and the third quarter at a low of $244.38/mt FOBT. The forward curve for 2024 indicates pricing at an average of $252.50/mt FOBT. Third quarter 2023 hot-rolled steel coil prices increased in China by 3.2%, decreased in Europe by 5.1%, and decreased in the United States by 2.9%. Increased steel production with limited metallurgical coal supply response as well as restocking support increasing metallurgical coal prices that are expected to increase from the low point of the year and remain significantly above historical levels.

See "Risk Factors" in the Company's annual information form dated April 13, 2023 for the year ended December 31, 2022 for an additional discussion regarding certain factors that could impact coal pricing trends and outlook, as well as the Company's ongoing operations.

Third Quarter 2023 Update

The Company's third quarter 2023 sales volumes are expected to be higher than the second quarter of 2023 due to increased production from our deep and surface mines and will be towards the high end of historical levels. Metallurgical coal selling prices are expected to be lower than the second quarter of 2023 due to increased participation in the metallurgical coal spot market. Cash cost of sales are expected to be similar to the previous quarter and will remain elevated compared to historical levels. Selling, general and administrative expenses are expected to be slightly higher than the second quarter 2023 due to increased sales volumes. The main priorities of the Company are increasing efficient production, reducing costs, and increasing our ability to participate in the metallurgical coal spot market. We are committed to improving the Company's balance sheet with minimized downside financial risk but are also focused on organic growth opportunities to complement our existing operations. The Company's capital allocation and deployment strategy will be aligned with these priorities and the Company's financial position.

Corsa committed over 1.150 million tons for the calendar year 2023 with 87% of the committed tons at an FOB mine price of nearly $176/ton. The price per ton is the equivalent of $286/mt FOBT for Australian premium low volatile metallurgical coal. The volumes and price per ton were impacted by nearly 153,000 carryover tons which were priced at the 2022 fixed price contract rate.

Financial Statements and Management's Discussion and Analysis

Refer to Corsa's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2023 and 2022 and related management's discussion and analysis, filed under Corsa's profile on SEDAR, for details of the financial performance of Corsa 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.

Information about Corsa

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

We seek Safe Harbor.