Mr. Kevin Harrigan reports

CORSA COAL ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2023

Corsa Coal Corp. today released its financial results for the three and nine months ended Sept. 30, 2023. Corsa has filed its unaudited condensed interim consolidated financial statements for the three and nine months ended Sept. 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.

Kevin M. Harrigan, president and chief executive officer of Corsa, commented: "The third quarter of 2023 included our highest metallurgical coal shipment volume since the second quarter of 2020 and was a 13-per-cent increase over the same quarter of 2022. Operationally, our surface mines performed well in the quarter delivering improved production volumes and decreased costs, but the impact was muted in our overall results due to numerous challenges faced at our underground mines. The underground mines suffered from adverse geological conditions, that began in early August, and also a number of breakdowns which reduced equipment availability thus resulting in lower-than-expected coal production and increased mining costs during the quarter. Our average sales price reflected increased exposure to index prices and the impact of the lower price environment experienced in the first half of the third quarter. As a result of a 12-per-cent increase in cash production cost per ton sold and lower realized prices, cash margins in the period were lower than anticipated."

"Net income for the third quarter 2023 was primarily due to our previously announced settlement with the Pennsylvania Department of Transportation (PennDOT) for damages resulting from certain historical takings of leased land by PennDOT in 2010 and 2011. The settlement has significantly enhanced the company's liquidity and the settlement proceeds, which were received in October, 2023, were partially utilized to prepay the amounts due in 2023 and 2024 under the company's Main Street credit facility. With this prepayment, the company has one further principal payment due in December, 2025, under this facility.

"As we move through the fourth quarter, we are experiencing more favourable mining conditions at each of our underground mines. We continue to focus on improving coal production and lowering costs in the fourth quarter and into 2024. Our enhanced liquidity position allows for increased flexibility and optionality in our sales strategy as we balance our book between domestic and international customers with various pricing mechanisms."

Coal pricing trends and outlook

Price levels opened the third quarter 2023 at $233.00/metric ton (mt) delivered-to-the-port (FOBT) for spot deliveries of Australian premium low volatile metallurgical coal and closed the quarter at $333.00/mt FOBT. The quarterly average price for the third quarter 2023 was $263.07/mt FOBT compared with $242.92/mt FOBT in the second quarter 2023 and traded in a range from a high of $333.00/mt FOBT to a low of $221.50/mt FOBT.

The price for spot deliveries of Australian premium low volatile metallurgical coal opened the fourth quarter 2023 at $333.00/mt FOBT and was trading at $343.50/mt FOBT in the second half of October, with a high price of $367.00/mt FOBT, a low price of $333.00/mt FOBT and averaged $355.11/mt FOBT during the month. Forward curve pricing for the balance of 2023 is trading at an average of $328.67/mt FOBT. Through the first three weeks of October, fourth quarter 2023 hot-rolled steel coil prices increased in the United States by 8.6 per cent and decreased in Europe and China by 3.2 per cent and 2.0 per cent, respectively. Increased steel production with limited metallurgical coal supply response, as well as restocking, support increasing metallurgical coal prices that remain above historical levels.

Fourth quarter 2023 update and calendar year 2024 sales update

The company's fourth quarter 2023 sales volumes are expected to be lower than the third quarter of 2023 due to decreased production from our deep mines in the previous quarter and decreased availability of purchased coals. Metallurgical coal selling prices are expected to be higher than the third quarter of 2023 due to improved spot market pricing. Cash cost of sales are expected to be higher than the previous quarter due to higher cost inventories to start the quarter and seasonal impacts due to increased vacation and holidays in the fourth quarter although mining conditions are expected to be improved. Selling, general and administrative expenses are expected to be slightly higher than the third quarter 2023. 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.

For calendar year 2024, Corsa has to date committed sales of nearly 700,000 tons at an FOB mine price of nearly $145/ton. The price per ton is the equivalent of $257/mt FOBT for Australian premium low volatile metallurgical coal.

Financial statements and management's discussion and analysis

Refer to Corsa's unaudited condensed interim consolidated financial statements for the three and nine months ended Sept. 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.

We seek Safe Harbor.