LUBLIN COAL PROJECT

PRE-FEASIBILITY STUDY RESULTS

March 2016 - ASX, LSE & WSE: PDZ

Lowest Operating Costs into Europe

PFS demonstrates the potential to have some of the lowest operating cash costs (US$25/t FOR) for hard coal delivered into key European markets

Strategic Large Scale, Long Life Asset

PFS confirms the robust economics of the Lublin Coal Project to be a large scale long life strategic coal supplier

Premium Product

Flexibility to produce ultra low ash semi-soft coking coal and premium coals for the power generation sector, as well as a range of sized coal for households and industrial use

Coal Remains Fundamental to Europe

European industry continues to consume more than 300Mt of hard coal per annum with imports rising and increasing concerns over energy security and raw material supply

Excellent Market Access

Existing rail and port infrastructure with excess capacity to service major European markets, with substantial netback pricing advantages due to proximity

Proven Coal Basin

Adjacent to the world-class Bogdanka longwall coal mine that has been in operation for 34 years and is the lowest cost hard coal mine in Europe

2 | March 2016 | Lublin Coal Project

An advanced, world class coal project in a proven coal basin located close to existing infrastructure

• Prairie has access to multiple potential markets for the sale of its coal products given the location of the Lublin Coal Project in the heartland of industrial Europe, with excellent rail and port access

• The Company will focus its marketing efforts on export markets in wider Europe that are easily accessible by rail with target markets including Germany, Czech Republic, Austria, Slovakia and Ukraine

Significant optionality exists for Prairie regarding potential target markets