ERP Compliant Fuels Overview

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The Coal Institute 2016 Spring Meeting

Overview of ERP

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Provides “Environmental Management Services” to over 700 Surface Mining Control and Reclamation Act (SMCRA) and National Pollutant Discharge Elimination System (NPDES) permits. Operates in eight states.

Funded over $400 million in long-term reclamation and water management services.

Operates the “Federal Mining Complex” (UG Longwall Nameplate 4mm ST annual capacity NAPP 13,500 BTU fuel).

Operates the “Oak Grove Mining Complex” (UG Longwall Nameplate 3 mm ST annual capacity Blue Creek Seam MET product).

Operates the “Pinnacle Mining Complex” (UG Longwall Nameplate 3.5 mm ST annual capacity Pocahontas III Seam MET product).

Operates the “Maple Mining Complex” (West Virginia) producing High VOL “A” MET product.

Operates a 3 Battery 120 Oven Coke Plant producing 420,000 ST/year.

Growth is focused on the continued consolidation of the U.S./Canadian MET and COKE sectors, and integrating with our U.S., Canadian, and European steel making partners.

Summary of ERP Activities

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ERP is a relatively new natural resources company focused on acquiring assets within the coal and steel making cycle

ERP Acquisitions through April 2016

Patriot Coal Acquisition

Cliffs Acquisition

Walter Industries Purchase

In October 2015, ERP acquired the Federal and Hobet mines in WV, along with more than 300 million tons of coal reserves from the estate of Patriot Coal. Hobet is in reclamation, while Federal produces a 13,500 btu NAPP thermal coal product that is sold to utilities such as Genon Energy and Talen Energy

In December 2015, ERP acquired the Oak Grove and Pinnacle mines from Cliffs Natural Resources. Pinnacle, based in WV, and AL based Oak Grove both produce low volatility high quality metallurgical coal for the global steel industry. US Steel, ABC Coke, Haverhill Coke, Indiana Harbor, and TKS are among current customers

In February 2016, ERP acquired the Maple Mine along with the Walter Coke Operations out of the Walter Industries Estate. Maple based in WV produces a High Vol A metallurgical coal, while the Coke operations based in AL produces metallurgical coke for the steel industry.

Affiliates

Virginia Conservation Legacy Fund, Inc. (“VCLF”) (owns Natural Bridge of Virginia and promotes the bundling of carbon offset credits with coal and coke sales)

Seneca Coal Resources, LLC (Pinnacle and Oak Grove Mining Complexes)

ERP Environmental Fund, Inc. (non-profit Public Private Partnership “PPP” with “State Regulators” for reclamation and water management/solely responsible for all environmental risk)

ERP Federal Mining Complex, LLC (20.0 percent owned by the United Mine Workers of America)

Seminole Coal Resources, LLC (Alabama and West Virginia Mines)

ERP Compliant COKE, LLC (operates a 3 battery 120 oven coke plant)

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ERP is committed to being a first class environmental steward. Our Affiliates have significant experience in executing superior environmental plans

Virginia Conservation Legacy Fund, Inc.

VCLF Land Trust, Inc.

ERP Environmental

Fund, Inc.

ERP Common Ownership

ERP Compliant Fuels, LLC

ERP Mineral Reserves, LLC

ERP Settlement,

LLC

Federal Mining Complex, LLC

Federal No.2 Mine

ERP Compliant Coke, LLC

ERP Coke Plant

Seminole Coal Resources, LLC

Maple Mine

Choctaw Mine

Seneca Coal Resources, LLC

Oak Grove Mine

Pinnacle Mine

Organizational Chart

ERP’s Operations are capable of producing in excess of 11.5 mm tons of Coal and Coke Products

Federal #2 Mine

Opened in 1969

Owned & Operated until 2015 by Eastern Associated Coal

ERP Acquired on October 22, 2015

High Quality High BTU Thermal Coal

30 Miles south of Morgantown, WV in Monongalia County

ERP Federal Mining Complex

Mine Total

Recoverable Reserves

Annual Production

Capacity

Production (tons)

Federal #2 25mm 3.5mm 2.8mm

Maple Eagle #1

Owned & Operated until 2016 by Walter Energy

Acquired by Seminole in February 2016

High Quality High BTU Industrial Coal

5 miles east of Montgomery, WV in Fayette County

Seminole WV Mining Complex

Mine Total

Recoverable Reserves

Annual Production

Capacity

Production (tons)

Maple Eagle #1

10mm 0.3mm 0.3mm

Pinnacle Mining Complex

Opened in 1969

Owned & Operated until 2003 by US Steel as Gary #50

Sold to PinnOak by US Steel, then to Cliffs in 2007

Seneca Acquired on December 22, 2015

High Quality Low-Volatile Metallurgical Coking Coal

30 Miles west of Beckley, WV in Wyoming County

Seneca Coal Resources

Mine Total

Recoverable Reserves

Volatile Matter

Annual Production

Capacity

Production (tons)

Pinnacle 80mm 17% 3.5mm 2.8mm

Oak Grove 90mm 22% 3.0mm 2.2mm

2nd HALF 2016F

2017F

Coal Tons Sold

2.6mm 6.1mm

Revenue $156M $422M

EBITDA $8.6 $89M

Costs per Ton $62 $54

Oak Grove Mining Opened in 1975 Owned & Operated until 2003

by US Steel

Sold to PinnOak by US Steel, then to Cliffs in 2007

Seneca Acquired on December 22, 2015

High Quality Low-Volatile, Low-Sulfur Metallurgical Coking Coal

15 Miles west of Birmingham, AL

Pinnacle Mine Coal Specifications

Quality Typical Guaranteed Moisture: 7.50% 8.50% Ash: 6.50% 8.00% (db) max Sulfur: 0.97% 1.00% (db) max Volatile Matter: 15.50 – 16.50% (db) Oxidation: 97.00 92.00 min Reflectance: 1.70% Gieseler plasticity:

20 ddpm

Blue Creek Seam

Oak Grove Coal Specifications Quality Typical Guaranteed Moisture: 7.50% 9.50% Ash: 9.30% 9.60% Sulfur: 0.52% 0.57% (db) max Volatile Matter: 21.0 – 22.50% (db) Oxidation: 98.00 92.00 min Reflectance: 1.38 – 1.42% Gieseler plasticity:

900 ddpm