Atlantic Coal : Relocation of ACG Business HQ to USA

Atlantic Carbon Group Pie

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13 February 2017

Letter to Atlantic Carbon Group pie Shareholders

Relocation of Atlantic Carbon Group pie Business Headquarters to USA

Following the appointment of George Roskos as Director of Atlantic Carbon Group pie ("ACG" or "the Company") on 1November 2016 the majority of ACG Directors are now resident and based in the USA ie Adam Wilson and George Roskos. Of the other Directors, only Stephen Best is resident and based in the UK with Peter Chinneck resident and based in Hong Kong.

ACG Board Meetings have, subsequent to 1November 2016, been held at Stockton Mine, Hazleton, Pennsylvania, USA where Adam Wilson and George Roskos are based, with the other Directors participating in Board Meetings by telephone conference call. Shareholders will also be aware that ACG's operations are all based in the USA ie Stockton, Jeansville and Hazleton Shaft Mines and associated processing plants. The Company has consequently decided to transfer its business headquarters from Durham, UK to Stockton Mine, USA.

Because of the transfer of the Company Business Headquarters to the USA, the Company will no longer be subject to the City Code on Takeovers and Mergers as administered by the London based Panel on Takeovers and Mergers (the "Takeover Panel").

The Company's Durham, UK office will, however, still be retained to, among other things, serve UK based shareholders and the Company ill continue to be registered in England and Wales.

Atlantic Carbon Group Pie, a company registered in England and Wales under Company No.05315929 UK Business Office: 26A Old Elvet, Durham DH1 3HN

US Business Office: Stockton Mine, PO Box 39, Hazleton, PA 18201 Registered Office: 200 Strand London WC2R 1DJ

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