American Resources to sell carbon mining assets of American Carbon

American Resources Corporation’s subsidiary American Carbon has entered into a letter of intent to sell its carbon mining assets to a strategic party for the total consideration of approximately $280 million. The consideration takes the form of an upfront cash payment at closing, a share of profits generated from operations, an ongoing royalty payment based on carbon sales and minority equity interest upside. The sale includes the assets of American Carbon’s McCoy Elkhorn Coal, Perry County Resources and Wyoming County Coal operating subsidiaries including certain debts and environmental reclamation bonds. The letter of intent is non-binding and non-exclusive but is expected to close before year end. The proposed acquirer of the assets has committed to invest the necessary capital to bring additional mines into full production and expand the number of producing mines over American Carbon’s extensive infrastructure base including the Company’s Wyoming County Coal’s premium mid-vol carbon complex. Concurrent with the executed letter of intent, American Resources will continue to advance its Form-10 filing of spinning-off American Carbon out into its own public, pure play metallurgical carbon growth company as an alternative opportunity while also advancing the previously announced letter of intent to sell certain assets associated to its Deane Mining complex towards closing.