February 22, 2025 - Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) has provided several positive operational and financial updates regarding its progress towards developing its world-class Blue Creek project. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry.

“Our decision to begin this transformational investment in Blue Creek will transform Warrior and allow us to continue our proven track record of creating value for stockholders”

Key Highlights

Nameplate capacity increased 25% to 6.0 million short tons per year from original production plan of 4.8 million short tons per year;

At revised nameplate capacity, Blue Creek is expected to generate approximately $1.3 billion of incremental revenues, $735 million of incremental adjusted EBITDA, and $637 million of incremental free cash flows annually;

Net present value (“NPV”) of Blue Creek is approximately $5.4 billion with an internal rate of return (“IRR”) of 35% and a payback period of 2.3 years at revised nameplate capacity

On track for shorter production timeline, with the first longwall expected to start no later than Q2 2026; and

Project expected to be completed on time and within budget, and fully paid for by cash flows generated from operations.

“Our decision to begin this transformational investment in Blue Creek will transform Warrior and allow us to continue our proven track record of creating value for stockholders,” said Walt Scheller, CEO of Warrior. “This project represents a transformative opportunity for Warrior through the significant addition of nameplate capacity to address the market dynamics we believe will continue to play out over the near and medium-term. By furthering Warrior’s legacy of high-quality, low-cost assets, we believe that Blue Creek will have a positive impact on Warrior for decades to come and will benefit a wide range of stakeholders. I want to thank our employees and the rest of the project team for their dedication to this project and for ensuring the project is completed safely, on time and on budget.”

Production Projections and Timeline

Since the Blue Creek project was re-launched in May 2022, Warrior has made several meaningful operational and technological improvements that are anticipated to have a positive impact on the project economics. From a production standpoint, Warrior has been able to increase the nameplate capacity of Blue Creek to 6.0 million short tons per year from the original production plan of 4.8 million short tons per year, an increase of 25%. The additional capacity increases Warrior’s overall nameplate capacity by 75%, from 8.0 million short tons per year to 14.0 million short tons per year.

Warrior has the ability to increase the current nameplate capacity 83%, an additional 0.6 million short tons, to 6.6 million short tons per year by adding an additional continuous miner unit.

Given current market conditions, Warrior plans to initially operate Blue Creek at 4.8 million short tons per year until the additional tons are warranted, as determined by supply and demand dynamics in the market.

Warrior continues to advance the project on schedule. After launching continuous miner production during the third quarter of 2024, the Company expects the preparation plant to start in the middle of 2025 and the longwall to start no later than the second quarter of 2026.

Budget and Valuation Update

Even with the addition of innovative technologies and best practices, the project remains on budget. Warrior expects the total project capital expenditures, excluding mine development costs and including the impact of inflation on materials, labor, machinery, and supplies, to remain unchanged in the range of $995 million to $1.075 billion, of which $716.5 million has been spent through December 31, 2024. These investments have been fully funded by cash flows generated from operations due to Warrior’s strong performance during the development period. In addition, one of Warrior’s hallmarks of maintaining a low-cost structure will continue with the Blue Creek mine, as third party and in-house data projects that Blue Creek will be one of the lowest cost mines in the world.

Based on conservative projections and assuming a long-term benchmark price of $250 per metric ton for the life of the mine, Warrior expects the Blue Creek mine to generate approximately $1.3 billion of annual revenue, $735 million of incremental adjusted EBITDA, and $637 million of incremental free cash flows annually. With these same assumptions and at the revised nameplate capacity of 6.0 million short tons per year, Warrior projects an NPV of approximately $5.4 billion, with an IRR of 35% and a payback period of 2.3 years, net of $716.5 million already invested in the project.

Investor Presentation

Concurrently with this release, Warrior has issued an updated Blue Creek presentation, which can be found on the investor section of www.warriormetcoal.com.

About Warrior

Warrior is a U.S.-based, environmentally and socially minded supplier to the global steel industry. It is dedicated entirely to mining non-thermal metallurgical (met) steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America, and Asia. Warrior is a large-scale, low-cost producer and exporter of premium quality met coal, also known as hard-coking coal (HCC), operating highly efficient longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties. The premium nature of Warrior’s HCC makes it ideally suited as a base feed coal for steel makers. For more information, please visit www.warriormetcoal.com.