Company reports adjusted EBITDA for the 1Q 2022 of $5.8 million

On track be the first in the U.S. to produce isolated and purified critical and rare earth elements (REEs) and bring the most environmentally-safe refining solutions to the domestic marketplace

Significant increase in carbon demand and price realization being seen as Company scales operations and on track this March to realize operating profit

Current specialty and metallurgical carbon backlog represents approximately $110 million

Company highly aligned with major U.S. priorities in both infrastructure and electrification

Strong balance sheet provides financial strength and flexibility to execute on its innovation, collaboration and growth plans

Company to host update conference call today at 4:30 PM ET

FISHERS, IN / ACCESSWIRE / May 16, 2022 / American Resources Corporation (NASDAQ:AREC) ('American Resources' or the 'Company'), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced financial results for the first quarter of 2022 and provided a corporate update. The Company will host a conference call and webcast, today, May 16, 2022, at 4:30 PM ET (details below).

Mark Jensen, Chairman and CEO of American Resources Corporation commented, 'The first three months of 2022 showcased the steady progression of our carbon business. As we've recently discussed, the majority of our carbon sales during the first quarter occurred in the March month as we realized a more consistent run rate of production with additional operating sections now online at our producing mines. Today, we continue to see the fruits of our investments and continue to drive carbon production growth forward at our current operations. We continue to see constrained supply throughout the industry and as a result, are benefitting from a strong pricing environment. Additionally, our American Rare Earth subsidiary is closing in on a major milestone, not just for our Company, but for our country and domestic supply chain as a whole. We remain on track to having our final stage rare earth and critical mineral isolation and purification facility operating in the coming weeks. Being the first domestic, commercial supplier of isolated and purified critical and rare earth minerals, while addressing the sustainability of those materials is something that we are very proud of and believe differentiates us.'

First Quarter 2022 Key Highlights

American Rare Earth

• Established and entered into a strategic partnership with the venture capital investment arm of The Heritage Group, HG Ventures LLC ('Heritage') to expedite the path of being the United States' first and lowest cost producer of domestically-sourced and sustainable, purified critical and rare earth elements to support the rapid demand growth of battery and magnet metals.
• Partnered with IN3, a leading applied research institute and collaborative organization, to help expand its industry relationships and further secure inroads to promote American Rare Earth's commercial production of critical and rare earth elements such as lithium, cobalt, nickel, neodymium, praseodymium and dysprosium at its production facilities.

American Carbon

• Acquired the operating rights to a PCI carbon surface mine operation to further expand the production of their McCoy Elkhorn Complex in Pike County, Kentucky.
• Added to its fleet of equipment at its Carnegie #1 mine to double its production of high-quality metallurgical carbon.
• Expanded its sales commitments for a portion of its specialty carbon stoker products for the second quarter of 2022 by approximately 15,000 tons at a record average price realization in the mid $200 per ton.

'Looking forward to the remainder of 2022, our excitement over the opportunities we have in front of us continues to reach an all-time high. Our current specialty and metallurgical carbon backlog represents approximately $110 million and our carbon production continues to scale and become more consistent. Our first-class set of assets is beginning to showcase our low-cost and growth attributes with the investments we've made and with the future investments we're planning at our Wyoming County, West Virginia complex. Additionally with the recent leasing of our Deane Mining complex, we are monetizing our non-core asset base with a low cost, high margin cash flow stream and allows us to further leverage the strong carbon market,' continued Mr. Jensen.

'The opportunity for American Rare Earth continues to manifest at a very rapid pace and continues to be bolstered by our tremendous team and partnerships. We wholeheartedly believe that the greatest impact we can make to our domestic supply of critical and REEs is to provide the most efficient and environmentally-safe solutions for the final stage of separation and purification while providing a sustainable and circular supply of critical materials. The imminent commencement of our first purification facility marks a tremendous milestone and one that we're confident will usher us to very exciting places.'

Expected Near-Term Catalysts

• Closing of $45 million West Virginia tax-exempt industrial development bonds for Company's Wyoming County advanced carbon and rare earth processing facility.
• Additional American Rare Earth upstream and downstream partnerships to bolster feedstocks of end-of-life products for critical and REEs and offtake customers of recycled, sustainable and domestic sources of high-purity battery and magnet metals.
• Imminent commencement of its critical and rare earth purification facility and being the first domestic, commercial producer of isolated and high-purity battery and magnet metals.

Conference Call Information

American Resources management will host a conference call for investors, analysts and other interested parties today, Monday, May 16, 2022 at 4:30 PM ET.

Interested participants and investors may access the conference call by dialing (888) 437-3179 and referencing American Resources Corporation's First Quarter 2022 Conference Call, or by the webcast link here.

Financial Results for First Quarter 2022

For the first quarter of 2022, American Resources reported a net income loss of $2.75 million, or a loss of $0.04 per share for the three months ended March 31, 2022, as compared with a net income loss of $6.4 million, or $0.14 per share in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, equity-based compensation, warrant expense and development and restructuring costs ('Adjusted EBITDA') of a $5.8 million in the first quarter of 2022, as compared with an Adjusted EBITDA loss of $2.8 million for the first quarter of 2021.

First Quarter 2022 Summary

Total revenues were $9.08 million for the first quarter of 2022 compared to revenues of $0.01 million during the first quarter of 2021. General and administrative expenses for the first quarter of 2022 were $1.0 million compared to $1.1 million in the prior year period. American Resources incurred interest expense of $393,696 during the first quarter of 2022 compared to $491,113 during the first quarter of 2021. Development costs during the quarter were $6.8 million, compared to $8.1 million in the fourth quarter of 2021.

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About American Resources Corporation

American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

Special Note Regarding Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words 'believes', 'may', 'will', 'should', 'would', 'could', 'continue', 'seeks', 'anticipates', 'plans', 'expects', 'intends', 'estimates', or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

PR Contact
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co

Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com

RedChip Companies Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation