About PER ENERGY Company

We are a coal mining company located in Guizhou Province, China. Currently, we operate two underground coal mines located in the Xisongshan Coalfield in Panzhou City, Guizhou Province, China, namely Hongguo Coal Mine and Baogushan Coal Mine. We use mechanized long-wall retractive underground mining methods to mine raw coal in Hongguo Coal Mine and Baogushan Coal Mine, mainly 1/3 of coking coal. We generally wash raw coal and process it into refined coal at the Songshan Coal Washing Plant before selling coal products to customers. The coal washing process also produces by-products, namely medium coal and peat. Hongguo coal mine Our Hongguo Coal Mine is operated by Hongguo Coal Mine Branch and has a licensed mining area of 1.6050 square kilometers. As of May 31, 2018, the confirmed reserves were 6,503 thousand tons, the approximate reserves were 3,474 thousand tons, and the marketable reserves of refined coal, medium coal and peat were 5,026 thousand tons, 1,506 thousand tons and 1,124 thousand tons, respectively. On May 31, 2018, the proven resource volume and controlled resource volume of the 17 coal seams reached 13,750 thousand tons and 6,740 thousand tons respectively. Bokgoyama coal mine Our Baogushan Coal Mine is operated by Baogushan Coal Mine Branch and has a licensed mining area of 1.7297 square kilometers. As of May 31, 2018, the confirmed reserves were 7,415 thousand tons, the approximate reserves were 6,851 thousand tons, and the marketable reserves of refined coal, medium coal and peat were 7,458 thousand tons, 2,374 thousand tons and 1,688 thousand tons, respectively. On May 31, 2018, the proven resource volume and controlled resource volume of the 17 coal seams reached 12,720 thousand tons and 13,690 thousand tons respectively. Matsuyama coal washing plant The coal mined from Hongguo Coal Mine and Baogushan Coal Mine is raw coal. In order to improve the quality of our coal products and make our coal meet the quality standards of our customers, raw coal extracted from our coal mine is usually sent to our Songshan coal washing plant to remove unnecessary substances and impurities (such as ash and sulfur) from the raw coal to improve the quality of coal products.