PRAIRIE SECURES NEW LARGE CONTIGUOUS COAL CONCESSION AT LUBLIN COAL PROJECT

• Prairie has been granted a new large contiguous Concession for coal at the Lublin Coal Project increasing the Project area by 54km² to over 235km²
• The new Concession, Sawin-Zachód,  confirms Prairie’s position as the dominant land holder in the basin and provides the potential for a significant increase in coal resources
• The Company has secured a 100% interest in the new Concession which is held by Prairie’s wholly-owned Polish subsidiary PD Co Sp z o.o
• The Concession was subject to historical drilling by Polish state entities, including 23 fully cored boreholes across the concession which identified more than 17 potentially recoverable coal seams
• Prairie will commence modelling of the historical drill hole data and will look to undertake further exploration activities, including a drilling program

Prairie Mining Limited (“Prairie” or “Company” -  http://bit.ly/15ARkGV ) is pleased announce that it has secured a 100% interest in a significant new coal exploration concession (“Concession”) contiguous to its existing Lublin Coal Project (“LCP” or “Project”) in south eastern Poland. The new Concession, known as Sawin-Zachód, covers an area of 54km² (total Project area now over 235km²) of prime ground within the Lublin Coal Basin and has the potential to increase Prairie’s coal resource and increase future mine life at the LCP.

Prairie’s CEO Ben Stoikovich said “The award of the exclusive Sawin-Zachód Concession is significant not only because it confirms Prairie as the major landholder in the Lublin Coal Basin, but also because it potentially increases the resource base and scale of the Lublin Coal Project. Based on historical drilling results, the Sawin-Zachód Exploration Concession is considered to be a highly prospective, undeveloped section of the Lublin Coal Basin that is contiguous to our Project’s core area. In addition, the award further demonstrates the support Prairie’s activities enjoy from the government, and the government’s confidence in Prairie’s exploration and development capabilities. Since entering Poland in 2012 we have built a track record of delivering on our commitments, having completed our agreed exploration work program for the Lublin Coal Project well ahead of schedule. We will commence modelling of historical data on Sawin-Zachód to generate an Exploration Target for the concession and will then look to undertake further exploration activities, including a limited drilling program.”

Concession Application

Prairie’s wholly owned polish subsidiary company, PD Co Sp. z o.o (“PD Co”), applied for the Concession from the Ministry of Environment (“MoE”) in Poland and was recently awarded the Concession with the publication of a Positive Concession Decision.

The Sawin-Zachód Concession is valid until 31 December 2017, with the right to obtain further extensions upon satisfying a drilling program as outlined by the MoE.

The successful grant of the Concessionoccurred after detailed research, followed by a lengthy and comprehensive application process. 

Historical Information

The Concession area was subject to exploration activities undertaken by the Polish Government and its agencies during the 1970’s and 1980’s. These activities consisted of regional geological mapping and drilling programs which demonstrated the region is highly prospective.

Within the Sawin-Zachód Concession area a total of 23 fully cored boreholes were completed at 1,200 to 2,700m line spacing.

The historical drilling program identified more than 17 potentially recoverable coal seams within the Sawin-Zachód Concession with the potential to host significant coal resources.

Work Program

In addition to the historical drilling campaigns in the Lublin Basin, Prairie has completed its own seven (7) hole core drilling program at its LCP, which is contiguous with the Sawin-Zachód Concession. Through Prairie’s drilling and coal quality testing program, the Company has identified the potential for the region to host significant quantities of semi-soft coking coal as well as premium thermal coal.

Having been awarded the Sawin-Zachód Concession, Prairie will now undertake an exploration program including the acquisition and review of historic exploration, geophysical survey, drilling and development data. The Company intends to generate a Coal Exploration Target for the Concession based on the modelling of historical data and, and based on those results, the Company will look to undertake geological mapping and core drilling.

Under the terms of the Concession with the MoE, Prairie is required to complete one (1) bore hole at a pre-determined location within the Concession area. The activities for this one borehole must commence before 31 December 2015. Prairie can also complete a further seven (7) holes at its sole discretion although this is not required under the work program for the Concession Agreement.

Prairie was required to make an initial payment to the MoE of PLN 60,600 (~A$ 21,664) for the initial grant of the Sawin-Zachód Concession and will also be required to make annual title payments of the same amount for the mining usufruct of land.

For further information contact:

Ben Stoikovich

Hugo Schumann

Chief Executive Officer

Business Development

+44 207 478 3900

+44 207 478 3900

info@pdz.com.au