Analogy 1: It's like Albemarle for metallurgical coal, providing a critical raw material for the steel industry.

Analogy 2: Think of it as Freeport-McMoRan, but entirely focused on mining and supplying the specialized metallurgical coal needed to make steel.

• Metallurgical Coal: This type of coal is extracted, processed, and sold to the steel industries as a primary raw material.
• Coal for Pulverized Coal Injections (PCI Coal): This is coal specifically sold for use in pulverized coal injection processes, often in blast furnaces.

American Resources Corporation (AREC) primarily sells its products to other companies. Based on the company's description and common industry practices for raw material suppliers, specific customer names are generally not publicly disclosed due to confidentiality agreements.

However, the company explicitly states that its major customers are:

• Steel producers (both domestic and international)
• Raw material processors serving the steel industry

These customers utilize AREC's metallurgical coal for steel manufacturing processes and pulverized coal injections.

Mark C. Jensen Chief Executive Officer & Chairman of Board

Mark C. Jensen was appointed CEO in January 2015. He has been a leader in the critical mineral and infrastructure supply chain with over 20 years of commodity experience. He is a founder of American Resources Corporation, serving as Chief Executive Officer and Chairman since June 2006. Mark also co-founded Land Betterment Corporation in February 2020, where he serves as Executive Chairman. He is a co-founder and Portfolio Manager of T Squared Capital LLC since April 2007, a private investment fund focused on small- and micro-cap companies. Mark has led over nine acquisitions, including four through 363 bankruptcy sales. He previously invested in or advised on over $1 billion of transactions across various asset classes. Mark Jensen and Thomas Sauve, co-runs investment firm T Squared Capital LLC. They were previously involved in lawsuits related to mismanaging investment funds and failing to follow through on debt guarantees for T Squared Investments LLC and Quest Energy Corporation. He holds Bachelor's degrees in Finance and International Studies from the Kelley School of Business at Indiana University.

Thomas M. Sauve President & Director

Thomas M. Sauve has over 12 years of experience leading and managing mining operations and over 15 years in investing, restructuring, and building businesses. He has a history of successfully identifying mining operations that align with the company's model of cost-cutting and efficiency, having managed the due diligence, closing, staffing, and ramp-up of three acquisitions in twelve months. Thomas Sauve and Mark Jensen, co-runs investment firm T Squared Capital LLC. He was previously involved in lawsuits concerning mismanaging investment funds and failing to follow through on debt guarantees for T Squared Investments LLC and Quest Energy Corporation. He is a graduate of the University of Rochester with an Economics degree and has additional business studies from the Simon School of Business.

Kirk P. Taylor Chief Financial Officer

Kirk P. Taylor is a Certified Public Accountant (CPA) with over 16 years of experience in accounting and auditing at various national public accounting firms, focusing on tax-advantaged business structuring. As Chief Financial Officer, he is responsible for the overall financial health and strategic financial planning of American Resources Corporation, overseeing financial operations including accounting, budgeting, financial reporting, treasury, and investor relations. He has also been involved in integrating three acquisitions in twelve months.

Mark LaVerghetta Vice President of Corporate Finance & Communications

Mark LaVerghetta serves as the Vice President of Corporate Finance and Communications for American Resources Corporation. In this role, he is involved in investor communications and often provides updates on the company's businesses.

Lisa Little Head of Human Resources

Lisa Little is the Head of Human Resources for American Resources Corporation.

Key Risks to American Resources Corporation (AREC)

1. Poor Financial Health and Profitability Issues: American Resources Corporation (AREC) faces significant financial challenges, including a poor financial strength rating, substantial accumulated losses, and consistently negative revenue growth. The company exhibits severe profitability issues with deeply negative operating and net margins. Furthermore, AREC has a low Altman Z-Score, placing it in the distress zone and suggesting a potential risk of bankruptcy. Its balance sheet indicates a weak financial position with a low current ratio and high leverage.
2. Execution Risk and Minimal Current Revenue Base: Despite ambitious plans to expand into critical minerals and rare earth elements, AREC operates with a tiny current revenue base, reporting less than $400,000 in sales for 2024. The company faces considerable execution risks in transitioning from its negligible revenue to multi-million dollar contracts, which involves successfully establishing new facilities, navigating regulatory hurdles, and scaling up operations efficiently.
3. Governance and Related Party Transaction Risks: AREC has encountered governance issues, including a Nasdaq non-compliance notice for failing to hold its annual shareholder meeting, which underscores procedural and governance risks. Historical reports have also highlighted instances of self-dealing and related-party transactions, raising concerns about whether management's actions consistently align with the best interests of shareholders.

The global shift towards decarbonized steel production, specifically the adoption of hydrogen-based direct reduced iron (DRI) processes and increased reliance on electric arc furnaces (EAFs), poses a clear emerging threat. These technologies aim to significantly reduce or eliminate the need for metallurgical coal in primary steelmaking, directly impacting the core demand for American Resources Corporation's products from its steel industry customers.

American Resources Corporation (AREC) operates in the metallurgical coal market, supplying raw materials, including coal for pulverized coal injections (PCI), to the steel industries.

Addressable Markets for American Resources Corporation (AREC)

Metallurgical Coal Market

• The global metallurgical coal market size was valued at approximately USD 126.35 billion in 2025 and is projected to reach USD 166.34 billion by 2034.
• The North American metallurgical coal market was valued at USD 23.72 billion in 2024 and is expected to reach USD 27.27 billion by 2030.

Pulverized Coal Injection (PCI) Systems Market (for coal used in PCI)

• The global Pulverized Coal Injection (PCI) system market size was approximately USD 6.51 billion in 2024.
• The North American market for Pulverized Coal Injection (PCI) systems held a market size of approximately USD 2.61 billion in 2024.

American Resources Corporation (AREC) is expected to experience future revenue growth over the next 2-3 years driven by several key initiatives and market trends:

1. Commercialization and Scaling of Rare Earth Element (REE) and Critical Mineral Production: American Resources has strategically pivoted towards the refinement of rare earth elements and critical minerals, a move aimed at capitalizing on the growing demand within the U.S. supply chain for electrification. This growth driver is significantly supported by the company's ReElement Technologies division, which focuses on advanced separation and refining capabilities for these essential materials. The ramp-up of production from ReElement's Marion facility is anticipated in late 2025 to 2026. Furthermore, the company's plan to extract and concentrate REEs from existing coal waste deposits, bolstered by a $33 million private investment, is expected to unlock a significant domestic source of these minerals with lower production costs.
2. Expansion of Electrified Materials (EMCO) and Recycled Critical Minerals Processing: American Resources' wholly-owned subsidiary, Electrified Materials Corporation (EMCO), is expanding its processing capacity for aggregating and pre-processing recycled feedstocks. This expansion directly addresses the increasing volumes of recycled materials and the growing market demand for domestically produced high-purity rare earth oxides and critical minerals. There are also plans to position EMCO as an independent, publicly listed company to further support its growth initiatives.
3. Continued Demand for Metallurgical Coal in the Steel Industry: Despite the company's pivot towards critical minerals, American Resources maintains its operations in the metallurgical coal sector, which is projected to see sustained growth. The global metallurgical coal market is forecasted to expand, primarily driven by the increasing demand for steel in various industries and ongoing global infrastructural development. American Resources aims to maintain its position as an efficient producer in this essential raw material segment.
4. Strategic Investments and Partnerships in the Electrification Value Chain: American Resources plans to continue making strategic investments across the entire electrified value chain, encompassing both upstream and downstream opportunities. These investments may include areas such as magnet manufacturing and the acquisition and structuring of various assets, equity interests, royalty interests, and cashflow streams. The company also intends to leverage ReElement's refining technology to establish long-term offtake agreements and provide funding to miners, securing feedstock sources.

Share Issuance

• In October 2025, American Resources Corporation completed a private placement, issuing approximately 7.84 million shares (or pre-funded warrants) at $5.10 per share, generating estimated gross proceeds of $40 million.
• Concurrently in October 2025, the company secured an additional $33.7 million through another private placement, selling 9,480,282 shares of its Class A common stock at $3.55 per share to institutional investors.
• The company's total shares outstanding significantly increased from 26.78 million in 2020 to 84.3 million in 2025, and reached 106,925,819 as of February 17, 2026.

Inbound Investments

• In November 2024, ReElement Technologies, an affiliate of American Resources, secured initial investments as part of a private financing round of up to $20 million through two-year convertible notes.
• American Resources' wholly-owned subsidiary, Electrified Materials Corporation (EMCO), is exploring raising between $3 million and $20 million through the issuance of convertible preferred stock to support its expansion efforts.

Outbound Investments

• American Resources is strategically investing in and developing upstream and downstream critical mineral operations, which include mining interests, recycling, and manufacturing activities.
• Proceeds from capital raises, such as the $33 million PIPE transaction, are allocated to accelerate the company's strategy for extracting rare earth elements from coal waste and to develop regional coal waste processing hubs.

Capital Expenditures

• ReElement Technologies, a portfolio company of American Resources, is expanding its Indiana facilities to boost production capacity for rare earth elements and critical minerals.
• The Marion Supersite facility aims to process between 2,500 and 3,500 metric tons annually, while the Noblesville facility targets over 250 metric tons per year.
• Planned capital expenditures include investment in domestic critical mineral processing, coal waste extraction technologies, and magnet manufacturing facilities.