About PER ENERGY Company

We are a coal mining company located in Guizhou Province, China. Currently, we operate two underground coal mines located in Xisongshan Coalfield in Panzhou City, Guizhou Province, China, namely Hongguo Coal Mine and Baogushan Coal Mine. We use the mechanized long-wall retracting underground mining method to extract raw coal from the Hongguo Coal Mine and the 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 Chinese 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. On May 31, 2018, its confirmed reserves were 6,503 thousand tons, the approximate reserves were 3,474 thousand tons, and the saleable reserves of refined coal, Chinese coal and peat were 5,026 thousand tons, 1,506 thousand tons and 1,124 thousand tons respectively. On May 31, 2018, the amount of proven resources and controlled resources of the 17 coal beds reached 13,750 thousand tons and 6,740 thousand tons respectively. Baogu Mountain Coal Mine Our Baogushan Coal Mine is operated by the Baogushan Coal Mine Branch and has a licensed mining area of 1.7297 square kilometers. On May 31, 2018, its confirmed reserves were 7,415 thousand tons, the approximate reserves were 6,851 thousand tons, and the saleable reserves of refined coal, Chinese coal and peat were 7,458 thousand tons, 2,374 thousand tons and 1,688 thousand tons respectively. On May 31, 2018, the amount of proven resources and controlled resources of the 17 coal beds reached 12,720 thousand tons and 13,690 thousand tons respectively. Matsuyama coal washing plant Coal mined from the Hongguo Coal Mine and the Baogushan Coal Mine is raw coal. To improve the quality of our coal products and make our coal meet the quality standards of our customers, raw coal from our mines is usually sent to our Songshan coal washing plant to remove unwanted substances and impurities (such as ash and sulfur) from the raw coal to improve the quality of coal products.