Yari Resources Doubles Coal Footprint With Arcadia Bowen Basin Acquisition

Yari Resources Doubles Its Coal Footprint With Arcadia Acquisition, Targeting District-Scale Growth in the Bowen Basin

Yari Resources Limited (ASX: YAR) has entered a binding conditional agreement to acquire 100% of the Arcadia Coal Project in Central Queensland's Bowen Basin, a move that will lift the company's combined JORC 2012 coal resource base to more than 500 million tonnes. The transaction is paired with a $2.2 million capital raising, giving Yari a larger resource inventory and fresh funding as it advances its Rolleston district coal strategy.

The announcement frames the acquisition as an expansion of Yari's existing Rolleston South Coal Project into a broader district-scale position. For investors, the immediate significance lies in the scale added through Arcadia, the low upfront cash payment, and the fact that most of the consideration is linked to future project milestones, commercial production and royalty payments.

"This is about turning Rolleston South from a standalone project into the foundation of a much larger regional opportunity," said Courtney Taylor, Managing Director.

"Arcadia gives Yari additional scale, more geological data and a broader platform to assess long-term development options across the Rolleston coal district. Importantly, the transaction is structured so that the major consideration is linked to project success."

What Is Yari Actually Acquiring?

Under the Share Sale and Purchase Agreement (SPA), Yari is acquiring 100% of the issued capital of Northern Comet Resources Company, the holder of the Arcadia Coal Project tenements. On completion, Northern Comet will become a wholly owned subsidiary of Yari.

The Arcadia Coal Project includes:

• EPC 1772, the primary exploration permit covering about 54,537 hectares
• EPC 1054 and EPC 1042, which make up the broader project tenure
• Associated exploration data, geological records, technical reports, samples and regulatory correspondence

According to the announcement, Arcadia is located in the Arcadia Valley, about 60km north of Injune and 85km south of Rolleston. It sits within the broader Rolleston coal district and is approximately 24km from Yari's Rolleston South Coal Project, with the two projects being separate tenure areas that do not overlap.

That regional proximity matters. Two nearby but separate coal positions can give a company more flexibility when assessing future exploration, mine planning, infrastructure options and development sequencing. The announcement does not state any development decision, however it does indicate Yari wants to build a broader district presence rather than remain a single-project junior.

Arcadia Resource Estimate Lifts Group Scale

The centrepiece of the acquisition is the reported JORC 2012 Mineral Resource Estimate (MRE) for EPC 1772. The resource was reported in February 2017 by JB Mining Services Pty Ltd and comprises 282 million tonnes, split between 164Mt Indicated and 118Mt Inferred.

Table: Arcadia EPC 1772 JORC 2012 Mineral Resource Estimate

The resource is reported at 11% in-situ moisture and is limited by a maximum cumulative waste-to-coal ratio of 15:1 bcm/t in situ. In simple terms, this means the reported resource only includes coal within a level of overburden removal considered suitable for preliminary open cut assessment.

Yari also stated that a review by ROM Resources found no major issues with the JB Mining estimate. A minor tonnage variation of less than 15% was attributed to different software packages. A fuller technical review is expected after all geological, geotechnical and coal quality data has been transferred.

How Does Arcadia Compare With Rolleston South?

Following the proposed acquisition, Yari's combined coal resource position is expected to rise to about 505Mt. Furthermore, the addition of Arcadia meaningfully shifts the balance of the group's resource classification profile.

Table: Yari Combined JORC 2012 Resource Position Post-Acquisition

For investors, the important detail is not only the increase in total tonnage, but also the mix of resource classifications. Arcadia contributes a large Indicated component, which generally reflects a higher degree of geological confidence than Inferred material.

While an Indicated resource is not an ore reserve and does not confirm economic extraction, it is typically a more useful base for development studies than lower-confidence categories.

Arcadia Geology and Coal Quality

The announcement describes Arcadia as sitting in the southern Bowen Basin, with target seams hosted in the Bandanna Formation. The coal seams are reported to be relatively simple in shape, gently dipping, with no major faulting identified in the resource area and no igneous intrusions detected.

The principal seam groups are:

• B Seam (Aries) averaging about 5.2m thick with raw ash of about 7% adb
• C Seam (Castor) with upper and lower intervals totalling about 2.4m
• D Seam (Pollux) averaging about 4.5m thick with raw ash of about 8% adb

The resource occurs at depths of roughly 120m to 250m and is considered amenable on a preliminary basis to open cut mining methods.

What Does Coal Quality Data Suggest?

Coal quality is an important part of any coal project because tonnage alone does not determine market value. Historical assessments cited in the announcement suggest Arcadia coal may have:

• High energy content
• Low inherent ash
• Low sulphur and low phosphorus
• Washability yields of around 85% to 90%
• Potential to sit between high-volatile semi-soft coking coal and export thermal coal

However, Yari included a cautionary statement that these quality observations are based on historical assessments and have not been independently verified or updated. In addition, further technical studies — including updated washability and product specification work — will be required before product quality can be confirmed.

What Do JORC Resource Categories Mean for Investors?

For many ASX investors, resource statements can appear straightforward at first glance. However, the classification matters as much as the headline tonnage.

A JORC 2012 Mineral Resource Estimate is a public reporting standard used in Australia to describe the size and confidence of a mineral or coal deposit. It does not mean a mine is approved, financed or economic. Instead, it sets out how much material is estimated to be present and how reliable the underlying geological data is.

The main JORC resource categories are:

Arcadia's 164Mt Indicated resource provides a stronger technical base than a deposit dominated entirely by Inferred material. That does not guarantee development, but it may help support future study work if Yari chooses to advance the project. At the same time, the 118Mt Inferred portion still carries more geological uncertainty.

Key Terms Explained

Investors should also understand several terms used throughout the announcement:

• Strip ratio: the amount of waste rock or soil that may need to be removed to access the coal
• Open cut mining: mining from the surface rather than underground
• Air dried basis (adb): a standard way of measuring coal quality after moisture has been reduced to a set level
• Gross revenue royalty: a royalty taken from total sales revenue before costs are deducted

Deal Structure Keeps Upfront Cash Low

One of the most investor-relevant parts of the announcement is the structure of the purchase consideration. Yari is paying only $50,000 upfront in cash, while the bulk of value is tied to future milestones and commercial success.

Table: Arcadia Acquisition Consideration Structure

The deferred structure means the largest cash payments only arise if the project moves through licensing and into commercial production. This aligns a substantial portion of vendor consideration with project progress rather than forcing heavy early cash outflows.

There are also protections for the vendor. These include a first-ranking registered mortgage over the Arcadia tenements, a Right of Return if Yari does not spend the required $400,000 in qualifying expenditure within the three-year earn-in period, and a 10% proceeds of sale entitlement if Yari later sells or transfers the Arcadia interest to a third party.

Placement Funds Next Steps Across Both Coal Assets

Alongside the acquisition, Yari has secured commitments to raise $2.2 million gross through a placement priced at $0.0045 per share. The placement comprises 488,888,889 new shares, each with a free-attaching unlisted option exercisable at $0.0075 within two years.

The placement is structured in two tranches:

1. Tranche One: 209,865,951 shares raising about $944,397
2. Tranche Two: up to 279,022,938 shares raising about $1,255,603, subject to shareholder approval, along with all placement options

According to the announcement, proceeds will be used to advance both the Rolleston South and Arcadia Coal Projects, as well as for working capital. A proposed Extraordinary General Meeting on or around 11 September 2026 will ask shareholders to approve the completion shares, Tranche Two placement shares, placement options and broker options.

What Should Investors Watch Next?

The ASX update sets out several near-term milestones that will likely shape market attention over coming months:

• Settlement and issue of Tranche One placement shares in August 2026
• Dispatch of the notice of meeting in August 2026
• Shareholder approval at the planned September 2026 EGM
• Completion of the acquisition, subject to conditions precedent
• Transfer and review of Arcadia's geological, geotechnical and coal quality data
• Work aimed at resource growth or conversion, which could trigger the $250,000 milestone payment

The broader point is straightforward. Yari has used this transaction to increase scale quickly, while limiting immediate cash exposure. Whether that larger footprint translates into future development value will depend on technical review, exploration results, resource confidence upgrades, regulatory progress and, in time, market conditions for Bowen Basin coal assets.

For now, the announcement positions Yari as a more substantial holder of coal resources in the Rolleston district, with a combined base of around 505Mt and capital in place to begin the next phase of assessment.

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