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    Steven Segal • KBB Asset Management

    Steven Segal's questions to American Resources Corp (AREC) leadership

    Steven Segal's questions to American Resources Corp (AREC) leadership • Q3 2024

    Question

    Steven Segal asked about potential roadblocks for the Marion facility, such as financing or feedstock supply. He also sought confirmation on whether substantial revenue could be generated by Q3 2025 and if ReElement's environmentally friendly process provides a competitive advantage.

    Answer

    Mark Jensen, Chairman and CEO, stated that feedstock sourcing is strong and the main focus is now on installing equipment at Marion, funded by the initial closing of a convertible debt round and a bond offering. He expressed high confidence in generating substantial revenue by Q3 of next year. Jensen emphasized that while the process is environmentally superior, the key competitive advantage is cost, stating no hydromet facility can compete with ReElement's cost structure. Mark LaVerghetta, Executive, added that the 'powered by ReElement' solution allows other industry players to efficiently refine materials, which will be a key growth driver.

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    Steven Segal's questions to American Resources Corp (AREC) leadership • Q2 2024

    Question

    Steven Segal of KBB Asset Management sought to confirm if the ReElement business is evolving into an asset-light, service-fee-based model and asked whether the Kentucky and Marion facilities would compete for the same feedstock materials.

    Answer

    Chairman and CEO Mark Jensen affirmed the strategy is a hybrid model, with a growing focus on the asset-light 'Powered by ReElement' service fee business. He clarified that the company-owned facilities in Kentucky and Marion will not compete for feedstock; the Kentucky site will process lithium spodumene, while the Marion facility will handle rare earth ores, magnets, and recycled batteries.

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    Steven Segal's questions to American Resources Corp (AREC) leadership • Q2 2024

    Question

    Asked for clarification on the ReElement business model (asset-light service vs. production), whether the Kentucky and Marion facilities would compete for feedstock, and where magnets would be processed.

    Answer

    The model is a hybrid, increasingly asset-light via the "Powered by ReElement" service, but also includes company-owned production facilities. The Kentucky (lithium spodumene) and Marion (rare earths, magnets, recycled batteries) facilities will process different feedstocks and will not compete. Magnets will be processed at Marion.

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    Steven Segal's questions to American Resources Corp (AREC) leadership • Q4 2023

    Question

    Asked for clarification on whether the Wyoming complex would be part of the American Carbon spin-off, which entity the new bond financing was for, and for more details on the partnership with an unnamed domestic manufacturer.

    Answer

    The Wyoming County complex, including its met coal, iron ore, and rare earth concentration capabilities, will be part of the American Carbon spin-off. The newly announced bond is for the ReElement division's Kentucky Lithium project. The partnership with the unnamed manufacturer involves recycling non-spec rotors and motors on a profit-share basis, but the name cannot be disclosed due to confidentiality.

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