During the recent development of the underground project, the company again encountered a coal seam on the development side of the underground ramp, measuring 1.1 meters in width (photo 1). The company first encountered this coal seam in July 2025, and these events were previously reported in news releases dated July 24, 2025 and August 13, 2025. This exposure further confirms the continuity and geological potential of La Estrella’s coal system. No additional testing is planned at this stage as the seam encountered corresponds to previously identified and characterized coal horizons for which laboratory analysis has already been completed.
Photo 1. Coal seam exposed on the development side of the underground ramp
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In parallel with the ongoing development, Forge has begun implementing additional improvement measures in collaboration with Grupo A and Webber Mining & Tunneling to further support the safety and long-term performance of the underground ramp. These initiatives include the use of resin injection and self-drilling bolts to reinforce and strengthen the main access tunnel, which represents a key part of the infrastructure and the main gateway to the underground works for the life of the project (Photo 2). This approach reflects the company’s focus on building sustainable, high-quality underground infrastructure designed to support safe operations and long-term sustainable project development. This technique complements the underground ramp’s primary support system, which consists of TH25 and TH29 steel arches, timber cladding and electrically welded mesh, further improving overall structural integrity and long-term performance.
Photo 2. Resin injection to the underground development wall
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PJ Murphy, CEO of Forge Resources Corp., commented: “Underground development at La Estrella continues to progress at a steady pace, and the renewed encounter of a coal seam at the underground ramp further strengthens our confidence in the coal deposit and coal system continuity at the project. As we move forward, we are proactively improving the main access tunnel to support its safety, sustainability and long-term performance. The underground ramp is a critical asset over the life of the project, and our focus remains on building high-quality underground infrastructure that supports sustainable development and responsible operations.”
Increase in coal market in line with strategic positioning of La Estrella
Driven by increased demand, coal prices have seen a remarkable rebound in early 2026. Domestic consumption in the United States has increased by 7-8% over the past year to record levels. At the same time, China is commissioning dozens of new coal-fired power plants to ensure energy security amid rising industrial electricity needs, while India’s continued infrastructure expansion is keeping global coal demand at a record level of nearly 8.8 billion tons. The price increases are the result of these factors, combined with tight inventories and robust demand from the energy sector.
Global coal markets have shown continued resilience, supported by steady demand for both metallurgical and thermal coal. Metallurgical coal prices have improved in recent months, reflecting sustained steel production, infrastructure investments and disciplined supply in key producing regions. This has strengthened confidence in the medium-term fundamentals of the metallurgical coal market.
Thermal coal prices have also remained stable, with signs of gradual improvement in several markets, driven by energy security concerns, seasonal demand and coal’s continued role in ensuring reliable baseload energy. Although regional dynamics vary, thermal coal continues to play an important role in global energy systems, especially in emerging and industrial economies.
Overall, these market conditions support continued interest in high-quality coal projects with existing permits, established infrastructure and development momentum. Projects such as La Estrella, which benefit from multiple metallurgical and thermal coal seams and near-term operational progress, remain well positioned within the current coal market.
Metallurgical and thermal coal futures currently have a mixed FOB price per tonne of USD177 (CAD$246/metric tonne), with metallurgical coal prices rising sharply from September 2025 and thermal coal more stable at USD$120/metric tonne to USD$95/metric tonne.
Figure 1. Metallurgical Coal Price (USD), per ton – Source: https://tradingeconomics.com/
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Figure 2. Mixed average price (USD), per ton (metallurgical and thermal coal) – Source: https://tradingeconomics.com/
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About Forge Resources Corp.
Forge Resources Corp. is a Canadian listed junior exploration company. The company owns an 80% stake in Aion Mining Corp., a company developing the fully sanctioned La Estrella coal project in Santander, Colombia. La Estrella contains eight known layers of metallurgical and thermal coal. The Company also has an option on the Alotta project, a prospective porphyry-copper-gold-molybdenum project consisting of 230 mineral claims covering 4,723 hectares located 50 km southeast of the Casino porphyry deposit in the non-glaciating portion of the Dawson Range porphyry/epithral belt in the Yukon Territory of Canada.
On behalf of the Board of Directors
“PJ Murphy”, CEO Forge Resources Corp.
info@forgeresources.com
Forward-Looking Statements
Certain statements and information contained herein may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information regarding the acquisition of Aion. Forward-looking information is based on the views, opinions, intentions and estimates of management on the date the information is provided and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory authorities). Many of these assumptions are based on factors and events beyond the Company’s control and there is no guarantee that they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. In particular, there can be no assurance that the Proposed Transaction will be completed as described or completed at all. The Company undertakes no obligation to update any forward-looking information if circumstances or management’s estimates or opinions should change, except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties regarding the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information. We are looking for a safe haven.
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