European Union Home State

PRAIRIE MINING LIMITED

NEWS RELEASE | 26 FEBRUARY 2016

EUROPEAN UNION HOME STATE

In relation to Prairie Mining Limited's (the "Company") listings on the London Stock Exchange and Warsaw Stock Exchange, the Company advises that, following changes made to the Disclosure Rules and Transparency Rules ('DTR') as a result of the European Union Transparency Directive Amending Directive (2013/50/EU), the Company is required to disclose its Home State in the European Union. Accordingly, in accordance with DTR 6.4.2, the Company announces that its Home State for the purposes of the European Union is the United Kingdom.

LUBLIN COAL PROJECT

The Lublin Coal Project ("LCP" or "Project") is a large scale premium coal project located in the Lublin Coal Basin in south east Poland. The Lublin Coal Basin is an established coal producing province which is well serviced by modern and highly efficient infrastructure, offering the potential for low capital intensity mine development. The LCP is situated adjacent to the Bogdanka coal mine which has been in commercial production since 1982 and is the lowest cost hard coal producer in Europe.

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