Key Highlights

  • Completion of the Arcadia Coal Project Acquisition (post-quarter, 20 October 2026) lifts Yari's total JORC coal resources to 504.9Mt, with Indicated Resources growing from 33.7Mt to 197.7Mt
  • Arcadia EPC 1772 hosts a JORC 2012 Mineral Resource of 282Mt (164Mt Indicated, 118Mt Inferred) in the Rolleston coal district of central Queensland's Bowen Basin
  • Independent coal quality review identified multiple product pathways from Arcadia, including potential for semi-soft coking, PCI and high-energy thermal coal products
  • Acquisition was structured with upfront consideration of $50,000 cash and approximately 147.6 million completion shares, with the majority of value linked to project milestones, production and a 1.5% gross Revenue royalty

A Six-Fold Resource Growth Story in Eighteen Months

Yari Resources Limited (ASX:YAR) has completed the acquisition of the Arcadia Coal Project, cementing what has become one of the more rapid resource accumulation stories among Queensland coal explorers. Since first reporting a Mineral Resource of 78.9 million tonnes for the Rolleston South Coal Project in May 2025, the company's total reported JORC coal resources have grown more than six-fold to 504.9 million tonnes through a series of acquisitions and technical work.

The Arcadia acquisition, completed on 20 October 2026, is the most significant step in that growth. The project hosts a JORC 2012 Mineral Resource of 282 million tonnes across EPC 1772, located within the Rolleston coal district of central Queensland's Bowen Basin — one of the world's premier metallurgical and thermal coal addresses. The resource sits regionally proximate to Yari's existing Rolleston South Coal Project, making this a consolidation play within a defined district rather than a Diversification into new geography.

What Yari Paid and How the Deal Is Structured

The transaction's financial architecture rewards milestone performance over upfront Capital deployment — a structure that reduces near-term cash risk while maintaining meaningful seller alignment. The upfront consideration comprised $50,000 in cash and approximately 147.6 million completion shares, subject to 12 months' escrow. Using the $0.0045 per share Placement price as a reference, cash and shares together represent approximately A$714,000, equivalent to roughly 0.25 cents per reported Arcadia resource tonne.

Future obligations include a minimum $400,000 qualifying expenditure commitment over three years, $1.25 million in resource and tenure milestone payments, $20 million in production-linked cash payments, a 1.5% gross revenue Royalty and a 10% entitlement to relevant future sale or transfer proceeds. This structure means the substantial Economics of the deal are tied to project success — a capital-efficient way for a company of Yari's size to acquire scale.

Multiple Product Pathways at Arcadia

The commercial case for Arcadia was strengthened by an independent coal quality review completed by coal specialist Chris McMahon of McMahon Resources. The review assessed historical data from 44 bore cores and 1,472 samples across the principal B, C and D seams of the Bandanna Formation and returned an average in-situ ash of approximately 10%.

Critically, the review identified the potential for Arcadia to support multiple coal products: semi-soft coking coal, pulverised coal injection (PCI) coal and high-energy thermal coal. The indication that different parts of the deposit may support different product specifications — rather than the project being locked into a single coal grade — gives the company flexibility in targeting the most favourable market at any point in the project's development cycle.

Yari and McMahon Resources are now undertaking detailed analysis to define potential product proportions, yields, specifications and beneficiation requirements across the three pathways. This work will inform the optimum product strategy for Arcadia within the broader Rolleston district coal strategy.

Resource Growth on a Per-Share Basis

One metric worth noting is resource tonnes per share. Despite the Arcadia acquisition increasing total shares on issue from approximately 839 million to 1.476 billion, resource tonnes per share actually increased — from 0.266 to 0.342 tonnes per share total, and from 0.040 to 0.134 tonnes per share for Indicated Resources. This accretion reflects the substantial resource base acquired at a low nominal upfront consideration.

Yari also relocated its principal place of Business to Brisbane post-quarter, strengthening its Queensland presence and aligning management with the coal expansion strategy in the Bowen Basin.

Sector Context

The Bowen Basin is globally significant for both metallurgical and thermal coal, hosting major operating mines including Rolleston and Meteor Downs South in the Rolleston district. Yari's growing footprint in the same district places it in a well-understood geological setting with established infrastructure — including the Blackwater rail system — nearby.

The coal sector's Investment environment remains contested. Metallurgical coal, used in steel production, continues to attract Demand from Asian markets and carries a premium over thermal coal. Semi-soft coking and PCI coals occupy the middle ground between hard coking and thermal grades, and if Arcadia can support these products, the project would be targeting a Market Segment that has demonstrated price resilience.

Risks

Yari remains a pre-production explorer with no revenue. The substantial production-linked payments ($20 million) embedded in the Arcadia acquisition terms will only fall due if the project reaches commercial production — a pathway that requires substantial technical, regulatory, financial and market milestones to be met. The 1.5% gross revenue royalty would also represent an ongoing cost on future production if the project is developed.

The coal quality work is at an early stage, and the identification of potential product pathways is subject to detailed beneficiation testing that has not yet been completed. There is no guarantee that the product yields and specifications will be commercially competitive.

What to Watch Next

The completion of the detailed coal quality analysis, expected to define product proportions, yields and beneficiation requirements across the coking, PCI and thermal pathways, is the most substantive near-term development. The compilation of a unified drilling and geological database across Rolleston South and Arcadia — combining 2025 drilling results with Arcadia's historical dataset including five cored CSG wells — will set the foundation for any future resource update or scoping study. Engagement with potential strategic partners and traders, flagged in the quarterly report, will be worth monitoring as a signal of commercial progress.