Pacific American Coal provided an update on activities at its wholly-owned Elko Coking coal project in British Columbia, Canada. Approval process for exploration program is finalising completion with most approvals received Pre - drilling environmental studies have now been successfully completed Elko remains a very attractive project with projected low capital costs and infrastructure advantages With an exciting 2018 planned for the Company, the Board of Pacific American Coal is pleased to provide an update on key activities undertaken over recent months, all of which are helping progress the Elko Project towards the planned exploration program. Permitting Process: The Company continues to work closely with the Ministry of Energy, Mines and Petroleum Resources (MEM) and various other government departments, and has already received the majority of approvals required to commence the planned exploration program. The relationship with MEM remains highly collaborative, and the Company sees no significant hurdles in achieving the Notice of Work approval prior to 2018 exploration window. Environmental Studies Completed: Following the unprecedented wildfire season experienced in British Columbia during the summer, which included an extended state of emergency and industry shutdown across the Province, the Company and its consultants have now had sufficient access to the Elko Project site to complete the outstanding Grizzly Bear and Huckleberry studies. As a result, the Company announced that it has now completed all studies it has been requested to complete as part of the approval process for its Notice of Works at the Elko Project.PAK will continue to work with the government and other stake holders to ensure the Company is managing the project through best management practices. During spring the Company intends to complete stage 2 work of the fish and archaeological studies as well as field work associated with desktop reviews and the recommendations of the gap analysis. Elko Project Remains Highly Attractive: In addition to the environmental and permitting process, the Company is continuing to focus its activities on the commercial aspects which make the Elko Project a highly attractive opportunity for PAK including: Projected Low Capital Entry Competitive Infrastructure Advantage Potential Low Capital Entry As announced on 19 May 2017, Palaris Australia Pty Ltd. (Palaris) delivered a favourable Project Study Report which among other items identified a production output that meant the project did not require significant capital expenditure to deliver the initial shipments of coal to the market. As such the Elko Project is planned to be a contract mining operation minimising the start - up capital to major cost items such as site access, the coal handling and processing facilities and rail loadout. It is expected that the project will benchmark similar to other Canadian operations in terms of capital intensity, and is favourably positioned in the lowest quartile when benchmarked internationally. Palaris conducted a benchmarking exercise to estimate the capital intensity of the Elko project against its global peers. The results indicate the Elko project is expected to be at the lower end of capital intensity and would compare favourably with other Canadian projects. Infrastructure Advantage The Elko Project site is approximately 20 km east from the township of Elko. The Canadian Pacific Railway line passes through the northern limit of the town. This railway line connects the USA border towns of Coutts, Alberta and Kingsgate, British Columbia with Vancouver, British Columbia as shown below. Access to the railway line from the site is via the Lodgepole Forest Service road, which is a well maintained road at the base of the valley, adjacent to the Elko Project site.Train Load out AreaA rail spur, train load out and stockpile facility will be built on the north side of Elko. The train load out infrastructure was designed and costed by Hatch in October 2016. The design of the train loadout consisted of the following: turn out from Canadian Pacific rail line with 2 km rail spurtrain load out system 33,600 t product stockpile pad on 0.7 Ha adjacent to the train load outcovered 1,200 mm conveyor from stockpile to train load out bin with capacity of 2,000 tphconical train load out bin with 500t capacity Rail Coal is planned to be transported from the town of Elko to a port in Vancouver. The bulk rail provider that would be used for the transport of this coal is Canadian Pacific Railway, which also transports coal from the nearby Teck Resources mines, which is located further to the North. PortWithin the Vancouver region there are three ports that currently have coal export capacity. The ports are Neptune, Fraser Surrey Docks and Westshore with capacities of 12.5Mt, 4Mt and 33Mt respectively. Expansions are planned for both Neptune and Westshore ports. If port capacity is not available, there is an opportunity to export coal out of Prince Rupert, which is located approximately 2,000 km from Elko. The majority of coal is planned to be exported to China, Japan, South Korea and India.