("NEMI") holds a 12% interest in the Peace River Coal Limited Partnership ("PRC"), which operates the Trend Mine and owns substantial metallurgical coal properties near Tumbler Ridge in northeastern British Columbia. In November 2006, NEMI joined with Hillsborough Resources Limited ("Hillsborough") and Anglo Coal Canada Inc. ("Anglo"), indirectly a wholly-owned subsidiary of Anglo American plc ("A
nglo American") to form PRC in order to jointly develop their northeastern coal assets, including the Trend Mine. PRC received a full mine permit for the Trend Mine in January 2007 that permits up to 2 million tonnes of clean coal production per annum. In October 2009, Anglo announced that it was restructuring its global portfolio of assets, including the divestiture of its interest in PRC. Subsequently Anglo reached an agreement with NEMI and Hillsborough which will allow a purchaser to acquire up to a 100% interest in PRC. The PRC partners believe that a new owner being able to control 100% of PRC will allow the full potential of the assets to be realised more expeditiously and more fully than under the current ownership structure. Anglo American has advised that the PRC divestment process is progressing. NEMI will require a special meeting of its shareholders to approve the anticipated sale of its PRC interest.
