HALLADOR ENERGY CO

Path Forward

Hallador is pursuing the proposed Merom project along the following path: (1) secure generating equipment (completed); (2) commence the MISO ERAS interconnection study (imminent); (3) continue marketing the proposed project’s output under long-term power purchase agreements (ongoing); and (4) upon completion of the MISO ERAS study, anticipated in September 2026, make a final investment decision.

Hallador retains the optionality to determine the path forward that best creates value for shareholders, including advancing the full project, selling the project together with the equipment, or selling the equipment on a standalone basis. Any decision remains subject to the receipt and evaluation of a Generator Interconnection Agreement (“GIA”) from MISO, long-term offtake agreements, financing arrangements, permitting, engineering, and other customary project development milestones.

Mr. Bilsland added, “We believe we have meaningfully de-risked the ERAS opportunity by securing the equipment at an attractive price and on a timeline that aligns with our expected GIA receipt. Combined with our advancing MISO interconnection efforts and our growing sales book, we believe we are building a stronger platform from which to accelerate the next phase of Hallador’s growth.”