On December 31, 2018, American Resources Corporation (ARC) entered into a Loan agreement with Integrity Coal Sales Inc. (‘Integrity”) in which Integrity agreed to loan ARC up to $6.5 million, with $3.0 million advanced by Integrity to ARC on December 31, 2018 and the balance available for to ARC on a scheduled basis thereafter upon request of ARC. The promissory note carries a 5.0% annual interest rate and interest and principal shall be repaid to Integrity at a specific per-ton rate out of the proceeds of future coal sales to Integrity. The amounts advanced by Integrity to ARC mature on April 1, 2020. The promissory note is secured by the assets of ARC. ARC will use the proceeds of the promissory note for coal production expansion at ARC’s McCoy Elkhorn subsidiary, along with general corporate purposes.