February 9, 2022

TO THE SHAREHOLDERS OF PARDEE RESOURCES COMPANY:

During 2021, the operating earnings of Pardee Resources Company benefited from the resilience
and strength of all three of its primary markets, namely hardwood timber, metallurgical coal and natural
gas. Commodity prices, which turned upward during Q4 2020, continued to improve throughout 2021, as
the rebounding economy, combined with supply chain constraints, put upward pressure on prices. While
the U.S. Federal Reserve is expected to increase interest rates as a means of containing overall price
inflation in the economy, commodity prices remain strong as of early 2022.

The annual audit by Ernst & Young of the Company’s financial statements is expected to be
completed in early April, after which we will be mailing you our 2021 Annual Report.

Your Board of Directors has voted to maintain the quarterly dividend at $1.80 per common
share which will be payable March 7, 2022 to shareholders of record February 28, 2022.

We remain committed to the responsible and effective management of our properties and to a
disciplined effort towards making long term investments on behalf of our shareholders.

Sincerely yours,

Benjamin A. Burditt Carleton P. Erdman

Chairman President & CEO