Excellent Brand, Outstanding Credibility

Yancoal Australia Ltd (ABN 82-111-859-119) was incorporated in Australia in November 2004, and is a wholly owned subsidiary of Yanzhou Coal Mining Company Limited in the People's Republic of China.

Yanzhou Coal Mining Company Limited, China, owns and operates eight mines in China with ISO 9001 quality certification and ISO 14001 environmental certification:

Yanzhou Coal Mining Company Limited is a listed company with strict corporate governance.

Awards received by it included the following:

The objective of setting up a company in Australia was to introduce the Longwall Top Caving Coal Mining Technology to this important coal mining region. The technology, developed by Yanzhou Coal Mining in China, had been successfully implemented in China.

Yancoal Australia Ltd has every intention to become a leading mining and technology company in the mining sector in Australia as evidenced from the purchase of Felix Resources Pty Ltd in December 2009.

The acquisition of Southland Coal Mine was completed early in 2005 and renamed into Austar Coal Mine and a subsidiary company was formed to hold those assets. This subsidiary company is called Austar Coal Mine Pty Limited, (ABN 67-111-910-822) and it currently has a paid up capital of AU$ 64,000,000.

In December 2009, Felix Resources Pty Ltd was acquired for AU$3.3 Billion.

Production of development coal started in July 2005 and production using Longwall Top Coal Caving Technology (LTCCT) started in October 2006.

As at March 2009, Austar Coal Mine employed approximately 250 technical operatives and managerial staff. This number does not include about 30 technical and managerial staff who were sent from the parent company in China, working as expatriates in Australia to train the Australian personnel in the use of LTCCT.

The scope of work undertaken by Austar Coal Mine includes technical studies, safety monitoring of underground mining, ventilation, conveyer belt maintenance, operating the water treatment plants, washing of coal, environmental protection, rail transportation and port loading.

Yancoal Australia Ltd together with Austar Coal Mine and Felix Resources Pty Ltd, have vested authority to sell and export coal to any customer in the world.

Further expansion of Yancoal Australia Ltd's presence in the Australian mining sector was completed in 2009 through the acquisition of Felix Resources Pty Ltd (ABN 75-000-754-174). Felix has four operational coal mines in Queensland’s Bowen Basin and the Hunter Valley, in New South Wales. The Ashton Open-Cut and Underground together with the Moolarben Open-Cut mines in New South Wales, and in Queensland are the Minerva Open-Cut and the Yarrabee Open-Cut.

Yancoal Australia Ltd will continue to support its subsidiary companies, Austar Coal Mine Pty Limited and Felix Resources Pty Ltd by assigning experienced mining staff from China, upgrading mining equipment and providing financial assistance to them in accordance with their mining plans and operational plans.

At the same time, the listed parent company, Yanzhou Coal Mining Company Limited will continue to support Yancoal Australia Ltd in order to enable it to achieve its wide objectives of becoming a technology leader in the coal mining industry in Australia.