CStone Pharmaceuticals — Capital/Financing Update 2004

Feb 5, 2004

YANZHOU COAL MINING COMPANY LIMITED

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

==> picture [34 x 35] intentionally omitted <==

兗州煤業股份有限公司 YANZHOU COAL MINING COMPANY LIMITED

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

Contracts and Letters of Intent for Coal Sales Signed for 2004

This announcement is made pursuant to the disclosure obligation under paragraph 2(2) of the Listing Agreement between Yanzhou Coal Mining Company Limited (the “Company”) and The Stock Exchange of Hong Kong Limited.

The Board of Directors of the Company hereby announces the contracts and letters of intent for coal sales signed for 2004, based on International Financial Reporting Standards, as follows: (1) in 2003, the Company’s sales volume of coal was 39.41 million tonnes, representing an increase of 4.36 million tonnes or 12.4% over that of the previous year; (2) in 2004, the aggregate of the sales volume of the Company under the contracts and letters of intent for coal sales and the Company’s planned coal export target will amount to 41.42 million tonnes, representing an increase of 2.01 million tonnes or 5.1% over the actual sales of 2003, among which the volume under the signed contracts for domestic coal sales is 11.92 million tonnes; (3) the average price of coal under the signed contracts for domestic coal sales is RMB198.52/tonne (after tax), representing an increase of RMB17.82/tonne or 9.9% over that of 2003. The data in this announcement is unaudited and the relevant data shall be subject to those to be disclosed in the audited financial report of the Company for 2003.

This announcement is made pursuant to the disclosure obligation under paragraph 2(2) of the Listing Agreement between the Company and The Stock Exchange of Hong Kong Limited.

Steady growth in sales volume for 2003

In 2003, the Company’s sales volume of coal was 39.41 million tonnes, representing an increase of 4.36 million tonnes or 12.4% over that of the previous year. Among which, the domestic sales volume was 25.78 million tonnes, representing an increase of 5.19 million tonnes or 25.2% over that of the previous year, and the export sales volume was 13.63 million tonnes, representing a decrease of 830,000 tonnes or 5.8% over that of the previous year.

Larger volume of ordered coal for 2004 may help further growth in coal sales volume for 2004

In 2004, the aggregate of the sales volume of the Company under the contracts and letters of intent for coal sales and the Company’s planned coal export target will amount to 41.42 million tonnes, representing an increase of 2.01 million tonnes or 5.1% over the actual sales of 2003. Among which, the volume under the signed contracts for domestic coal sales is 11.92 million tonnes, representing an increase of 1.12 million tonnes or 10.4% over that of 10.8 million tonnes for 2003, and the volume under the signed letters of intent for domestic coal sales is 17.5 million tonnes, representing an increase of 3.04 million tonnes or 21.0% over that of 14.46 million tonnes for 2003. Besides, the Company has an export target volume of approximately 12 million tonnes, representing a decrease of 1.63 million tonnes or 12.0% over the actual export volume of 13.63 million tonnes of 2003.

The average price of coal under the signed contracts for domestic coal sales is RMB198.52/tonne (after tax), representing an increase of RMB17.82/tonne or 9.9% over that of 2003. The price of coal under the signed letters of intent for domestic coal sales is subject to market fluctuation. The negotiation of export coal contracts for 2004 has not yet commenced.

Based on the production capacity of the Company and market demand, the Company has planned a coal sales target of 40 million tonnes for 2004. Among which, the export target volume is 12 million tonnes and the domestic sales target is 28 million tonnes.

The larger volume of ordered coal for 2004 may help the Company to meet the sales target for 2004.

YANZHOU COAL MINING COMPANY LIMITED 6-2-2004

1

YANZHOU COAL MINING COMPANY LIMITED

Table of contracts and letters of intent for coal sales signed for 2004 and export target for 2004 (prepared in accordance with International Financial Reporting Standards)

Actual salesvolume(’000 tonnes)Item1#Clean Coal5142#Clean Coal6,729Including: domestic636exports6,0933#Clean Coal11,952Including: domestic4,858exports7,094Lump Coal584Including: domestic139exports445Subtotal of clean coal19,779Including: domestic6,147exports13,632Raw coal13,938Mixed Coal and others5,691Total39,408Including: domestic25,776		Sales in 2003Sales contract and letters of intent and export target for 2004Including:Volume (’000 tonnes)Including:Volume underDomesticSales contractCompared withCompared withVolume underDomesticdomesticcontract priceand letters ofactual volumeactual volumedomesticcontract pricecontracts(RMB/tonne,intent and exportin 2003in 2003contracts(RMB/tonne,(’000 tonnes)after tax)target for 2004(+, -)(%)(’000 tonnes)after tax)440241.0070018636.2460311.801,5705,300-1,429-21.26601,570235.001,600964151.6660279.253,700-2,393-39.31,43012,8008487.12,8301,430182.005,2003427.02,830206.787,6005067.11,500916156.8100800661475.5100285.0070025557.33,44020,3005212.63,440213.708,3002,15335.04,05012,000-1,632-12.07,060166.0016,1202,18215.77,470181.93300147.005,000-691-12.1400164.7010,80041,4202,0125.111,92010,800180.7029,4203,64414.111,920198.52	Sales contract and letters of intent and export target for 2004	Sales contract and letters of intent and export target for 2004
				Including:
				Volume underDomesticdomesticcontract pricecontracts(RMB/tonne,(’000 tonnes)after tax)460311.80660660279.252,8302,830206.78100100285.004,0507,470181.93400164.7011,92011,920198.52

The above data is unaudited and the relevant data shall be subject to those to be disclosed in the audited financial report of the Company for 2003.

By Order of the Board YANZHOU COAL MINING COMPANY LIMITED Mo Liqi Chairman of the Board

Shandong, the PRC, 5 February 2004

Please also refer to the published version of this announcement in South China Morning Post dated on 6-2-2004.

YANZHOU COAL MINING COMPANY LIMITED 6-2-2004 2