CStone Pharmaceuticals — M&A Activity 2004

Oct 8, 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.

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) (Stock Code: 1171)

ACQUISITION OF SOUTHLAND COAL MINE IN AUSTRALIA

The Company has recently entered into the Southland Coal Mine Asset Sale Agreement with the Receivers and Managers and the Liquidators of Southland Coal Pty Limited (an independent third party) in Australia. The aggregate consideration for the Acquisition Agreement is AUD32 million (approximately US$23 million).

From the signing of the Acquisition Agreement until the completion of the transfer of assets as well as the fulfillment of all conditions precedent, the time taken will be about 6 - 8 weeks.

This announcement is served according to the disclosure obligations pertaining to Rule 13.09 of the Listing Rules.

Yanzhou Coal Mining Company Limited (the “Company”) has recently entered into the Southland Coal Mine Asset Sale Agreement with the Receivers and Managers and the Liquidators of Southland Coal Pty Limited (an independent third party) in Australia (the “Acquisition Agreement”), pursuant to which the Company will acquire the entire Southland Coal Mine owned by Southland Coal Pty Limited. The aggregate consideration for the Acquisition Agreement is AUD32 million (approximately US$23 million).

From the signing of the Acquisition Agreement until the completion of the transfer of assets as well as the agreement of all preliminary business terms, the time taken will be about 6 - 8 weeks.

The type of coal which Southland Coal Mine mainly produces is hard coking coal and semi soft coking coal, which belong to the types of coal of which the international coal market is seriously short; according to the Company’s analysis, the resources from Southland Coal Mine have the potential to be used for the mechanized comprehensive top caving mining technology which is being promoted by the Company in mainland China. The Company believes that the acquisition of the Southland Coal Mine is beneficial to the Company’s profit potential.

Southland Coal Mine is situated at the mining area in Hunter Valley, New South Wales, Australia. Based on the standards of estimation of the reserves of coal resources in Australia, Southland Coal Mine currently has recoverable reserves of approximately 41 million tones (the information regarding the reserves is extracted from the “Information Memorandum – Southland Coal Pty Ltd” provided by the vendor of the Southland Coal Mine).

The company will comply with both inland and foreign regulation requirements, and disclose the news relevant to the acquisition on a timely basis.

This notice is served according to the disclosure obligations pertaining to Rule 13.09 of the Listing Rules.

YANZHOU COAL MINING COMPANY LIMITED 11-10-2004 1

YANZHOU COAL MINING COMPANY LIMITED

Note: As at the date of this announcement, the Directors of the Company are Mr. Wang Xin, Mr. Geng Jiahuai, Mr.Yang Deyu, Mr. Mo Liqi, Mr. Wang Bangjun, Mr. Yang Jiachun, Mr. Wu Yuxiang, Mr. Wang Xinkun and Mr.Dong Yunqing, and the independent non-executive Directors of the Company are Mr. Fan Waitang, Mr. Cui Jianmin, Mr. Wang Xiaojun, Mr. Wang Quanxi.

By Order of the Board of Directors of Yanzhou Coal Mining Company Limited Wang Xin Chairman

Zoucheng, Shandong Province, PRC, 8 October 2004

Please also refer to the published version of this announcement in South China Morning Post dated 11 October 2004.

YANZHOU COAL MINING COMPANY LIMITED 11-10-2004

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