STANMORE RESOURCES LIMITED — Earnings Release 2022

Feb 26, 2023

==> picture [176 x 71] intentionally omitted <==

FY22 Full Year Financial Results Release TWELVE MONTHS ENDED 31 DECEMBER 2022

27 FEBRUARY 2023

Important Information

==> picture [126 x 45] intentionally omitted <==

Forward-looking statements

This document contains certain “forward-looking statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. You are cautioned not to place undue reliance on forward looking statements. Although due care and attention has been used in the preparation of forward looking statements, such statements, opinions and estimates are based on assumptions and contingencies that are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Other than where required by law, Stanmore does not undertake to publicly update or review any forward-looking statements whether as a result of new information or future events.

No offer of securities

This document is not and should not be considered to form any offer or an invitation to acquire Stanmore shares or any other financial products, and neither this document nor any of its contents will form the basis of any contract or commitment.

Reliance on third party information

Any information contained in this presentation that has been derived from publicly available sources (or views based on such information) has not been independently verified. Stanmore does not make any representation or warranty about the accuracy or completeness or reliability of the information.

JORC Code

It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (“JORC Code”). Investors outside Australia should note that while ore reserve and mineral resource estimates of the Company in this document comply with the JORC Code (such JORC Code compliant ore reserves and mineral resources being “Ore Reserves” and “Mineral Resources” respectively), they may not comply with the relevant guidelines in other countries and in particular do not comply with (i) National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators ("Canadian NI 43-101 Standards"); or SEC Industry Guide 7, which governs disclosures of mineral reserves in registration statements filed with the US Securities and Exchange Commission (“SEC”). You should not assume that quantities reported as “resources” will be converted to reserves under the JORC Code or any other reporting regime or that Stanmore will be able to legally and economically extract them.

Mineral resources and reserves

This presentation contains estimates of Stanmore's ore reserves and mineral resources. The information in this presentation that relates to the ore reserves and mineral resources has been extracted from the ASX release by Stanmore titled “2022 Annual Coal Resources and Reserve Summary” dated 27 February 2023, published as part of the Annual results and financial statements on 27 February 2023 and prepared by Competent Persons in accordance with the requirements of the JORC Code. Copies of these announcements are available at www.asx.com.au.

Stanmore confirms that it is not aware of any new information or data that materially affects the information included in those announcements and, in relation to the estimates of Stanmore's and SMC’s ore reserves and mineral resources, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. Stanmore confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the relevant announcement.

2

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Safety TRIFR[1]

1.5

Vs. 7.9 FY21

Saleable Production[2]

9.2 mt

Vs. 2.1mt FY21

==> picture [128 x 49] intentionally omitted <==

FY22 Highlights

• 15-month injury-free period at the Isaac Plains Complex has continued to support below industry TRIFR[1] safety rates for FY22

• Record production results delivered, within public guidance ranges, with full transition and integration of the SMC[7] assets, despite unseasonal wet weather

Underlying EBITDA[3,4]

US$ 1,456 m

Vs. US$34m FY21

Operating Cash Flow[3,4]

US$ 1,182 m

Vs. US$96m FY21

• Operational performance delivered US$1.46 billion (~A$2 billion) Underlying EBITDA, despite the newly acquired South Walker Creek and Poitrel mines being part of the Stanmore portfolio for only eight months of 2022

• US$1.18 billion operating cash flows facilitated the acquisition of the remaining 20% of SMC[7] and significant deleveraging, to assist with building balance sheet resilience

• Despite acquiring 100% of SMC during the year, cash on hand as at 31 December 2022 totals US$432 million and net debt[5] has reduced to US$183 million as at year end

Net Debt[5]

US$ 183 m

Vs. US$22m FY21

Share Price[6]

A$ 3.80

Vs. A$1.04 as of 31 December 2021

• Approximately 245%[6] return on investment delivered in less than 12-months, based on the March 2022 Share Entitlement Offer Price of A$1.10/sh

• 1 Total Reportable Injury Frequency Rate (TRIFR), measured per million hours (industry average used is 12 month rolling average) 2 100%, fully consolidated figures excluding the Millennium joint venture

Note:

• 3 Fully consolidated, with Millennium joint venture (MetRes Pty Ltd) consolidated on an equity accounting basis only 4 FY21 comparisons converted using 2021 average AUD/USD of $0.751 and year-end AUD/USD of $0.726 5 Excluding Lease Liabilities accounted for under AASB 16, Finance Leases and Premia Funding 6 As at close of ASX 24 February 2023

• 7 Stanmore SMC Pty Ltd, formerly BHP Mitsui Coal Pty Ltd

3

2022 Full Year Health, Safety, Environment and Social Improvement

==> picture [449 x 497] intentionally omitted <==

Health & Safety

15-month ongoing, injury-free period at the Isaac Plains Complex during transition to Isaac Downs

==> picture [411 x 366] intentionally omitted <==

----- Start of picture text -----

Rolling 12-Month TRIFR [1] vs. Hours Exposed
8.0
7.9
6.0
4.0
3.4
2.5
2.0
1.5
1.0
0.8
0.0
FY21 1H 22 FY22
TRIFR
Hours Exposed (M's)
----- End of picture text -----

==> picture [171 x 366] intentionally omitted <==

----- Start of picture text -----

A decrease of
81%
Vs. FY21
Increased
workforce
resulting in
~4.5x
Total exposed
hours vs. FY21
----- End of picture text -----

==> picture [126 x 45] intentionally omitted <==

• Stanmore remains committed to safety as its number one priority, striving towards our goal of everybody returning home each day, safe and healthy

• Encouraged by the continued improvement in the TRIFR[1] throughout the full-year, during significant transitional activities at the Isaac Plains Complex and the integration of the SMC assets

• Introduction of the SMC workforce and management has provided opportunities to share key learnings across the business

Note: 1 Total Reportable Injury Frequency Rate (TRIFR), measured per million hours (industry average used is 12 month rolling average)

5

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Stanmore’s Sustainability Pathway

Our vision is to be a leading resources company in Australia, creating value through sustainable development

Sustainability Progress

Sustainability Pillars and Materiality Topics Aligning objectives and targets to our materiality topics

==> picture [126 x 45] intentionally omitted <==

March 2022

Stanmore’s first Sustainability Report released

July to September 2022

Roadmap and charter developed

Commenced stakeholder needs and expectations assessment

Aligned to the United Nations Sustainable Development Goals

ENVIRONMENT

DECARBONISATION

• Greenhouse gas emissions

• • Climate adaption, Resilience and Transition

SOCIAL

HEALTH AND

SAFETY

• Health and Safety

• • Critical incident risk management

GOVERNANCE

GOVERNANCE

• Management of Legal and Regulatory Framework

• Forced Labour and Modern Slavery

• • Systematic EnterpriseWide Risk Management

October to December 2022

Energy and MACC[1 ] assessments conducted at South Walker Creek and Poitrel Analysis of emissions data to define sustainability metrics

Development and Endorsement of objectives, targets and ESG risk assessment

April 2023

LAND MANAGEMENT AND REHABILITATION

==> picture [109 x 22] intentionally omitted <==

----- Start of picture text -----

WATER AND WASTE
MANAGEMENT
----- End of picture text -----

• Water use • Closure and withdrawal and Rehabilitation quality • Ecological Impacts

• • Mine waste and • Biodiversity Impacts tailings

WORKFORCE DEVELOPMENT AND INCLUSION • Labour practices

WORKING WITH AND SUPPORTING OUR COMMUNITIES

• Economic impacts

• • Human rights and community relations

• • Local communities • Rights of indigenous people

Release of 2022 Sustainability Report

Note: 1 Marginal Abatement Cost Curve

6

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Land Management and Rehabilitation

Stanmore successfully rehabilitated 270ha of mining areas in FY22

Alignment to Objectives Targets UN SDGs[1]

==> picture [96 x 185] intentionally omitted <==

We will aspire to:

• Return mine disturbed land to Progressive sustainable final land use, working Rehabilitation and with key stakeholders to establish Closure Plans will final land use objectives be in place for all

• • Accelerate progressive operational sites by rehabilitation relative to PRCP 2024 commitments, where operational opportunities allow

• The FY22 total recontouring (of mine waste dumps) target of 220ha was exceeded by 22ha

• A total of 270ha have been rehabilitated (i.e. areas recontouring, topsoiled and seeded), consisting of 221ha of recontoured mine waste dumps and 49 ha of ancillary mining areas such as laydowns, roads, etc.

==> picture [126 x 45] intentionally omitted <==

==> picture [363 x 325] intentionally omitted <==

----- Start of picture text -----

Stanmore Recontouring [2] – (ha)
300
242
250
220
200
150
100
50
0
2015 2016 2017 2018 2019 2020 2021 2022
2022 Target 2022 Actual
----- End of picture text -----

2 All sites included for 2022, and only the Isaac Plains Complex for prior years

Note: 1 United Nations Sustainable Development Goals

7

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Isaac Plains East Rehabilitation

Significant rehabilitation progress during FY22

==> picture [126 x 45] intentionally omitted <==

==> picture [886 x 399] intentionally omitted <==

----- Start of picture text -----

1. 2. 3.
May 2021 May 2021Sept 2022 Jan 2023
----- End of picture text -----

8

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Social Improvement

Committed to making a positive contribution the Isaac Region local community and the Traditional Owners of the land on which we operate

==> picture [126 x 45] intentionally omitted <==

==> picture [547 x 372] intentionally omitted <==

----- Start of picture text -----

Qld Royalties – FY22 (US$m) Local Initiatives
458
Regional South Walker
124 Employment Creek Landmark
334
481 ILUA [2]
Previous Impact of FY22 ~66% of Supporting more than
Regime Changes [1] Expense employees 40 local groups
• The Queensland Government
announced changes to the coal
royalty regime on June 21, 2022,
with effect from 1 July, 2022, Poitrel New to Funding of
introducing three progressive Industry Trainees community groups
royalty tiers in addition to the
previous regime
66 total > 70
• This resulted in an increase of
36% in the Group’s royalty Of which includes 55 In FY22
expense for FY22, to a total of female and 16
US$458 million, representing a indigenous trainees
meaningful contribution to the
State, and local communities
----- End of picture text -----

==> picture [333 x 372] intentionally omitted <==

----- Start of picture text -----

Pictured: Trainee group qualified to operate a CAT793F solo
----- End of picture text -----

• Note: 1 Based on the previous royalty regime, and calculated using the average AUD/USD from 1 July,2022 to 31 December, 2022 of 0.6706 2 Indigenous Land Use Agreement

9

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Operating Mines Performance

==> picture [449 x 497] intentionally omitted <==

Consolidated Operating Performance Summary

Continued operational excellence through the acquisition and integration of SMC

==> picture [285 x 178] intentionally omitted <==

----- Start of picture text -----

Strip Ratio
9
9.0
8
7.5
7 7.3 7.4
6
FY21 1H 22 2H 22 FY22
----- End of picture text -----

==> picture [284 x 178] intentionally omitted <==

----- Start of picture text -----

Consolidated FOB Cash Cost [1] (US$/t)
$88/t
$86/t $87/t
$84/t
$82/t
$83/t
$80/t $81/t
$78/t
$78/t
$76/t
$74/t
$72/t
FY21 1H 22 2H 22 FY22
----- End of picture text -----

==> picture [585 x 181] intentionally omitted <==

----- Start of picture text -----

ROM (Kt) Saleable Production
14 10
12 13.5 9.2
8
10
9.6 6
8 6.4
6
4
4
3.9 2 2.8
2
2.8 2.1
0 0
FY21 1H 22 2H 22 FY22 FY21 1H 22 2H 22 FY22
----- End of picture text -----

==> picture [126 x 45] intentionally omitted <==

FY22 Highlights

• Operating performance remained robust and within guidance following the integration of SMC, despite multiple instances of unseasonal wet weather and tight labour market conditions

• Record dragline performance at South Walker Creek, high levels of productivity and incremental tonnes mined at Poitrel, and the transition of mining to Isaac Downs resulting in record annual ROM production for the Isaac Plains Complex

• Synergies realised within the first 8-months of SMC ownership, including the processing of 200kt of Isaac Downs ROM production at the nearby Poitrel CHPP

• Continued pressure on input costs driven by global inflationary environment and labour constraints, noting the FOB Cash Cost, which is predominantly incurred in AUD, is subject to changes in the relative strength to the quotation currency of USD

• Note: All figures presented on a 100%, fully consolidated basis excluding Millennium joint venture and SMC figures from 3 May, 2022 onwards

1 FOB cash cost per tonne sold, excluding inventory movement and royalties

11

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

==> picture [146 x 146] intentionally omitted <==

----- Start of picture text -----

FY22 Saleable
Production [1]
3,956 Kt
1,005Kt 1H 22
----- End of picture text -----

FY22 FOB Cash Cost[2] US$ 73.5 /t US$76.6/t 1H 22 FY22 Average Selling Price US$ 308 /t US$435/t 1H 22

==> picture [144 x 58] intentionally omitted <==

South Walker Creek

Stable production maintained with significant capital commitments made to support organic growth

• Acquired as a part of the 80% acquisition of SMC on May 3, 2022, and ownership later consolidated to 100% on October 7, 2022

• Highest annual coal mining, waste stripping and dragline performance on record for the history of the mine

• Continued challenges with unseasonal wet weather during the second half, offset by robust dragline performance to meet the upper bound of H2 22 saleable production guidance

• The Mulgrave Resource Area 2C (MRA2C) approved, with capital expenditure to commence in FY23; the fully permitted project provides access to lower strip ratio and higher yielding/quality ROM volumes

• 7[th] fleet approved and commissioned to support pre-stripping ahead of the scheduled dragline conversion to AC in FY24, and a bottle-necked CHPP, supporting steady state production, albeit at slightly higher unit costs

• Healthy ROM and in-pit coal inventories at year-end provided a strong position for early 2023 wet weather events.

• Vast optionality to explore competitive value improvement and expansion opportunities to provide incremental volume increase and/or manage continued pressure on input costs

• Note: 1 Represents 100% of saleable production, from 3 May, 2022 onwards 2 FOB cash cost per tonne sold, excluding inventory movement and royalties

12

Poitrel

Above run-rate production from strong operational productivity and opportunistic mining of incremental volumes

• Acquired as a part of the 80% acquisition of SMC on May 3, 2022, and ownership later consolidated to 100% on October 7, 2022

• Multiple monthly records set following the initial acquisition, including record stripping, coal mining and shipping in June, August and November 2022 respectively

• Commenced the mining and processing of two seams (Vermont 2/3 (V23) and Vermont Lower) at very low incremental strip ratios and without delay to in-pit sequencing, to benefit from available capacity at the CHPP

• Global inflationary cost pressures continued to have a marginally higher impact to the cost of consumables, such as diesel, explosives, parts, electricity and labour, with impact to full year FOB cash cost offset by strong production and sales run-rate, as well as continued optimisation of the mine’s operating model and supplier base

• Additional excavator fleet commissioned to maintain production whilst the northern section of the mine (Ramp 10) is transitioned via a box-cut across a fault over the next 24 months, which will be capitalised for accounting purposes

• Key operational synergies realised, including the processing of 200kt of feed coal from the Isaac Plains Complex

FY22 Saleable Production[1] 2,812 Kt 670Kt 1H 22 FY22 FOB Cash Cost[2] US$ 96.2 /t US$108.6/t 1H 22 FY22 Average Selling Price US$ 271 /t US$390/t 1H 22

• Note: 1 Represents 100% of saleable production, from 3 May, 2022 onwards 2 FOB cash cost per tonne sold, excluding inventory movement and royalties

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Saleable Production

Isaac Plains Complex

Mining successfully transitioned to Isaac Downs, lower strip ratio supporting operating margins

==> picture [144 x 58] intentionally omitted <==

2,401 Kt

2,070Kt FY21

• Transitional year for the Isaac Plains Complex, with the move to the Isaac Downs, change in Mining Services contracts and a change in the operating model of the CHPP to owner-operated

• A one-year injury free period was achieved on November 27, 2022, a remarkable outcome considering the significant amount of transitional activities

FOB Cash Cost[1,2] US$ 80.8 /t US$78.2/t FY21 Average Selling Price[2] US$ 270 /t US$131/t FY21

• Substantial rehabilitation was completed during the year, including 212 hectares at Isaac Plains East and 48 hectares between Isaac Plains and Isaac Downs

• Record annual ROM production was achieved despite multiple instances of unseasonal wet weather, which were partly offset by the introduction of an additional fleet in 4Q 22

• A record monthly CHPP throughput of 356k was achieved in December following upgrades completed in November to upgrade feed rate from 500 tonnes per hour to 600 tonnes per hour

• Operation well positioned to continue strong production by leveraging increased processing capacity from the upgraded CHPP and spare capacity at Poitrel

• 1 FOB cash cost per tonne sold, excluding inventory movement and royalties 2 FY21 comparisons converted using 2021 average AUD/USD of $0.751

Note:

14

Millennium Complex (MetRes JV)[2] FY22 EBITDA of US$59 million has provided a strong foundation for the transition to underground operations in 2023

• Millennium contributed US$20 million of NPAT to Stanmore’s EBITDA at 50% (FY21 loss of US$2 million)

Saleable Production 473 Kt

321Kt 1H 22

• This contribution was built from US$59 million underlying stand-alone EBITDA[3] on a 100% basis for MetRes Pty Ltd

• Millennium is currently operating as a conventional open-cut truck and shovel operation, combined with auger mining from available highwalls

• Preparation and construction of the Mavis underground mine is continuing. Flood damage to the fan foundation in late FY22 and geological variations has delayed the first development coal, now expected in 2H 23

FOB Cash Cost[1]

US$ 184.9 /t

US$137.8/t 1H 22

• Additional drilling is now occurring to allow greater control and correlation between seismic interpretation and existing boreholes of geological model

• Millennium’s underground exploration program commenced in 2H 22

• Nil debt outstanding as at Dec 2022, with underground capital expenditure currently fully funded from operating cash flows

Average Selling Price US$ 349 /t US$385/t 1H 22

• Note: 1 FOB cash cost per tonne sold, excluding inventory movement and royalties 2 Non-managed operation shown on a 100% basis (50% ownership) and equity accounted 3 Non-IFRS financial information, unaudited management accounts as at 31 December 2022

15

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

2022 Full Year Financial Results

==> picture [449 x 497] intentionally omitted <==

A$1.50

2022, an Acquisitive Journey

A transformative year with the acquisition of 100% of the SMC assets

==> picture [126 x 45] intentionally omitted <==

A$3.50 A$3.00

A$2.50

A$2.00

==> picture [892 x 404] intentionally omitted <==

----- Start of picture text -----

Stanmore Share Price ($/share)
October 2022
Completion of
~245% ROI
remaining 20%
May 2022
acquisition of SMC
Completion of 80% August 2022
Acquisition of SMC
Half year results
announcement
August 2022
Announcement to
March 2022
acquire remaining
Share Entitlement 20% of SMC
Offer at A$1.10/s
June 2022
Announcement of QLD
royalty increases
Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23
----- End of picture text -----

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

17

17

Financial Highlights

The Group capitalised on additional volumes from SMC and price tailwinds to deliver record financial results

==> picture [126 x 45] intentionally omitted <==

==> picture [881 x 353] intentionally omitted <==

----- Start of picture text -----

Revenue & Average Sales Price (US$m)
Underlying Operating $3,000 $400
Revenue [1,2] EBITDA [1,2] Cash flow [1,2]
$2,500 $377/t $2,699
$300
US$ 2,699 m US$ 1,456 m US$ 1,182 m $2,000 $248/t
$290/t
$1,500 $200
US$284m FY21 US$34m FY21 US$96m FY21 $1,602
$131/t
$1,000
$1,097
$100
$500
$284
Net Earnings $0 FY21 1H 22 2H 22 FY22 $0
Cash on Hand Debt [3] per Share Revenue
Average Sales Price
US$ 432 m US$ 183 m 83.9 USD cps • Full year EBITDA increase primarily driven by
sustained higher pricing compared to FY21 and
US$46m FY21 US$22m FY21 Vs. 2.6 USD cps FY21 stable saleable production of the acquired SMC
assets through, and following, integration
----- End of picture text -----

• Note: 1 All figures are fully consolidated, with Millennium joint venture (MetRes Pty Ltd) consolidated on an equity accounting basis

• 2 FY21 comparisons converted using 2021 average AUD/USD of $0.751 and year-end AUD/USD of $0.726

• 3 Excluding Lease Liabilities accounted for under AASB 16, Finance Leases and Premia Funding

• 4 Based on closing share price as of the 24[th] February 2023

18

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Financial Performance

Increase in Underlying EBITDA resulting in substantial earnings for shareholders

==> picture [126 x 45] intentionally omitted <==

Twelve Months Ended December 31 (US$m)	2022	2021
Revenue	2,699	284
Expenses	(1,243)	(250)
Underlying EBITDA	1,456	34
Underlying EBITDA Margin	54%	12%
Depreciation & Amortisation	(226)	(20)
Non-Operating Adjustments1	(336)	0
Profit / (Loss) Before Income Tax & Finance Expenses	894	14
Net Finance Costs	(85)	(4)
Income Tax Expense	(82)	(4)
Profit / (Loss) for the Twelve Months	727	7
Basic Earnings per Share (cents/share)	83.9	2.6

FY22 Highlights

  - Total revenue reflective of the strong metallurgical coal market conditions observed through-out FY22, with the average achieved sales price increasing by US$159 per tonne year on year

  - Together with the addition of saleable production from the lowcost SMC assets, the Group has delivered record margins and Underlying EBITDA of over five times the closing FY21 market capitalisation

  - Underlying EBITDA has been adjusted to remove US$336 million of Non-Operating Adjustments[1] , primarily related to an inventory revaluation adjustment required for accounting purposes as a part of the 80% acquisition

  - Earnings per share increased by 81.3 USD cps year-on-year, notwithstanding the issuance of an additional ~631 million shares

• Note: 1. Non-Operating Adjustments includes: inventory adjustment totalling US$227.4 million based on net realisation value as at May 3, 2022 (at elevated coal prices); and once off transition costs associated with the acquisitions, totalling US$108.3 million, such as government stamp duty, due diligence, advisory, transition and integration costs.

2. All figures are fully consolidated, with Millennium joint venture (MetRes Pty Ltd) consolidated on an equity accounting basis

19

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Cash flow, Debt & Liquidity

Operating cash flows supported the consolidation of SMC ownership to 100% and deleveraging

==> picture [126 x 45] intentionally omitted <==

Change in Net Debt[1 ] since initial 80% acquisition (US$m)

==> picture [467 x 163] intentionally omitted <==

----- Start of picture text -----

Draw-down of
800
Acquisition Financing
for 80% acquisition
600
Payment of 20%
acquisition from
400 internal cash sources
200
-
Acquisition May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22
Date
Net Debt
----- End of picture text -----

==> picture [474 x 197] intentionally omitted <==

----- Start of picture text -----

Change in Total Debt [1 ] (US$m)
-54%
249
615
252
795
363
69
31-Dec-21 Draws to Fund Debt 31-Dec-22 Cash flow 27-Feb-23
Acquisitions Repayments Sweep
----- End of picture text -----

FY22 Highlights

• Cash generation during a period of record coal prices supporting modest closing net debt[1] position of US$183 million, despite US$795 million in debt drawdowns to support SMC acquisition related payments

• Stanmore maximised its opportunities to deleverage the balance sheet, including the repayment and cancellation of the US$50 million bridge facility and ~US$190 million in voluntary repayments of general revolving credit facilities

• Total closing liquidity of US$656 million, comprised of US$432 million in cash (before cash flow sweep) and US$224 million in available debt facilities

• First annual cash flow sweep of US$252 million paid in February 2023, which together with the remaining debt repayments has eliminated 54% of the Group’s FY22 peak debt

• Overall balance sheet resilience established to provide a strong platform heading into FY23

Note: 1 Excluding Lease Liabilities accounted for under AASB 16, Finance Leases and Premia Funding

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

20

Capital Management

Stanmore is committed to building a disciplined capital management strategy

==> picture [126 x 45] intentionally omitted <==

FY22 Highlights

1. Value Protection

Sustain & optimise the operations with a disciplined approach to capital outlay

1. Balance Sheet Resilience

2. Deleverage our balance sheet and retain committed available liquidity and borrowing capacity

3. Shareholder Returns

• Maximise shareholder returns through a disciplined approach to generating shareholder value and distributions

==> picture [95 x 48] intentionally omitted <==

==> picture [38 x 41] intentionally omitted <==

US$249 million in deleveraging activities and US$252 million annual debt sweep paid in February 2023, supporting target net cash position in 1H 23

Capital appreciation of 245% since March-22 equity raise, delivered in under one year since the closing of the SMC acquisition

US$1,620 million[1] in M&A related activities to acquire 100% of the world-class SMC assets

1. Additional Capital Investment and Returns Deploy surplus cash flow to organic growth opportunities, value accretive M&A and supplemental shareholder returns

Note:

1 Including the total nominal consideration of US$1,350 million for the acquisition of BHP’s 80% interest in BMC; US$270 million to complete the acquisition of Mitsui’s 20% remaining interest in SMC; and excluding the US$110 million dividend paid to Mitsui (reflecting their 20% interest in SMC at the time of declaration and payment) prior to acquisition

21

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

FY22 Dividend Determination

No final dividend declared for FY22 to assist with further strengthening on the balance sheet

==> picture [126 x 45] intentionally omitted <==

Current Dividend Policy

Stanmore will target distributing 50% of available free cash of the parent entity defined as net cash flow from operating activities less capital expenditure and debt servicing (including interest and principal repayments) of the consolidated group and after allowing for sufficient liquidity required by the business. The Board will also consider additional shareholder returns in circumstances where surplus free cash is available. All dividend payments remain at the discretion of the board

FY22 Adjusted Free Cash (US$m)

==> picture [464 x 220] intentionally omitted <==

----- Start of picture text -----

1,182
118
405
302
357
252
105
Cash Flow Capital Net Payments Debt Servicing [1] FY22 Free Cash Cash Liquidity FY22 Adjusted
from Operating Expenditure for Acquisitions Reserved for Free Cash
Activities Payment of
Debt Sweep
Note: 1 Including payment of principal lease liability
----- End of picture text -----

• The Board has made the decision not to declare a dividend at this time following careful consideration of its current dividend policy

• Free cash flow from operations, net of capital expenditure totalled US$1,064 million in FY22. This cash flow was put to work in funding the acquisition of SMC from BHP and Mitsui (net cashflows including proceeds from debt and equity raises of US$405 million) and in debt servicing[1] activities (US$302 million)

• Retaining cash for the acquisition financing cash sweep paid in February 2023 (US$252 million), free cash flow after debt service of US$105 million is available in relation to 2022 to fund a potential dividend

• Notwithstanding this, the Board considers retaining this cash within the business is appropriate at this time to assist with strengthening the balance sheet after a period of busy M&A and rapid deleveraging

22

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Priorities & Outlook FY23 and beyond

==> picture [449 x 497] intentionally omitted <==

Strategic Priorities

Supportive market fundamentals to position Stanmore to deliver on its strategic priorities

==> picture [126 x 45] intentionally omitted <==

Strategic Priorities

Project Pipeline

Optimise operating assets

which are operating at historical steady state run rates (expected to be maintained on a portfolio basis) whilst opportunities to unlock value and realise synergies are continually assessed

Assess organic opportunities

within the three de-risked operating assets for incremental production and de-bottling and within Stanmore’s competitive portfolio of development projects

==> picture [499 x 216] intentionally omitted <==

----- Start of picture text -----

Exploration Development Operations
Bee Isaac Plains MRA2Ccreek
Creek Pit-5 diversion
Isaac Plains Dragline AC
Nebo West
Underground upgrade
Isaac South Kemmis Poitrel R10
North box-cut
Poitrel eastern
Poitrel Extension
levee
Wards Well
----- End of picture text -----

Identify and pursue growth

Continuing to focus on high quality metallurgical coal assets and sustainable development to create meaningful social, environmental and economic value

Site

Type Site Improvement South Walker Creek Replacement Poitrel Expansion Isaac Plains Complex Greenfield Exploration/Other

24

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Mulgrave Resource Area 2C (MRA2C)

South Walker Creek resource development project to open low strip ratio mining & enable future growth

==> picture [126 x 45] intentionally omitted <==

==> picture [439 x 395] intentionally omitted <==

----- Start of picture text -----

KN
KS
K1N Kemmis
K1S
JS
IN
Mulgrave
IS
Carborough
GN
FN
CHPP
FS
EN
• Mulgrave and central resource
areas to be opened by MRA2C
Walker Creek
development project
----- End of picture text -----

Project Highlights

• Access to high quality, low strip ratio coal for an extended period adding 58Mt ROM (40Mt PCI product)

• Increases dragline strike length and reduces pit intensity

• Close proximity to infrastructure, providing a shorter haulage compared to northern pits

• Enables future mine expansion, subject to increased processing capacity and environmental approvals

• Provides low cost profile to further de-risk the asset and establish resilience for various market cycles

Key components of capital expenditure

• Walker creek diversion of approximately 8.5km and installation of ~7km flood protection levees

• 66KVa powerline relocation

• Water infrastructure connections

• Construction of an alternative mine affected water storage location

• Total expected capital expenditure of A$183 million over 2023-2025, with robust economic returns and short pay back based on conservative pricing assumptions

25

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Substantial Controlled Reserves and Resources Base

Total Coal Resource of >4Bn tonnes provides vast exploration and development opportunity

==> picture [126 x 45] intentionally omitted <==

==> picture [353 x 382] intentionally omitted <==

----- Start of picture text -----

THIS MAP
Abbot Point
Bowen
Townsville
Rockhampton
Brisbane
Mackay
Wards Well
Dalrymple Bay
& Lancewood Coal Terminal
Bee Creek
Isaac Plains Complex South Walker CreekNebo West
~50km
Moranbah
Millennium & Mavis
Poitrel Mine Downs
Lilyvale Mackenzie Rockhampton
Blackwater
Tennyson Gladstone
Emerald Belview Wiggins Island
Coal Export
Terminal
The Range & Clifford
Not to Scale
----- End of picture text -----

Stanmore JORC[1] Mineral Reserves – 100% Basis (Mt)[2]

	Proved	Probable	Total
South Walker Creek	162	20	182
Isaac Plains Complex	30	9	39
Poitrel	26	18	44
The Range Opencut	-	118	118
Total Coal Reserves	218	164	382

Stanmore JORC[1] Mineral Resources – 100% Basis (Mt)[2]

	Measured	Indicated	Inferred	Total
South Walker Creek	254	303	123	679
Isaac Plains Complex	72	43	48	163
Poitrel	57	45	47	149
Surat Basin Complex (The Range & Clifford)	18	387	511	916
Wards Well & Lancewood	547	769	101	1,417
Belview	-	50	280	330
Mackenzie	-	26	117	143
Bee Creek & Nebo West	-	9	84	94
Tennyson	-	-	140	140
Lilyvale	-	-	33	33
Total Coal Resources	948	1,632	1,484	4,064

• Note: 1 All Resource and Reserve estimates were prepared in compliance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2012 Edition) and the Australian Guidelines for the Estimating and Reporting of Coal Resources (2012 Edition)

  • Stanmore mineral reserves and resources per “December 2022 Annual Coal Resources and Reserves Summary” released to the ASX on 27 February 2023

• 2

26

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

Metallurgical Coal Markets and Outlook

Market conditions underpinned by significant global events driving demand during ongoing supply constraints

==> picture [126 x 45] intentionally omitted <==

FY22 in Review

• Metallurgical coal pricing continued to perform strongly through 2022, albeit with a high level of volatility with a range of US$190 per tonne to US$670 per tonne for Premium Low Vol HCC FOB Australia

• 1H 22 metallurgical coal pricing was well supported from demand side from recovery post COVID and elevated steel pricing

• With the Russian invasion of Ukraine, supply from the second largest seaborne exporter of PCI became uncertain through policy restrictions, resulting in a strengthening of PCI relativities

• For the final quarter of 2022, supply performance from multiple key exporting countries continued to underperform, supporting metallurgical coal pricing

• Throughout 2022, energy pricing provided strong support to metallurgical coal prices, with an arbitrage open for a significant amount of time enticing marginal coals to switch into thermal markets

Outlook and Guidance

• Australian supply performance should recover and as the wet season risk abates through 2Q 23, potentially resulting in some price normalisation after the supply driven headwinds in early 2023

• The reopening of the Chinese economy presents a potential upside to demand for seaborne metallurgical coal, subject to the supply and pricing of domestic metallurgical coal, recovery of domestic construction/real estate sector and the global growth outlook

• Steel demand expected to remain prone to downstream supply chain disruption or subdued end user demand as a result of global inflationary pressures and weakening economic conditions in some regions

• Installation of blast furnaces continues, primarily in South East Asia and India, supporting a net increase in seaborne demand for metallurgical coal in the long term

• Due to GEAR Transactions[1] , which regulates any forecast statements released by the GEAR group (which Stanmore is a part of), Stanmore will not be providing earnings guidance at this time

==> picture [458 x 401] intentionally omitted <==

----- Start of picture text -----

Metallurgical Coal Prices [2]
US$/tonne Relativity
800.0 110%
700.0
100%
600.0
500.0
90%
400.0
80%
300.0
200.0
70%
100.0
- 60%
PCI to HCC Relativity (%)
Platts Premium Low Vol HCC FOB Australia (HCC)
Platts Low Vol PCI FOB Australia (PCI)
----- End of picture text -----

Notes: 1 Refer ASX Release for further details 2 S&P Global Commodity Insights Platts Premium Low Vol HCC FOB Australia Low Vol PCI FOB Australia indices: 3 Jan 2022 to 23 Feb 2023” Source : S&P Global Commodity Insights, ©2023 by S&P Global Inc.

STANMORE | FULL YEAR FINANCIAL RESULTS RELEASE DECEMBER 2022

==> picture [154 x 62] intentionally omitted <==

Contacts

Investors Investors@stanmore.net.au +61 (7) 3521 8317 Media Media@stanmore.net.au +61 (7) 3238 1000

Registered Address Level 32, 12 Creek Street Brisbane, QLD, Australia, 4000 GPO Box 2602 Brisbane, QLD, Australia, 4000