Yancoal Australia Ltd — AGM Information 2019

May 31, 2019

Australian Securities Exchange, Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Yancoal Australia Ltd ACN 111 859 119 兗煤澳大利亞有限公司 *

(Incorporated in Victoria, Australia with limited liability) (Hong Kong stock code: 3668) (Australian stock code: YAL)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is issued pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Please refer to the attached announcement which has been published by Yancoal Australia Ltd on the website of the Australian Securities Exchange on 31 May 2019.

By order of the Board Yancoal Australia Ltd Baocai ZHANG Chairman

Hong Kong, 31 May 2019

As of the date of this announcement, the executive Director is Mr. Fucun Wang, the nonexecutive Directors are Mr. Baocai Zhang, Mr. Cunliang Lai, Mr. Xiangqian Wu, Mr. Fuqi Wang, Mr. Qingchun Zhao and Mr. Xing Feng and the independent non-executive Directors are Mr. Gregory James Fletcher, Dr. Geoffrey William Raby, Mr. David James Moult and Ms. Helen Jane Gillies.

*For identification purposes only

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Yancoal Australia Ltd Annual General Meeting Australia’s Largest Pure-play Coal Producer 31 May 2019

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Important Notice and Disclaimer

Acceptance

This presentation is issued by Yancoal Australia Limited ABN 82 111 859 119 ( Yancoal ).

By attending Yancoal’s annual general meeting, or accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer.

Summary of information

This presentation has been provided to you solely to convey information about Yancoal and its related entities, and their activities, for the year ended 31 December 2018. The information in this presentation is general in nature and does not purport to be complete, nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Yancoal. It has been prepared by Yancoal with due care, but other than as required by law, no representation or warranty, express or implied, is provided in relation to the accuracy, fairness or completeness of the information. Statements in this presentation are made only as of the date of this presentation, unless otherwise stated, and the information in this presentation remains subject to change without notice. None of Yancoal, its representatives or advisers is responsible for updating, or undertakes to update, this presentation. Items depicted in photographs and diagrams are not assets of Yancoal, unless stated.

This presentation should be read in conjunction with Yancoal’s Annual Financial Report for the year ended 31 December 2018, Yancoal’s 2018 Annual Report, and other periodic and continuous disclosure information, lodged with the ASX and HKEX, which are available at www.asx.com.au and www.hkex.com.hk.

Industry data

Certain market and industry data cited or used in the preparation of this presentation may have been obtained from research, surveys or studies conducted by third parties, including industry or general publications. None of Yancoal, its representatives or advisers have independently verified any such market or industry data provided by third parties or industry or general publications, nor have those third parties or industry or general publications authorised or approved the publication of this presentation.

Not financial product advice or offer

This presentation is for information purposes only and is not a prospectus, product disclosure statement, pathfinder document for the purposes of section 734(9) of the Corporations Act or other disclosure document under Australian law, Hong Kong law or the law of any other jurisdiction. It is not, and should not be considered as, an offer, invitation, solicitation, advice or recommendation to buy or sell or to refrain from buying or selling any securities or other investment product or entering into any other transaction in any jurisdiction. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Readers should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs, make their own enquiries and investigations regarding all information in this presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Yancoal and the impact that different future outcomes may have on Yancoal, and seek legal and taxation advice appropriate for their jurisdiction.

Distribution

The release, publication or distribution of this presentation (including an electronic copy) outside Australia, New Zealand and Hong Kong may be restricted by law. If you come into possession of this presentation, you should observe such restrictions and should seek your own advice on such restrictions. Any non-compliance with these restrictions may contravene applicable securities laws.

Financial Data

Investors should note that this presentation contains pro forma historical and forecast financial information. The pro forma and forecast financial information, and the historical information, provided in this presentation is for illustrative purposes only and is not represented as being indicative of Yancoal’s views on its future financial condition and/or performance. Investors should note that Watagan Mining Company Pty Ltd ( Watagan ) (which owns the Ashton, Austar and Donaldson mines) is wholly-owned but not controlled by Yancoal under applicable accounting standards, and is therefore not consolidated by Yancoal. Since 31 March 2016, Yancoal has deconsolidated the financial results of Watagan as a subsidiary from its consolidated financial statements.

Investors should be aware that certain financial measures included in this presentation are ‘non-IFRS financial information’ under ASIC Regulatory Guide 230: ‘Disclosing non-IFRS financial information’ published by ASIC, and are not recognised under Australian Accounting Standards (AAS) and International Financial Reporting Standards (IFRS). The non-IFRS financial information/non-GAAP financial measures include EBITDA, net debt and others. Such non-IFRS financial information/non-GAAP financial measures do not have a standardised meaning prescribed by AAS or IFRS. Therefore, the nonIFRS financial information may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Although Yancoal believes these non-IFRS financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-IFRS financial information/non-GAAP financial measures included in this presentation.

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Important Notice and Disclaimer (Continued)

Reserves and Resources Reporting

In this presentation, references to mineral resources ( Resources ) and ore reserves ( Reserves ) for Yancoal are compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 ( JORC Code ) and are measured in accordance with the JORC Code. The information in this Presentation that relates to Resources and Reserves has been previously disclosed to the market in the Coal Resources and Coal Reserves statement for the year ending 31 December 2018 dated 28 March 2019 ( Resources and Reserves Statement ) and is sourced from the following:

• for HVO, the report prepared by RPM Advisory Services Pty Ltd for Yancoal, dated 26 November 2018. That report has an effective date of 30 June 2018. The estimates for Resources and Reserves in that report were generated by Competent Persons (as defined by the JORC Code). Resources and Reserves for HVO are as at 30 June 2018.

• for all other mines owned and operated by Yancoal, information prepared and compiled by Competent Persons (as defined by the JORC Code), as disclosed and detailed in the Resources and Reserves Statement. Reserves and Resources for these mines are as at 31 December 2018.

The information related to the Resources and Reserves have been prepared and compiled by persons who have the required qualifications and experience to qualify as Competent Persons (as that term is defined in the JORC Code). Yancoal is unaware of any new information or data that materially affects the information contained in the Resources and Reserves Statement. All material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed at the time of this presentation. References to Resources and Reserves for other assets, companies, countries, regions and basins are sourced from third parties and measured in accordance with their source data.

Information in this presentation relating to Yancoal’s Resources and Reserves is extracted from information previously published by Yancoal and is available on the Yancoal and ASX website at www.yancoal.com.au and www.asx.com.au.

Effect of rounding

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

Past performance

Past performance, including past share price performance of Yancoal and pro forma financial information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of Yancoal’s views on its future financial performance or condition. Past performance of Yancoal cannot be relied upon as an indicator of (and provides no guidance as to) future Yancoal performance. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future.

Future performance and forward-looking statements

This presentation contains forward-looking statements, forecasts, estimates, projections, beliefs and opinions ( Forward-Looking Statements ). Forward-Looking Statements can be identified by the use of terminology, including, without limitation, the terms 'believes', 'estimates', 'anticipates', 'expects', ‘projects’, 'predicts', 'intends', 'plans', 'propose', 'goals', 'targets', 'aims', 'outlook', 'guidance', 'forecasts', 'may', 'will', 'would', 'could' or 'should' or, in each case, their negative or other variations or comparable terminology.

Forward-Looking Statements reflect expectations as at the date of this presentation, however they are not guarantees or predictions of future performance or events or statements of fact. They involve known and unknown risks, uncertainties and other factors, many of which are beyond Yancoal’s control, and which may cause actual results to differ materially from anticipated results, performance or achievements expressed or implied by the Forward-Looking Statements contained in this presentation.

Other than as required by law, although they believe there is a reasonable basis for the Forward-Looking Statements, neither Yancoal nor any other person (including any director, officer or employee of Yancoal or any related body corporate) gives any representation, assurance or guarantee (express or implied) as to the accuracy or completeness of each Forward-Looking Statement or that the occurrence of any event, results, performance or achievement will actually occur. Except as required by applicable laws or regulations, Yancoal does not undertake to publicly update or review any Forward-Looking Statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

No liability

This document has been prepared on the basis of information available to Yancoal. To the maximum extent permitted by law, Yancoal (including its subsidiaries, related bodies corporate, shareholders, affiliates, advisers and agents):

• disclaims any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions;

• does not make any representation or warranty, express or implied, as to the accuracy, reliability, fairness, completeness of such information or opinions or that it contains all material information about Yancoal or which a prospective investor or purchaser may require in evaluating a possible investment in Yancoal or acquisition of shares, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement; and

• disclaims all responsibility and liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation, regarding forward-looking statements or any information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation.

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CHIEF EXECUTIVE OFFICER Reinhold Schmidt

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Highlights

Sustained improvement in safety performance

Over A$1Bn of debt repayments made in 2018 – leverage and gearing reduced to 1.4x and 71% respectively[(1)]

Record total of 32.9Mt attributable saleable production[(2)]

Full year dividend of A$507MM implying payout ratio of ~60% of NPAT for 2018 with target CY19E payout ratio of 50% of NPAT[(3)]

Record operating EBITDA of A$2,180MM, operating EBITDA Margin of 45%

Continued progress towards developing growth projects

Continued delivery of identified synergies at MTW and under the HVO JV

Successful completion of Hong Kong IPO

Notes:

1. Net debt does not include debt and earnings associated with Watagan arrangements

2. Attributable figures for 2018 include: Moolarben (81% - up to and including 30 November 2018 and 85% thereafter - reflecting Yancoal’s increased ownership in the Moolarben Joint Venture as announced on 30 November 2018); Mt Thorley Warkworth (82.9%); Hunter Valley Operations (51%); Stratford Duralie (100%) and Yarrabee (100%)

3. For 2019, Yancoal is targeting a dividend payout of 50% of net profit after tax (adjusted for the impact of foreign exchange hedge reserve movements and any other non-operating items). The payment of dividends by Yancoal is at the discretion of the Directors. The decision as to whether or not a dividend will be paid will be subject to a number of considerations including the general business environment, operating results, cash flows, future capital requirements, regulatory restrictions and any other factors the Directors may consider relevant. No assurances can be given by any person, including the Directors, about the payment of any dividend and the level of franking on any such dividend.

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Safety Performance

Commitment to operating mines to the highest safety standards. Core Hazard Critical Control development and implementation continued throughout the year

Yancoal Total Recordable Injury Frequency Rate[(1)]

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Rolling 12 Month Basis
13.0
Total Recordable Injury Frequency Rate reduced significantly
12.0 post completion of Coal & Allied acquisition in September 2017
11.0
10.0
9.0
8.0
7.0
6.0
Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
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Yancoal Lost Time Injury Frequency Rates[(1)]

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Rolling 12 Month Basis
3.0
2.5
2.0
1.5
1.0
0.5
0.0
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Source: Company Data

Notes:

1. Excludes data from the Middlemount and Watagan assets (Austar, Ashton and Donaldson). HVO included until JV established in May 2018.

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Record Operating EBITDA

Operating performance delivered record operating EBITDA of A$2,180MM and NPAT of A$852MM

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Operating EBITDA and EBITDA Margin [(1)] Net Profit After Tax
(A$MM) | (%) (A$MM)
3,000 50% 900 852
45%
2,400 38% 40%
600
2,180
1,800 30%
300
229
1,200 20%
988
14% 0
600 10%
172 (300) (227)
0 0%
2016 2017 2018
(600)
2016 2017 2018
EBITDA EBITDA Margin
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1. EBITDA Margin calculated as Operating EBITDA divided by total revenue

Notes:

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Coal Production

Significant expansion post completion of Coal & Allied acquisition and record production from Moolarben

Saleable Production by Asset (100% Basis)

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(Mt)
12.1 18.5 [(1)] 32.9 [(2)]
60
50.0
48
36
31.5
24
19.8
12
0
2016 2017 2018
HVO MTW
Moolarben Stratford Duralie
Yarrabee Middlemount
Watagan (Ashton, Austar, Donaldson)
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Comments

• Record 2018 total of 50Mt gross saleable coal production, up 59% on the prior year

• Yancoal’s three tier-one assets (HVO, MTW and Moolarben) contributed 41.9Mt (84% of total)

• Record annual production for Moolarben of 16.5Mt – maximising extraction rates at OC4 / OC2 pits

• Moolarben longwall (commissioned November 2017) continues to deliver high productivity rates

• Significant fleet efficiency gains at MTW in 2018 and receipt of approvals enabling expansion of West Pit

• HVO maintained high rates of extraction and haulage, with ongoing maintenance reviews to drive further production gains

• Around 35Mt of saleable production on an attributable basis expected in 2019

Total Attributable Saleable Production (Mt)

Notes:

1. Attributable figures for 2017 include only four months of attributable production for HVO and MTW from 1 September 2017. Figure excludes 16.6% interest in HVO, production from Middlemount (incorporated joint venture) and Watagan (equity-accounted investment and deconsolidated from Yancoal in March 2016)

2. Attributable figures for 2018 include: Moolarben (81% - up to and including 30 November 2018 and 85% thereafter - reflecting Yancoal’s increased ownership in the Moolarben Joint Venture as announced on 30 November 2018); Mt Thorley Warkworth (82.9%); Hunter Valley Operations (51%); Stratford Duralie (100%) and Yarrabee (100%)

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Our Proposition to Drive Shareholder Returns

 Australia’s largest pure-play coal producer and the largest HKSE-listed exporter of high quality seaborne thermal coal  World class large-scale coal mines which produce high value export coal and operate at industry-leading cash margins  Long-term sustainable capital structure combined with significant base of reserves / resources provides a sustainable platform for growth  Experienced management team well positioned to pursue growth opportunities and create further shareholder value  Valuable and strategic operational and trade relationships as well as strong support from key shareholders

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END

Strength, Performance, Profit

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ADDITIONAL INFORMATION

• The following slides were not presented during the Annual General Meeting, and are provided for the information of shareholders and interested parties.

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Operational Performance Strength, Performance, Profit

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Hunter Valley Operations

World-class tier one thermal coal asset – operating synergies realised with potential for mine extension through JV with Glencore

Key Metrics

Saleable Coal Production (Mt) (100% basis)[(2)]

Production (Mt)

Location New South Wales, Australia Mine Type Open Cut Ownership (%) 51.0% Measured: 704Mt Indicated: 1,430Mt Coal Resources (OC + UG) Measured + Indicated: 2,134Mt (100% basis)[(1)] Inferred: 1,654Mt Total: 3,788Mt Coal Reserves (OC) – Proven and Probable 796Mt (100% basis)[(1)] Marketable Coal Reserves (OC) – Proven and Probable 554Mt (100% basis)[(1)] Mine Life 43 years Product Type Thermal / Semi Soft Coking

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15.0
13.3
10.0
4.8
5.0
0.0
2017 2018
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Commentary

• Located in Hunter Valley Basin of NSW and operated as an unincorporated joint venture with Glencore

• Multi-pit open cut mine, using dragline and truck and shovel mining

• ROM coal processed through two on-site coal preparation plants to produce semisoft coking coal and low, medium and high ash thermal coal for export markets

• Product coal railed through the Hunter Valley rail network and shipped via Newcastle

1. As at 30 June 2018

2. For 2017, 4 months of production from 1 September 2017, following completion of the Coal & Allied transaction

Notes:

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Mount Thorley Warkworth

World-class tier one thermal coal asset – integrated operation of two open cut mines with potential underground opportunity being assessed

Key Metrics

Location New South Wales, Australia Mine Type Open Cut Ownership (%) 82.9% Measured: 210Mt (MT), 460Mt (W) Indicated: 200Mt (MT), 550Mt (W) Coal Resources Measured + Indicated: 410Mt (MT), 1,010Mt (W) (OC + UG) (100% basis)[(1)] Inferred: 150Mt (MT), 460Mt (W) Total: 560Mt (MT), 1,470Mt (W) Coal Reserves (OC) – Proven and Probable 315Mt (W) (100% basis)[(1)] Marketable Coal Reserves (OC) – Proven and 226Mt (W) Probable (100% basis)[(1)] Mine Life 19 years Product Type Thermal / Semi Soft Coking

Saleable Coal Production (Mt) (100% basis)[(2)]

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Production (Mt)
15.0
12.1
10.0
5.0 3.9
0.0
2017 2018
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Commentary

• Integrated operation of two open cut mines located adjacent to each other in Hunter Valley basin of NSW

• Operates through multiple pits, using dragline and truck and shovel methods

• ROM coal processed through two on-site coal preparation plants to produce semisoft coking coal and low, medium and high ash thermal coal for export markets

• Product coal railed through the Hunter Valley rail network and shipped via Newcastle

• Improved maintenance practices supported achievement of fleet efficiency gains and necessary approvals received to commence development of Lot 1 / 2 areas

• Following preliminary studies, further drilling and technical assessments commissioned to consider feasibility of a potential underground opportunity at MTW

1. As at 31 December 2018

2. For 2017, 4 months of production from 1 September 2017, following completion of the Coal & Allied transaction

Notes:

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Moolarben

World-class tier one thermal coal asset – integrated operation of two mines (one open cut and one underground) after successful underground expansion in 2017

Key Metrics

Saleable Coal Production (Mt) (100% basis)

Production (Mt)

Location	New South Wales, Australia
Mine Type	Open Cut and Underground
Ownership (%)	85%
	Measured:710Mt
Coal Resources (OC + UG) (100% basis)(1)	Indicated:240Mt Measured + Indicated:950Mt Inferred:200Mt
	Total:1,150Mt
Coal Reserves (OC+UG) – Proven and Probable	274Mt
(100% basis)(1)
Marketable Coal Reserves
(OC+UG) – Proven and	235Mt
Probable (100% basis)(1)
Mine Life	14 years
Product Type	Thermal

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18.0
16.5
12.4
12.0
9.3
6.0
0.0
2016 2017 2018
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Commentary

• Open-cut and underground complex producing primarily export quality thermal coal located within western coalfields of New South Wales

• Expansion of Moolarben complex continued in 2017 with successful commissioning of new underground mine and commencement of longwall production in October 2017 (on schedule and on budget)

• The integrated Moolarben Coal Complex has approval to produce up to 21Mt[(2)] of ROM coal per annum

• Achieved record 16.5Mt[(2)] of saleable production in 2018

• 100% basis

Notes:

1. As at 31 December 2018

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Financial Performance Strength, Performance, Profit

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Record Operating EBITDA

Operating performance delivered record operating EBITDA of A$2,180MM and NPAT of A$852MM

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Operating EBITDA and EBITDA Margin [(1)] Net Profit After Tax
(A$MM) | (%) (A$MM)
3,000 50% 900 852
45%
2,400 38% 40%
600
2,180
1,800 30%
300
229
1,200 20%
988
14% 0
600 10%
172 (300) (227)
0 0%
2016 2017 2018
(600)
2016 2017 2018
EBITDA EBITDA Margin
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1. EBITDA Margin calculated as Operating EBITDA divided by total revenue

Notes:

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Driving Continued Deleveraging

Balance sheet materially strengthened and well-poised to deliver future growth and shareholder returns

Net Debt[(1)] and Leverage Ratio[(2)]

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(A$MM) | (x)
27.7x
6,000 30.0x
Voluntary repayments of:
• US$750MM in 2018; and
4,800 4,761 24.0x
4,516 • US$500mm in 2019 YTD
3,600 18.0x
3,093
2,400 12.0x
1,200 4.6x 6.0x
1.4x
0 0.0x
2016 2017 2018
Net Debt Leverage Ratio
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1. Net debt does not include debt and earnings associated with Watagan arrangements

1. Leverage Ratio calculated as Net Debt divided by Operating EBITDA for corresponding period

Notes:

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Payment of Dividends

Dividend payments of A$507MM in 2018 with a target payout ratio of 50% of NPAT for 2019

Net Profit After Tax	2018	A$852MM
Payout Ratio ~60%
Dividends Paid(1)	2018	A$507MM (incl. A$166MM special div.)
Market Capitalisation(2)	22 Feb 2019	A$4,131MM
Dividend Yield ~12.3%

Notes:

1. This comprised of an interim dividend payment of A$130MM paid in 2018 and an additional final dividend of A$377MM paid in 2019 (which is comprised of an ordinary dividend of A$211MM and a special dividend of A$166MM) 2. Based on ASX and HKSE implied market capitalisations as at 22 February 2019

2. For 2019 Yancoal is targeting a dividend payout of 50% of net profit after tax (adjusted for the impact of foreign exchange hedge reserve movements and any other non-operating items). The payment of dividends by Yancoal is at the discretion of the Directors. The decision as to whether or not a dividend will be paid will be subject to a number of considerations including the general business environment, operating results, cash flows, future capital requirements, regulatory restrictions and any other factors the Directors may consider relevant. No assurances can be given by any person, including the Directors, about the payment of any dividend and the level of franking on any such dividend

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Strategy

Strength, Performance, Profit

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Core Beliefs and Values

Yancoal asks its sites and corporate functions to operate to the highest governance standards

• Applying transparent, compliant and efficient processes to meet the needs of all stakeholders; and

• Underpinned by Yancoal’s core values starting with its people, working safely, acting with integrity, striving for excellence, and seeking improvement through innovation

Core Beliefs

Core Values

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Prioritising Capital Returns and Asset Reinvestment

Utilising operating cash flows to (1) reinvest in the operations, (2) reward shareholders through dividends, (3) reduce debt and optimise loan facilities, and (4) pursue growth both organic and through M&A

Yancoal Capital Allocation Cycle – Prioritises Capital Returns and Asset Reinvestment

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Community Engagement

In 2018, the Yancoal Community Support Program invested more than $800,000 into local initiatives across Australia

Recent Examples of Yancoal-Supported Community Initiatives

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QUT’s Cancer and Ageing Research Program	•	$600,000 over 3 years to enable two full-time researchers to advance their research and help facilitate clinical trials.
	•	Second year of a three year program
Clontarf Foundation	•	$100,000 per year to support indigenous youth education services
		throughout regional NSW and WA.
	•	This service meets a vital need in our Hunter communities 24 hours
Westpac Rescue Helicopter		a day, seven days a week from three bases including Belmont,
		Tamworth and Lismore, completing nearly 2,000 missions last year.
Rockhampton Leagues Club CQ Capras	•	Supported coaching and development opportunities for over 8,000 Central Queensland Rugby League players.
Science, Technology, Engineering and	•	1,000 “future scientists” will have the opportunity to experience
Mathematics (STEM)		SMART Science Shows at their schools.

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Outlook

Strength, Performance, Profit

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Guidance for 2019

Yancoal is aiming to balance long-term deleveraging with shareholder returns by:

• Targeting a long term Net Debt / Operating EBITDA Leverage Ratio of <1.5x

• Setting a target 2019[(1)] dividend payout ratio of 50% of Net Profit After Tax

Operational guidance:

• Yancoal consolidated attributable[(2)] saleable coal production 2019 guidance of around 35Mt

• Yancoal consolidated attributable[(2)] cash cost (excl. Government royalties) 2019 guidance of around A$62.5/t

• Expected attributable[(2)] capital expenditures of around A$285MM

Notes:

1. For 2019 Yancoal is targeting a dividend payout of 50% of net profit after tax (adjusted for the impact of foreign exchange hedge reserve movements and any other non-operating items). The payment of dividends by Yancoal is at the discretion of the Directors. The decision as to whether or not a dividend will be paid will be subject to a number of considerations including the general business environment, operating results, cash flows, future capital requirements, regulatory restrictions any any other factors the Directors may consider relevant. No assurances can be given by any person, including the Directors, about the payment of any dividend and the level of franking on any such dividend

2. Attributable excludes Middlemount (incorporated joint venture and equity-accounted) and Watagan (deconsolidated from Yancoal in March 2016 and equity-accounted)

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Well-positioned for Growth

Our large-scale and long-life asset base contains several organic growth initiatives which have the potential to deliver material value for shareholders

Large-scale and long-life asset base…

…with growth projects that could drive material value for shareholders

Yancoal Owned and Operated Assets Only[(1)] | Reserve Life (Years)

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25
Average: 27 Years [(2)]
20
19
17
15
15 14
10
5
42 52
0
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MTW
Underground
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HVO
Boundary
Coal
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Moolarben Expansion

Blending

• Significant amount of coal identified as potential underground targets

• Conceptual underground mine with an estimated 6Mt of potential ROM coal per annum[(3)]

• Additional coal tonnage of between 100 and 120Mt could be exploited with extensions to current mine pits[(4)]

• Integrated mining plan should present upside to the current LOM plan[(5)]

• Increase in site ROM coal production from 18Mtpa to 24Mtpa through optimising the approved Stage 1 and Stage 2 operations

• Continued value creation through maximising blending opportunities

• Blending strategy will optimise mining operations

Source: Yancoal 2018 Annual Results and 2018 Reserves and Resource Statement

Potential – Production Estimate of the Prospectus uploaded to ASX on 26 November 2018. To date, all underground mine planning that has been completed is at a conceptual level only and no capital estimate is available. Further drilling and mining studies are required to determine if any resource is economically viable and before any decision on whether to develop the potential expansion project and commit material resources on developing the project can be made

Notes:

1. Mine life for Watagan (deconsolidated from Yancoal in March 2016 and equity-accounted) not shown on chart.

2. Mine life of each individual mine calculated as marketable reserves (as at 31 December 2018) divided by CY18 production. Average represents average of each individual mine life

3. Based on a conceptual level study, potential underground targets at MTW have been identified in the Mount Arthur, Vaux and Bayswater seams, which have seam characteristics generally favourable for longwall mining that is currently utilised at our Moolarben, Ashton and Austar mining operations. Based on a conceptual underground mine of an estimated 270Mt of potential ROM coal mineable over an approximate 40 year mine life. Further details and assumptions of the production estimates of the underground mining targets are set out in Appendix III – Competent Person’s Report – HVO / MTW Underground Mining

4. Based on findings of a third party consultant engaged by Yancoal

5. Further details and assumptions can be found in Appendix III – Competent Person’s Report – HVO / MTW Underground Mining Potential – Production Estimate of the Prospectus uploaded to ASX on 26 November 2018. Further detailed integrated planning will need to be conducted to confirm the estimated tonnage. We have no current plans to develop this potential expansion project

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(2)

Demand for High Quality Coal Expected to Remain

Regulatory landscape means power generators are increasingly focused on securing coal with a high energy content

Power generators are focused on improving thermal efficiency

Note: bubble size represents grams of coal required for each kWh of power generated

…which should drive demand for high quality Australian product[(1)] Energy Content (kcal/kg NAR)

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950 Subcritical
>380g coal/kWh
>6,500
Supercritical
~360g coal/kWh
860
6,000-6,500
Ultra
Supercritical
~330g coal/kWh
5,500-6,000
770
Advanced Ultra
Supercritical
~305g coal/kWh
5,000-5,500
680
<5,000
590
35 37 39 41 43 45 47 49 51
Thermal Efficiency (%) South Africa Russia Indonesia Australia
Carbon Intensity (g C02 / kWh)
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Source: AME Industry Report 26 November 2018, International Energy Agency

Source: AME Industry Report 26 November 2018

Notes:

1. Ball size represents relative contribution to seaborne thermal trade

2. Refers to Yancoal’s Hunter Valley Low Ash Thermal product

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Demand Driving Premium Pricing on High Quality Coal

Demand dynamics are driving premium pricing for coals with higher energy content

Premium pricing being realised for higher energy coal

Newcastle 6,000 kcal/kg vs 5,500 kcal/kg NAR Price

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140 90%
80%
120
70%
100
60%
80
50%
40%
60
30%
40
20%
20
10%
- 0%
Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19
Premum / Discount (6,000 vs 5,500kcal) Newcastle 6,000kcal Newcastle 5,500kcal
US$/t FOB
Premium / Discount (%)
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Source: Bloomberg as at 29 April 2019

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Appendices

Strength, Performance, Profit

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Portfolio Overview

A diversified portfolio of world-class coal assets comprising interests in 9 mines with supporting rail and port infrastructure

Yancoal’s Portfolio

Asset Overview[(1)]

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Abbot Point South
Bowen Pacific
Ocean
Middlemount Mackay
Dalrymple Bay
Queensland WICET and
RG Tanna
Gladstone
Yarrabee
Brisbane Mines in which Yancoal has
ownership interest in
and operates
New South Wales Stratford Duralie
Watagan Mines
Ashton
Moolarben Donaldson
Other joint venture interest
PWCS and NCIG
HVO [(2)]
Newcastle Rail Haulage
MTW
Truck Haulage
Canberra Sydney Austar Tasman Coal Port
Victoria A.C.T. Sea 0 500 1000 Km
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				Marketable		Saleable	Production
		Location	Ownership	Reserves(3)	Resources(4)	(CY17)(5)	(CY18)
	Hunter Valley Operations(2) Mount Thorley Warkworth Moolarben	NSW NSW NSW	51% 82.9% 85%	554 Mt 226 Mt 235 Mt	3,788 Mt 2,030 Mt 1,150 Mt	4.8 Mt 3.9 Mt 12.4 Mt	13.3 Mt 12.1 Mt 16.5 Mt	Flagship Assets	Our Three
	Stratford Duralie	NSW	100%	26 Mt	313 Mt	0.7 Mt	0.5 Mt
	Yarrabee	QLD	100%	40 Mt	195 Mt	2.8 Mt	2.6 Mt
	Middlemount Ashton, Austar and Donaldson	QLD NSW	49.9997% 100%	65 Mt 119 Mt	135 Mt 1,170 Mt	3.9 Mt 3.0 Mt	3.8 Mt 1.2 Mt	Mines	Watagan
	Total (100% Basis) Total (Attributable)	NSW, QLD NSW, QLD	n/a n/a	1,265 Mt 891 Mt	8,878 Mt 6,442 Mt	31.5 Mt 18.5 Mt(6)	50.0 Mt 32.9Mt(7)

Source: Company Filings

Source: Company Filings

Notes:

1. Marketable Reserves, Resources and Saleable Production for individual assets are reported on a 100% basis

2. HVO is operated as a 51:49 unincorporated joint venture with Glencore. The HVO JV is jointly controlled by Yancoal and Glencore through a joint venture management committee and is operated by a manager, HV Ops, which is appointed by Yancoal and Glencore and which reports to the joint venture management committee

3. Marketable Reserves as at 31 December 2018 with the exception of HVO which is at 30 June 2018

4. Measured, indicated and inferred Resources as at 31 December 2018 with the exception of HVO which is at 30 June 2018. Total also includes 97 Mt (100% basis) for Monash (UG)

5. Attributable figures for 2017 include only four months of attributable production for HVO and MTW from 1 September 2017. Figure excludes 16.6% interest in HVO, production from Middlemount (incorporated joint venture) and Watagan (equityaccounted investment and deconsolidated from Yancoal in March 2016)

6. Attributable figures for 2018 include: Moolarben (81% - up to and including 30 November 2018 and 85% thereafter - reflecting Yancoal’s increased ownership in the Moolarben Joint Venture as announced on 30 November 2018); Mt Thorley Warkworth (82.9%); Hunter Valley Operations (51%); Stratford Duralie (100%) and Yarrabee (100%)

7. Adjusted for full-year contribution of Coal & Allied assets and subject to limitations and qualifications set out in the RPM Competent Person’s Report

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Reserves and Resources By Mine

As at 31 December 2018, Yancoal has Coal Reserves of 1,763Mt, Marketable Coal Reserves of 1,265Mt and Coal Resources of 8,878Mt (on 100% basis)

• On an attributable basis, Yancoal’s Coal Reserves were 1,240Mt, Marketable Coal Reserves were 891Mt and total Coal Resources (measured, indicated and inferred) were 6,442Mt (as at 31 Dec 2018)

• The three flagship mines amount to ~80% of Coal Reserves, Marketable Coal Reserves and Coal Resources

Coal Reserves (Proved and Probable, as at 31 Dec 2018, on a 100% basis)[(1)(2)]

	Mines in which Yancoal has ownership interests in and operates Other Joint Venture Interests Watagan Mines HVO (OC) MTW (OC) Moolarben (OC/UG) Stratford Duralie (OC) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (UG) Total	Mines in which Yancoal has ownership interests in and operates Other Joint Venture Interests Watagan Mines HVO (OC) MTW (OC) Moolarben (OC/UG) Stratford Duralie (OC) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (UG) Total	Mines in which Yancoal has ownership interests in and operates Other Joint Venture Interests Watagan Mines HVO (OC) MTW (OC) Moolarben (OC/UG) Stratford Duralie (OC) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (UG) Total
	HVO (OC) MTW (OC) Moolarben (OC/UG)	Stratford Duralie (OC) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (UG)
Recoverable Coal Reserves (Mt)	796 MT: - W: 315 OC: 209 UG: 65	44 52 85 OC: 15 UG: 32 40 110	1,763
Marketable Coal Reserves (Mt)	554 MT: - W: 226 OC: 169 UG: 66	26 40 65 OC: 8 UG: 18 31 62	1,265
Product Type	Semi / Thermal Semi / Thermal Thermal	Met / Thermal PCI / Thermal Met / Thermal Semi / Thermal Met / Thermal Met / Thermal
	79% of Total Coal Reserves, and 80% of Marketable Coal Reserves

Coal Resources (as at 31 Dec 2018, on a 100% basis)[(1)(2)(3)]

Coal Resources	(as at 31 Dec 2018, on a 100% basis)(1)(2)(3)	(as at 31 Dec 2018, on a 100% basis)(1)(2)(3)	(as at 31 Dec 2018, on a 100% basis)(1)(2)(3)
	Mines in which Yancoal has ownership interests in and operates Other Joint Venture Interests Watagan Mines HVO (OC/UG) MTW (OC/UG) Moolarben (OC/UG) Stratford Duralie (OC/UG) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (OC/UG) Total
	HVO (OC/UG) MTW (OC/UG) Moolarben (OC/UG)	Stratford Duralie (OC/UG) Yarrabee (OC) Middlemount (OC) Ashton (OC/UG) Austar (UG) Donaldson (OC/UG)
Measured (Mt)	704 MT: 210 W: 460 710	8 95 73 80 110 190	2,640
Indicated (Mt)	1,430 MT: 200 W: 550 240	195 80 54 70 40 400	3,276
Measured and Indicated (Mt)	2,134 MT: 410 W: 1,010 950	203 175 127 150 150 590	5,916
Inferred (Mt)	1,654 MT: 150 W: 460 200	110 20 8 110 70 100	2,962
Total	3,788 MT: 560 W: 1,470 1,150	313 195 135 260 220 690	8,878
	78% of Total Measured, Indicated and Inferred Resources

Notes:

1. Attributable data is based on our effective ownership interest as at the Latest Practicable Date and is provided on an aggregate, not per mine, basis

2. As defined in the JORC Code and as at 31 December 2018 with the exception of HVO which is at 30 June 2018

1. Total Coal Resources = Measured + Indicated＋Inferred coal resources. Total Coal Resources also includes 97 Mt (100% basis) for Monash (UG).

31