Yancoal Australia : Coal Resources and Coal Reserves Statement

YANCOAL AUSTRALIA LTD

ADDRESS:	Level 18, Tower 2, 201 Sussex Street,
	Sydney NSW 2000
PHONE:	61 2 8583 5300
FAX:	61 2 8583 5399
WEBSITE:	www.yancoalaustralia.com.au

For personal use only

28 February 2022

ASX Release:

Coal Resources and Coal Reserves statement for year ending 31 December 2021

On an attributable basis the Yancoal group total year-end 31 December 2021 position is as follows:

	31-Dec-2021	31-Dec-2020	% Change
Measured, Indicated and Inferred Coal Resources 2	6,013Mt	6,884Mt	-12.7%
Recoverable Proved and Probable Coal Reserves 1 2	1,137Mt	1,154Mt	-1.5%
Marketable Proved and Probable Coal Reserves 1 2	819Mt	833Mt	-1.7%

The Coal Resources and Coal Reserves statement presented in this report was produced in accordance with the Australasian Code for reporting of Mineral Resources and Ore Reserves 2012 Edition (the JORC Code). Commodity prices and exchange rates used to estimate the economic viability of Coal Reserves are based on the Yancoal long-term forecasts unless otherwise stated. The Coal Reserves tabulated are all held within existing, fully permitted mining leases, are within areas under applications to become mining leases or are within areas of exploration tenements detailed in the 2021 Life of Mine Plans to become mining leases in future applications.

Yancoal's leases are of sufficient duration (or convey a legal right to renew for sufficient duration) to enable all Coal Reserves on the leases to be mined in accordance with current production schedules.

The information in this report relating to Coal Resources and Coal Reserves is based on information compiled by Competent Persons (as defined by the JORC Code). All Competent Persons have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined by the JORC Code. The Competent Persons listed in this report are independent consultants, apart from the Coal Resource and Coal Reserve reports for Moolarben, the Coal Reserve reports for Mt Thorley Warkworth, Yarrabee, Ashton Underground and Donaldson, which have been compiled by fulltime employees of Yancoal, the Hunter Valley Operations (HVO) Coal Reserve report, which has been compiled by a fulltime employee of Glencore and the

1. Where required the component Coal Reserve numbers for each site making up this total have been depleted by production from the annual report date to 31 December 2021.
2. 2021 Coal Resources and Coal Reserves have been rounded (significant figure) by the Competent Persons in line with the JORC Code and the Yancoal Coal Resource and Reserve reporting standards to reflect the relative uncertainty of the estimates.

YANCOAL AUSTRALIA LTD - ASX RELEASE |1

For personal use only

Middlemount Coal Resource and Reserve Reports, which have been compiled by full time employees of Middlemount Coal. These Coal Resources and Coal Reserves reports were peer reviewed at the time of their generation.

Each Competent Person consents to the inclusion of the matters based on their information in the form and context in which it appears in this report.

Yancoal is not aware of any new information or data that materially affects the information included in this report and at the time of this report all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.3

Coal Resources and Coal Reserves are reported in 100 per cent terms (unless otherwise stated). Coal Resources are reported inclusive of the Coal Resources that have been converted to Coal Reserves (i.e. Coal Resources are not additional to Coal Reserves).

The tabulated information is reported by Project; for details of the tenements and leases containing Coal Resources and Coal Reserves comprising each of these projects please refer to the Yancoal Australia Tenements table.

The following abbreviations are used throughout this report.

AusIMM	Australasian Institute of Mining and Metallurgy
JORC	Joint Ore Reserves Committee
Met	Metallurgical Coal
Semi	Semi-soft coking coal
PCI	Pulverised Coal Injection
Mt	Million tonnes
OC	Open Cut
UG	Underground

Authorised for lodgement by the Yancoal Disclosure Committee

Investor Relations Contact: Brendan Fitzpatrick, GM Investor Relations

Email: [e-mail]

Additional information about the company is available at www.yancoal.com.au

3 The Austar mine suspended production on the 31st March2020 and transitioned to care and maintenance operations. On the 1st of March 2021, an announcement was made to transition Austar to closure activities. Coal Resources and Reserves are therefore no longer being reported for Austar.

YANCOAL AUSTRALIA LTD | 2

COAL RESOURCES FOR YEAR ENDING 31 DECEMBER 2021

For personal use only

											Moisture		Measured		Indicated		Inferred			Total
					Yancoal						Basis		Coal Resources		Coal Resources		Coal Resources			Coal Resources			Competent
	Project			Ownership			Coal Type			%			(Mt)			(Mt)			(Mt)			(Mt)			Person #
					%
											2021		2021		2020		2021		2020		2021		2020			2021			2021
	Moolarben (OC & UG)	95%			Thermal	6.0%		700		710		170		180		200		200		1,070			BF
(1)	Mt Thorley (OC & UG)	80%			Semi/Thermal		6 to 8%	203		280		150		160		75		160		428			CH
(1)	Warkworth (OC & UG)	84.47%			Semi/Thermal		6 to 8%	497		590		260		420		175		440		932			CH
	HVO (OC)	51%			Semi/Thermal		6 to 8%	780		800		1,300		1,300		2,400		2,400		4,480			LP
	Yarrabee (OC)	100%			PCI/Thermal	5.5%		60		75		60		85		13		50		133			CH
(2)	Gloucester (OC)	100%			Met/Thermal	6.0%		8		8		195		195		110		110		313			JB
	Middlemount (OC)	50%			Coking/PCI	5.0%		83		57		56		53		19		8		158			AC
(3)	(4) Austar (UG)	100%			Met	5.0%		0		110		0		40		0		70		0			N/A
(4)	Ashton (OC & UG)	100%			Semi/Thermal	6.5%		85		85		95		85		90		90		270			PH
(4)	Donaldson (OC & UG)	100%			Semi /Thermal	4.0%		190		190		400		400		100		100		690			RD
	Monash (UG)	100%			Met/Thermal	6.0%		0		0		17		17		80		80		97			RD
		Total Coal Resources (100% Basis)				2,606		2,905		2,703		2,935		3,262		3,708		8,571
		Yancoal Attributable Share																			6,013

Note: 2021 Coal Resources have been rounded in line with the JORC Code and the Yancoal reporting standards to reflect the relative uncertainty of the estimates

Note: All Coal Resources are inclusive of Coal Reserves and are reported on a 100% basis with Yancoal's ownership percent reported for each deposit. The attributable share total is the total Coal Resources when the Yancoal ownership percent (as at 31 December 2021) is applied.

Note: The Oaklands project has been relinquished.

1. MTW operations primary changes are due to Bulga Exclusion Zone, Southern Biodiversity Area, Resource Re-classifications and Sterilisation of Resources.
2. Gloucester comprises the Stratford, Duralie and Grant & Chainey deposits.
3. The Austar mine suspended production and transitioned to care and maintenance operations after 31 March 2020. On the 1st of March 2021, an announcement was made to transition Austar to closure activities. Coal Resources are therefore no longer being reported for Austar.
4. On 16 December 2020, Yancoal announced that a commercial arrangement had been entered into between Yankuang Group Co. Ltd, its wholly owned subsidiary Yankuang Group (Hong Kong) Limited and the other two holders of the bonds issued by Watagan which resulted in Yancoal regaining accounting control of Watagan on that date.

YANCOAL AUSTRALIA LTD | 3

COAL RESOURCES RECONCILIATION OF 2021 TO 2020 YEAR END REPORTING

						Measured Resources (Mt)
					Reconciliation period 1 January 2021 to 31 December 2021
only		Project	Moolarben	Mt Thorley	Warkworth	HVO	Yarrabee	Gloucester		Middlemount	(2) Austar	Ashton	Donaldson	Monash
	(OC & UG)	(OC & UG)	(OC & UG)	(OC)	(OC)	(OC)		(OC)	(UG)	(OC & UG)	(OC & UG)	(UG)
	Production Changes
		Production (-) 1 January 2021 - 31	-46.2	-0.24	-16.49	-13.5	-3.403			-8.4		-2.56	N/A	N/A
		December 2021
		Non - Production Changes
		Coal sterilised within the mine plan		-44.0	-46.28						-110.0	-0.38
		Bulga Exclusion Zone and Southern		-21.8	-32.2
		Biodiversity Offset Exclusions
		Reconciliation (Actual Vs Model)
		adjustment
		Dilution/Loss change										0.69
		Seams/Plies failing eventual economic		-17.0	-16.9
		extraction test
		Resource reclassification	33.0	2.2	19.75		-12.0			34.4		0.32
		Geology model change	-0.8								4.18
		(1) Change due to significant figure rounding	4.0	3.82	-0.93	-6.5	0.403	0.0		0.0	0.0	-2.3
		Total	-10.0	-77.00	-93.0	-20.0	-15.0	0.0		26.0	-110.0	0.0	0.0	0.0

use						Indicated Resources (Mt)
				Reconciliation period 1 January 2021 to 31 December 2021
	Project	Moolarben	Mt Thorley	Warkworth	HVO	Yarrabee	Gloucester		Middlemount	(2) Austar	Ashton	Donaldson	Monash
	(OC & UG)	(OC & UG)	(OC & UG)	(OC)	(OC)	(OC)		(OC)	(UG)	(OC & UG)	(UG)	(UG)
	Production Changes
	Production (-) 1 January 2021 - 31						-1.28					N/A	N/A
	December 2021
	Non - Production Changes									-40
	Coal sterilised within the mine plan		-37.64	-20.09			-0.91
	Bulga Exclusion Zone and Southern		-80.75	-161.01
personal		Biodiversity Offset Exclusions
	Dilution/Loss change						-0.24
	Seams/Plies failing eventual economic		-2.14	-7.27
	extraction test
		Resource reclassification	-19.8	111.59	25.49		-25.0			3.0		8.35
		Geology model change	0.6								0.96
		(1) Change due to significant figure rounding	9.2	-1.06	2.9	0.0	0.0	2.4		0.0	0.0	0.69
		Total	-10.0	-10.0	-160.0	0.0	-25.0	0.0		3.0	-40.0	10.0	0.0	0.0

				Inferred Resources (Mt)
			Reconciliation period 1 January 2021 to 31 December 2021
Project	Moolarben	Mt Thorley	Warkworth	HVO	Yarrabee	Gloucester		Middlemount	(2) Austar	Ashton	Donaldson	Monash
(OC & UG)	(OC & UG)	(OC & UG)	(OC)	(OC)	(OC)		(OC)	(UG)	(OC & UG)	(UG)	(UG)
Production Changes
Production (-) 1 January 2021 - 31	-0.3					-0.12					N/A	N/A
December 2021
Non - Production Changes
Coal sterilised within the mine plan		-6.18	-6.97			-0.1			-70
Bulga Exclusion Zone and Southern		-70.65	-139.71
Biodiversity Offset Exclusions
Seams/Plies failing eventual economic		-2.54	-2.92
extraction test
Resource reclassification	-13.3	-6.1	-130.9		-37.0			11.0		0.47
Geology model change	-1.9								-2.69
(1) Change due to significant figure rounding	15.5	0.47	15.5	0.0	0.0	0.22		0.0	0.0	2.22
Total	0.0	-85	-265.0	0.0	-37.0	0.0		11.0	-70.0	0.0	0.0	0.0

						Total Resources (Mt)
					Reconciliation period 1 January 2021 to 31 December 2021
For		Project	Moolarben	Mt Thorley	Warkworth	HVO	Yarrabee	Gloucester		Middlemount	(2) Austar		Ashton	Donaldson		Monash
	(OC & UG)	(OC & UG)	(OC & UG)	(OC)	(OC)	(OC)		(OC)	(UG)		(OC & UG)	(UG)		(UG)
	Yancoal Ownership %	95%	80%	84.47%	51%	100%	100%		50%	100%		100%	100%		100%
	Coal Type	Thermal	Semi/Thermal	Semi/Thermal	Semi/Thermal	PCI/Thermal	Met/Thermal		Met/Thermal	Met		Met/Thermal	Met/Thermal		Met/Ther
				mal
	Production Changes
	Measured Resources (Mt)	-46.2	-0.2	-16.5	-13.5	-3.4	0.0		-8.4	0.0		-2.6	N/A		N/A
	Indicated Resources (Mt)	0.0	0.0	0.0	0.0	0.0	-1.3		0.0	0.0		0.0	N/A		N/A
	Inferred Resources (Mt)	-0.3	0.0	0.0	0.0	0.0	-0.1		0.0	0.0		0.0	N/A		N/A
	Non - Production Changes
	Measured Resources (Mt)	36.2	-76.8	-76.5	-6.5	-11.6	0.0		34.4	-110.0		2.6	0.0		0.0
	Indicated Resources (Mt)	-10.0	-10.0	-160.0	0.0	-25.0	1.3		3.0	-40.0		10.0	0.0		0.0
	Inferred Resources (Mt)	0.3	-85.0	-265.0	0.0	-37.0	0.1		11.0	-70.0		0.0	0.0		0.0
	Totals	-20.0	-172.0	-518.0	-20.0	-77.0	0.0		40.0	-220.0		10.0	0.0		0.0
								Total Coal Resource Changes (100% Basis)		-977.0
										Yancoal Attributable Share		-871.4

Note: +ve = increase in reported Coal Resources, -ve = decrease in reported Coal Resources

1. The reported Coal Resource totals within the Coal Resource Reports utilised for public reporting are rounded (significant figure), whereas the Coal Resource reconciliations contained within them are based on the unrounded numbers, this adjustment is required to align the unrounded reconciliations with the significant figure rounded Coal Resource totals.
2. On the 1st of March 2021, an announcement was made to transition Austar to closure activities. Coal Resources are therefore no longer being reported and have been allocated as sterilized coal for reconciliation purposes.

YANCOAL AUSTRALIA LTD | 4

COAL RESERVES FOR YEAR ENDING 31 DECEMBER 2021

															Recoverable Coal Reserve									Marketable Coal Reserve
		Project			Yancoal			Coal Type			Proved			Probable			Total			Moisture						Proved			Probable			Total			Competent
								Coal Reserves			Coal Reserves			Coal Reserves			Basis			Ash			Coal Reserves			Coal Reserves			Coal Reserves			Person #
only				Ownership %
												(Mt)				(Mt)			(Mt)			%			%				(Mt)				(Mt)			(Mt)
												2021			2020			2021			2020			2021			2021			2021			2021			2020			2021			2020			2021			2021
		Moolarben (OC)	95%			Thermal	162		178		5		6		167			9%			21%			133		144			4		5			137			TB
		Moolarben (UG)	95%			Thermal	32		38		13		13		44			9%			16%			32		39			13		13			45			LM
		Mount Thorley (OC)	80.0%			Semi/Thermal	2		4.6		16		14		18			10%			10-14%			1.3		3.1			11		10			13			MH
		Warkworth (OC)	84.47%			Semi/Thermal	151		180		92		76		242			10%			10-14%			104		123			61		52			165			MH
		HVO (OC)	51%			Semi/Thermal	400		420		460		460		860			10%			13%			290		310			330		330			620			PJ
		Yarrabee (OC)	100%			PCI/Thermal	39		31		42		15		81			10%			10%			29		25			32		12			61			MH
use		(1) Gloucester (OC)	100%			Met/Thermal	0		0		2.4		17		2.4			8%			19%			0		0			1.4		10			1.4			DL
(2)	Middlemount (OC)	50%			Coking/PCI	74		41		19		37		93			10% Coking			10% Coking			53		33			16		27			69			PM
								10.5% PCI			10.5% PCI
(3)	Ashton (AWOC)	100%			Semi/Thermal	0		0		17		17		17			9.5%			9.5%			0		0			9		9			9			BB
		(3) Ashton (UG)	100%			Semi/Thermal	14		15		8		7		22			8.5%			9.5%			8		7.2			5		3.4			13			REH
		(3) Donaldson (UG)	100%			Semi/Thermal	0		0		110		110		110			8%			17%			0		0			62		62			62			REH
			Total Coal Reserves (100% Basis) - Rounded	874		909		783		771		1,657									651			684			544			532			1,195
			Yancoal Attributable Share																1,137																					819
		Note: 2021 Coal Reserves have been rounded in line with the JORC Code and the Yancoal reporting standards to reflect the relative uncertainty of the estimates
personal		Note: All Coal Resources are inclusive of Coal Reserves, Coal Reserves are reported on a 100% basis with Yancoal's ownership percent reported for each deposit. The attributable share total is the total Coal Reserves
	when the Yancoal ownership percent (as at 31 December 2021) is applied.
	Note: The Austar mine suspended production on the 31st March2020 and transitioned to care and maintenance operations. On the 1st of March 2021, an announcement was made to transition Austar to closure
	activities.																																			YANCOAL AUSTRALIA LTD - ASX RELEASE |5
			(1) Gloucester comprises the Stratford, Duralie and Grant & Chainey deposits.
			(2) The project has two product types for Marketable Coal Reserves each with a different Moisture basis, Coking at 10%, PCI at 10.5% and Ash% of 10% for Coking & 10.5% for PCI.
			(3) On 16 December 2020, Yancoal announced that a commercial arrangement had been entered into between Yankuang Group Co. Ltd, its wholly owned subsidiary Yankuang Group (Hong Kong) Limited and the
			other two holders of the bonds issued by Watagan which resulted in Yancoal regaining accounting control of Watagan on that date.
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