On 12 December 2023, the Board of Yancoal Australia Ltd. resolved to renew the agreements and/or approve the annual caps (as the case may be) from 1 January 2024 to 31 December 2026 for the following continuing connected transactions: the sale of coal by the Group to Glencore, a connected person at the Company's subsidiary level, pursuant to the Glencore Framework Coal Sales Agreement; the purchase of coal by the Group from Glencore pursuant to the Glencore Framework Coal Purchase Agreement; and the purchase of coal by the Group from Anotero, a wholly-owned subsidiary of Glencore, pursuant to the HVO Sales Agreement in relation to Hunter Valley mining operations only. Yankuang Energy, the Company's controlling shareholder, confirmed the renewals and/or the annual caps for the three years commencing retrospectively from 1 January 2024 on 15 January 2024. Sales of Coal by the Group to Glencore pursuant to the Glencore Framework Coal Sales Agreement The Company and Glencore Coal Pty Limited ("Glencore") entered into a framework coal sales agreement (the "Glencore Framework Coal Sales Agreement") on 29 June 2018 to govern all existing and future sales of coal by the Group to Glencore and/or its subsidiaries and/or its related entities.

As disclosed in the Announcement, the Glencore Framework Coal Sales Agreement was renewed for a period of three years commencing from 1 January 2021 and ending 31 December 2023. The Glencore Framework Coal Sales Agreement will expire on 31 December 2023 and will be automatically renewable for successive periods of three years thereafter, subject to compliance with the applicable provisions of the Listing Rules and unless terminated earlier by not less than three months' prior notice or otherwise in accordance with the terms thereunder. On 12 December 2023, the Board resolved to renew the Glencore Framework Coal Sales Agreement for a further three years commencing from 1 January 2024 and set the annual caps for the three years ending 31 December 2026 for the transactions thereunder.

Yankuang Energy confirmed the renewal and the annual caps for the three years commencing retrospectively from 1 January 2024 on 15 January 2024. The Glencore Framework Coal Sales Agreement provides that all transactions in relation to the sale of coal by the Group to Glencore and/or its subsidiaries and/or its related entities must be (i) in the ordinary and usual course of business of the Group, (ii) on an arm's length basis, (iii) on normal commercial terms and (iv) in compliance with, amongst other things, the Listing Rules and applicable laws. Considering the nature of coal, the sale price will be determined with reference to the prevailing market price for the relevant type of coal, taking into account (i) the industry index prices, depending on the quality of coal, typically being globalCOAL Newcastle Coal ("GCNewC"), API5 and Platts Semi-Soft Coking Coal Index, (ii) coal quality characteristics and (iii) market alternatives to optimise value for the Company.

The Company will take into account relevant industry benchmarks and indices when determining the market price. The aggregate annual transaction amount received by the Group from Glencore and/or its subsidiaries and/or its related entities for the sale of coal for the two years ended 31 December 2021 and 2022 and the nine months ended 30 September 2023 were approximately USD 155.2 million, USD 188.5 million and USD 52 million, respectively. The historical transaction amounts were less than the existing annual caps as the Group's coal production had been impacted by the wet weather disruptions during 2021 to 2023 which led to less coal for spot sales.

The maximum annual transaction amount to be received by the Group from Glencore and/or its subsidiaries and/or its related entities for the three years ending 31 December 2024, 2025 and 2026 will not exceed USD 350 million, USD 350 million and USD 350 million, respectively. These caps were calculated by reference to (i) the historical transaction amounts; (ii) the expected increase in coal saleable production by the Group in the next three years; (iii) the expected demand for coal from Glencore and/or its subsidiaries and/or its related entities based on further spot opportunities that may exist; and (iv) the estimated increase in the sale price for the coal. The Company's principal business activity is the production of thermal and metallurgical coal.

Glencore has been a consistent, and one of the major customers of the Company since 2017. The Company believes that through supplying coal to Glencore in the Company's ordinary and usual course of business, the Company could maintain its good business relationship with Glencore, further expand its business operation and generate revenue.