Yanzhou Coal Mining : ANNOUNCEMENTIN RELATION TO THE PROVISION FOR IMPAIRMENT FOR ASSETS

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兗州煤業股份有限公司

YANZHOU COAL MINING COMPANY LIMITED

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1171)

ANNOUNCEMENTIN RELATION TO

THE PROVISION FOR IMPAIRMENT FOR ASSETS

This announcement is made pursuant to the disclosure obligations under Part XIVA of the Securities and

Futures Ordinance and Rules 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The "Proposal in relation to the discussion and consideration of provision for impairment for assets and bad debt write-off" has been considered and approved at the 33rdmeeting of the seventh session of the board of directors (the "Board") of Yanzhou Coal Mining Company Limited (the"Company"). The Company made the provision for asset impairment in respect of the intangible assets and accounts receivable(the "Provision for Impairment for Assets"),details of which are set out below:

1. Overview of the Provision for Impairment for Assets

Pursuant to the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance of the People's Republic of China and the domestic and overseas listing regulatory requirements, taking into account of the actual operation of the Company, in 2019, the Company's provision of impairment of assets was RMB371.0396million, among which: the Company's the provision for bad debts was RMB197.7318 million, the provision for depreciation of the inventory was RMB25.8433 million, and the provision for impairment of the intangible assets was RMB147.4645 million,

2. Details of the Provision for Impairment for Assets

1. The provision for bad debts amounting to RMB197.7318 million.

As at 31 December 2019 (the "Balance Sheet Date"), the Company reviewed the book value of the accounts receivable, applied the allowance method to account the potential bad debts, and performed the impairment tests individually or in pairs for the purpose of making provision for bad debts. The provision ofbaddebts of the Company in 2019 was RMB197.7318million.

(2) The provision for depreciation of inventory amounting to RMB25.8433 million.

As at the Balance Sheet Date, the valuation of the inventory was calculated by reference to the lower of the cost or the net realizable value, and the provision for depreciation of inventory was made with reference to the excessive value of the inventory's cost above its net realizable value. In 2019, the Company made a provision

for in the depreciation of inventory in the amount of RMB25.8433million.

(3) The provision for impairment of intangible assets amounting to RMB147.4645 million.

As at the Balance Sheet Date, the impairment test was conducted against the assets of Anyuan Coal Mine of Yancoal Ordos Neng Hua Company Limited.* (兗州煤業鄂爾多斯能化有限公司安源煤礦) ("Anyuan Coal Mine"). According to the results of the impairment test, Anyuan Coal Mine made a provision for the impairment of assets in the amount of RMB147.4645million as at 31 December 2019.

3. Impact of the Provision for Impairment for Assets to the Company

The Provision for Impairment for Assets amounting to RMB371.0396 million resulted in a decrease of RMB371.0396 million in the Company's total profit for the year 2019. As a result, the net profit attributable to the shareholders of the parent company was reduced by RMB293.0430 million.

4. Opinion of the Board on the Provision for Impairment for Assets

The "Proposal in relation to the discussion and consideration of provision for impairment for assets and bad debt write-off" has been considered and approved at the 33rd meeting of the seventh session of the Board held on 22 April 2020.

The Board is of the view that, the Provision for Impairment for Assets is made on a prudent basis and in compliance with the requirements of the relevant requirements such as the accounting standards. The Provision for Impairment for Assets enables the Company to present the status of its assets value and overall operating performance in a fair manner, and is not detrimental to the lawful interests of the Company and its minority shareholders.

5. Opinion of the Independent Directors on the Provision for Impairment for Assets

The independent directors of the Company are of the view that the Provision for Impairment for Assets is justified and in compliance with the requirements of the relevant requirements such as the accounting standards. The Provision for Impairment for Assets will enable the Company to better present its financial position of the Company in a true and fair manner and is in the interests of the Company as a whole. The Provision for Impairment for Assets facilitates the Company in providing true, reliable and accurate accounting information to the investors. The decision-making procedures of the Provision for Impairment for Assets are in line with the requirements of relevant laws, regulations and the articles of association of the Company and is not detrimental to the interests of the Company and its shareholders, especially the minority shareholders.

6. Opinion of the Supervisory Committee on the Provision for Impairment for Assets

The "Proposal in relation to the discussion and consideration of provision for impairment for assets and bad debt write-off" has been considered and approved at the nineteenth meeting of the seventh session of the supervisory committee of the Company (the "Supervisory Committee") held on 22 April 2020.

The Supervisory Committee is of the view that the Provision for Impairment for Assets is in compliance

with the relevant requirements of the accounting standards and the Company's accounting policies and that it is justified and the procedures are lawful. The Provision for Impairment for Assets enables the Company to better present its financial position of the Company in a true and fair manner, and is not detrimental to the interests of the Company and its shareholders, especially the minority shareholders. The Supervisory Committee hence approved the Provision for Impairment for Assets.

7. Documents Available for Inspection

1. Resolutions passed at the 33rd meeting of the seventh session of the Board of the Company;
2. Resolutions passed at the nineteenth meeting of the seventh session of the Supervisory Committee of the Company;
3. Independent opinion from the independent directors of the Company on the provision for impairment for assets.

By order of the Board

Yanzhou Coal Mining Company Limited

Li Xiyong

Chairman

Zoucheng, Shandong Province, thePRC 22 April 2020

As at the date of this announcement, the Directors of the Company are Mr. Li Xiyong, Mr. Li Wei, Mr. Wu Xiangqian, Mr. Liu Jian, Mr. Guo Dechun, Mr. Zhao Qingchun and Mr. Guo Jun, and the independent non- executive Directors of the Company are Mr. Kong Xiangguo, Mr. Cai Chang, Mr. Poon Chiu Kwok and Mr. Qi Anbang.

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