Yunnan Coal & Energy Co.,Ltd. announced a private placement of not more than 296,977,080 A shares for gross proceeds of not more than CNY 1,200,000,000 on April 7, 2022. The company entered into a purchase agreement with returning investor Kunming Iron & Steel Holding Co., Ltd. which will subscribe to not less than 16.855% of the issuance. The transaction will include participation from not more than 35 investors.

The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The shares Kunming Iron & Steel Holding Co., Ltd. will subscribe to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.

Post the closing of the transaction, Kunming Iron & Steel Holding Co., Ltd. will hold not less than 50.19% after the issuance. The transaction was approved in the 40th Extraordinary Meeting of the company's 8th Directorate and at the 33rd Extraordinary Meeting of the 8th Supervisory Board and is subject to the approvals of the State-owned Assets Supervision and Administration, the company's Shareholders, and the China Securities Regulatory Commission.