Yancoal to acquire 80% interest in the Kestrel Coal Mine

• Yancoal to acquire 80% interest in the Kestrel Coal Mine, a large-scale, long-life metallurgical coal asset
• Acquisition strengthens Yancoal's position in Queensland's Bowen Basin and increases its metallurgical coal exposure
• Kestrel is the largest producing underground coal mine in Australia with 25-year mine life and substantial reserves

Yancoal Australia Ltd (ASX: YAL) ('Yancoal') has entered into a binding agreement to acquire an 80% interest in the Kestrel Coal Mine, a large-scale, long-life metallurgical coal asset located in Queensland's Bowen Basin. The acquisition will be funded through a combination of available cash, a US$1.2 billion five-year syndicated loan facility, and contingent cash consideration of up to US$550 million over five years. The acquisition strengthens Yancoal's position in the Bowen Basin and significantly increases its metallurgical coal exposure, with Kestrel producing a premium metallurgical product in high demand from steelmakers. Kestrel is the largest producing underground coal mine in Australia, with a 25-year mine life underpinned by 164 Mt of Marketable Coal Reserves and 406 Mt of Coal Resources. The mine is highly productive and benchmarks as a top 2 Australian underground mine on key productivity measures. The acquisition is expected to positively contribute to Yancoal's cash flow and production profile, further consolidating its leading position among ASX-listed Australian coal producers.

Yancoal expects Kestrel to potentially produce around 4.8 Mt of saleable coal in 2026 on an attributable basis. On an illustrative pro-forma basis, Yancoal's combined saleable production is expected to be 41.3-45.3 Mt in 2026, depending on the completion date of the acquisition.