• Acquisition of a long-life, high-quality metallurgical coal mine
• Immediately contributes production volumes, product mix and operating cash flow
• Provides additional scale and opportunities for mine life extension in Queensland

Yancoal has announced it will acquire 80% of the Kestrel Coal Mine, a large-scale, long-life metallurgical coal asset located in the Bowen Basin, Queensland. The acquisition is strategically aligned with Yancoal's operating strengths and is expected to immediately contribute production volumes, product mix and operating cash flow upon completion. Kestrel is a high-quality metallurgical coal mine with a 25-year mine life supported by a large Reserves endowment of 164Mt Marketable Coal Reserves and 406Mt Coal Resources. The mine is positioned in the top 35% of the global seaborne metallurgical coal supply cost curve, with an attractive FOB unit cost of A$147/t. The transaction structure involves Yancoal acquiring 100% of Kestrel Coal Group Pty Ltd, which indirectly holds an 80% participating interest in the unincorporated joint venture that owns and operates Kestrel, with the remaining 20% owned by Mitsui. The upfront consideration of US$1,850 million will be funded through existing cash, a US$1,200 million committed acquisition facility, and a US$200 million committed working capital facility. Additionally, up to US$550 million in price-linked contingent consideration may be payable over the first five years post-completion. The transaction is subject to customary closing conditions, including regulatory approvals, and is targeted for completion towards the end of the third quarter of 2026.