April 4, 2017

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JOGMEC Enters a New Agreement for Supporting Explorationand Acquiring Coal Offtake Right in Australia
Japan Oil, Gas and Metals National Corporation (JOGMEC) is pleased to announce that it hasentered into a new agreement to jointly explore coal in the Isaac Plains East Project with Stanmore
Coal Ltd. (Stanmore), an Australian coal company.
Isaac Plains East Project is situated in the northern Bowen Basin, which is highly prospective forthermal and coking coal resources, in the eastern Queensland.
JOGMEC has now formed four coal JV projects in Australia, two in Canada and one in Indonesia
since it commenced its coal JV survey scheme in 2013. Instead of acquiring an equity or a coalmarketing right, JOGMEC will acquire a coal offtake right in this new JV project, and it is anticipatedthat once developed this project would contribute to diversify the coal procurement measures byJapanese companies, which leads to reinforce Japan’s coal resources security.
■ Project outline
1) Project area
Isaac Plains East Project is located about 170km southwest of Mackay with a coal export
terminal and consists of 4 tenements (about 34km2), which is easterly adjacent to the Isaac Plainsmine Stanmore acquired in 2015 and restarted operations from May, 2016. The past exploration
has revealed that Isaac Plains East Project has a high coal potential.
2) JOGMEC Investment condition
JOGMEC has the right to acquire an offtake right of 1.5 million tons of the coal produced fromthe project concessions by paying 3 million A$ of exploration expenditure in two years.
This contract is subject to The Australian Foreign Investment Review Board (FIRB) approval.

3) Exploration
Stanmore and other previous tenement holders have carried out approximately 300 holes
drillings and 20 lines seismic surveys in this area. As a result of these surveys, at least two coalseams (total thickness is approximately 3.5m) have been identified.
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■ Stanmore Coal Ltd.
It is a coal mining, exploration and development company listed on the ASX (Australian StockExchange) in 2009 and headquartered in Brisbane, Queensland. It owns 9 coal projects inQueensland. In addition to the Isaac Plains mine, Stanmore has been advancing Belview and Therange projects for development. Stanmore and JOGMEC have actively progressed the Clifford
coal JV project in Surat Basin since 2013.
■ Isaac Plains coal mine
The Isaac Plains coal mine was operated by previous tenement holders. PCI, coking andthermal coal were produced and its maximum production volume was 2.3 million tons per year.
The coal products of the mine have been exported from Dalrymple Bay Coal Terminal, locatedabout 170km northeast, to Japan, Korea, Taiwan and other mills. Stanmore acquired the mining
right in 2015, and Stanmore restarted the mining operations with 1.1 million tons per year.

DarwinCairns
Isaac Plains East Project

Brisbane
PerthSydney●Adelaide
Melbourne

Location of Isaac Plains East Project2