Document:

Placing and Underwriting Agreement

 Exhibit 4.1 
 Dated 7 July, 2004 
 Placing and Underwriting Agreement 
 between 
 Yanzhou Coal Mining Company Limited 
 as the Company 
 and 
 BNP Paribas Peregrine Capital Limited 
 as Underwriter

 relating to 
 new H Shares in the capital of

 Yanzhou Coal Mining Company Limited 

 INDEX 
  

					
	 CLAUSE
	  	 	  	PAGE NO.
	 1.
	  	DEFINITIONS AND INTERPRETATION	  	2
			
	 2.
	  	CONDITIONS	  	5
			
	 3.
	  	APPOINTMENT OF THE PLACING AGENT	  	6
			
	 4.
	  	COMPLETION OF THE PLACING	  	8
			
	 5.
	  	COMMISSIONS AND EXPENSES	  	8
			
	 6.
	  	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS	  	9
			
	 7.
	  	INDEMNITY AND LIMITATION ON CLAIMS	  	10
			
	 8.
	  	PLACING ANNOUNCEMENT, ADVERTISEMENT AND CONFIDENTIALITY	  	11
			
	 9.
	  	RESTRICTIONS ON DISPOSAL OF SHARES	  	11
			
	 10.
	  	FURTHER ASSURANCE	  	12
			
	 11.
	  	TERMINATION	  	12
			
	 12.
	  	OVER-ALLOTMENT OPTION	  	13
			
	 13.
	  	GENERAL	  	14
			
	 14.
	  	NOTICES	  	16
			
	 15.
	  	GOVERNING LAW AND JURISDICTION	  	16

					
			
	 SCHEDULE
	  		  	
			
	 SCHEDULE 1
	  	WARRANTIES	  	17
			
	 SCHEDULE 2
	  	SELLING RESTRICTIONS	  	24
			
	 SCHEDULE 3
	  	PURCHASER’S LETTER	  	26

 THIS AGREEMENT is dated 7 July, 2004 and made 
 BETWEEN: 
  

	(1)	Yanzhou Coal Mining Company Limited, whose legal address is at 40 Fushan Road, Zoucheng, Shandong Province 273500, PRC (the “Company”); and

  

	(2)	BNP Paribas Peregrine Capital Limited, whose registered office is at 36/F., Asia Pacific Finance Tower, Citibank Plaza, 3 Garden Road, Central, Hong Kong (“BNP
Peregrine” or “Placing Agent”); 

 RECITALS: 
  

	(A)	The Company is a limited company incorporated in the People’s Republic of China as a joint stock limited company in accordance with the provisions set out in the PRC Company
Law. 

  

	(B)	As at the date hereof, the Company has a registered share capital of RMB2,870,000,000 made up of 1,850,000,000 Domestic Shares (including 180,000,000 A Shares) of nominal value of
RMB1.00 each and 1,020,000,000 H Shares of nominal value RMB1.00 each, all of which have been issued and are fully paid up. 

  

	(C)	All of the issued H Shares are listed on the Main Board of the Stock Exchange (as defined below) and the ADRs of the Company are listed on the New York Stock Exchange.

  

	(D)	The directors of the Company were granted a general mandate on 25 June 2004 to allot and issue and otherwise deal with up to 204,000,000 new H Shares, which mandate is in force and
has not been amended or revoked. 

  

	(E)	On 19 May 2004, a document titled 

 2004 [20] 

 was issued by the China Securities Regulatory Commission, granting approval to the Company for the issue of up to 204,000,000 new H Shares. 

  

	(F)	The Company has agreed to appoint the Placing Agent and the Placing Agent has agreed to act as the sole placing agent and underwriter for the purpose of procuring, as agent of the
Company, purchasers for, or failing which, to purchase itself as principal the Placing Shares (as defined below) on terms and subject to conditions set out in this Agreement. 

  

	(G)	The Company has also agreed to grant the Over-allotment Option in favour of the Placing Agent on terms and conditions herein to require the Company to issue up to 51,000,000
additional new H Shares. 

  

 1 

 THE PARTIES HEREBY AGREE THAT:- 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this Agreement (including the Recitals above) , the following expressions have the following meanings:- 

  

			
	“Accounts”	  	means the audited consolidated balance sheet and profit and loss account of the Group for the year ended 31 December 2003
		
	“Agreement”	  	means this placing agreement as amended from time to time by agreement in writing duly executed by the Parties;
		
	“A Shares”	  	means PRC domestically listed Shares in the share capital of the Company;
		
	“Business Day”	  	means any day, excluding Saturdays, on which banks in Hong Kong are generally open for business;
		
	“CCASS”	  	means the Central Clearing and Settlement System established and operated by Hong Kong Securities Clearing Company Limited;
		
	“Completion”	  	means completion of the Placing in accordance with Clause 4;
		
	“Completion Date”	  	means the second Business Day immediately after the date of the written notice from the Company to the Placing Agent referred to in Clause 2.3(b) or such other date as the Company and the
Placing Agent may agree in writing;
		
	“Companies Ordinance”	  	means the Companies Ordinance (Cap.32, Laws of Hong Kong), as amended from time to time;
		
	“Conditions”	  	means the conditions of the Placing set out in Clause 2.1 hereof;
		
	“Domestic Shares”	  	means PRC domestic Shares, including A-Shares;
		
	“Expenses”	  	means the expenses relating to the Placing referred to in Clause 5.1(b) hereof;
		
	“Group”	  	means the Company and its Subsidiaries and the expression “member of the Group” shall be construed accordingly;

  

 2 

			
	“HK$”	  	means Hong Kong Dollars, the lawful currency of Hong Kong;
		
	“H Shares”	  	means overseas listed foreign Shares in the share capital of the Company;
		
	“Hong Kong”	  	means the Hong Kong Special Administrative Region of the PRC;
		
	“Listing Rules”	  	means the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange;
		
	“NYSE”	  	means the New York Stock Exchange, Inc.;
		
	“Parties”	  	means the parties to this Agreement;
		
	“Placees”	  	means the subscribers of the Placing Shares pursuant to the Placing and includes, where the context so requires, the subscribers for the Over-allotment Option Shares;
		
	“Placing”	  	means the offer by way of a private placing of the Placing Shares by or on behalf of the Placing Agent to selected Placees upon the terms and subject to the conditions set out in this
Agreement;
		
	“Placing Announcement”	  	means the press announcement on the agreed form proposed to be issued by the Company immediately following the execution of this Agreement;
		
	“Placing Period”	  	means the period commencing upon the execution of this Agreement and terminating on the Completion Date or where the context so requires, the last date for the exercise of the Over-allotment
Option unless terminated earlier pursuant to this Agreement;
		
	“Placing Price”	  	means the price of HK$8.3 per Placing Share;
		
	“Placing Proceeds”	  	means the sum of the number of the Placing Shares multiplied by the Placing Price;
		
	“Placing Shares”	  	means initially 153,000,000 new H Shares to be placed pursuant to the Placing representing approximately 15% of the H Shares currently in issue or approximately 13% of the H Shares in the
Share capital as enlarged after the Placing and where the context so requires, such new H Shares together with the Over-allotment Option Shares;

  

 3 

			
	“PRC”	  	means the People’s Republic of China;
		
	“Over-allotment Option ”	  	means the option granted by the Company in favour of the Placing Agent in Clause 12;
		
	“Over-allotment Option Shares”	  	means up to 51,000,000 additional new H Shares which may be required to be issued by the Company pursuant to the Over-allotment Option;
		
	“Over-allotment Placing Proceeds”	  	means the sum of the number of the Over-allotment Option Shares in respect of which the Over-allotment Option has been exercised by the Placing Agent multiplied by the Placing
Price;
		
	“Regulation S”	  	means Regulation S under the Securities Act;
		
	“RMB”	  	means Renminbi, the lawful currency of the PRC;
		
	“SEC”	  	means the United States Securities and Exchange Commission;
		
	“SFC”	  	means the Securities and Futures Commission of Hong Kong;
		
	“Shares”	  	means shares in the capital of the Company with RMB denominated par value of RMB1.00 each;
		
	“Stock Exchange”	  	means The Stock Exchange of Hong Kong Limited;
		
	“Subsidiary”	  	bears the same meaning set out in Section 2 of the Companies Ordinance as at the date hereof;
		
	“Unplaced Shares”	  	means (i) such of the 153,000,000 Placing Shares which have not been placed to the Placees by or on behalf of the Placing Agent under this Agreement as at the end of the Placing Period and
(ii) such of the 51,000,000 Over-allotment Option Shares as to which the Placing Agent has exercised the Option which have not been placed to Placees by or on behalf of the Placing Agent.

  

	1.2	In this Agreement:- 

  

	 	(A)	References to Recitals, Clause and Schedules are to the clauses and sub-clauses of, and the recitals and schedules to, this Agreement; 

  

	 	(B)	References to any statutory provision or any rule or regulation (whether or not having the force of law) shall be construed as references to the same as amended, varied, modified,
consolidated or re-enacted from time to time and to any subordinate legislation made under such statutory provision; 

  

 4 

	 	(C)	References to holding companies and subsidiaries are to the same as defined in Section 2 of the Companies Ordinance; 

  

	 	(D)	Words importing the singular include the plural and vice versa, words importing one gender include every gender, and references to persons include bodies corporate and
unincorporated; and 

  

	 	(E)	Headings are for ease of reference only and shall not affect the interpretation of this Agreement. 

  

	1.3	The Recitals and Schedules form part of this Agreement and shall have the same force and effect as if expressly set out in the body of this Agreement and any reference to this
Agreement shall include the Recitals and the Schedules. 

  

	2.	CONDITIONS 

  

	2.1	Conditions 

 Completion of this Agreement is
conditional upon: 
  

	 	(a)	the Listing Committee of the Stock Exchange granting or agreeing to grant listing of and permission to deal in the Placing Shares and the Over-allotment Option Shares (subject only
to the allotment and issue of such shares and/or despatch of the relevant share certificates); 

  

	 	(b)	such listing approval not being subsequently revoked or suspended at any time prior to 9:30 a.m. on the Completion Date; 

  

	 	(c)	trading in the H Shares on the Stock Exchange not being suspended for any single period of more than 2 consecutive Business Days during any time after the publication of the Placing
Announcement but prior to the Completion Date; and 

  

	 	(d)	there being no material breach of any of the warranties, representations and undertakings given by the Company under this Agreement. 

  

	2.2	Failure to Fulfil 

 If any of the Conditions has not
been fulfilled on or before 21 July 2004 (or such other date as the Placing Agent may agree in writing with the Company), the obligations of the Parties under this Agreement shall ipso facto cease and determine and no party shall have any claim
against any other party in respect of any matter or thing arising out of or in connection with this Agreement except in accordance with Clause 11.2. 
  

 5 

	2.3	Fulfilment of the Conditions 

  

	 	(a)	the Company agrees to use its best endeavours to procure the fulfilment of the Conditions in accordance with Clause 2.1; and 

  

	 	(b)	the Company shall immediately give written notice to the Placing Agent of the fulfilment of the Condition in Clause 2.1(a) and attach to such notice a copy of the letter from the
Stock Exchange granting listing of and permission to deal in the Placing Shares. 

  

	3.	APPOINTMENT OF THE PLACING AGENT 

  

	3.1	Appointment 

 Subject to the provisions of this
Agreement, the Company hereby appoints the Placing Agent as the sole placing agent to the exclusion of all others and the Placing Agent, relying on the representations, warranties and undertakings herein contained and subject to the conditions as
hereinafter mentioned agrees to act as agent for the Company during the Placing Period to procure subscribers for, or failing which itself to subscribe as principal, 153,000,000 Placing Shares (not including those in the Over-allotment Option) at
the Placing Price (together with such Stock Exchange trading fee, SFC transaction levy and SFC investor compensation levy as may be payable by the Placees). 
  

	3.2	Placing 

 The Placing Agent shall be entitled to
conduct and undertake the Placing in such manner as it thinks fit including, without prejudice to the generality of the foregoing, the manner of reporting the transaction to the Stock Exchange and the SFC and the choice of Placees, subject to the
requirements of the Listing Rules and other applicable laws and regulations. In particular, the Placing Agent will use its reasonable endeavours to ensure that (i) each Placee is a third party that is independent of and not connected with the
Company, any promoter, director, supervisor, chief executive or substantial shareholder of the Company or any of its Subsidiaries, or any of their respective associates (as defined in the Listing Rules) and (ii) the Placing Shares will not be
offered or sold in the United States or to U.S. Persons unless the Placing Shares are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. Placees purchasing Placing Shares
pursuant to the private placement exemptions from registration under the Securities Act shall complete a purchaser’s letter substantially in the form set forth in Schedule 3. The Placing Agent shall promptly provide to the Stock Exchange all
information concerning itself and the Placees in accordance with the relevant provisions of the Listing Rules and as the Stock Exchange may reasonably require. 
  

 6 

	3.3	Powers 

 The Company hereby confirms that this
appointment confers on the Placing Agent:- 
  

	 	(a)	all powers and authorities to issue any placing letter to, and to enter into contracts on behalf of the Company (subject to and in accordance with the terms and conditions described
herein) with, prospective Placees, and on behalf of the Company to execute and deliver any and all documents and generally to do all such other lawful and proper acts and things as the Placing Agent may consider necessary or desirable to effect the
Placing and issue of the Placing Shares to the Placees thereof and the registration thereof in their names (or as they may direct); and 

  

	 	(b)	all other powers, authorities and discretions on behalf of the Company which are necessary for, or reasonably incidental to, the lawful making of the Placing and the due performance
of this Agreement, 

 and the Company hereby agrees to ratify and confirm everything which the Placing Agent shall lawfully and
reasonably do on its behalf in the exercise of such appointment, powers, authorities and discretions or otherwise pursuant to or in anticipation of the terms of this Agreement. 
  

	3.4	Undertaking 

 The Placing Agent confirms,
acknowledges and undertakes to the Company in the terms of Schedule 2 hereto. 
  

	3.5	Agency 

 Any transaction properly carried out by the
Placing Agent (or a sub-placing agent or sub-underwriting agent) under and in accordance with this Agreement shall constitute a transaction carried out at the request of the Company and the Company agrees that the Placing Agent shall not be
responsible for any loss or damage (except for any loss or damage arising out of any gross negligence, wilful default, non-compliance with its material obligations under this Agreement or fraud on the part of any Placing Agent or any of its
sub-placing agents) suffered by or caused to the Company arising from or in connection with any transaction or matter pursuant to or relating to this Agreement and the performance of the terms hereof or from any alleged insufficiency of the Placing
Price. 
  

	3.6	Sub-Agents 

 The Company hereby acknowledges that
the Placing Agent, in performing its functions under this Clause 3, is authorised to appoint one or more sub-placing or sub-underwriting agents (“Sub-Agents”) and that such Sub-Agents shall be the agents of the Placing Agent
relating to the Placing on the terms of and subject to the provisions of this Agreement and the Company hereby authorises and confirms that it will, forthwith upon request by the Placing Agent, ratify and approve all actions legally and properly
taken or to be taken by such Sub-Agents in connection with the Placing in 

  

 7 

	 	 
accordance with the terms of this Agreement. The Company further acknowledges that such Sub-Agents shall be entitled to rely on the representations, warrants
and undertakings contained in this Agreement. The Placing Agent confirms and undertakes that it shall require the Sub-Agents to observe the selling restrictions set out in Schedule 2 of this Agreement. 

  

	3.7	Unplaced Shares 

 In the event that, as at the
Completion Date, there are any Unplaced Shares, the Placing Agent shall on the Completion Date subscribe the Unplaced Shares at the Placing Price less the amounts referred to in Clause 5. If there are no Unplaced Shares as at the end of the
Completion Date, the obligations of the Placing Agent under this Clause shall cease. 
  

	4.	COMPLETION OF THE PLACING 

 Subject to
fulfilment of the Conditions, Completion shall take place in the following manner: - 
  

	 	(a)	on or before 11:00 a.m. on the Completion Date, the Company shall allot and issue all Placing Shares and deposit all Placing Shares into the CCASS Participant Account designated by
the Placing Agent; and 

  

	 	(b)	on or before 11:00 a.m. on the Completion Date, the Placing Agent shall pay or procure payment to the Company in HK$ the Placing Proceeds less the Expenses and the placing
commission payable to it pursuant to Clause 5.1(a) by cheque (crossed “account payee only”) or cashier’s order drawn on a licensed bank in Hong Kong and payable to the Company or, if the Company so requests in writing, by
transfer to such bank account as the Company may have nominated in writing or by such other means as the Company and the Placing Agent may agree. 

  

	5.	COMMISSIONS AND EXPENSES 

  

	5.1	Fees, Commissions and Expenses 

 In consideration of
the services of the Placing Agent, the Company shall pay to the Placing Agent:- 
  

	 	(a)	provided that Completion occurs, a placing commission in HK$ dollars of 2% of the Placing Proceeds (out of which the Placing Agent will pay any placing commissions payable by them
to any Sub-Agents in respect of the Placing) plus any sum payable pursuant to Clause 12.3 which the Placing Agent shall, without prejudice to the Company’s obligations herein provided, be at liberty to deduct from the amount of the Placing
Proceeds payable by it to the Company as provided in Clause 4 (b); and 

  

	 	(b)	 SFC transaction levy, Stock Exchange trading fee, SFC investor compensation levy as may be payable by the Company in respect of the Placing Shares and 

  

 8 

 
the Placing Agent’s legal fees, costs, disbursements and other expenses incurred in connection with this Agreement, the Placing, and all matters and
documentation relating thereto, which the Placing Agent shall, without prejudice to the Company’s obligations herein provided be at liberty to deduct from the amount of the Placing Proceeds payable by it to the Company as provided in Clause
4(b). 
  

	5.2	Brokerage 

 The Company hereby acknowledges that, in
addition to the commission, costs, charges and expenses referred to in Clause 5.1, the Placing Agent shall be entitled to keep for its own account any brokerage that it may receive from the Placees. 
  

	5.3	Payment 

 Save as expressly provided in this
Agreement, all costs, charges and expenses of or incidental to this Agreement and the Placing shall be paid by the party incurring those expenses. All payments to be made by the Company pursuant to this Clause 5 shall be made in full without any
set-off, deduction or withholding whatsoever. The Company shall be liable for the costs and expenses of its own legal and other professional advisers and out-of-pocket expenses incurred in connection with the Placing. 
  

	6.	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS 

  

	6.1	Representations and Warranties 

 In order to induce
the Placing Agent to enter into this Agreement and to perform its obligations hereunder, the Company represents, warrants and undertakes to the Placing Agent, for itself and as agent for each of the Placees, in the terms of Schedule 1. 

 

	6.2	Period 

 The representations, warranties and
undertakings contained in this Clause 6 are given as at the date of this Agreement and will be deemed to be repeated at completion of the Placing and at the allotment of any Over-allotment Option Shares pursuant to the exercise of the Over allotment
Option and on each day between with reference to the facts and circumstances then subsisting. 
  

	6.3	Notification of Breach 

 The Company undertakes to
notify the Placing Agent of any matter or event which becomes known to it prior to completion of the Placing and of the allotment of the Over-allotment Option Shares pursuant to the exercise of the Over-allotment Option which would or would
reasonably be considered to render or have rendered any representation or warranty given by it to be or to have been untrue, inaccurate or misleading in any respect. 
  

 9 

	6.4	Breach 

 If prior to Completion it becomes known to
the Placing Agent that any of the representations or warranties given by the Company in Clause 6.1 is untrue, inaccurate or misleading which is material in the context of the Placing, the Placing Agent may by notice to the Company terminate this
Agreement, whereupon this Agreement shall terminate and Clause 11.2 shall apply. 
  

	6.5	New Factors 

 Without prejudice to Clause 6.3, the
Company shall immediately procure that particulars of every significant new factor known to it which is capable of affecting assessment of the Placing Shares in the context of the Placing which arises between the date hereof and the last date for
exercise of the Over-allotment Option pursuant to Clause 12 hereof shall be promptly provided to the Placing Agent. 
  

	7.	INDEMNITY AND LIMITATION ON CLAIMS 

  

	7.1	The Company hereby undertakes to the Placing Agent (for itself and as trustee for each of its subsidiaries and holding companies and subsidiaries of such holding companies and each
of their respective officers, employees and agents) and each sub-placing agent or sub-underwriter (each, together with the relevant Placing Agent, an “Indemnified Person”) appointed under this Agreement to indemnify and hold
indemnified each Indemnified Person against any and all liabilities, losses, claims, costs, charges and expenses of any nature whatsoever (including, without limitation, all costs, charges and expenses which any Indemnified Person may incur or bear
in disputing or defending any such claim made against it or establishing any claim on its part under this Clause 7) arising from or in respect of any investigation actions, claims, demands, proceedings or judgements which may be instituted or
brought or threatened by any person or governmental or regulatory agency or authority against any such Indemnified Person (whether or not the same is successful, compromised or settled) in each case arising out of, in relation to or in connection
with the performance by the Placing Agent of its obligations hereunder, or any Placee or other acquirer of any of the Placing Shares or any subsequent purchaser or transferee thereof or any other person claiming that he has suffered loss in respect
of such shares, or otherwise as a result of or in connection with:- 

  

	 	(a)	the placing of the Placing Shares; 

  

	 	(b)	any material breach of any of the representations, warranties and undertakings in this Agreement; or 

  

	 	(c)	otherwise in connection with the Placing and the Over-allotment Option and this Agreement 

 (all of the above, together “Liabilities”). 
  

 10 

	7.2	No claim shall be made against the Placing Agent or any person, appointed as a sub-underwriter or sub-placing agent pursuant to this Agreement by the Company to recover any damage,
cost, charge or expense which the Company may suffer or incur by reason of or arising from the carrying out by the Placing Agent of the work to be done by it pursuant hereto or the performance of its obligations hereunder or otherwise in connection
with the Placing (except for any loss or damage arising out of any gross negligence, wilful default, non-compliance with its obligations under this Agreement or fraud on the part of the Placing Agent). 

  

	7.3	The foregoing provisions of this Clause 7 shall remain in full force and effect notwithstanding completion of the Placing. 

  

	8.	PLACING ANNOUNCEMENT, ADVERTISEMENT AND CONFIDENTIALITY 

  

	8.1	The Company shall cause the Placing Announcement in the form agreed by it and the Placing Agent and initialled by them or on their behalf, subject to such modifications as they may
agree to be published in English and in Chinese on the first Business Day after the date of this Agreement, and shall cause a similar announcement to be filed with the SEC and the NYSE. Subject only thereto, the Company and its Subsidiaries shall
save as required by law or relevant requirements of the Stock Exchange, NYSE or the Shanghai Stock Exchange, keep the contents of this Agreement confidential and shall not make any public announcement or communication regarding the Placing or
concerning the Company or any of its Subsidiaries which is material in relation to the Placing at any time before completion thereof without prior written approval from the Placing Agent (which consent not to be unreasonably withheld or delayed).
Thereafter, no such announcement or communication shall be made by the Company or the Placing Agent for the period of one week after the Completion Date without the party in question consulting the other party and taking into account that
party’s reasonable request in relation to content, timing and manner of the making thereof. 

  

	9.	RESTRICTIONS ON DISPOSAL OF SHARES AND RIGHT OF FIRST REFUSAL 

  

	9.1	The Company undertakes to the Placing Agent that (except for (i) the allotment and issue of the Placing Shares pursuant to this Agreement and (ii) any H Shares or other securities
or rights issued or granted to shareholders by way of bonus or under any scrip dividend or similar arrangement providing for the allotment of shares in lieu of the whole or part of a dividend on shares of the Company in accordance with its Articles
of Association or on the exercise of rights existing at the date of this Agreement) for the period of three months from Completion Date it will not (otherwise than pursuant to the Over-allotment Option), allot or issue, or agree to allot or issue H
Shares or other securities of the Company or grant or agree to grant any options, warrants or other rights to subscribe for or convertible or exchangeable into H Shares or other securities of the Company or repurchase H Shares or other securities of
the Company (either conditionally or unconditionally, or directly or indirectly, or otherwise) or announce any intention to do so during the three months immediately following the Completion Date unless the prior written consent of the Placing Agent
have been obtained (such consent not to be unreasonably withheld or delayed). 

  

 11 

	10.	FURTHER ASSURANCE 

  

	10.1	The Company shall execute and perform (and procure that there are executed and performed) such further documents and acts as the Placing Agent may reasonably require to give effect
to the provisions of this Agreement and, in particular, to vest the beneficial and registered ownership of the Placing Shares in the Placees, and to give effect to the provisions of this Agreement. 

  

	10.2	The Company undertakes to the Placing Agent to take all action necessary to procure that the Placees are registered as shareholders, and that they are duly issued with share
certificates (if requested by the Placees and/or the Placing Agent), in respect of the Placing Shares as soon as reasonably practicable after Completion. 

  

	10.3	The Company shall not, and shall procure that no member of the Group shall at any time prior to or in the Completion Date do or omit to do anything which may cause any of the
representations and warranties made by it and set out in this Agreement to be untrue or misleading in any material respect. 

  

	11.	TERMINATION 

  

	11.1	Events 

 Notwithstanding any other provision of this
Agreement, if at any time on or prior to 9:30 a.m. on the Completion Date: 
  

	(a)	there develops, occurs or comes into effect: 

  

	 	(i)	any event, development or change (whether or not local, national or international or forming part of a series of events, developments or changes occurring or continuing before, on
and/or after the date hereof), including an event or change in relation to or a development of an existing state of affairs of a political, military, industrial, financial, economic, fiscal, regulatory or other nature, whether or not ejusdem generis
with any of the foregoing, resulting in an adverse change in, or which might be expected to result in a material adverse change in, political, economic, fiscal, financial, regulatory or stock market conditions; 

  

	 	(ii)	the imposition of any moratorium, suspension or material restriction on trading in securities generally on the Stock Exchange due to exceptional financial circumstances or otherwise

  

	 	(iii)	any material adverse change in conditions of local, national or international securities markets 

  

 12 

	 	(iv)	any new law or regulation or material change in existing laws or regulations or any change in the interpretation or application thereof by any court or other competent authority in
Hong Kong or any other jurisdiction relevant to the Group; 

  

	 	(v)	a material change or development involving a prospective change of taxation or exchange control (or the implementation of exchange control) in Hong Kong or elsewhere; or

  

	 	(vi)	the instigation of any litigation or claim of material importance by any third party against any member of the Group, and which, in the opinion of the Placing Agent after such
consultation with the Company as is reasonably feasible in the circumstances is or is likely to be materially adverse to the Group or would materially prejudice the success of the Placing; or 

  

	 	(vii)	any event, a series of events beyond the reasonable control of the Placing Agent (including acts of government, strikes, lock-outs, fire, flooding, acts of God, outbreak of
diseases); or 

  

	(b)	it comes to the notice of the Placing Agent that any of the representations, warranties or undertakings of the Company contained in this Agreement is untrue or inaccurate, or has
been breached or not complied with in any respect considered by the Placing Agent to be material or any event occurs or any matter arises on or after the date hereof and prior to the Completion Date which if it had occurred or arisen before the date
hereof would have rendered any of the representations and warranties untrue or incorrect in any material respect or there has been a material breach by the Company of any other provision of this Agreement; or 

  

	(c)	it comes to the notice of the Placing Agent that there has been any change in the business or financial or trading position of the Group considered by the Placing Agent after such
consultation with the Company as is reasonably feasible in the circumstances to be material and adverse then and in any such case, the Placing Agent may by written notice to the Company terminate this Agreement whereupon clause 11.2 shall apply.

  

	11.2	Effect of Termination 

 If this Agreement terminates
or is terminated in accordance with its terms, then the provisions of this Agreement shall (save for Clauses 5, 6, 7 and 8) cease to have any force or effect and no party hereto shall have any claim against any other party hereto, but without
prejudice to the then accrued rights and obligations of the parties in respect of any antecedent breaches of any obligations under this Agreement and to the continued application of all provisions hereof relating to the interpretation or enforcement
of such provisions. 
  

	12.	OVER-ALLOTMENT OPTION 

  

	12.1	The Company hereby grants the Over-allotment Option to the Placing Agent exercisable at any time during the period commencing from the date of this 

  

 13 

 Agreement and ending at 4:30 p.m. of the 3rd Business Day after the date of this Agreement (“Over-allotment Option Period”) to require the Company to issue the Over-allotment Option Shares in
such numbers and to such persons as the Placing Agent shall in its absolute discretion direct, at the Placing Price per Over-allotment Option Share. 
  

	12.2	The Over-allotment Option will be exercisable in whole or in part and from time to time, during the Over-allotment Option Period for the purposes of: 

  

	 	(a)	covering over-subscriptions in connection with the Placing; and/or 

  

	 	(b)	covering over-allocations which may be made in connection with the Placing. 

 The Over-allotment Option shall be exercisable by written notice served by the Placing Agent on the Company at any time during the Over-allotment Option Period setting out the number of the Shares as to which the
Placing Agent is then exercising the Over-allotment Option. Upon the exercise of the Over-allotment Option, the Placing Agent shall be obliged to procure subscribers for, or failing which itself to subscribe as principal, such number of
Over-allotment Option Shares specified in the written notice above. Payment and delivery shall be simultaneous and time and date of payment and delivery shall be at the same time as the Completion of the Placing. 
  

	12.3	The Company acknowledges and agrees that the amount payable by the Placing Agent to the Company with respect to the Over-allotment Option Shares in respect of which the
Over-allotment Option has been exercised by the Placing Agent shall be the aggregate Placing Price for such Over-allotment Option Shares less a placing commission in HK dollars of 2% of the Over-Allotment Placing Proceeds (out of which the Placing
Agent will pay any placing commissions payable to Sub-Agents). The Company shall pay the relevant brokerage, and if required by the Stock Exchange, the SFC Transaction levy, Stock Exchange trading fee and SFC investor compensation levy for such
Over-allotment Option Shares and such out-of-pocket and other expenses as may be reasonably incurred by the Placing Agent in relation to the exercise of the Over-allotment Option. Such amounts may be deducted by the Placing Agent from the
Over-Allotment Placing Proceeds prior to payment to the Company. 

  

	12.4	On and subject to the terms of this Agreement, the Company hereby undertakes that it will after receipt of the notice referred to in Clause 12.2 above from the Placing Agent duly
allot and issue such number of Over-allotment Option Shares as set out in the notice to such person(s) as the Placing Agent may request in such notice. 

  

	13.	GENERAL 

  

	13.1	Variation 

 Any variation to this Agreement shall be
binding only if recorded in a document signed by each of the parties hereto. 
  

 14 

	13.2	Time of Essence 

 Any time, date or period mentioned
in this Agreement may be extended by mutual agreement between the Company and the Placing Agent but as regards any time, date or period originally fixed or any date or period so extended as aforesaid, time shall be of the essence of this Agreement.

  

	13.3	Waiver and Indulgence 

 The rights and remedies
provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law and shall survive and not be affected by completion of the Placing or the allotment of the Over-allotment Option Shares pursuant to the exercise of
the Over-allotment Option. No failure by any party to exercise, and no delay on its part in exercising, any right power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any right power or remedy or prejudice or affect any right against any person under the same liability whether joint, several or otherwise. Without limiting the foregoing, no waiver by any party of any
breach of any provision hereof shall be deemed to be a waiver of any subsequent breach of that or any other provision hereof. 
  

	13.4	Agreement Binding and Assignment 

 This Agreement
shall be binding on and enure for the benefit of each party’s respective successors and permitted assigns. None of the parties may assign or transfer any of their rights or obligations under this Agreement, save that the Placing Agent may
assign the benefit of the representations warranties and undertakings contained herein (in whole or in part) to the Indemnified Parties or the Placees and their respective successors (or any one or more of them). 
  

	13.5	Counterparts 

 This Agreement may be executed in any
number of counterparts, and by the Parties on separate counterparts, but shall not be effective until each party has executed at least one counterpart. 
  

 15 

	14.	NOTICES 

  

	14.1	Addresses 

 All notices delivered hereunder
shall be in writing in the English Language or the Chinese Language and shall be communicated to the address and/or to the facsimile number of the party specified herein, or to such other address and/or facsimile number as the relevant party shall
have notified to the other parties hereto in accordance with the terms hereof: 
 If to the Company, to: 
  

					
	Address	  	:	    	40 Fushan Road, Zoucheng, Shandong Province 273500, PRC
	Fax Number	  	:	    	(537)538 3311
	Attention	  	:	    	Mr. Wu Yuxiang/ Mr. Chen Guangshui

 If to the Placing Agent, to: 
 BNP Paribas Peregrine Capital Limited: 
  

					
	Address	  	:	    	36/F Asia Pacific Finance Tower, 3 Garden Road, Central, Hong Kong
	Fax Number	  	:	    	2845-3664
	Attention	  	:	    	Gilbert Wong

  

	14.2	Service 

 Any such notice shall be served personally
by hand or by post or by facsimile. Any notice shall be deemed to have been given, if served personally by hand during normal business hours, when delivered and if sent by post, 3 days after posting or 7 days after posting in the case of air mail
and if sent by facsimile, upon receipt of confirmation of transmission. Any notice received on a day which is not a Business Day shall be deemed to be received on the next Business Day. 
  

	15.	GOVERNING LAW AND JURISDICTION 

 This
Agreement shall be governed by and construed in accordance with the laws of Hong Kong and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of the Hong Kong courts in connection herewith. 
 IN WITNESS whereof the Parties hereto have caused this Agreement to be duly executed on the date first above written. 
  

 16 

 SCHEDULE 1 
 WARRANTIES 
  

	1.	The Company is duly incorporated and is validly existing under the laws of the place of its incorporation with power to conduct its business in the manner presently conducted and
the information contained in the recitals to this Agreement is true and accurate. 

  

	2.	The Company has the full right, power and authority to enter into and perform its obligations under this Agreement and to allot and issue the Placing Shares and all necessary
authorisations, approvals, consents and licences relating to the same have been unconditionally obtained and are in full force and effect, and this Agreement is duly authorised and when executed is a legal, valid and binding agreement of the
Company, enforceable in accordance with its terms. 

  

	3.	The execution and delivery of, and the performance by the Company of its obligations under, this Agreement and the creation, allotment and issue of the Placing Shares have been duly
authorised and do not and will not: 

  

	 	(a)	result in a violation or breach of and will comply with the provisions of the articles of association or the constitutive documents of the Company and all relevant applicable
provisions of the Companies Ordinance, the Listing Rules, the Hong Kong Code on Takeovers and Mergers and all other applicable laws, rules and regulations; or 

  

	 	(b)	result in a breach of, or constitute a default under, or result in the creation or imposition of any lien, charge, encumbrance or claim pursuant to, any instrument, agreement or
arrangement to which any member of the Group is a party or by which any member of the Group or any of their respective assets are bound; or 

  

	 	(c)	result in a breach of any laws to which any member of the Group is subject or by which any member of the Group or any of their respective assets are bound; or

  

	 	(d)	require any sanction or consent of the Company’s shareholders which has not been obtained as at the date hereof. 

  

	4.	All approvals, sanctions, consents, permissions and authorisations from any relevant governmental or other authority or any other person required for the creation, allotment and
issue of the Placing Shares have been or will (prior to the commencement of the Placing) be validly obtained. 

  

	5.	All of the Placing Shares will, when allotted and issued, be properly allotted and issued and will: 

  

	 	(a)	be duly and validly authorised and issued and will be fully paid up; 

  

 17 

	 	(b)	have attached to them the rights and benefits specified in the articles of association of the Company and in particular, with all rights attaching thereto as at the Completion Date,
including the right to dividend or distribution declared, made or paid on or after the Completion Date; 

  

	 	(c)	rank pari passu in all respects with the H Shares in issue as at the date of this Agreement; 

  

	 	(d)	not be subject to any pre-emptive or other similar rights in relation to the transfer thereof; 

  

	 	(e)	be free from any mortgage, charge, pledge, lien, option, third party right or interest or other encumbrances, security interests or claims of any nature whatsoever; and

  

	 	(f)	be evidenced by share certificates which will be in a form which complies with all applicable laws and which certificates will constitute good evidence of title in respect of the
Placing Shares. 

  

	6.	All of the existing issued H Shares are listed on the Stock Exchange and will continue to be so listed at completion of the Placing and the allotment of the Over-allotment Option
Shares pursuant to the exercise of the Over-allotment Option and there are no circumstances whereby such listing may be suspended (other than suspension resulting from any delay in clearance of the Placing Announcement in connection with the Placing
by the Stock Exchange), cancelled or revoked. The Company is not in breach of any rules, regulations or requirements of the Stock Exchange, the SFC, the NYSE, the SEC or any other regulatory authority or governmental agency.

  

	7.	The Company is not aware of any circumstances whereby the listing of the Placing Shares will be suspended (other than suspension resulting from any delay in clearance of the Placing
Announcement in connection with the Placing by the Stock Exchange), cancelled or revoked. 

  

	8.	The Company will promptly provide the Placing Agent, at its reasonable request, with all such information known to it or which on reasonable enquiry ought to be known to it relating
to the Group as may be required by the Placing Agent in connection with the Placing for the purpose of complying with any applicable law, regulation or direction (including the establishment of any defense to any action under any of the same,
whether relating to due diligence or otherwise) or any requirement of the Stock Exchange, the NYSE, the SFC, the SEC or any other applicable regulatory body. 

  

	9.	The Company shall not, and shall procure that no connected person (as defined in the Listing Rules) of the Company shall, subscribe or agree to subscribe any of the Placing Shares.

  

	10.	All information supplied or disclosed by or on behalf of the Company or any director of the Company to the Placing Agent or its respective legal and other professional advisers for
the purposes of the Placing is true and accurate in all respects and not misleading. 

  

 18 

	11.	The Company does not have actual knowledge of any matter: - 

  

	 	(a)	which has not been disclosed to the public; 

  

	 	(b)	which is not otherwise in the public domain; 

  

	 	(c)	of which the Placing Agent is unaware; and 

  

	 	(d)	which has arisen otherwise than in the ordinary course of the business of the Group (or any member thereof) 

 and which is material in the context of the Placing and could, reasonably be regarded as making it inadvisable or inexpedient to proceed with the Placing.

  

	12.	The recitals of this Agreement and all facts and information contained in the Placing Announcement to be published in accordance with Clause 8 concerning the Company are and will at
the date of issue thereof be true, correct and complete in all respects and not misleading in the form and context in which they appear. 

  

	13.	Save for this Agreement, there are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against the Company or any
Placing Agent for any brokerage, commission, finder’s fee or other like payment in connection with the Placing. 

  

	14.	The Accounts:- 

  

	 	(a)	have been prepared in accordance with all applicable laws and regulations and on a basis consistent with previous audited accounts of the Group in respect of the immediately
preceding financial years and in accordance with generally accepted accountancy principles, standards and practices in Hong Kong as at the date of the Accounts; 

  

	 	(b)	give a true and fair view of the state of affairs of the Group as at, and its results for the financial period ended on, 31 December 2003 and correctly set out the issued share
capital, assets, liabilities and reserves of the Group as at such date; and 

  

	 	(c)	make full provision for all actual liabilities (including without limitation in respect of taxation) and contain proper provision for or notes of all contingent and prospective
liabilities (including without limitation in respect of taxation) and capital commitments. 

  

	15.	Since the date of the Accounts: 

  

	 	(a)	each member of the Group has carried on its business in the ordinary and usual course so as to maintain it as a going concern and in the same manner as 

  

 19 

 previously carried on and since such date has not entered into any material contract, transaction or
commitment outside the ordinary course of business or of an unusual or onerous nature; 
  

	 	(b)	there has been no material adverse change in the condition, financial, trading or otherwise of the business or prospects of the Group taken as a whole nor has there been any
development involving a prospective material adverse change in or affecting the general affairs, management, financial position, prospects, shareholders’ equity or results of operations of the Group taken as a whole; 

 

	 	(c)	each member of the Group has continued to pay its creditors in the ordinary course of business; 

  

	 	(d)	each member of the Group has not to any material extent acquired, sold, transferred or otherwise disposed of any assets of whatsoever nature or cancelled, waived, released or
discounted in whole or in part any debts or claims, save in transactions involving only members of the Group; 

  

	 	(e)	each member of the Group has not taken on or become subject to any material contingent liability, save in respect of obligations of other members of the Group.

  

	16.	There are no circumstances relating to the Group or its financial or trading position or prospects which are not generally known but, if they were known to a potential acquirer of
the Placing Shares might affect the decision of such person to acquire the Placing Shares on the terms of this Agreement or might affect the willingness of the Placing Agent 

  

	17.	No event or circumstance has occurred which constitutes or could constitute an infringement or default, or could result in the acceleration of any obligation, under any agreement,
undertaking, instrument or arrangement to which any member of the Group is a party or by which any member of the Group or any of its properties, revenues and assets are bound, and no member of the Group has received notice to repay under any
agreement relating to any borrowing or indebtedness in the nature of borrowing on the part of any member of the Group which is repayable on demand, or to perform any guarantee or indemnity given by any of them in relation to the indebtedness or
obligations of any person, and to the knowledge of the Company there are no circumstances which might lead to any of the aforesaid events, matters or circumstances arising or occurring. 

  

	18.	No member of the Group is in breach of or in default (nor has any event occurred which, with the giving of notice or the lapse of time or both would result in a default) under any
law, agreement, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease, licence, certificate or authorisation or other agreement or instrument to which it is a party or which is binding upon or affects it or
any of its assets or revenues or the operation of its business, or is in breach or violation of its business licence, memorandum and articles of association, bye-laws or other constitutive documents, to an extent which is material in the context of
the Group as a whole. 

  

 20 

	19.	No member of the Group has taken any action, nor have any other steps been taken, or any legal proceedings been started or threatened, by any person against any member of the Group,
or for its winding up or dissolution, or for it to enter into any arrangement or composition for the benefit of creditors, or for the appointment of a receiver, trustee, administrator or similar officer of any of them, or any of their respective
properties, revenues or assets, and each member of the Group can pay its debts as and when they fall due for payment. 

  

	20.	No member of the Group is engaged or involved directly or indirectly in any litigation, arbitration, governmental or administrative proceeding or investigation, claim or dispute
which individually or collectively is or may have a material adverse effect on the Company or any other member of the Group or on the financial position of the Group taken as a whole or is or may otherwise be of material importance in the context of
the Placing and so far as the Company is aware, having made all due and reasonable enquiries, no such litigation, arbitration, proceeding, investigation, claim or dispute is threatened or pending nor are there any circumstances which are likely to
give rise to any such litigation, arbitration, governmental or administrative proceeding, investigation, claim or dispute. 

  

	21.	All applicable returns, reports or filings which ought to have been made by or in respect of each member of the Group for taxation purposes have been made and all such returns are
up to date, correct and on a proper basis and are not the subject of any dispute with the relevant revenue or other appropriate authorities and to the knowledge of the Company, there are no present circumstances likely to give rise to any such
dispute. 

  

	22.	The Company is not in breach in any material respect in the context of the Placing of any rules, regulations or requirements of the Stock Exchange or any applicable law, decree,
judgement, legislation, order, regulation, statute, ordinance, treaty or other legislative measure; 

  

	23.	Until the expiration of 40 days after the Completion Date, the Company will not deposit any of its securities with the depositary administering the Company’s American
Depositary Receipts program. 

  

	24.	The Company will be responsible for any Stock Exchange trading fee, SFC transaction levy and SFC investor compensation levy payable (insofar as they are payable by the Company
pursuant to the Listing Rules) by the Company and will indemnify the Placing Agent against any liability, claim, cost, charge or expense in respect thereof or in connection therewith; 

  

	25.	Otherwise than in the ordinary course of business, none of the Company or its Subsidiaries has entered into a material contract or commitment of an unusual or onerous nature which,
in the context of the Placing might be material for disclosure and each such company has carried on its business in the ordinary and usual course; 

  

 21 

	26.	Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act) nor any person acting on its or their behalf (1) has, directly or
indirectly, made offers or sales of any security, or solicited offers to buy, or will do so, or otherwise negotiated in respect of, any security, under circumstances that would require the registration of the Placing Shares under the Securities Act
or (2) has engaged, or will engage, in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Placing Shares in the United States;

  

	27.	Neither the Company nor any of its affiliates (as defined in Rule 405 under the Securities Act) nor any person acting on its or their behalf (other than the Placing Agent or any of
its affiliates as to which no representation is made) has engaged, or will engage, in any directed selling efforts (as defined in Regulation S) with respect to the Placing Shares; 

  

	28.	Neither the Company nor any of its affiliates (as defined in rule 501(b) of Regulation D under the Securities Act) nor any person acting on its or their behalf has taken or will
take, directly or indirectly, any action designed to cause or result in, or that has constituted or which might reasonably be expected to cause, or to result in, the stabilisation in violation of applicable laws or manipulation of the price of any
securities of the Company to facilitate the sale or resale of the Placing Shares; 

  

	29.	There is no substantial US market interest (as defined in Rule 902(j) of Regulation S under the Securities Act) in the Company’s securities; 

  

	30.	The Company is a foreign private issuer (as defined in Rule 405 under the Securities Act); 

  

	31.	The Placing Shares are not of the same class (within the meaning of Rule 144A under the Securities Act) as securities listed on a national securities exchange registered under
section 6 of the Exchange Act or quoted in a United States automated inter-dealer quotation system; 

  

	32.	The Company is not, and as a result of the offer and sale of the Placing Shares will not, be a foreign personal holding company or a passive foreign investment company for the
purposes of the United States Internal Revenue Code of 1986, as amended; 

  

	33.	Within the six months preceding the date of this Agreement, neither the Company nor any person acting on its behalf has offered or sold to any person any H Shares or any securities
of the Company of the same or a similar class as the Placing Shares. The Company will take reasonable precautions designed to ensure that any offer or sale, direct or indirect, in the United States or to any US person (as defined in Rule 902 under
the Securities Act) of any H Shares or any substantially similar securities issued by the Company, within six months subsequent to the date on which the distribution of the Placing Shares has been completed, is made under restrictions and other
circumstances reasonably designed to ensure that any such offer or sale will not affect the status of the sale of the Placing Shares in the United States and to US persons contemplated by this Agreement as transactions exempt from the registration
provisions of the Securities Act; and 

  

 22 

	34.	The Company is not, and as a result of the offer and sale of the Placing Shares will not, be an “investment company” registered or required to be registered under the US
Investment Company Act of 1940, as amended. 

  

 23 

 SCHEDULE 2 
 SELLING RESTRICTIONS 
 The Placing Agent confirms and undertakes to the Company that:-

  

	1.	General :- The Placing Agent has not and will not, directly or indirectly, offer, sell or deliver any Placing Shares or distribute or publish any documents in relation to the
Placing (including without limitation to the foregoing, any prospectus, form of application, offering circular, advertisement or other offering material or any report or other document intended to invite or lead to offers or agreements being made to
subscribe the Placing Shares) or make any representations or statements in relation to the Placing) in any country or jurisdiction except in accordance with the provisions of this Agreement under circumstances that will not result in the breach of
any applicable laws and regulations or give rise to a requirement for any prospectus to be published or filed or any registration or qualification to be made or obtained, and all offers, sales and deliveries of the Placing Shares will be made on
such terms. 

  

	2.	Hong Kong :- The Placing Agent represents and agrees that (i) it has not offered or sold and will not offer or sell in Hong Kong, by means of any document, any Placing Shares
other than to persons whose ordinary business is to buy or sell shares or debentures, whether as personal or as agent, or otherwise in circumstances which do not constitute an offer to the public within the meaning of the Companies Ordinance and
(ii) the Placing Agent has not issued or caused to be issued and will not issue any documents in relation to the Placing in Hong Kong (unless permitted to do so under the securities laws of Hong Kong) other than with respect to the Placing Shares
intended to be disposed of to persons outside Hong Kong or only to “professional investors” which the meaning of the Securities and Futures Ordinance and any rules made thereunder. 

  

	3.	Terms used in this Section shall have the meanings ascribed to them in Regulation S. 

 The Placing Shares have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, US persons except pursuant to an
exemption from the registration requirements of the Securities Act. The Placing Agent further confirms and undertakes that it has offered and sold the Placing Shares and agrees that it will offer to sell the Placing Shares, only (i) outside the
United States, in offshore transactions as defined in, and in accordance with, Rule 903 of Regulation S or (ii) within the United States, to institutional “accredited investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act that have completed a purchaser’s letter in the form set forth in Schedule 3. Neither the Placing Agent nor its affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act) nor any person
acting on its or their behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Placing Shares in the
United States. All offers and sales of the Placing Shares shall only be made under restrictions and other circumstances designed to preclude a distribution that would otherwise require registration of the Placing Shares under the Securities Act and
in all 
  

 24 

 cases in compliance with the Securities Act, the U.S. Securities Exchange Act of 1934 and applicable
United States laws. The Placing Agent will not deposit the Placing Shares, or cause Placing Shares to be deposited into any unrestricted depositary receipt facility established or maintained by a depositary bank unless and until such time as the
Placing Shares are no longer “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act. The Placing Agent agrees that, at or prior to the Completion Date, it will have sent to each distributor, dealer or person
receiving a selling concession, fee or other remuneration that purchases Placing Shares from it during the distribution compliance period a confirmation or notice to substantially the following effect: 
 “The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may
not be offered, sold or resold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering and the
closing date of the offering, except in either case (1) outside the United States in offshore transactions in accordance with Regulation S under the Securities Act or (2) within the United States in accordance with Rule 144 under the Securities Act
(if available). In such case, such offer or sale must be made in accordance with any applicable securities laws of any state of the United States. Terms used above have the meanings given to them by Regulation S under the Securities Act.”

  

	4.	United Kingdom :- The Placing Agent has not offered or sold and will not offer any Placing Shares in the United Kingdom except to persons whose ordinary activities
involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in the United
Kingdom within the meaning of the Public Offers of Securities Regulations 1995. Each Placing Agent has not communicated or caused to be communicated any invitation or inducement to engage in investment activity (using the meaning of Section 21 of
the Financial Services Act 2000) received by it in connection with the issue or sale of any Placing Shares except in circumstances in which Section 21(1) of the Financial securities and Markets Act 2000 does not apply to the Company. Each Placing
Agent has complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000 with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving the United Kingdom. Each Placing
Agent has issued or passed on and will issue or pass on in the United Kingdom any publication or document received by it in connection with the Placing only to and are directed at persons who have professional experience in matters relating to
investment falling within Article 19(1) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) or high net worth entities, and other persons to whom it may otherwise lawfully be communicated falling
within Article 49(1) of the Order (all such persons together being referred to as “relevant persons”). The Placing Shares are available only to, and any institutions, offer or agreement to subscribe purchase or otherwise acquire such will
be engaged in only with, relevant persons who is a person to whom the publication or document may otherwise lawfully be issued or passed on. 

  

 25 

 SCHEDULE 3 
 PURCHASER’S LETTER 
  

			
	 BNP Paribas Peregrine Capital Limited, 36/F.,
 Asia
Pacific Finance Tower
 Citibank Plaza
 3 Garden Road

Central, Hong Kong
	 	 Yanzhou Coal Mining Company Limited
 40 Fushan
Road
 Zoucheng, Shandong Province 273500
 People’s Republic
of China

 Ladies and Gentlemen: 
 Re: Yanzhou Coal Mining Company Limited 
 We are delivering this letter in connection with the
placing of up to 204,000,000 newly issued overseas listed foreign shares (the “Placing Shares”) of the Yanzhou Coal Mining Company Limited, a limited company incorporated in the People’s Republic of China as a joint stock limited
company in accordance with the provisions set out in the PRC Company Law (the “Company”). 
 We hereby confirm that: 
  

	 	(i)	we are an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the United States Securities Act of 1933, as
amended (the “Securities Act”), or an entity in which all of the equity owners are accredited investors within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act (an “Institutional Accredited Investor”);

  

	 	(ii)	(A) any purchase of the Placing Shares by us will be for our own account or for the account of one or more other Institutional Accredited Investors or as fiduciary for the account
of one or more trusts, each of which is an “accredited investor” within the meaning of Rule 501(a)(7) of Regulation D under the Securities Act and for each of which we exercise sole investment discretion; if we are purchasing for the
accounts of other Institutional Accredited Investors, (1) we reasonably believe that each such Institutional Accredited Investor can bear the economic risk of its investment in the Placing Shares and (2) we have all necessary authority to make the
foregoing representations on behalf of, and to act for, each such Institutional Accredited Investor, or (B) we are a “Bank” within the meaning of Section 3(a)(2) of the Securities Act or a “Savings and loan association” or other
institution described in Section 3(a)(5)(A) of the Securities Act that is acquiring the Placing Shares as fiduciary for the account of one or more institutions for which we exercise sole investment discretion; 

  

	 	(iii)	we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of purchasing the Placing Shares, and if we are
purchasing the Placing Shares for our own account, we can bear the economic risk of our investment in the Placing Shares; 

  

	 	(iv)	we are not acquiring the Placing Shares with a view to distribution thereof or with any present intention of offering or selling any of the Placing Shares; and

  

	 	(v)	we acknowledge that we have had access to such financial and other information and have been afforded the opportunity to ask such questions of representatives of the Company and
received answers thereto, as we deem necessary in connection with our decision to purchase the Placing Shares; and we are not relying on any information other than the results of our independent investigation of the Company.

  

 26 

 We understand that the Placing Shares are being offered in a transaction not involving any public
offering within the United States within the meaning of the Securities Act and that the Placing Shares have not been and will not be registered under the Securities Act, and we agree, on our own behalf and on behalf of each account for which we
acquire any Placing Shares, that, if in the future we decide to resell, pledge or otherwise transfer such Placing Shares, such Placing Shares may be offered, resold, pledged or otherwise transferred only (A) by an initial investor (i) in an offshore
transaction meeting the requirements of Rule 903 or 904 of Regulation S under the Securities Act or (ii) pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available) (resales described in
subclauses (i) and (ii) of this clause (A) are referred to herein as the “Safe Harbor Resales”), or (B) by a subsequent investor, in a Safe Harbor Resale or pursuant to any other available exemption from the registration requirements under
the Securities Act (provided that Rule 144A is not an available exemption under the Securities Act and that as a condition to the registration of transfer of any Placing Shares otherwise than in a Safe Harbor Resale, the Company may require delivery
of any documents or other evidence (including, but not limited to, an opinion of counsel) that it, in its sole discretion, may deem necessary or appropriate to evidence compliance with such exemption), or (C) pursuant to an effective registration
statement under the Securities Act, and in each of such cases in accordance with any applicable securities laws of any state of the United States. We will notify any purchaser of Placing Shares from us of the foregoing resale restrictions, if then
applicable; and we acknowledge that no representation has been made to us as to the availability of the exemption provided by Rule 144 under the Securities Act for resales of the Placing Shares. 
 We acknowledge that you will rely upon our confirmation, acknowledgments, representations and agreements set forth herein, and we agree to notify you
promptly in writing if any of our representations or warranties herein ceases to be accurate and complete. We hereby agree that this letter or a copy hereof may be produced to any interested party in any administrative or legal proceeding or
official enquiry with respect to the matters covered hereby. 
 We hereby certify that all necessary action has been taken to authorise the
purchase of the Placing Shares and the execution of this letter. 
 This letter shall be governed by, and construed in accordance with, the
laws of the State of New York. 
  

	
	Yours faithfully,
	For and on behalf of
	
	  

	(Company name)
	
	  

	By:
	Title:
	Address:
	Date:

  

 27 

 SIGNATURE PAGE 
  

							
	SIGNED by Wu Yuxiang	  	)	  	
		  	)	  	
	for and on behalf of	  	)	  	(Signed) Wu Yuxing
	Yanzhou Coal Mining Company Limited        	  	)	  	
	in the presence of:	  	)	  	
				
	Witness’ signature	 	:	  		  	(Signed) P.H. Chik
				
	Witness’ name	 	:	  		  	CHIK PUI HONG
				
	Witness’ occupation	 	:	  		  	SOLICITOR
				
	Witness’ address	 	:	  		  	14/F., HUTCHISON HSE
		 		  		  	10 HARCOURT ROAD
		 		  		  	CENTRAL
		 		  		  	HONG KONG
			
	SIGNED by Gilbert Wong	  	)	  	
		  	)	  	(Signed) Gilbert Fong
	for and on behalf of	  	)	  	
	BNP Paribas Peregrine Capital Limited	  	)	  	
	in the presence of:	  	)	  	
				
	Witness’ signature	 	:	  		  	(Signed) Zhu Dong
				
	Witness’ name	 	:	  		  	Zhu Dong
				
	Witness’ occupation	 	:	  		  	
				
	Witness’ address	 	:	  		  	 Unit 1418, South Tower, Beijing Kerry Center,
 Guang Hua
Road, Chuo Yang District, Beijing, PRC

  

 28Southland Colliery Asset Sale Agreement

 Exhibit 4.2 
 SOUTHLAND COAL PTY LTD 
 (RECEIVERS AND MANAGERS APPOINTED) 
 (LIQUIDATORS APPOINTED) 
 ACN 000 077 225

 (“Vendor”) 
 AND

 ANDREW JOHN LOVE 
 (“Receiver”) 
 AND 
 YANZHOU COAL MINING COMPANY LIMITED 
 ASSET SALE AGREEMENT 
 HENRY DAVIS YORK 
 Lawyers 
 44 Martin Place 
 Sydney NSW 2000 
 DX: 173 Sydney 
 TeL (02)9947 6000 
 Fax: (02) 9947 6999 
 www.hdy.com.au 

Ref: RJT/SARI3 101686 

 TABLES OF CONTENTS 
  

							
	 1.
	 		  	DEFINITIONS AND INTERPRETATIONS	  	1
				
	 2.
	 		  	INTERDEPENDENT CONTRACTS AND CONDITIONS PRECEDENT	  	8
				
	 3.
	 		  	BUSINESS ASSETS TO BE SOLD	  	13
				
	 4.
	 		  	PURCHASER	  	14
				
	 5.
	 		  	PURCHASE PRICE AND PAYMENT	  	14
				
	 6.
	 		  	GST	  	17
				
	 7.
	 		  	VALUATION OF PLANT AND EQUIPMENT	  	18
				
	 8.
	 		  	COMPLETION	  	19
				
	 9.
	 		  	PAYMENTS IN ADVANCE OR ARREARS	  	20
				
	 10.
	 		  	ACKNOWLEDGMENTS BY PURCHASER	  	22
				
	 11.
	 		  	COMPUTER LICENCES, PROPERTY LEASES, PERMITS TO OPERATE AND CONTRACTS	  	22
				
	 12.
	 		  	MINING TENEMENTS AND ENVIRONMENTAL PROTECTION LICENCES	  	24
				
	 13.
	 		  	TITLE & RISK	  	25
				
	 14.
	 		  	OBLIGATIONS BEFORE AND AFTER COMPLETION	  	26
				
	 15.
	 		  	WARRANTIES	  	27
				
	 16.
	 		  	LIMITATION OF LIABILITY	  	28
				
	 17.
	 		  	RECEIVERS ARE NOT LIABLE	  	30
				
	 18.
	 		  	TERMINATION	  	30
				
	 19.
	 		  	ANNOUNCEMENTS	  	32
				
	 20.
	 		  	DISPUTE RESOLUTION	  	32
				
	 21.
	 		  	DUTIES, COSTS AND EXPENSES	  	34
				
	 22.
	 		  	GENERAL	  	34

							
				
	 SCHEDULE 1
	 		  	Warranties	  	39
				
	 SCHEDULE 2
	 		  	Plant & Equipment	  	42
				
	 SCHEDULE 3
	 		  	Freehold Property	  	43
				
	 SCHEDULE 4
	 		  	Mining Tenements	  	44
				
	 SCHEDULE 5
	 		  	Property Leases	  	45
				
	 SCHEDULE 6
	 		  	Encumbrances	  	46
				
	 SCHEDULE 7
	 		  	Contracts	  	47
				
	 SCHEDULE 8
	 		  	Environmental Protection Licences	  	48

					
	 ANNEXURE A
	  	Additional Tenement Area	  	50
			
	 ANNEXURE B
	  	Escrow Deed	  	51
			
	 ANNEXURE C
	  	Conveyor System Test	  	52
			
	 ANNEXURE D
	  	Water Levels Test	  	53
			
	 ANNEXURE E
	  	Continuous Miner Scope of Works	  	56
			
	 ANNEXURE F
	  	Agreed Care and Maintenance Program	  	57

 THIS AGREEMENT is made the 5th day of October 2004 
 PARTIES 
 SOUTHLAND COAL PTY LTD (RECEIVERS AND MANAGERS APPOINTED) (LIQUIDATORS APPOINTED) ACN 000 077 225 of c/-
Ferrier Hodgson, Level 17, 2 Market Street, Sydney NSW 2000 (“Vendor”) 
 AND 
 ANDREW JOHN LOVE of Ferrier Hodgson, Level 17, 2 Market Street, Sydney NSW 2000 (“Receiver”) 
 AND 
 YANZHOU COAL MINING COMPANY LIMITED of 40 Fushan Road,
Zoucheng, Shandong Province, 273500, China (“Yanzhou”) 
 RECITALS 
  

	A.	Pursuant to the terms of the Joint Venture Agreement, the Vendor has the Vendor Interest and Thiess has the Thiess Interest in various assets which together comprise the Business
Assets. 

  

	B.	The Receivers were jointly and severally appointed receivers and managers of the Vendor Interest in the Business Assets on 30 December 2003. 

  

	C.	The Vendor has agreed to deliver and Yanzhou has agreed to buy or to procure that the Yanzhou Nominee buys the Business Assets on the terms set out in this agreement.

 OPERATIVE PART 
  

	1.	DEFINITIONS AND INTERPRETATIONS 

  

	 	1.1	Definitions 

 The following words have these meanings in
this agreement: 
 “Abadare Reject Disposal Area” means Lot 2/1036300 and Lot 3/1036300. 
 “Additional Payment” means the sum of $4,000,000 payable by the Purchaser in accordance with clause 5.3. 
 “Additional Tenement Area” means the area shown or a substantial part of the area shown on the diagram attached as Annexure A.

  

 1 

 “Agreed Care and Maintenance Program” means the care and maintenance program in respect
of the Business Assets set out in Annexure F. 
 “Area of the No. 1 Shaft” means that part of Lot 3/7 14067 containing the
shaft and associated infrastructure and equipment. 
 “Area of the No. 2 Shaft” means the land on which the No. 2 Shaft is
located, being land covered by Consolidated Coal Lease 782. 
 “Assumed Liabilities” mean statutory liabilities for end of
mine life closure and for remediation costs in respect of the Mining Tenements. 
 “Business” means the coal mining and
processing business carried on at the Mine and includes the Business Assets and also means, where the context requires, any part of the Business. 
 “Business Assets” means the following assets used in the Business: 
  

	 	(a)	the Business Records; 

  

	 	(b)	the Computer Licences 

  

	 	(c)	the Contracts; 

  

	 	(d)	the Environmental Protection Licences 

  

	 	(e)	the Goodwill; 

  

	 	(f)	the Mining Tenements; 

  

	 	(g)	the Permits to Operate; 

  

	 	(h)	the Plant and Equipment; 

  

	 	(i)	the Promotional Material; 

  

	 	(j)	the Property Leases; and 

  

	 	(k)	the Stock 

 but excludes the Freehold Properties which are
the subject of a separate contract between the Vendor and the Purchaser. 
 “Business Day” means a day (excluding a Saturday
or Sunday) on which banks are open for business in Sydney, New South Wales. 
  

 2 

 “Business Records” means to the extent they relate exclusively to the Business and to
the extent they are in the possession or control of the Vendor and Thiess: 
  

	 	(a)	records of the Contracts, the Property Leases, the Computer Licences, the Mining Tenements, the Permits to Operate and the Environmental Protection Licences, including the original
(and where applicable, stamped) versions of all such documents and instruments; 

  

	 	(b)	computer programs, databases and software; 

  

	 	(c)	all geological and geophysical reports and information, mine technical and engineering drawings, plans and data, feasibility studies, reports and analysis (including documents and
records developed by Thiess in respect of the Mine in the course of the Joint Venture Agreement); 

  

	 	(d)	formulas, processes, patterns, product designs, engineering data and other knowhow; 

  

	 	(e)	any other documents and records held in respect of the Business Assets; 

 and for the avoidance of doubt, excludes records of the Receivers and statutory records in relation to the Business Assets. 
 “Claim” means any claim or cause of action including 
  

	 	(a)	in contract; 

  

	 	(b)	in tort (including misrepresentation or negligence); or 

  

	 	(c)	under statute (including the Trade Practices Act, 1974 (Cth) or the Fair Trading Act 1987 (NSW) or similar legislation in other states or territories of Australia),

 in respect of this agreement, the Business or any of the Business Assets. 
 “Commissioner” means the Commissioner of Taxation. 
 “Completion” means completion of the sale and purchase of the Business Assets under clause 8.1. 
 “Completion Payment” means the sum of $16,600,008 payable by the Purchaser in accordance with clause 5.2. 
 “Computer Licences” means the computer and software licences granted in connection with the Business 
  

 3 

 “Condition Precedent” means a condition precedent specified in clause 2.1. 

“Continuous Miner” means the Continuous Miner located at the intersection of 5 cut through and A heading of the SL5 maingate.

 “Contracts” means the contracts and commitments entered into in the ordinary course of conducting the Business including,
but not limited to those contracts listed in Schedule 7. 
 “Department” means the New South Wales Department of Mineral
Resources. 
 “Deposit” means an amount of $2,000,000 payable by the Purchaser under clause 5.1. 
 “Disclosure Material” means the documentation and information in relation to the Business Assets and the Freehold Property contained in
the data room and any other documentation and information in relation to the Business Assets provided to or made available to the Purchaser, the Purchaser’s Solicitors or any other of the Purchaser’s advisers by or on behalf of the Vendor
in writing. 
 “Encumbrance” means any mortgage, charge, pledge, lien, other security interest or encumbrance, but does not
include a lien arising as a matter of law, and including those encumbrances as set out in Schedule 6. 
 “Environmental Protection
Licences” means the licences granted under Chapter 3 of the Environment Act listed in Schedule 8. 
 “Environment
Act” means the Protection of the Environment Operations Act 1997 (New South Wales). 
 “EPA” means the New
South Wales Environment Protection Authority. 
 “Escrow Deed” means the Escrow Deed in the form attached as Annexure B.

 “Excluded Assets” means the following assets used in or arising out of the Business: 
  

	 	(a)	the Longwall Equipment; and 

  

	 	(b)	the Continuous Miner. 

 “Freehold
Property” means the real property listed in Schedule 3. 
 “Goodwill” means the goodwill in respect of the Business
and includes the exclusive right for the Purchaser to represent itself as carrying on the Business as the successor of the Vendor. 
  

 4 

 GST Law means the A New Tax System (Goods and Services Tax) Act 1999 and any other law
which imposes or otherwise deals with the imposition or administration of a goods and services tax in Australia. 
 GST Rate means the
rate of GST under the GST Law. 
 GST, Input Tax Credit, Supply and Tax Invoice have the same meanings as under the GST Law.

 “Joint Venture Agreement” means the Joint Venture Agreement (Southland Colliery Joint Venture) between the Vendor and
Thiess dated 22 May 2001. 
 “Joint Venture Parties” means the Vendor and Thiess collectively. 
 “Liabilities” means any duty, liability (including in respect of any Loss) or obligation affecting the person concerned, however it
arises and whether it is present or future, fixed or unascertained, actual or contingent, other than Assumed Liabilities. 
 “Liquidation Value” means the liquidation value for items of Plant and Equipment obtained by the Vendor from a recognised licensed valuer prior to the date of this agreement. 
 “Longwall Equipment” means any equipment located on the inaccessible side of the permanent seals which are located at the entrances to
the SM longwall area. 
 “Loss” means any loss, Claim, action, judgment, liability, damage, cost (including reasonable legal
costs and disbursements), charge, expense, outgoing, payment, or diminution in value or deficiency of any kind. 
 “Mine”
means the Southland colliery and processing plant operated near Cessnock in the Hunter Valley, New South Wales. 
 “Mining
Act” means the Mining Act 1992 (New South Wales). 
 “Mining Payments” means rent, outgoings, royalties and
other payments payable in connection with the Mining Tenements. 
 “Mining Tenements” means the mining leases listed in
Schedule 4. 
 “Minister” means the New South Wales Minister for Mineral Resources. 
 “Pacific National Contract” means the Agreement to Carry Coal between the Vendor and Pacific National (NSW) Pty Limited dated 19 March
2003. 
  

 5 

 “Permits to Operate” means the licences and permits used in connection with the
Business. 
 “Plant and Equipment” means the plant, equipment, machinery, tools, furniture, fixtures, fittings and motor
vehicles owned by the Business and used in the Business including those items as listed in Schedule 2. 
 “Promotional
Material” means advertising material, sales literature, catalogues, display stands, signs, film, plates, television and print media material and material of a similar nature used in the Business. 
 “Property Leases” means those property leases set out in Schedule 5. “Proposed Completion Date” means 26 November 2004.

 “Purchase Price” means the sum of the following amounts payable by the Purchaser for the Business Assets: 
  

	 	(a)	the Completion Payment; 

  

	 	(b)	the Additional Payment; and 

  

	 	(c)	the Royalty Payments. 

 “Purchaser” means
Yanzhou or if Yanzhou nominates a Yanzhou Nominee under clause 4.1, the Yanzhou Nominee. 
 “Purchaser’s Solicitor”
means Cons Chambers Westgarth, of I Farrer Place, Sydney, NSW, 2000. 
 “Receivers” means Mr Andrew John Love, Mr Peter Ivan
Felix Geroff and Mr Alan Edward Lewis of Ferrier Hodgson. 
 “Related Body Corporate” has the same meaning as under the
Corporations Act 2001. 
 “Royalty Payments” means the royalty payment payable by the Purchaser under clause 5.4.

 “Southland Railways Contract” means the Rail Access Agreement between the Vendor and South Maitland Railways Pty Limited
dated 3 July 1998. 
 “Stakeholders” means the Vendor’s Solicitor and the Purchaser’s Solicitor. 
 “Stock” means the coal stock of the Business owned by the Joint Venture Parties as at Completion, used or intended to be used in
connection with the Business. 
  

 6 

 “Sunset Date” means 10 December 2004. 
 “Thiess” means Thiess Southland Pty Ltd ABN 24 053 356 193. 
 “Thiess Interest” means the 10% interest in the Business Assets held by Thiess, pursuant to the terms of the Joint Venture Agreement. 
 “Vendor Interest” means the 90% interest in the Business Assets held by the Vendor pursuant to the terms of the Joint Venture Agreement.

 “Vendor’s Solicitor” means Henry Davis York of 44 Martin Place, Sydney 2000. 
 “Warranties” means in relation to the Vendor and the Receivers the representations and warranties in part A and part B of Schedule 1
respectively and in relation to the Purchaser the representations and warranties in Part C of Schedule 1. 
 “Yanzhou
Nominee” means the subsidiary of Yanzhou nominated by Yanzhou in accordance with clause 4.1 and subject to clause 4.2. 
  

	 	1.2	Interpretation 

 In this agreement unless the
contrary intention appears: 
  

	 	1.2.1	a reference to this agreement includes any variation or replacement of it; 

  

	 	1.2.2	a reference to a statute or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements or any of them;

  

	 	1.2.3	singular includes the plural number and vice versa; 

  

	 	1.2.4	a reference to any one gender includes each other gender (as the case may require); 

  

	 	1.2.5	the word “person” includes a firm, corporation, body corporate, unincorporated association or any governmental authority; 

  

	 	1.2.6	a reference to a person includes a reference to the person’s executors, administrators, legal personal representatives, successors and permitted assigns;

  

	 	1.2.7	an agreement on the part of, or in favour of, two or more persons binds or is for the benefit of them or any one or more of them jointly and severally; 

  

 7 

	 	1.2.8	a reference to a party means a person who is named as a party to this, and is bound to observe the provisions of this agreement; 

  

	 	1.2.9	the reference to “Dollars” or “$” is a reference to Australian currency; and 

  

	 	1.2.10	a reference to “includes” or “including” means includes, without limitation and including, without limitation, respectively. 

  

	 	1.3	All headings in this agreement have been inserted for the purpose of ease of reference only. They do not affect the meaning or interpretation of it. 

  

	 	1.4	Any schedule attached to this agreement forms part of it. 

  

	2.	INTERDEPENDENT CONTRACTS AND CONDITIONS PRECEDENT 

  

	 	2.1	Conditions 

 Completion of the sale and purchase of
the Business Assets is interdependent with and will not proceed unless simultaneously with or prior to Completion the following conditions have been met: 
  

	 	2.1.1	the parties complete the contract for the sale of the Freehold Properties which is to be executed on or about the date of this agreement; 

  

	 	2.1.2	a notice in writing is issued by, or on behalf of, the Treasurer of the Commonwealth of Australia stating that the Commonwealth Government does not object to the parties entering
into and completing this agreement either unconditionally or on terms reasonably acceptable to the Purchaser or the Treasurer of the Commonwealth of Australia becomes precluded from making an order in respect of the acquisition of the Business
Assets under the Foreign Acquisitions and Takeovers Act 1975 (Cth); 

  

	 	2.1.3	all necessary consents required from the Chinese Government or under Chinese law (including, but not limited to, the consent of the State Reform and Development Commission and the
Ministry of Commerce) are obtained in writing; 

  

	 	2.1.4	the following contracts are assigned or novated to the Purchaser or a new contract is entered into between the relevant counter party and the Purchaser: 

  

	 	(a)	the South Maitland Railways Contract; 

  

	 	(b)	the Pacific National Contract; and 

  

 8 

	 	(c)	the lease between the Vendor and the Hincks referred to in item 1 of Schedule 5. 

  

	 	2.1.5	Department Forms 12 “Application for Approval of the Transfer of An Authority” in respect of each of the Mining Tenements are lodged with the Department and are approved
on whatever terms specified by the Department or the Minister, including, without limitation, the condition referred to in clause 10 (which the Purchaser acknowledges is acceptable to it); 

  

	 	2.1.6	there is no material adverse change in the nature or condition of the Business Assets between the date of this agreement and the date of Completion and no event or effect has
occurred which would: 

  

	 	(a)	materially restrict or have a materially adverse affect on the ability of the Purchaser to re-commence longwall operations at the Mine; or 

  

	 	(b)	which would prevent the Vendor delivering unencumbered title to the Business Assets to the Purchaser on Completion; 

  

	 	2.1.7	the indicative consent of the Minister to a variation of the Mining Operations Plan for the Mine to adopt a care and maintenance program for the Mine, on whatever terms specified by
the Minister, is obtained; 

  

	 	2.1.8	the test described in Annexure C in relation to the conveyer systems at the Mine is satisfied; 

  

	 	2.1.9	the pump test described in the first paragraph of the section headed “Test” in Annexure D in relation to borehole pumping at the Mine is satisfied;

  

	 	2.1.10	the water test described in the second paragraph of the section headed “Test” in Annexure D in relation to water levels at the Mine is satisfied; 

 

	 	2.1.11	the scope of works described in Annexure E in relation to the Continuous Miner is completed; and 

  

	 	2.1.12	the Vendor delivering to the Purchaser duly executed transfer documents under clause 8.2 for the whole of the interest in the Business Assets. 

  

	 	2.2	Transfer of the whole of the interest in the Business Assets 

  

	 	2.2.1	The condition precedent in clause 2.1.12 may be satisfied either by (at the election of the Vendor): 

  

	 	(a)	the Vendor acquiring the Thiess Interest in the Business Assets prior to Completion and providing the Purchaser with executed transfer documents under clause 8.2 for the whole of
the interest in the Business Assets; or 

  

 9 

	 	(b)	the Vendor procuring Thiess to dispose of the Thiess Interest in the Business Assets directly to the Purchaser and providing the Purchaser with transfer documents under clause 8.2
executed by Thiess (as appropriate) in favour of the Purchaser for the Thiess Interest in the Business Assets. 

  

	 	2.2.2	The Vendor must as soon as practicable after exchange, provide the Purchaser with written evidence that the Purchaser will satisfy one of the options under clause 2.2.1 so that the
Purchaser may prepare the necessary transfer documents and commence taking action to satisfy the Condition Precedent in clause 2.1.3. 

  

	 	2.3	Chinese Government consents 

 The parties agree that
the Purchaser will have until the later of the following dates to satisfy the Condition Precedent in clause 2.1.3: 
  

	 	2.3.1	the date 2 months after the date of this agreement; or 

  

	 	2.3.2	the date 6 weeks after the receipt by the Purchaser of the written evidence from the Vendor pursuant to clause 2.2.2, 

 provided that Completion must occur on or before the Sunset Date. 
  

	 	2.4	Termination of Contract 

 In the event that the
contract described in clause 2.1.1 is validly terminated or is rescinded in accordance with its terms by a party to it prior to Completion then this agreement is automatically terminated. Upon termination under this clause this agreement has no
further effect and neither the Purchaser nor the Vendor is liable to the other except in respect of any breach of this agreement occurring before termination and clause 2.10 applies. 
  

	 	2.5	Tests and Scope of Works 

  

	 	2.5.1	A representative of each of the Vendor and the Purchaser must meet: 

  

	 	(a)	on a day convenient to the Vendor, being a day no earlier than two weeks prior to Completion in order to run the test described in clause 2.1.8; 

  

 10 

	 	(b)	on a day convenient to the Vendor, being a day no earlier than two weeks prior to Completion in order to run the test described in clause 2.1.9; 

  

	 	(c)	the day two days prior to Completion in order to run the test described in clause 2.1.10 (the tests referred to in clauses 2.5.1(a), 2.5.1(b) and this clause 2.5.1(c) being the
“Tests”); and 

  

	 	(d)	on a day convenient to the Vendor, being a day no earlier than two weeks prior to Completion in order to review the scope of works described in clause 2.1.11 (“Scope of
Works”) and agree that it has been completed. 

  

	 	2.5.2	If, when the Tests are run in accordance with clauses 2.5.1(a), 2.5.1(b) or 2.5.1(c), one or more of the Tests are not satisfied, the Vendor will have the right to rectify
any fault prior to Completion. 

  

	 	2.5.3	If when the Scope of Works is reviewed for completion in accordance with clause 2.5.1(d), the parties agree that Scope of Works is not completed, the Vendor will have the right to
rectify any fault in the period prior to Completion. 

  

	 	2.5.4	If one or both of clauses 2.5.2 and 2.5.3 apply, a representative of each of the Vendor and the Purchaser must meet on a date convenient to the Vendor prior to Completion, in order
to re-run the Tests or re-review the Scope of Works for completion. 

  

	 	2.5.5	Subject to clause 2.10, the parties agree that there is no limit to the number of times that the Tests may be re-run or the Scope of Works may be re-reviewed for completion in
accordance with clauses 2.5.2 and 2.5.3. 

  

	 	2.5.6	The parties agree that the running of the Tests or the reviewing of the Scope of Works in accordance with clauses 2.5.1 to 2.5.3 may, but need not, occur on the same day.

  

	 	2.5.7	The parties must also comply with the additional pre-test requirements set out in Annexure D. 

  

	 	2.6	Cross Default 

  

	 	2.6.1	A breach of this agreement by the Purchaser is deemed to be a breach of the contract for the sale of the Freehold Properties referred to in clause 2.1.1 (“Land
Contract”). 

  

	 	2.6.2	A breach of the Land Contract by the Purchaser is, at the Vendor’s election, deemed to be a breach of this agreement by the Purchaser. 

  

 11 

	 	2.6.3	If the Vendor terminates this agreement for any reason, then the Vendor must also terminate the Land Contract by written notice to the Purchaser. 

  

	 	2.7	Waiver 

 A Condition Precedent may only be waived by
agreement in writing between the Purchaser and the Vendor, save that the Purchaser alone may waive in its absolute discretion, any of the Conditions Precedent referred to in clauses 2.1.2 to 2.1.11. 
  

	 	2.8	Best Endeavours 

  

	 	2.8.1	The Vendor and the Purchaser must each use its best endeavours to satisfy or assist the other party to satisfy on or before the Proposed Completion Date each Condition Precedent.

  

	 	2.8.2	The parties must continue to use their best endeavours in accordance with clause 2.8.1 after the Proposed Completion Date if for any reason Completion has not occurred.

  

	 	2.9	Notice 

 The Purchaser and the Vendor must promptly
notify the other in writing if any Condition Precedent is satisfied or cannot be satisfied. Each party will promptly keep the other party reasonably informed of any developments relevant to any Condition 
 Precedent. 
  

	 	2.10	Cut-Off Date 

 If a Condition Precedent is not
satisfied on or before the Sunset Date the Purchaser or the Vendor may by written notice to the other, terminate this agreement, provided that a party may not give such notice if it is in material default of an obligation under this agreement. Upon
such termination, this agreement has no further effect and neither the Purchaser nor the Vendor is liable to the other except: 
  

	 	2.10.1	under clause 21 (duties and costs); 

  

	 	2.10.2	under clause 19 (confidentiality); 

  

	 	2.10.3	under clause 18.3 (return or information); 

  

	 	2.10.4	in respect of any breach of this agreement occurring before termination; 

  

	 	2.10.5	under clause 5.1.3; and 

  

 12 

	 	2.10.6	if the Conditions Precedent are not satisfied for any reason (other than a reason the subject of clause 5.1.3), the Deposit and any other money, including interest, paid by the
Purchaser towards the Purchase Price, will be refunded to the Purchaser, together with the interest earned on the Deposit if it was invested and the Vendor and the Purchaser must instruct the Stakeholders accordingly. 

  

	 	2.11	Period before Completion 

  

	 	2.11.1	During the period prior to Completion, the Vendor will use its reasonable endeavours to maintain and protect the Business Assets in their condition existing at the time the
Purchaser last undertook a site visit to the Mine prior to the date of this agreement. 

  

	 	2.11.2	During the period prior to Completion and subject to clauses 2.11.3 and 2.11.4, the Vendor will implement and follow the Agreed Care and Maintenance Program in relation to the
Business Assets. 

  

	 	2.11.3	For the avoidance of doubt, the parties agree that the Agreed Care and Maintenance Program will not require the Vendor to: 

  

	 	(a)	incur any capital expenditure; or 

  

	 	(b)	improve the condition or any of the Business Assets from their condition as at the date referred to in clause 2.11.1. 

  

	 	2.11.4	If the Purchaser wishes to vary the Agreed Care and Maintenance Program, any such variation must be approved by the Vendor, which will not unreasonably withhold its approval, and
the Purchaser must indemnify the Vendor in respect of any Loss incurred by the Vendor in implementing and as a consequence of implementing the variations requested by the Purchaser under this clause 2.11.4. 

  

	3.	BUSINESS ASSETS TO BE SOLD 

  

	 	3.1	On the date of Completion: 

  

	 	(a)	the Vendor must sell and the Purchaser must purchase the Vendor Interest; and 

  

	 	(b)	the Vendor must sell or procure that Thiess sells and the Purchaser must purchase the Thiess Interest in the Business Assets 

  

	 	    	free from Encumbrances for the Purchase Price, on the terms and conditions set out in this agreement. 

  

 13 

	 	3.2	Excluded Assets 

  

	 	    	The Excluded Assets are excluded from the sale of the Business Assets. 

  

	4.	PURCHASER 

  

	 	4.1	Yanzhou may nominate a Yanzhou Nominee as the purchaser of the Business Assets by notice in writing to the Vendor at least 3 days prior to Completion. 

  

	 	4.2	Notwithstanding anything to the contrary in this agreement, if a Yanzhou Nominee is nominated by Yanzhou under clause 4.1 to be the Purchaser under this agreement, Yanzhou will not
be relieved of any of the obligations of the Purchaser under this agreement which remain unperformed by the Yanzhou Nominee 14 days after written demand by the Vendor on the Yanzhou Nominee. 

  

	5.	PURCHASE PRICE AND PAYMENT 

  

	 	5.1	Deposit 

  

	 	5.1.1	The Vendor and Yanzhou shall enter into the Escrow Deed with the Stakeholders on the date of entering this agreement. 

  

	 	5.1.2	On the date of entering this agreement, the Purchaser must pay in cash or by bank cheque the Deposit as part payment of the Purchase Price to the Stakeholders to be held as
stakeholders on the terms of the Escrow Deed. The Deposit will vest in the Vendor by virtue of Completion and on Completion, the Vendor and the Purchaser shall instruct the Stakeholders to pay the Deposit to the Vendor in accordance with the Escrow
Deed. 

  

	 	5.1.3	The Deposit will be forfeited to the Vendor if: 

  

	 	(a)	the Purchaser breaches this agreement; or 

  

	 	(b)	the Condition Precedent in clause 2.1.3 is not satisfied for any reason by the Sunset Date (other than the failure or delay of the Vendor to provide the written evidence to the
Purchaser in accordance with clause 2.2.2), 

  

	 	    	and, in the case of clause 5.1.3 (a), the Vendor gives written notice to the Purchaser to remedy the breach and the Purchaser remains in breach for 14 days after receipt of the
notice. Forfeiture of the Deposit is without prejudice to any other rights or remedies the Vendor may have including seeking specific performance or termination of this agreement. If the Deposit is forfeited to the Vendor in accordance with this
clause 5.1.3, the Vendor and the Purchaser shall instruct the Stakeholders to pay the Deposit to the Vendor in accordance with the Escrow Deed. 

  

 14 

	 	5.1.4	No liability is to he borne by the Stakeholders, any party to this agreement or their agent or solicitor in respect of either the loss of the Deposit or the lack of interest earned
on the Deposit as a result of it having been invested in accordance with the Escrow Deed. 

  

	 	5.1.5	Each party (and where a party comprises two or more persons, all of those persons) must provide the Stakeholders with its tax file number. If this agreement is completed and one
party has provided their tax file number in accordance with this clause and the other party has not, the party who has provided their tax file number is entitled to all the net interest (if any) earned on the Deposit. 

  

	 	5.2	Completion Payment 

 At Completion, the Purchaser
must pay by cash or bank cheque the Completion Payment less the amount of the Deposit paid under clause 5.1 (plus or minus any other net adjustment amount due under this agreement) to the Vendor or as the Vendor or the Vendor’s Solicitor may
direct by notice in writing on account of the Purchase Price. 
  

	 	5.3	Additional Payment 

 If an exploration licence is
granted to the Purchaser under the Mining Act over the Additional Tenement Area (“Additional Exploration Licence”), the Purchaser must pay the Additional Payment to the Vendor as the Vendor or the Vendor’ Solicitor may direct
by notice in writing within 5 Business Days after the Additional Exploration Licence is granted on account of the Purchase Price. 
  

	 	5.4	Royalty Payments 

  

	 	5.4.1	The Purchaser must pay to the Vendor on account of the Purchase Price, a Royalty Payment of $2.00 per tonne for the first 4 million tonnes of saleable coal product produced by the
Purchaser at the Mine and sold to either domestic or export customers or otherwise transferred by the Purchaser to a third party including, for the avoidance of doubt, a Related Body Corporate of the Purchaser. 

  

	 	5.4.2	The Royalty Payment referred to in clause 5.4.1 must be paid on a monthly basis within 5 Business Days after the end of the relevant month to the Vendor or as the Vendor or
the Vendor’s Solicitor may direct by notice in writing. 

  

	 	5.4.3	The Purchaser must allow the Vendor to inspect and take copies of the relevant books of account of the Purchaser during business hours on reasonable notice by the Vendor to enable
the Vendor to verify the amounts of the Royalty Payments. 

  

 15 

	 	5.5	Interest 

  

	 	5.5.1	If Completion of the sale of the Business Assets does not take place by the Proposed Completion Date (unless the Purchaser is entitled to further time under clause 2.3.2 by reason
of any failure or delay in the Vendor providing the written evidence to the Purchaser in accordance with clause 2.2.2) the Purchaser must pay interest on the amounts due under clause 5.2 to the Vendor on the date Completion takes place. This
interest is payable on Completion on and in addition to the balance of the Purchase Price described in clauses 5.2 to 5.4 and any other moneys payable by the Purchaser to the Vendor under this agreement. 

  

	 	5.5.2	The rate of interest under clause 5.5.1 is a rate equal to the aggregate of 2% per annum plus the Commonwealth Bank Corporate Loan Reference Rate (on a quarterly charging cycle)
from time to time. This interest accrues from day to day from the Proposed Completion Date to the date on which Completion actually occurs. If Completion is delayed solely as a reason of the Vendor’s default, interest is not to be charged for
the period during which Completion was delayed for this reason. 

  

	 	5.6	Apportionment of Purchase Price 

 The Purchase Price
(inclusive of the Completion Payment and the Additional Payment, but exclusive of the Royalty Payments) is apportioned between the Business Assets as follows: 
  

				
	 Plant and Equipment
	  	$	18,600,000
	 Mining Tenements
	  	$	2,000,000
	 Computer Licences
	  	$	1
	 Contracts
	  	$	1
	 Environmental Protection Licences
	  	$	1
	 Goodwill
	  	$	1
	 Permits to Operate
	  	$	1
	 Promotional Material
	  	$	1
	 Property Leases
	  	$	1
	 Stock
	  	$	1
	 Total
	  	$	20,600,008

  

 16 

	6.	GST 

  

	 	6.1	Application of clause 

 The following clauses apply
if a party (“the Supplier”) is or may become liable to pay GST in relation to any Supply to another party (“the Purchaser”) under or in connection with this document or in relation to any payment, whether by way of
adjustment, reimbursement, indemnity, damages or otherwise. 
  

	 	6.2	GST payable in addition to other consideration: 

  

	 	6.2.1	In addition to any other amounts payable or consideration provided by the Purchaser to the Supplier under or in connection with this document (“the GST Exclusive
Consideration”), the Purchaser must pay to the Supplier an amount equal to the GST Exclusive Consideration multiplied by the GST Rate. 

  

	 	6.2.2	Payment must be made by the Purchaser at the same time as the GST Exclusive Consideration is payable or is to be provided under this document. 

  

	 	6.2.3	If a payment to be made by one party to another (“the Recipient”) under this document is a reimbursement or indemnification of an amount paid by the Recipient, or
is determined wholly or in part by reference to any underlying cost, expense or liability incurred by the Recipient, then the amount to be paid to the Recipient is: 

  

	 	(a)	to be reduced by the Input Tax Credit to which the Recipient is entitled in respect of the cost, expense or liability; and 

  

	 	(b)	otherwise to be calculated in accordance with this clause 6. 

  

	 	6.2.4	The Recipient will be presumed to be entitled to a full Input Tax Credit on such amounts unless it demonstrates otherwise. 

  

	 	6.3	Tax invoice 

 Tax Invoices must be issued in
accordance with the requirements of GST Law. 
  

	 	6.4	GST group 

 If the Supplier is a member of a GST
Group, references to GST for which the Supplier is or may become liable to pay and to Input Tax Credits to which the Supplier is entitled include GST for which the Representative Member of the GST Group of which the Supplier is a member is liable
and Input Tax Credits to which that Representative Member is entitled. 
  

 17 

	 	6.5	Definitions 

  

	 	6.5.1	GST Law means the A New Tax System (Goods and Services Tax) Act 1999 and any other law which imposes or otherwise deals with the imposition or administration of a goods and
services tax in Australia. 

  

	 	6.5.2	GST Rate means the rate of GST under the GST Law. 

  

	 	6.5.3	GST, GST Group, Input Tax Credit, Representative Member, Supply and Tax Invoice have the same meanings as under the GST Law. 

  

	7.	VALUATION OF PLANT AND EQUIPMENT 

  

	 	7.1	Stocktake on Completion 

 Subject to clause 7.4, the
parties will arrange for a stocktake of the Plant and Equipment to be conducted no more than five days prior to the date of Completion at which representatives of the Vendor and the Purchaser must be present. The cost of the stocktake will be shared
equally by the parties. On conclusion of the stocktake, representatives of the Vendor and the Purchaser must agree on the list of Plant and Equipment determined and any dispute as to quantity must be resolved at the time of the stocktake by recount.
The Purchaser and Vendor must initial the Plant and Equipment list indicating their agreement. 
  

	 	7.2	Subject to clauses 7.3 and 7.4, if, as at the date of Completion, any of the Plant and Equipment cannot be located, is not owned by the Vendor or for any reason cannot be
transferred by the Vendor to the Purchaser (“Relevant Plant and Equipment”), the parties agree that the Purchaser may require that the Purchase Price be adjusted by the Liquidation Value for the Relevant Plant and Equipment.

  

	 	7.3	The Purchaser will not be entitled to request a variation to the Purchase Price under clause 7.2 if at Completion, it is established that any of the items of Plant and Equipment
highlighted in blue in Schedule 2 or any of the Additional Significant Spare Parts highlighted in light yellow in Schedule 2 are not owned by the Vendor and cannot therefore be transferred to the Purchaser. 

  

	 	7.4	The Purchaser will not be entitled to request a variation to the Purchase Price under clause 7.2 unless the Liquidation Value of the Relevant Plant and Equipment exceeds $100,000 in
aggregate. 

  

	 	7.5	The Vendor must provide the Purchaser full access to its books and records and any information required by the Purchaser to complete the stocktake pursuant to this clause 7.

  

 18 

	 	7.6	The parties may agree not to conduct a stocktake under clause 7.1, in which case clauses 7.1 to 7.5 will not apply. 

  

	8.	COMPLETION 

  

	 	8.1	Date for Completion 

 Subject to clause 2,
Completion of the sale and purchase of the Business Assets will take place at the offices of the Vendor’s Solicitor (or as they may otherwise reasonably direct) before 3.00 pm on a Business Day on or before: 
  

	 	8.1.1	the Proposed Completion Date; or 

  

	 	8.1.2	if the Conditions Precedent set out in clause 2 have not been satisfied or waived 2 Business Days prior to the Proposed Completion Date, the date 2 Business Days after the last of
those conditions has been satisfied or waived provided that Completion is on or before the Sunset Date 

 at such other place,
time and date as the Vendor and the Purchaser agree. 
  

	 	8.2	Delivery of Documents Executed by Vendor 

 On
Completion, the Vendor must give to the Purchaser the following documents, in a form approved in advance by the Purchaser executed as the case may be, by the Vendor, Thiess or any third party whose consent is required, or all of them: 
  

	 	8.2.1	a release or discharge (including ASIC Forms 312) of each Encumbrance over the Business Assets; 

  

	 	8.2.2	Department Forms 13 “Application for Registration of the Transfer of an Authority” for the transfer of the Mining Tenements, together with, to the extent they are in the
possession of the Vendor or which the Vendor is able to obtain from Thiess, the original instruments of title in respect of the Mining Tenements; 

  

	 	8.2.3	in respect of the Environmental Protection Licences, the prescribed form of Licence Transfer Application Form; 

  

	 	8.2.4	assignments of the Property Leases to be assigned at Completion under clause 11; 

  

	 	8.2.5	transfers of ownership and registration for all motor vehicles included in the Plant and Equipment; 

  

	 	8.2.6	control over the Business Records; 

  

 19 

	 	8.2.7	to the extent they are in the possession or control of the Vendor or Thiess, certificates of registration and certificates relating to possession of any Business Assets issued by
any Government Agency, or necessary for compliance with any law, including the Permits to Operate; 

  

	 	8.2.8	in relation to each Contract referred to in clause 2.1.4, an assignment or novation of that contract executed by the counterparties to that contract if that contract is to be
assigned or novated on Completion under clause 2.1.4; 

  

	 	8.2.9	if any other Contracts are to be assigned or novated to the Purchaser in accordance with clause 11 on Completion, an assignment or novation of those Contracts to the Purchaser duly
executed by the counterparties to those Contracts; 

  

	 	8.2.10	for examination by the Purchaser, any power of attorney under which a document required to be delivered under this agreement is executed; and 

  

	 	8.2.11	any other document reasonably required by the Purchaser to transfer the Business Assets to the Purchaser and to complete the sale under this agreement. 

  

	 	8.3	Delivery of Tangible Assets 

 On Completion, the Vendor
must deliver (if it has not already done so) any tangible assets of the Business Assets to the Purchaser by leaving them at the Mine. 
  

	 	8.4	Completion Obligations of Purchaser 

 On Completion, the
Purchaser must: 
  

	 	8.4.1	comply with its obligations under clause 5.2 and 5.5, subject to any net adjustments to be made under this agreement; and 

  

	 	8.4.2	deliver to the Vendor counterparts executed by the Purchaser of any documents referred to in clause 8.2 that are to be executed by the Purchaser. 

  

	9.	PAYMENTS IN ADVANCE OR ARREARS 

  

	 	9.1	Adjustments on Completion 

 On Completion of the sale of
the Business Assets: 
  

	 	9.1.1	the Purchaser must account to the Vendor for: 

  

	 	(a)	any payment made in advance for goods and services supplied to or to be supplied to the Business on or after Completion; and 

  

 20 

	 	(b)	any other payment made in respect of the Business (including without limitation, any Mining Payments), the benefit of which is received by the Business on or after Completion;

  

	 	(c)	any credit or refund which may have accrued or will accrue in respect of the Business Assets relating to a period prior to Completion; and 

  

	 	(d)	an amount equal to any bank guarantees, security deposits, cash deposits or similar security lodged in relation to the Business Assets which are not refunded or returned on or prior
to Completion and of which the Purchaser gets the benefit after Completion. (The Vendor and the Purchaser shall co-operate to achieve the adjustment in relation to the security deposit and the bond lodged by the Vendor with the Department by
arranging, on or as soon as practical following Completion, the substitution by the Purchaser of a security deposit and! or bond with the Department in such amount as is required by the Department in order to cause the release to the Vendor of the
security deposit and bond currently lodged by it with the Department.) 

  

	 	9.1.2	the Vendor must account to the Purchaser for: 

  

	 	(a)	any payments received for goods to be supplied and services to be rendered by the Business on or after Completion; and 

  

	 	(b)	any unpaid liabilities in respect of the Business (including Mining Payments), the benefit of which has been received prior to Completion, including: 

  

	 	(i)	any amounts, (if any), due to Cessnock Land Pty Limited in respect of the use or occupation by the Vendor of the Abadare Reject Disposal Area; 

  

	 	(ii)	all amounts, if any, due to Mr and Mrs Hincks in respect of the use or occupation by the Vendor of the Area of the No. 1 Shaft; 

  

	 	(iii)	all amounts, if any, due to State Forests in respect of the use or occupation by the Vendor of the Area of the No. 2 Shaft; 

  

	 	(iv)	all statutory mining royalties due to the New South Wales Government under the Mining Tenements; and 

  

 21 

	 	(v)	all amounts, if any, due to Andrew Park in respect of the use or occupation by the Vendor of land owned by Mr Park. 

  

	 	9.2	Set-off 

 The Vendor and the Purchaser will set off
the respective amounts payable by them under clauses 7.2 and 9.1 such that the party obliged to pay the greater amount will pay to the other on Completion only the excess payable by it. The parties will liaise to reach agreement on the adjustments
required under these clauses at least 3 Business Days prior to Completion. 
  

	10.	ACKNOWLEDGMENTS BY PURCHASER 

 The Purchaser
specifically acknowledges and agrees that it has been provided with a copy of a letter from the New South Wales Department of Mineral Resources to the Vendor dated 4 June 2004 (“Letter”) indicating that all mining leases for coal
are to be amended to include a condition requiring leaseholders to prepare a Subsidence Management Plan prior to commencing underground mining operations which would potentially lead to subsidence of the land surface, effective on and from 18 March
2004, as more fully described in the Letter. 
 The Purchaser acknowledges and agrees that the Mining Tenements will be transferred to the
Purchaser subject to the requirements set out in the Letter and the Purchaser will be responsible for complying with the requirements set out in the Letter. 
  

	11.	COMPUTER LICENCES, PROPERTY LEASES, PERMITS TO OPERATE AND CONTRACTS 

  

	 	11.1	Transfer of Contracts, Property Leases, Computer Licences and Permits to Operate 

  

	 	11.1.1	The Vendor and the Purchaser must each use its reasonable endeavours to transfer the Contracts, the Property Leases, the Computer Licences, the Permits to Operate, (or in the case
of the Computer Licences and the Permits to Operate, cause the issue of a new licence or permit to the Purchaser) or any other operational agreements to the Purchaser on or before Completion including obtaining the consent of a third party which is
required for the transfer or new issue. 

  

	 	11.1.2	A transfer made under this clause 11.1 may be made either by assignment, novation or by grant of a new lease, licence, permit or contract. 

  

	 	11.1.3	If the consent of a third party is required for a transfer or issue under clause 11.1 then the Purchaser’s reasonable endeavours to obtain that consent must include providing
any information relating to the Purchaser which 

  

 22 

	 	 
may be requested by the third party and providing reasonable security in support of the Purchaser’s obligations under the Contract, Property Lease,
Computer Licence or Permit to Operate concerned. The Purchaser must pay for the cost of obtaining that consent including any legal costs (other than the legal costs of the Vendor or the Receivers) and is responsible for preparing any documentation
necessary for the transfer or issue, subject to the approval of such documentation by the Vendor. 

  

	 	11.1.4	After Completion, the Purchaser must in respect of all Contracts, Property Leases, Computer Licenses, Permits to Operate and Computer Licenses transferred to it:

  

	 	(a)	perform to the extent it lawfully can, all obligations of the Vendor under the Contracts, the Property Leases, the Computer Licences and the Permit to Operate; and

  

	 	(b)	indemnify and keep indemnified the Vendor against any Loss incurred by the Vendor after Completion under or in relation to a Contract, a Property Lease, a Computer Licence or a
Permit to Operate. 

  

	 	11.2	Pending Transfer or New Issue 

 If a Contract, a
Property Lease, a Computer Licence or a Permit to Operate has not been transferred, or a new one issued, to the Purchaser by Completion: 
  

	 	11.2.1	after Completion, the Vendor and the Purchaser must use all reasonable endeavours to ensure that the Contract, Property Lease, Computer Licence or a Permit to Operate is transferred
to the Purchaser in accordance with this agreement as soon as practicable after Completion; and 

  

	 	11.2.2	the Vendor must to the extent it lawfully can, allow the Purchaser to use or occupy the property the subject of the Contract, Computer Licence or Property Lease as licensee from
Completion until the transfer or new issue is completed. 

  

	 	11.3	Failure to Transfer 

 Subject to clause 2.1, the
Vendor has no liability to the Purchaser in relation to failure to transfer or cause the issue of a new Contract, Property Lease, Computer Licence or Permit to Operate if the Vendor has complied with its obligations under this clause 11. 

 

 23 

	12.	MINING TENEMENTS AND ENVIRONMENTAL PROTECTION LICENCES 

  

	 	12.1	Transfer of Mining Tenements and Environmental Protection Licences 

 The parties must use their best endeavours to effect the transfer of the Mining Tenements and the Environmental Protection Licences to the Purchaser as soon as practicable after the date of the agreement, including:

  

	 	12.1.1	the Purchaser must prepare and the parties must execute Department Forms 12 “Application for the Approval of Transfer of an Authority” (and/or any other forms required
under the Mining Act) to transfer the Mining Tenements to the Purchaser; 

  

	 	12.1.2	the Purchaser must comply with any requirements of the Department or the Minister in connection with the transfer of the Mining Tenements, including but not limited to, the
lodgement of any security deposit or similar security, the payment of any prescribed transfer fee and providing any information in relation to the Purchaser which may be requested by the Department or the Minister, including the information to be
lodged with the Department Forms 12; 

  

	 	12.1.3	the Purchaser must prepare and the parties must execute the necessary forms required to transfer the Environmental Protection Licences or cause the issue of a replacement
environmental protection licence to the Purchaser in the form prescribed or required by the Environment Act; 

  

	 	12.1.4	the Purchaser must comply with any requirements of the EPA in connection with the transfer of the Environmental Protection Licences or the issue of a replacement environmental
protection licence including but not limited to the lodgement of any security deposit or similar security, the payment of any prescribed transfer fee and providing any information in relation to the Purchaser which may be requested by the EPA,
including the information to be lodged with the relevant transfer forms; 

  

	 	12.1.5	the Purchaser must forward the transfers referred to in clauses 12.1.1 and 12.1.4 together with a cheque for the prescribed fee to the Vendor who will lodge the transfers and the
prescribed fee for approval by the Minister and the EPA (as appropriate); 

  

	 	12.1.6	the Purchaser must pay for the costs of obtaining the transfers or new issues contemplated by clauses 12.1.1 and 12.1.4 including legal costs; 

  

	 	12.1.7	 from Completion, the Purchaser will be bound by and will perform all obligations under the Mining Tenements and the Environmental Protection Licences and will
indemnify and keep indemnified the Vendor against all 

  

 24 

	 	 
Loss incurred by the Vendor under or in relation to the Mining Tenements and the Environmental Protection Licences (including but not limited to
rehabilitation obligations and liabilities) or any activities conducted by the Purchaser under the Mining Tenements and the Environmental Protection Licences on or after Completion; and 

  

	 	12.1.8	the Vendor has no liability to the Purchaser in relation to failure to transfer an Environmental Protection Licence to the Purchaser. 

  

	 	12.2	Grant of Additional Exploration Licence 

  

	 	12.2.1	The Purchaser must use its best endeavours to procure that the Additional Exploration Licence is granted to it as soon as possible after the date of this agreement.

  

	 	12.2.2	The Purchaser must comply with any requirements of the Department or the Minister in connection with the grant of the Additional Exploration Licence, including but not limited to,
the lodgement of any security deposit or similar security, the payment of any prescribed fee and providing any information in relation to the Purchaser which may be requested by the Department or the Minister. 

  

	13.	TITLE & RISK 

  

	 	13.1	Title 

 Title to the Business Assets passes to the
Purchaser on Completion. 
  

	 	13.2	Risk 

 Risk in the Business Assets passes to the
Purchaser on Completion. 
  

	 	13.3	Post Completion Liabilities 

 The Purchaser will be
solely responsible for and will indemnify the Vendor in respect of all liabilities and debts incurred in connection with the Business and the Business Assets in respect of the period on and from Completion save to the extent any liability arises
substantially out of a breach by the Vendor of its obligations under this agreement. 
  

	 	13.4	The Vendor is responsible for paying all Liabilities owing or payable by the Vendor in connection with the Business and the Business Assets as at Completion.

  

	 	13.5	The Purchaser assumes the Assumed Liabilities on and from Completion. 

  

 25 

	 	13.6	Except as expressly provided under clause 13.5, the Purchaser does not and the Vendor acknowledges that the Purchaser does not under this agreement undertake or assume any
liabilities of the Vendor or the Business. 

  

	14.	OBLIGATIONS BEFORE AND AFTER COMPLETION 

  

	 	14.1	After Completion, the Purchaser must, after reasonable notice from the Vendor and at the Vendors cost, allow the Vendor and its representatives during normal business hours to
inspect and take copies of the Business Records (to the extent that they relate to any period before Completion) if reasonably required by the Vendor for accounting or taxation purposes or for litigation. 

  

	 	14.2	After Completion, the Purchaser must, after reasonable notice from the Vendor and at the Vendors cost, allow the Vendor and its representatives and representatives of the Vendors
insurers during normal business hours to inspect the Excluded Assets for the purposes of the insurance claims lodged by the Vendor in respect of the Excluded Assets. 

  

	 	14.3	Before Completion, the Vendor will make available office facilities and access to the Business Records to the Purchaser at the Mine. The Vendor will allow up to 5 representatives of
the Purchaser (“Representatives”) to access the office facilities and the Business Records on 3 days per week (“Access Days”). 

  

	 	14.4	In addition, subject to clause 14.6: 

  

	 	14.4.1	On one Access Day per week, up to 4 of the Representatives will be permitted to inspect the Mine underground; and 

  

	 	14.4.2	On another Access Day per week, up to 5 of the Representatives will be permitted to inspect the surface facilities at the Mine 

  

	 	    	On the remaining Access Day per week, the Representatives will only be permitted to access the office facilities. 

  

	 	14.5	The Purchaser may be permitted additional access upon at least 2 days notice to the mine manager and provided that such additional access will be at the sole discretion of the mine
manager. 

  

	 	14.6	During the inspections of the Mine underground and the surface facilities referred to in clause 14.4, the Vendor will use its best endeavours to accommodate the needs of the
Representatives but the areas to which access will be permitted will be at the sole discretion of the mine manager. 

  

	 	14.7	The Representatives must comply with all site policies and all other procedures established by the mine manager from time to time. 

  

 26 

	15.	WARRANTIES 

  

	 	15.1	Business Assets are sold as is 

 Each of the
Business Assets is sold as is, in its existing location, state of repair and condition as at the date of this agreement and the Purchaser relies upon its own inspection of each of them. 
  

	 	15.2	Time of Warranties 

 Subject to any disclosures made
in writing prior to the date of this agreement: 
  

	 	15.2.1	the Vendor gives the Vendor’s Warranties in favour of the Purchaser; 

  

	 	15.2.2	the Receiver gives the Receivers’ Warranties on behalf of the Receivers in favour of the Purchaser; and 

  

	 	15.2.3	the Purchaser gives the Purchaser’s Warranties in favour of the Vendor and the Receivers, 

 as set out in Schedule 1, as at date of this agreement (unless specified otherwise in Schedule 1) and as at Completion. 
  

	 	15.3	Disclosure 

 The Purchaser must not claim any fact
renders any of the Vendor’s Warranties or the Receivers’ Warranties untrue or misleading if that fact has been disclosed in: 
  

	 	15.3.1	this agreement; or 

  

	 	15.3.2	the Disclosure Material or any disclosure letter received by the Purchaser before the date of this agreement. 

  

	 	15.4	Purchaser Indemnity 

 The Purchaser must indemnify
the Vendor for any Loss which the Vendor may sustain or incur arising from or in connection with: 
  

	 	15.4.1	any matter or thing being other than as represented or warranted by the Purchaser’s Warranties; or 

  

	 	15.4.2	any breach of, or default under this agreement by the Purchaser. 

  

 27 

	 	15.5	Acknowledgement by Vendor 

 The Vendor acknowledges
that to the best of its knowledge and belief and subject to the terms of this agreement, the Vendor has title to the Mining Tenements and the Plant and Equipment. 
  

	16.	LIMITATION OF LIABILITY 

  

	 	16.1	Limitation to Claims under this Agreement 

 The
Vendor is not liable to the Purchaser for any Claim arising from or relating to any statement, representation, warranty, promise, undertaking or agreement in connection with the sale of the Business or the Business Assets made by the Vendor, the
Receivers or any person acting, or purporting to act on behalf of the Vendor or resulting from or implied by conduct made in the course of communications or negotiations in connection with the sale of the Business or the Business Assets, unless:

  

	 	16.1.1	it is expressly set out or referred to in this agreement; or 

  

	 	16.1.2	the right to make or institute legal proceedings in respect of the Claim arises out of a statutory right which cannot be excluded by contract. 

  

	 	16.2	The Vendor is not liable to the Purchaser for any Claim arising out of a matter disclosed in the Disclosure Material. 

  

	 	16.3	The Purchaser acknowledges it has completed its due diligence enquiries prior to entering this agreement or has had sufficient opportunity to make its enquiries, inspect the
Business Assets and review the Disclosure Material. Subject to any express provision of this agreement to the contrary, the Purchaser must not make, and waives any right it may have to make, any Claim arising from or relating to any statement,
representation, promise, warranty or undertaking in connection with the sale of the Business Assets made by the Vendor, the Receivers or any person acting, or purporting to act on behalf of the Vendor or resulting from or implied by conduct made in
the course of communications or negotiations in connection with the sale of the Business Assets unless the right to make or institute legal proceedings in respect of the Claim arises out of statutory right which cannot be excluded by contract.

  

	 	16.4	The Purchaser acknowledges that it has satisfied itself in relation to any matters that would have arisen out of its due diligence inquiries if such inquiries had been conducted
with all reasonable care and diligence. 

  

	 	16.5	The Purchaser acknowledges that when entering into this agreement, it relied exclusively on the following matters independently of any statements, inducements

  

 28 

 or representations made by or on behalf of the Vendor or the Receivers (including by any agent or person
acting or purporting to act on behalf of the Vendor): 
  

	 	16.5.1	the inspection of and investigations relating to the Business and Business Assets made by or on behalf of the Purchaser; 

  

	 	16.5.2	the skill and judgment of the Purchaser, its consultants and representatives; and 

  

	 	16.5.3	opinions or advice obtained by the Purchaser independently of the Receivers, the Vendor or any of the Vendor’s agents or employees. 

  

	 	16.6	Vendor not Liable where Purchaser has Knowledge 

 The Vendor is not liable to the Purchaser for any Claim arising from or relating to breach of a Vendors or a Receiver’s Warranty if before Completion the Purchaser has actual knowledge of the matter that has given rise or will give
rise to the breach or anticipated breach and does not before Completion give written notice to the Vendor of the matter. 
  

	 	16.7	Time Limits 

 The Vendor is not liable to the
Purchaser for any Claim unless the Purchaser has given written notice to the Vendor setting out specific details of the Claim within four months after the date of Completion. 
  

	 	16.8	Right to Reimbursement 

 The Vendor will not be
liable to the Purchaser for any claim for breach of, or inaccuracy in, any Warranty to the extent that any Loss concerned is made good or compensated for without Loss to the Purchaser, including any Loss which is recovered by the Purchaser or for
which the Purchaser has an available indemnity under a policy of insurance. 
  

	 	16.9	Monetary Limits 

  

	 	16.9.1	Subject to clauses 16.9.2 to 16.9.5 the Vendor is not liable to the Purchaser for any Claim or series of Claims unless the amount finally adjudicated or agreed as being payable in
respect of the Claim exceeds $10,000. 

  

	 	16.9.2	The maximum amount which the Purchaser may recover from the Vendor in respect of a Claim relating to an item of Plant and Equipment is the Liquidation Value for that item of Plant
and Equipment. 

  

	 	16.9.3	The Vendor is only liable to the Purchaser for amounts by which Claims adjudicated or agreed under clause 16.9.1 exceed $100,000 in aggregate. 

  

 29 

	 	16.9.4	Subject to clause 16.9.5, the maximum aggregate which the Purchaser may recover from the Vendor in respect of all Claims is 30% of the Purchase Price for the Business Assets.

  

	 	16.9.5	The Purchaser may not, in respect of a Claim, recover from the Vendor any proceeds (including, but not limited to, damages and any amounts referable to the damage or destruction of
the Excluded Assets) of the Vendor’s insurance claims in respect of the Excluded Assets. 

  

	17.	RECEIVERS ARE NOT LIABLE 

 Subject to clause 15.2,
the Purchaser acknowledges and agrees that: 
  

	 	17.1	the Receivers execute this agreement in their capacity as receivers and managers of the Vendor and not in their personal capacity; 

  

	 	17.2	the Receivers and their employees and agents do not assume any personal liability of any nature whatsoever (whether directly or indirectly), express or implied and howsoever arising
including personal liability in respect of any action arising in pursuance of the Vendors rights and/or obligations under this agreement; and 

  

	 	17.3	the Receivers, by their execution of this agreement, take the personal benefit of any provision and indemnity given in favour of the Vendor; and 

  

	 	17.4	at and by virtue of Completion, the Purchaser releases the Receivers, their employees and agents from all Loss sustained by the Purchaser, its employees and agents for Claims
arising out of representations made by the Receivers, their employees and agents and any breach of this agreement by the Receivers, their employees and agents. 

  

	18.	TERMINATION 

  

	 	18.1	Breach 

  

	 	18.1.1	If a party to this agreement breaches a term of this agreement, the other party may give notice in writing to the party in breach requiring that party to remedy the breach.

  

	 	18.1.2	If the party in breach has not or cannot rectify the breach within 14 days after the date of the clause 18.1.1 notice, the party giving the notice may, without affecting any of its
other rights or remedies, terminate this agreement by giving written notice to the other party before Completion. 

  

 30 

	 	18.2	Purchaser’s Default 

  

	 	18.2.1	If the Purchaser: 

  

	 	(a)	fails to pay the balance of the Purchase Price as provided in clauses 5.2, 5.3 and 5.4, or 

  

	 	(b)	fails to comply with any of the terms or conditions of this agreement, 

  

	 	    	then the Vendor may: 

  

	 	(c)	affirm this agreement, or 

  

	 	(d)	terminate this agreement. 

  

	 	18.2.2	If the Vendor affirms this agreement pursuant to clause 18.2.1(c), the Vendor may: 

  

	 	(a)	sue the Purchaser for damages for breach or for specific performance and damages in addition to or instead of damages for breach; and 

  

	 	(b)	recover from the Purchaser as a liquidated debt the Deposit or any part of it which the Purchaser has failed to pay. 

  

	 	18.2.3	If the Vendor terminates this agreement pursuant to clause 18.2.1(d), the Vendor may elect to: 

  

	 	(a)	declare the Deposit (or so much of it as shall have been paid) forfeited and/or sue the Purchaser for breach, or 

  

	 	(b)	declare the Deposit (or so much of it as shall have been paid) forfeited and/or resell the Property in which case any deficiency and any expense arising from such resale shall be
recoverable by the Vendor from the Purchaser as liquidated damages; and 

  

	 	(c)	in either case, the Vendor may recover from the Purchaser as a liquidated debt the Deposit or any part of it which has not been paid by the Purchaser. 

  

	 	18.2.4	The rights and powers conferred upon the Vendor by this clause 18.2 are in addition to any other right or power which the Vendor may have at law or in equity.

  

 31 

	 	18.3	Return of information 

 If for any reason this
agreement is terminated, the Purchaser must immediately upon being requested by the Vendor to do so: 
  

	 	18.3.1	return to the Vendor all documents, records and materials (including copies and computer records) which were obtained by the Purchaser or on its behalf in the course of access
allowed by the Vendor; 

  

	 	18.3.2	destroy copies of all analyses, compilations, studies or other documents prepared by or on behalf of the Purchaser on the basis of information to which the Purchaser is allowed
access; and 

  

	 	18.3.3	confirm to the Vendor in writing it has complied with its obligations under clauses 18.3.1 and 18.3.2. 

  

	19.	ANNOUNCEMENTS 

  

	 	19.1	Legal Requirements 

 A party may not disclose
anything in respect of this agreement or the terms on which the Business Assets are sold except as required: 
  

	 	19.1.1	by applicable law; or 

  

	 	19.1.2	by any recognised stock exchange on which its shares are listed, 

 and to the extent possible, it must consult with the other party before making the disclosure and use reasonable endeavours to agree on the form and content of the disclosure. 
  

	 	19.2	Disclosure to Officers, Employees, Advisers 

 A
party may disclose anything in respect of this agreement or the terms of the sale of the Business Assets to the officers, employees, bankers, financial advisers and financiers and professional advisers of that party (provided those persons are
obliged to keep the information disclosed confidential) but it must use its best endeavours to ensure all matters disclosed are kept confidential. 
  

	20.	DISPUTE RESOLUTION 

  

	 	20.1	Compliance with Agreement 

 Unless a party has
complied with subclauses 20.2 and 20.3 that party may not commence court proceedings or arbitration relating to any dispute arising from this agreement except where that party seeks urgent interlocutory relief in which case that party need not
comply with this clause before seeking the relief. 
  

 32 

	 	20.2	Parties to Appoint Representative 

  

	 	20.2.1	A party claiming that a dispute has arisen in respect of or in connection with this agreement must give written notice to the other party designating, as its representative in
negotiations relating to the dispute a person with authority to settle the dispute and the other party must promptly give notice in writing to the other party each designating, as its representative in negotiations relating to the dispute, a person
with the same authority. 

  

	 	20.2.2	The designated persons must, within 10 days of the last designation required by clause 20.2.1 following whatever investigations each deems appropriate, seek to resolve the dispute.

  

	 	20.3	No Resolution after 10 Days 

 If the dispute is not
resolved within the following 10 days (or within such further period as the representatives may agree in writing) the parties must within a further 10 days (or within such further period as the representatives may agree in writing) seek to agree on
a process for resolving the whole or any part of the dispute through means other than litigation or arbitration, such as further negotiations, mediation, conciliation, independent expert determination or appraisal mini-trial and on: 
  

	 	20.3.1	the procedure and timetable for any exchange of documents and other information relating to the dispute: 

  

	 	20.3.2	procedural rules and a timetable for the conduct of the selected mode of proceeding: 

  

	 	20.3.3	a procedure for selection and compensation of any neutral person who may be employed by the parties in dispute; and 

  

	 	20.3.4	whether the parties should seek the assistance of a dispute resolution organisation. 

  

	 	20.4	Exchange of Information 

 The purpose of any
exchange of information or documents or the making of any offer of settlement pursuant to this clause is to attempt to settle the dispute between the parties. No party may use any information or documents obtained through the dispute resolution
process established by this clause for any purpose other than an attempt to settle the dispute between the parties. 
  

 33 

	 	20.5	Commencement of Proceedings 

 After the expiration
of the time established by or agreed under clause 20.3 for agreement on a dispute resolution process, a party which has complied with the provisions of subclauses 2 to 4 may by notice in writing terminate the dispute resolution process provided for
in those subclauses and may then refer the dispute to arbitration or commence proceedings relating to the dispute. 
  

	21.	DUTIES, COSTS AND EXPENSES 

  

	 	21.1	Duties 

 The Purchaser must pay any stamp,
transaction or registration duty imposed by any governmental agency in respect of the execution, delivery and performance of this agreement and any agreement or document entered into or signed under this agreement. 
  

	 	21.2	Costs and Expenses 

 Subject to clause 21.1 each
party must pay its own costs and expenses in respect of the negotiation, preparation, execution, delivery, stamping and registration of this agreement. 
  

	22.	GENERAL 

  

	 	22.1	Notices 

  

	 	22.1.1	Any notice or other communication given or made under this agreement: 

  

	 	(a)	must be in writing; 

  

	 	(b)	must be signed by the party giving or making it (or signed on behalf of such party by its duly authorised representative); 

  

	 	(c)	must be left at the address, sent by prepaid security post (air mail if outside Australia) to the address or sent by facsimile to the facsimile number set out below:

  

	 	(i)	if to the Vendor: 

  

	 	    	Ferrier Hodgson 

	 	    	Level 17, 12 Market Street 

	 	    	Sydney NSW 2000 

	 	    	Attention: Robert Pfaff 

	 	    	Telephone: +61 2 9286 9999 

	 	    	Facsimile: +61 2 9286 9888 

  

 34 

	 	(ii)	if to the Purchaser: 

 Yanzhou Coal Mining
Company Limited 
 40, Fushan Road 
 Zou Ceng City, 273500 
 Shan Dong Province 
 China 
 Attention: Fanghua Zhai 
 Telephone: 86-537 5393 3334 
 Facsimile: 86-537 5393 3334 
  

	 	(d)	may, in the case of the Vendor, be sent to the Vendor’s Solicitor and in the case of the Purchaser, sent to the Purchaser’s Solicitor. 

  

	 	22.1.2	A party may change its address for the purpose of service of notices by giving notice of that change to each other party pursuant to the provisions of clause 22.1.1.

  

	 	22.1.3	Any party which changes its business or residential address must immediately give notice of that change to each other party pursuant to the provisions of clause 22.1.1.

  

	 	22.1.4	Proof of posting or of despatch of facsimile is proof of receipt: 

  

	 	(a)	in the case of a letter: on the third (seventh, if outside Australia) day after the date of posting; and 

  

	 	(b)	in the case of a facsimile: upon production of a transmission report by the machine from which the facsimile was sent which indicates that the facsimile was sent in its entirety to
the facsimile number of the recipient notified for the purposes of this clause. 

  

	 	22.1.5	If the time of despatch of a facsimile is after 4.00 pm (local time) on a day in which business generally is carried on in the place to which the facsimile communication is sent it
will be deemed to have been received at the commencement of business on the next business day in that place. 

  

	 	22.1.6	A recipient of a notice given pursuant to this clause need not enquire, where the notice purports to be signed on behalf of a party by its duly authorised representative, as to the
authority of the representative signing the notice. 

  

 35 

	 	22.2	Governing Law 

 The contents of this agreement, its
meaning and interpretation and the relationship of the parties are to be governed by the laws of New South Wales. The parties submit to the jurisdiction of the courts exercising jurisdiction there. 
  

	 	22.3	Invalidity 

 If any part of this agreement is for
any reason declared invalid or unenforceable, the validity of the remaining portion is not to be affected and the remaining portion is to remain in full effect as if this agreement had been signed with the invalid portion eliminated. 
  

	 	22.4	Waivers 

  

	 	22.4.1	No failure on the part of a party to exercise, or delay on its part in exercising, any of the rights or remedies provided by this agreement or by law operates as a waiver of them.
Any single or partial exercise of any of the rights or remedies does not preclude any further or other exercise of such right or remedy or the exercise of any other of the rights or remedies. 

  

	 	22.4.2	Any waiver or consent by a party is effective only if it is in writing signed by or on behalf of that party and then only to the extent expressly stated in the writing and in the
specific instance and the purpose for which it is given. 

  

	 	22.5	No Merger 

 Notwithstanding the completion of any of
the transactions contemplated by this agreement, any obligation of a party, which is of a continuing nature or is not fully satisfied and discharged on Completion, including, the warranties, will not merge on Completion or in any transfer but will
continue in favour of the party to which it is owed and remain in full effect. 
  

	 	22.6	Survival of Indemnities 

  

	 	22.6.1	Each indemnity of a party contained in this agreement is a continuing obligation of that party despite: 

  

	 	(a)	any settlement of accounts; or 

  

	 	(b)	the occurrence of anything, 

 and remains
in full force and effect until all money owing, contingently or otherwise, under any indemnity has been paid in full. 
  

 36 

	 	22.6.2	Each indemnity of a party contained in this agreement: 

  

	 	(a)	is an additional, separate and independent obligation of that party and 

  

	 	(b)	no one indemnity limits the generality of any other indemnity; and survives the termination of this agreement. 

  

	 	22.7	Remedies 

  

	 	22.7.1	The rights and remedies contained in this agreement are cumulative and are not exclusive of any rights and remedies provided by law. 

  

	 	22.7.2	Any right or remedy which may be exercised, or any determination which may be made, under this agreement by a party may be exercised or made (or declined to be exercised or made) in
the absolute discretion of that party who is not under any obligation to do so or to give reasons for its decision. 

  

	 	22.7.3	A party is not liable or accountable for any loss occasioned by or arising out of or in connection with its omission to exercise any right or remedy or to make any determination, or
any delay in exercising any right or remedy or in making any determination, or the exercise or partial exercise of any right or remedy. 

  

	 	22.7.4	A party is entitled to enforce or take action in respect of, to the extent permitted by law, any breach of another party’s obligations under this agreement notwithstanding the
termination of this agreement. 

  

	 	22.8	Further Assurances 

 Each party must do and perform
all such other acts matters and things as may be necessary or convenient to implement the provisions of this agreement so as to give effect to the intentions of the parties as expressed in this agreement. 
  

	 	22.9	Assignment 

 A party may not assign the benefit of
or its obligations under this agreement without the prior written approval of each other party. 
  

	 	22.10	Whole Agreement 

  

	 	22.10.1	The contents of this agreement record the entire agreement between the parties in relation to its subject matter. It supersedes all previous negotiations, understandings or
agreements in relation to the subject matter. 

  

 37 

	 	22.l0.2	No modification of this agreement is to be binding unless it is in writing and signed by or on behalf of each party. 

  

	 	22.10.3	All understandings, agreements, warranties or representations (whether express or implied) are excluded other than, subject to clause 22. 10.1, those which are set out in writing in
this agreement. 

  

	 	22.10.4	The conditions or warranties (if any) which are implied into this agreement by statute (where the statute voids or prohibits provisions excluding, restricting or modifying the
application of or the exercise of a right conferred by or liability arising from a breach of the implied condition or warranty) are not excluded from this agreement. 

  

	 	22.11	Counterparts 

 If this agreement is signed in
counterparts, each is deemed an original and all constitute one and the same instrument. 
  

 38 

 SCHEDULE 1 
 Warranties 
  

	A.	Vendor’s Warranties 

 AUTHORITY 
  

	1.	The Vendor has taken all necessary action to authorise the execution, delivery and performance of this agreement in accordance with its terms. 

  

	2.	The Vendor has full power to enter into and perform its obligations under this agreement and it can do so without the consent of any other person (except for consents required under
the Contracts, the Property Leases, the Computer Licences, the Mining Tenements, the Environmental Protection Licences, the Permits to Operate and the consent of the person holding the Encumbrances). 

  

	3.	The Receivers have been validly appointed. 

  

	4.	The Receivers have the power and authority to execute this agreement on behalf of the Vendor and to sell the Vendor Interest in the Business Assets on behalf of the Vendor and if
clause 2.2.1(a) applies, the Receivers have the power and authority to sell the Thiess Interest in the Business Assets on behalf of the Vendor. 

  

	5.	The Vendor and the Receivers make no representation or warranties in relation to: 

  

	 	5.1	the nature, quality, state of repair, value or condition of the Business Assets; 

  

	 	5.2	subject to the acknowledgement in clause 15.5, the title to or rights attaching to or effecting the Business Assets; 

  

	 	5.3	any other matter having, or which may have, an effect, beneficial or otherwise, on the Business Assets (including without any defect, whether latent or patent);

  

	 	5.4	the accuracy or completeness of the Disclosure Material; 

  

	 	5.5	any environmental or rehabilitation obligations or liabilities arising out of the Mining Tenements; 

  

	 	5.6	subject to the acknowledgement in clause 15.5, its right to assign or transfer any of the Business Assets; 

  

	 	5.7	the existence of any Native Title claims; 

  

 39 

	 	5.8	the status of the Mining Tenements and the Environmental Protection Licences, including expenditure obligations; 

  

	 	5.9	the accuracy or completeness of the information contained in the schedules to this agreement; 

  

	 	5.10	any future matters in relation to the Business or the Business Assets including future costs, revenues or profits; or 

  

	 	5.11	without limitation, any other matter. 

  

	B.	Receivers’ Warranties 

  

	1.	The Receivers have been validly appointed. 

  

	2.	The Receivers have the power and authority to execute this agreement on behalf of the Vendor and to sell the Vendor Interest in the Business Assets on behalf of the Vendor and if
clause 2.2.1(a) applies, the Receivers have the power and authority to sell the Thiess Interest in the Business Assets on behalf of the Vendor. 

  

	3.	The Business Assets will be free of all Encumbrances as at Completion. 

  

	C.	Purchaser’s Warranties 

 AUTHORITY 
  

	1.	The Purchaser has taken all necessary action to authorise the execution, delivery and performance of this agreement in accordance with its terms. 

  

	2.	The Purchaser has full power to enter into and perform its obligations under this agreement and can do so without the consent of any other person (except for consents required under
the Contracts, the Property Leases, the Computer Licences, the Permits to Operate, the Environmental Protection Licences and the Mining Tenements). 

  

	3.	The execution, delivery and performance by the Purchaser of this agreement complies with: 

  

	 	3.1	each law, regulation, authorisation, ruling, judgment, order or decree of any governmental agency; 

  

	 	3.2	the constitution or other constituent documents of the Purchaser; and 

  

	 	3.3	any Encumbrance or document which is binding on the Purchaser. 

  

	3.4	The Purchaser has not gone into liquidation nor passed a winding-up resolution nor received a notice under section 601AB(3) of the Corporations Act 2001 (Cth).

  

 40 

	3.5	No petition or other process for winding up has been presented or threatened against the Purchaser and there are no circumstances justifying such a petition or other process.

  

	3.6	No writ of execution has issued against the Purchaser. 

  

	3.7	No receiver or receiver and manager of any part of the undertaking or assets of the Purchaser has been appointed. 

  

	3.8	The Purchaser does not have actual knowledge of any matter or thing that is at the date of this agreement inconsistent with the Vendor’s Warranties or the Receivers’
Warranties. 

  

 41 

 SCHEDULE 2 
 Plant & Equipment 
  

 42 

 SCHEDULE 3 
 Freehold Property 
 Properties with the following identifiers: 
  

			
	 Freehold
Property

	 Lot 125/DP 755225
 Lot 99/DP 755225
 Lot 751DP 755225
 Lot 67/DP 755225
 Lot 66/DP 755225
 Lot 65/DP 755225
 Lot 64/DP 755225
 Lot 35/DP 755225
 Lot 19IDP 755225
 AUTO CONSOL 2330-206 (Lots 1 to 6/DP 131087)
 AUTO CONSOL 2098-122 (Lots 12 and 1201DP755225)
 AUTO CONSOL 2019-214 (Lots 13-14/DP 755225)
 Lot 1/DP 823133
 Lot 42/DP 812815
 Lot 100/DP 755254
 Lot 1/DP 775718
 Lot 2/DP 775718
 AUTO CONSOL 3456-246 (Lots 9,13-15, 18, 32, 34-38, 42, 47-49 and
54-58/DP 11747)
 Lot 99/DP 755254
	  	 Lot 98/DP 755254
 AUTO CONSOL 3476-37 (Lots 1- 2, 5 and 8-13/DP 69968 and Lots 1-3/DP 124547)
 AUTO CONSOL 4788-46 (Lots 18-21,              Section 4/DP
13656)
 AUTO CONSOL 8633-1 (Lots 34- 36/DP 755215)
 Lot 24/Section 4/DP13656
 Lot 25/Section 4/DP 13656
 Lot 26/Section 4/DP 13656
 Lot 27/Section 4/DP .13656
 Lot 28/Section 4/DP 13656
 Lot 29/Section 4JDP 13656
 Lot 30/Section 4/DP 13656
 Lot 1/DP 87087
 Lot 1/DP 131054
 Lot 2/DP 714067
 Lot 32/DP 755225
 Lot 2/DP 755225
 Lot 3/DP 755225
 Lot 4/DP 755225

  

 43 

 SCHEDULE 4 
 Mining Tenements 
 Dam Site Lease (Mining Purposes) 89 (Act 1901) 
 Mineral Lease 1157 (C&S Act 1906) 
 Mineral Lease L83 (C&S Act 1906)

 Mining Purposes Lease 23 (Act 1906) 
 Mining Purposes Lease 217
(Act 1906) 
 Mining Purposes Lease 233 (Act 1906) 
 Mining
Purposes Lease 269 (Act 1906) 
 Mining Purposes Lease 1364 (Act 1906) 
 Private Lands Lease 150 (Act 1906) 
 Consolidated Coal Lease 728 (Act 1973) 
 Consolidated Coal Lease 752 (Act 1973) lining Purposes Lease 324 (Act 1973) 
 Consolidated Mining Lease 2 (Act .1992)

 Mining Lease 1345 (Act 1992) 
 Mining Lease 1347 (Act
1992) 
 Mining Lease 1388 (Act 1992) 
 Mining Purposes Lease 204
(Act 1906) 
 Mining Lease (Purposes) 1550 (Act 1992) 
  

 44 

 SCHEDULE 5 
 Property Leases 
  

	1.	The Lease between Mr and Mrs Hincks and the Vendor in relation to the Area of the No. 1 Shaft, if executed prior to Completion. 

  

	2.	The Deed of Licence between the Vendor and Andrew Bryce Park in relation to land owned by Mr Park dated 9 December 1988. 

  

 45 

 SCHEDULE 6 
 Encumbrances 
  

	1.	Fixed and Floating Charge given by Southland Coal Pty Ltd in favour of Thiess Southland Pty Limited, on or about 22 May 2001, ASIC charge no. 802575. 

  

	2.	Fixed and Floating Charge given by Southland Coal Pty Ltd in favour of HSBC Precious Metals (Australia) Limited on or about 30 August 2002, ASIC charge no. 887140.

  

	3.	Fixed and Floating Charge given by Southland Coal Pty Ltd in favour of Thiess Pty Limited on or about 13 February 2003, ASIC charge no. 927615. 

  

	4.	Fixed and Floating Charge given by Thiess Southland Pty Limited in favour of Southland Coal Pty Limited on or about 22 May 2001, ASIC charge no. 802546. 

  

 46 

 SCHEDULE 7 
 Contracts 
 Agreement to Carry Coal between the Vendor and Pacific National (NSW) Pty Ltd dated 19 March 2003.

 Rail Access Agreement between the Vendor and South Maitland Railways Pty Limited dated 3 July 1998. 
 Coal Handling Services Agreement between the Vendor and Port Waratah Coal Services Limited (ABN 99001 363 828) dated 29 May 2001 
  

 47 

 SCHEDULE 8 
 Environmental Protection Licences 
 Environmental Protection Licence Number 416 
  

 48 

 EXECUTED as an agreement 
  

					
	EXECUTED FOR AND ON BEHALF of	  	)	  	
	ANDREW JOHN LOVE, PETER IVAN	  	)	  	
	FELIX GEROFF AND ALAN EDWARD	  	)	  	
	LEWIS jointly and severally in their capacity	  	)	  	
	as Receiver and Manager of SOUTHLAND	  	)	  	
	COAL PTY LIMITED (RECEIVERS AND	  	)	  	
	MANAGERS APPOINTED	  	)	  	
	(LIQUIDATORS APPOINTED) by	  	)	  	Signature of Andrew John Love, joint receiver and
	ANDREW JOHN LOVE, in the presence of:	  	)	  	manager
			
	  
  
 Signature of Witness
	  		  	
	Print Name:	  		  	
	Address:	  		  	
			
	SIGNED by ANDREW JOHN LOVE in the	  	)	  	
	presence of:	  	)	  	
		  	)	  	
		  		  	Andrew John Love
		
	  
  
 Signature of Witness
	  	
	Print Name:	  		  	
	Address:	  		  	
			
	EXECUTED for and on behalf of	  	)	  	
	YANZHOU COAL MINING COMPANY	  	)	  	
	LIMITED by its duly authorised officer	  	)	  	
		  		  	 Signature of Director

		
	  
  
 Signature of Witness
	  	
		  		  	  
  
 Print
Name

	 Print Name
	  	

  

 49 

 ANNEXURE A 
 Additional Tenement Area 
 

 
  

 50 

 ANNEXURE B 
 Escrow Deed 
  

 51 

 ANNEXURE C 
 Conveyor System Test 
 At the time of the test: 
  

	•	 	Each conveyor to be individually able to be remotely and locally started and stopped using each of the available systems. 

  

	•	 	Conveyors to start and stop in correct sequence (except in the coal preparation plant). 

  

	•	 	Control room monitoring is operational including the following: 

  

	 	•	 	Slip 

  

	 	•	 	Tracking 

  

	 	•	 	Tension 

  

	 	•	 	Thermal overload on motors 

  

	 	•	 	Emergency stops 

  

	•	 	Conveyors (ie drift belt, S1 to S10, the overland conveyors and the conveyors in the coal preparation plant) to run continuously for 3 hours at full speed. 

 

	•	 	The following associated equipment is to be started and run for 1 minute: 

  

	 	•	 	Feeders 

  

	 	•	 	Magnets 

  

 52 

 ANNEXURE D 
 Water Levels Test 
 Preamble 
 This test is predicated on the assumption that construction of a water treatment plant will be commenced during the period between execution and Completion. It is designed to ensure that the water levels at Completion
are such that if construction of the water treatment plant is not complete, the water level will not be such that storage capacity will be exceeded before construction is complete. 
 The specifications of the water treatment plant shall be as agreed between the Vendor and Purchaser, however both parties agree that a water treatment plant substantially similar to the 3 ML/day plant, capable of
receiving the water of the quality at the Mine, as currently under discussion with Ionics at the date of this agreement will be an acceptable specification. 
 The WTP must be available to be purchased by the Purchaser. 
 Definitions 
 WE = Water level underground at date
of execution (RL) 
 WT =
Water level underground at date of the test (RL) 
 WM = Maximum level before overflow to Southland. measured at the date of the test. (RL) 
 TET = Time between execution and the test (days). 
 TTC = Time between the test and the forecast date for commissioning of the WTP
(days). Note: forecast date to be determined by agreement between the Vendor and Purchaser. 
 V5 = Volume of water stored on surface and in the Pelton Underground Workings at execution. (ML) 
 VT = Volume of water stored on surface and in the Pelton underground Workings at the date of the test. (ML) 
 VM = Storage capacity both used and unused on the surface and in the Pelton Underground Workings at the date of the test. (ML)

 S = Safety margin (days) determined as (TTC (10%) + 10). 
 Availability = Operating Time I (Calendar Time — Scheduled Maintenance) 
 WTP = water treatment plant of the type referred to in the Preamble 
 Test 
 The test is satisfied if: 
 1. Pump Test: On the date of the pump test, which shall be a date acceptable to the Receiver, but not more than 14 days prior to Completion, the borehole pumping and monitoring system is demonstrated to have operated at a minimum
pumping rate of not less than 2.OML per day with an availability of 90% or greater for the period beginning on the date one week prior to the date of the test and ending on the date of the test; AND 
  

 53 

 2. Water Test: Either: 
  

	 	a)	the WTP is installed, fully commissioned and operational to the specifications for the water treatment plant as referred to in the Preamble; or 

  

	 	b)	both of the following equations are true and VM 3 100ML AND WT £ 9726 metres:  

  

			
	Test 1:	  	WT + (WT — WE)/TET * (TTC + S) < WM
	Test 2:	  	VT+ (VT — VE)/TET * (TTC + S) < VM

 Measurement Constraints 
 Underground water measurements for the purposes of the tests will be taken at the underground measuring station by a representative of the Vendor and a representative of the Purchaser simultaneously. Prior to the
calculation of W5 and WT, for the purposes of the test, the Vendor must have caused the continuous discharge of
water from 5L2 into the main shaft for a period of 2 days out of the previous seven days. 
 Any modification to WM from its notional value at execution will
be carried out to the satisfaction of the mine manager having regard to applicable safety standards for the operation of an underground coal mine, and only after consultation with the Purchaser. 
 Water volumes will be estimated using standard engineering calculation methodology acceptable to both the Vendor and the Purchaser. The methodology for calculation shall
be the same for VT and VE. 
 VT and VM shall be estimated using standard engineering calculations
acceptable to both the Vendor and the Purchaser. Capacity shall be measured in such locations, and in those locations to the maximum water level, as determined by the mine manager having regard to applicable safety standards and environmental
requirements for water storage on coal mine sites and after freeboard allowance for a 1: 100 year 72 hour duration rain event. 
 Subject to the following,
when calculating VM, the area allocated to the Pelton Underground Workings and the Washplant open cut together shall
not exceed 100ML. If the volume of water stored in the Pelton Underground Workings and the Washplant open cut together at the date of calculation of VM exceed 100 ML, the amount of such excess shall be deducted from VM.
However, if the Vendor can demonstrate to Yanzhou’s satisfaction (not to be unreasonably withheld) that the hydraulic connectivity has been sealed between Pelton Underground Workings and the Washplant open cut, then when calculating
VM, the area allocated to the Pelton Underground Workings and the Washplant open cut together shall be increased to
the combined separated volumes as calculated. 
  

 54 

 Additional pre-test requirements 
 The Receiver must ensure that between the date of this agreement and until Completion: 
  

	1.	Water must not be pumped into the Kalingo Shaft. However if a rain event occurs which would otherwise result in overflow of the Kalingo Dam, the overflow may be directed into the
Kalingo Shaft. The Purchaser must be informed if this occurs, and provided with an estimate of the amount of water directed to the Kalingo Shaft. If any water is pumped into the Kalingo workings that volume of water must be deducted from VM for the
purposes of the calculation of the tests. 

  

	2.	The Purchaser is consulted and kept fully and regularly informed of all material issues concerning the water levels at the Mine. 

  

	3.	The Purchaser is fully consulted in relation to all proposals for a WTP to be commissioned at the Mine. The Receiver must consult with the Purchaser in relation to any contractual
commitment proposed to be entered into by the Receiver in relation to any proposed WTP and must ensure that no commitment to purchase a WTP or hire a WTP is made by the Receiver without the prior agreement of the Purchaser (such agreement not to be
unreasonably withheld, provided that the Purchaser shall have ultimate decision making authority in relation to the specification and cost of any WTP intended to be purchased) but provided further that the Purchaser will not object to the Receiver
entering into hire arrangement not exceeding 6 month for a WTP of the type specified in the preamble in order to allow the Receiver to progress the ordering and construction of the WTP. 

  

	4.	The Purchaser must be kept informed on a daily basis (excluding weekends) of material issues affecting the water level at the Mine, including the daily water level underground and
daily pumping volume and daily location to which water is being pumped. 

 The Vendor must cover that portion of installation and hire costs
incurred prior to Completion. The Purchaser must cover all capital costs and all costs incurred after Completion 
  

 55 

 ANNEXURE E 
 Continuous Miner Scope of Works 
 The scope of works relates to the area of the fall on the Continuous Miner, and
does not refer to the fall in 5 cut through. 
 The following works must be completed: 
  

	•	 	The Continuous Miner must be removed from the roadway and placed in a location that will not block access. 

  

	•	 	The area of the fall must be secured, including the roof being supported, to the satisfaction or the mine manager having regard to applicable safety standards for operating
underground coal mines. 

  

	•	 	Safe access to the mining face must be available to the satisfaction of the mine manager, having regard to applicable safety standards for the operation of an underground coal
mines. 

  

	•	 	The area must be cleared of excess material. 

  

 56 

 ANNEXURE F 
 Agreed Care and Maintenance Program 
  

			
	Work Program	  	Dewatering mine and maintain all pumps.
		  	Maintain statutory stonedusting on conveyor roads and travel roads.
		  	Prepare to run conveyors.
		  	Routinely run all conveyors.
		  	Statutory inspections and 103 inspections of all engineering plant.
		  	Statutory inspections of mine per operational inspection scheme. Inspect weekly, and maintain all accessible seals.
		  	Monitor the mine gases and respond to trigger events.
		  	Sample gas bags through the gas chromatograph.
		  	Maintain and repair as required for key operating equipment in the Coal Handling and Preparation Plant and associated infrastructure.
		  	Maintain and repair, to existing standard, all engineering equipment in use including compressors, winders and main fans, as required.
		
	Stability of U/G roadways	  	Inspect all accessible roadways each 7 days or as required by regulations.
		  	Attend to any urgent deterioration immediately.
		  	Carry out other identified works subject to approval of the Receivers.
		  	Inspect the 5 cut through SLS Maingate area each shift and monitor temperature and as readings.
		
	Security	  	Maintain a security presence of the whole site 24 hours per day, 7 days per week.
		  	Attend to any security breaches.
		
	Gas monitoring trends	  	Monitor gas levels in the mine and behind the seals continuously.
		  	Run gas bag samples, as required, through the gas chromatograph and record results.
		  	Forward Gas Chromatograph results to John Brady for further analysis.
		  	Attend to Trigger Action Response Plans and alarms.
		  	Maintain the tube bundle system.
		  	Maintain all monitoring and analysing equipment.
		  	Carry out monthly ventilation review of mine.
		
	De watering Ellalong goaf and water level monitoring.	  	 Continue to dewater the Ellalong goaf.
 Monitor and
record water levels at Kalingo and No 2 shaft weekly.
 Locate storage for water placement.
 Attend to any unplanned discharge.
 Report unplanned discharges, if any, to Yanzhou.

  

 57 

			
	Environmental Issues	  	 Audit the site weekly for environmental issues.
 Attend
to any unplanned discharges and spills.
 Report unplanned discharges and spills, if any, to Yanzhou.
 Maintain all environmental monitoring and management equipment.

		
	Statutory Issues	  	 Attend to any statutory issues from relevant governmental departments.
 Forward copies of notices and correspondence, if any, to Yanzhou.

		
	Projects from Receiver	  	Carry out all works from projects identified by the Receivers outside the range of the care and maintenance budget and program.
		
	Reporting	  	Report weekly the status of the care and maintenance program to Yanzhou.
		  	Report as required to relevant Governmental departments, and provide a copy to Yanzhou

  

 58

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]