ANNOUNCEMENT PROPOSED ISSUE OF CORPORATE BONDS

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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ANNOUNCEMENT PROPOSED ISSUE OF CORPORATE BONDS Inner Mongolia Yitai Coal Co., Ltd. (the Company ) announces that, in order to further optimize the debt structure of the Company, expand the financing channels of the Company as well as lower the finance costs, the Company proposes to proceed the public issue of corporate bonds with an aggregate principal of not exceeding RMB6 billion (the Corporate Bonds ). Details of the Corporate Bonds are set out as follows: 1. Issue size of the Corporate Bonds 2. Issue methods and issue targets 3. Arrangement on placement to shareholders of the Company The issue size of the Corporate Bonds shall not exceed RMB6 billion (inclusive of RMB6 billion), which can be issued in one or multiple tranches. The specific issuance size and number of tranches shall be determined within the aforesaid scope by the Board or its authorized persons subject to the approval at the general meeting based on the funding needs of the Company and the market conditions at the time of issuance. The Corporate Bonds will be publicly issued to qualified investors as stipulated in the Administrative Measures for the Issuance and Trading of Corporate Bonds( 公司債券與交易管理辦法 )with competence to identify and bear respective risk. The Corporate Bonds will be publicly issued to qualified investors and will not be pre-emptively placed to the shareholders of the Company. 4. Par value and issue price The par value of the Corporate Bond is RMB100, issuing at par value. * For identification purpose only - 1 -

2 5. Maturity The term of maturity of the issue of the Corporate Bonds shall not exceed 5 years (inclusive of 5 years) and can be either single-term or multiple terms. The specific term structure of maturity and the issuance size of each type shall be determined by the Board or its based on the market conditions and the funding needs of the Company at the time of issuance. 6. Use of proceeds The proceeds raised from the issuance of the Corporate Bonds are intended to be used for corporate business activities which are in compliance with laws and regulations of the PRC and government policies, such as supplementing the working capital of the Company (including its affiliates) and/or repaying debts of the Company (including its affiliates). The specific use of proceeds shall be determined within the aforesaid scope by the Board or its based on the funding needs of the Company. 7. Place of listing The Corporate Bonds to be issued will be listed on the Shanghai Stock Exchange for trading. Subject to satisfying the prerequisites of listing, the Company will submit an application regarding the listing of the Corporate Bonds for trading to the Shanghai Stock Exchange as soon as possible after the issuance of the Corporate Bonds. Subject to approval from the regulatory authorities, the Corporate Bonds may also be listed on other stock exchanges for trading to the extent permitted by applicable laws. The specific place of listing shall be determined by the Board or its authorized persons subject to the approval at the general meeting in accordance with relevant laws and regulations, the approval by regulatory authorities and market conditions. 8. Term of guarantee The Board or its authorized persons subject to the approval at the general meeting are authorized to decide whether or not guarantee shall be used for this issuance of the Corporate Bonds, and the specific type of guarantee for the issuance of the Corporate Bonds in accordance with relevant provisions and market conditions. 9. Validity of the resolution The resolution(s) of the issuance of the Corporate Bonds at the general meeting shall be effective for 36 months from the date of approval at the general meeting

3 10. Measures for guaranteeing the repayment In the circumstances of any expected failure to pay any amount of the principal or interest of the Corporate Bonds as scheduled or any failure to pay any amount of the principal or interest of the Corporate Bonds as scheduled when they fall due, the Board or its are authorized to take at least the following measures and proceed with all the matters in relation to the following measures: (1) not to distribute any profit to the shareholders; (2) to postpone the implementation of capital expenditure projects such as material external investment, merger or acquisition; (3) to reduce or discontinue the payment of salaries and bonuses of directors and members of senior management; (4) not to approve any transfer or secondment of the key persons in charge. 11. Authorization of the Board or its authorized persons for the issue The Board or its authorized persons shall be authorized at the general meeting to deal with issues relevant to this issuance of the Corporate Bonds in accordance with relevant provisions under the laws and regulations and the funding needs of the Company and market conditions at the time of issuance, including but not limited to: (1) the formulation and adjustment of specific plans for the issuance of the Corporate Bonds pursuant to the laws, regulations, relevant provisions of securities regulatory authorities and resolution(s) of general meetings of the Company, and based on the conditions of the Company and the market, including but not limited to all issues in relation to the terms of issuance including the specific size of issuance, maturity of the bonds, categories of the bonds, interest rate of the bonds and its method of determination, timing of issuance, whether the issuance is in tranches and number of tranches, guarantee plan, whether innovative terms such as repurchase and redemption shall be established, dealing with and determining guarantee related matters, specific application and subscription method, terms and methods of repayment of the principal and the interests, place of listing, rating arrangement, etc. and the determination of specific use of proceeds within the scope of use of proceeds as approved at the general meeting; - 3 -

4 (2) determination and appointment of intermediaries, selection of a trustee manager for the bonds, signing the agreement of entrusted management of bonds and formulation of the rules on the meetings of the holders of bonds; (3) deciding and proceeding with the reporting, listing and other necessary matters of the issuance, including but not limited to, formulating, approving, executing, amending and announcing all documents related to the public issuance of the Corporate Bonds, making corresponding supplements or adjustments to the reporting documents in accordance with the requirements of regulatory authorities and laws and regulations, and making appropriate information disclosure; (4) authorizing the Board or its authorized persons to make corresponding adjustments to the matters related to the issuance of the Corporate Bonds in accordance with opinions of regulatory authorities or the then market conditions in the event of any changes in the policy of regulatory authorities on the issuance of corporate bonds or any changes in market conditions, save for the matters that are subject to shareholders re-voting at the general meeting under relevant laws, regulations and the articles of association of the Company; (5) proceeding with the matters in relation to the issuance of the Corporate Bonds in accordance with the regulations on issuance of bonds of relevant stock exchanges and the listing rules after the issuance; (6) approving, signing and despatching relevant announcements and circulars in relation to the issue and disclosing relevant information in accordance with applicable regulatory rules of the place of listing of the Company; (7) proceeding with other matters related to the public issuance of the Corporate Bonds; The authorization shall be valid from the date on which the resolution is considered and approved at the general meeting up to the date on which the above authorized matters are completed. The persons authorized by the Board under this resolution are proposed to be Mr. Zhang Donghai and Mr. Liu Chunlin, either of whom is able to execute the above authorization to deal with the matters in relation to the issue of the Corporate Bonds

5 Relevant resolutions will be set out in the supplementary circular of the 2015 Annual General Meeting of the Company to be despatched to the shareholders of the Company on or before 14 June The public issuance of the Corporate Bonds is subject to certain conditions including but not limited to the approval from the CSRC and any other government or regulatory authorities and may or may not proceed to completion. Shareholders of the Company and potential investors shall exercise caution when dealing in the securities of the Company. Inner Mongolia, the PRC, 13 June 2016 By order of the Board Inner Mongolia Yitai Coal Co., Ltd. Zhang Donghai Chairman As at the date of this announcement, the executive directors of the Company are Mr. Zhang Donghai, Mr. Liu Chunlin, Mr. Ge Yaoyong, Mr. Zhang Dongsheng, Mr. Zhang Jingquan, Mr. Lv Guiliang and Mr. Song Zhanyou; and the independent non-executive directors of the Company are Mr. Yu Youguang, Mr. Qi Yongxing, Mr. Zhang Zhiming and Mr. Tam Kwok Ming, Banny