OREANDA-NEWS. August 30, 2012. The Board announces that the Company has entered into the Capital Contribution Agreement with the Parent, pursuant to which the parties have agreed to establish Chinacoal Finance with a registered capital of RMB3 billion, reported the press-centre of China Coal Energy.

Upon completion of the transaction under the Capital Contribution Agreement, the registered capital of Chinacoal Finance will be owned as to 91% by the Company and 9% by the Parent.

The Parent is the controlling Shareholder of the Company and therefore, is a connected person of
the Company under the Hong Kong Listing Rules. The transaction under the Capital Contribution Agreement constitutes connected transaction of the Company under Chapter 14A of the Hong Kong Listing Rules.

As one or more of the applicable percentage ratios (as defined under Rule 14A.10 of the Hong Kong Listing Rules) in respect of the transaction under the Capital Contribution Agreement exceed 0.1% but less than 5%, accordingly, the Capital Contribution Agreement is only subject to the reporting and announcement requirements, but is exempt from the independent shareholders’ approval requirement under Chapter 14A of the Hong Kong Listing Rules.