Yancoal Australia Ltd (Yancoal) has more than doubled the 2026 transaction ceiling under its existing Framework Coal Sales Agreement with Glencore, raising the annual cap from US$350.00 million to US$750.00 million.

The adjustment was approved by Yancoal’s board on 19 August 2026 after the company recorded about US$215.00 million in sales to Glencore and its related entities during the first half of 2026. Management cited heightened Middle East conflict-related market volatility, which is pushing Glencore to rely more heavily on spot coal purchases, alongside increased spot sales by HVO Coal Sales Pty Ltd, as key drivers behind the higher limit.

Key terms of the agreement—covering Yancoal’s supply of thermal and metallurgical coal to Glencore and its subsidiaries—remain unchanged. The revised cap was calculated with reference to: 1. Actual transaction value for the six months ended 30 June 2026 (US$215.00 million). 2. Expected second-half 2026 spot-market demand from Glencore. 3. Recent global coal-price volatility.

Governance and compliance • Anotero Pty Ltd, a wholly owned Glencore subsidiary, holds a 49% stake in HV Operations Pty Ltd and HVO Coal Sales Pty Ltd and a 49% interest in the Hunter Valley Operations joint venture, making Glencore a connected person to Yancoal under Hong Kong Listing Rules. • Because the transaction is with a connected person at the subsidiary level and has been approved by Yancoal’s board—including independent non-executive directors—the revised cap is subject only to reporting, announcement and annual review requirements, and does not require independent shareholders’ approval. • Directors confirmed the revised cap is fair, reasonable, on normal commercial terms or better, and in the interests of all shareholders. No director abstained from voting.

Strategic rationale Glencore has been a major customer of Yancoal since 2017. The company expects the expanded cap to preserve operational flexibility, sustain its relationship with Glencore and support ongoing revenue generation amid dynamic coal-market conditions.

Yancoal, listed in both Australia and Hong Kong, produces thermal and metallurgical coal for Asian power generation and steel markets. Glencore plc, listed in London and Johannesburg, is one of the world’s largest diversified natural-resource groups.