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Zhaolou Coal Mine

Zhaolou Coal Mine is an underground coal mine located in the central portion of Juye Coal Field in Shandong. ZhaolouCoal Mine covers an area of approximately 143.4 square kilometers, and is accessible by roadway and railway.

Zhaolou Coal Mine commenced commercial production in December 2009 and has a designed annual raw coal productioncapacity of 3.0 million tonnes. Zhaolou Coal Mine produces 1/3 coking coal. The average thickness of the main coal seam of ZhaolouCoal Mine is 5.2 meters. The total recoverable reserves of Zhaolou Coal Mine were approximately 100.5 million tonnes as ofDecember 31, 2013.

The Company primarily used the longwall top coal caving mining method to extract coal from the two work faces at Zhaolou Coal Mine as ofDecember 31, 2013. The coal preparation plant at Zhaolou Coal Mine commenced commercial production in September 2009. Themain equipment used in the coal preparation plant was a dense media slanted wheel, cyclone machines, TBS separators and flotation machines,which were mainly produced in China. The main product of Zhaolou’s coal preparation plant is No. 2 Clean Coal. The operations atZhaolou Coal Mine are powered by electricity from local power grids. We ship coal products to Shandong and Hebei Provinces andsurrounding areas by truck.

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