JiningNo.2 Coal Mineis located in the northern portion of the Jining coalfield, covering an area of approximately 87.1 square kilometers.JiningNo.2 Coal Mine began commercial production in 1997 with a designed annual raw coal production capacity of 4.0 million tonnes. Certainsections of the main coal seam of JiningNo.2 Coal Mineare concentrated in one layer, with an average thickness of 6.78 meters. The remainingsections are divided into two layers, with an average thickness of 2.1 meters for the upper leaf and an average thickness of 4.68meters for the lower leaf. As of December 31, 2013, the total in-place proven and probable reserves on the main coal layer wereapproximately 397.3 million tonnes.

JiningNo.2 Coal Mine primarily uses the longwall top coal caving method to extract coal. At this coal mine, we produced coal from twowork faces as of December 31, 2013. The main equipment used in JiningNo.2 Coal Mine are movable-sieve jig machines, cyclones and jigmachines, most of which were manufactured in the PRC.