A strong internal control system is needed for improving immunity and strengthening international competitiveness, it is the basic requirement of the investors on corporate governance as well.

In accordance with the relevant requirements under the US Sarbanes-Oxley Act, Guidance on Internal Control forListed Companies issued by the Shanghai Stock Exchange and the Hong Kong Listing Rules issued by Hong KongStock Exchange, the Company formulated the Design and Applications on Internal Control of Yanzhou Coal MiningCompany Limited in 2006, establishing an improved internal control system. The Company started the“Supporting Guidelines of Internal Control” jointly issued by five Ministries including Ministry of Finance, since 2011.

In order to improve the internal control, The Company, according to regulations above and the practical conditions as well, has formulated rules on internal control such as “Design and Application of Internal Control System of Yanzhou Coal Mining Company Limited” in 2007, “The Standard for Internal Control Quantitative Assessment of Yanzhou Coal Mining Company Limited” in 2010, “General Rules on Internal Control of Yanzhou Coal Mining Company Limited” in 2011, and “Administration of Internal Control system of Yanzhou Coal Mining Company Limited (Pilot)” in 2013. All these actions have consistently improved the internal control management system and its operation procedures.

The Board of Directors of the Company is responsible for the establishment, improvement and effective application of internal control system; the Audit Committee of the Board is responsible for examining, supervising the effective application, consistent improvement and self-assessment of the internal control system, and coordinating external auditing as well. The Board of Supervisors supervises the establishment and application of internal control conducted by the Board of Directors. The management team is responsible for the organization and operation of the internal control system.

The Company established professional bodies responsible for the daily operation and management of the internal control system, including Audit&RiskManagement Department, Finance Management Department, Human Resources Department, Planning & Development Department and Secretariat to the Board etc.

The Board has assessed the effectiveness of the Company’s internal control system once a year since 2007 and hasappointed overseas and domestic annual auditing accountants to review whether the Company’s internal control system complieswith the requirements of the US Sarbanes-Oxley Act and the General Rules on Internal Control for Enterprises jointly issued by fiveMinistries including Ministry of Finance. Since 2007, the domestic and overseas annual auditing accountants consistently agreed that, the Company had kept effective internal control on all major aspects in finance reports.