Company News

• Dragline successfully relocated to Isaac Plains East on schedule
• Lower strip ratio at Isaac Plains East will result in significant reduction in waste removal costs and unit costs with increased coal production
• The transition to Isaac Plains East allows for a strong FY19 H2 performance

The dragline has successfully walked from Isaac Plains to Isaac Plains East where it is now operating as of 23 December 2018. The dragline relocation was on schedule and allows dragline access to low strip ratio coal resulting in significant cost reductions.

As required by s647(3) of the Corporations Act 2001 (Cth), we enclose a copy of the second Supplementary Target's Statement dated 21 December 2018 and served today by Stanmore Coal Limited (Stanmore) on Golden Investments (Australia) Pte. Ltd (Golden Investments), supplementing Stanmore's Target's Statement dated 12 December 2018 and Stanmore's first Supplementary Target's Statement dated 21 December 2018 in response to Golden Investments' Bidder's Statement dated 19 November 2018 as supplemented by the Supplementary Bidder's Statement dated 14 December 2018.

Stanmore Coal confirms that it has today dispatched its Target's Statement (and accompanying Independent Expert's Report) to shareholders in relation to the Golden Investments (Australia) Pte Ltd takeover offer.

Shareholders with any questions in relation to the Offer can contact the Stanmore Coal information line on 1300 970 086.

Stanmore Directors unanimously recommend shareholders REJECT THE OFFER. Offer Price is materially inadequate and does not provide an appropriate control premium. The Independent Expert, BDO Corporate Finance (QLD) Ltd, estimates the controlling interest value for Stanmore shares is between $1.48 and $1.90. The Independent Expert concludes the Offer is not fair and not reasonable to Stanmore shareholders.

Stanmore Chairman, Stewart Butel, said, “The Offer is clearly inadequate against a range of comparisons and does not account for the positive outlook for Stanmore and the Company’s pursuit of strategies and initiatives to maximise shareholder value”.

Chairman’s letter to Shareholders.  The Board of Stanmore Coal recommends shareholders reject the $0.95 takeover offer from Golden Investments

Stanmore attended the breakfast BBQ for White Ribbon Day on Friday, 23 November as a special guest of the Moranbah Men's Shed, who facilitated the BBQ on the day.