MARKET RELEASE 13 June2012

ABN 66 008 881 712

Level 7, 167 Macquarie Street

Sydney NSW 2000 Australia

Telephone: +612 9220 9900

Facsimile: +612 9220 9999 www.gloucestercoal.com.au

Update on Gloucester and Yancoal Australia Scheme of

Arrangement and Second Court hearing

Further to our announcement on 7 June, 2012 we are pleased to announce that all conditions of the Scheme of Arrangement for the proposed merger of Gloucester and Yancoal Australia Limited ("Scheme") have now either been satisfied or waived pursuant to the terms of the Merger Proposal Deed dated 22 December 2011 (as amended). The Second Court Hearing to obtain orders approving the Scheme will now take place at 4.15pm this afternoon.
At the Gloucester Shareholders' meeting on 4 June 2012, the Chairman foreshadowed possible changes in relation to the debt facilities of Yancoal noting the board's view that the possible outcome would be a better overall result for the merged group. Since the meeting, Yancoal has received term sheets from its financiers that provide for approximately USD166,666,670 maturing on each of December 2012, 2013 and 2014 (a total of approximately USD 500 million) out of total drawings of USD3.04 billion not being extended. The term sheets also provide for all of the balance owing under the 2012, 2013 and 2014 tranches to be extended to 2017, 2018 and 2019 respectively, not just the 2012 and 2013 tranches which are required to be extended under the terms of the Merger Proposal. The Gloucester directors remain of the view that this is a better overall result for the merged group.
An announcement on the outcome of the Second Court Hearing will be released following its completion.

For Further Information

Media contact Investor contact
Sue Cato Marie Festa
+61 419 282 319 +61 405 494 705

distributed by