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Coal @ China EXEN RESOURCES PTE. LTD.2017 ICCF - Budapest

1 INTRODUCTION TO SINOMET/EXEN

2 REVIEW THE YEAR OF 2017 FOR CHINA MARKET

3 OUTLOOK FOR THE YEAR OF 2018

Contents

01PART

SINOMET/EXEN

INTRODUCTION

01

PART

1

• Headquartered in Beijing, Sinomet is formerly China Metallurgical Import and Export Co. Ltd. (CMIEC) which was founded in 1978.

• We are China’s biggest seaborne metallurgical coal importer and distributor in China.

• We are one of the top metallurgical coal trading companies in the world.

100% subsidiary

• EXEN is the wholly owned Singapore subsidiary of Sinomet founded in 2014, which focuses on metallurgical coal trading in international markets.

• Over 15 mil tons of met coal been supplied to various customers globally to date.

1. WHO WE ARE

ExenResources

SinometInternational

4

Mln tons

4.1

7.26.9

8.59

9.8

9.5

0

2

4

6

8

10

12

14

2011 2012 2013 2014 2015 2016 2017

3. ANNUAL METALLURGICAL COAL VOLUME SINOMET/EXEN DISTRIBUTED

11(e)

(Year To Date)

01PART

02

PART

REVIEW

YEAR 2017

80.00

100.00

120.00

140.00

160.00

180.00

200.00

220.00

240.00

260.00

280.00

300.00

320.00

CFR FOB

Coking Coal “Supply-side Structual Reform”began, 276 working days policy been placed.

Tropical Cyclone Debbie

06

Shanxi Coking Coal Group announced that they are not going to drop the coking coal annual price.

NDRC asked to increase coal supply and stabilize coal price

PLV FOB price peaked at USD 310.0

PLV FOB index peaked at USD 304

01

1. REVIEW OF PLATTS PLV FOB/CFR INDEX – China’s impact to international price

02

03

04

07

“2+26” policy. 35%-50% steel/coke production cut during 15th Nov to 15th Mar05

USD/MT

774.58813.29 800.53 806.68

639.48

60.6491.49

112.41 108.99

0

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016 2017 Jan to Sep

Crude SteelProduction

Steel Export

850(e)

77-80 (e)

2. REVIEW OF CHINA STEEL PRODUCTION AND EXPORT

59.63

Mln tons

1500

2000

2500

3000

3500

4000

4500

5000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Price of Rebar 2016 2017RMB YUAN

3. REVIEW OF CHINA REBAR PRICE - 2016/2017

WHY…??

• Good domestic demand this year – GDP growth of 6.8% till Q3

• Production cut on “non-standard steel”

Estimation of >70-80mil tons!!

473 477 448 449

332

0

100

200

300

400

500

600

2013 2014 2015 2016 2017

450(e)

4

4. REVIEW OF CHINA COKE ANNUAL PRODUCTION

Mln tons

Jan to Sep

4

Mln tons

1332.291271.89 1244.88

1097.19

817.04

0

200

400

600

800

1000

1200

1400

2013 2014 2015 2016 2017

Jan to Sep

5. REVIEW OF CHINA COKING COAL RAW COAL PRODUCTION

1112.45(e)

75

62

48

59

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

2013 2014 2015 2016 2017Jan to Sep

Coking CoalImport

69(e)

4

6. REVIEW OF CHINA COKING COAL IMPORT

53

Mln tons

4

7. REVIEW OF CHINA COKING COAL IMPORT

25.726.82

23.52

12.72

23.56

19.9

5.71 5.19

3.34

3.23 2.623.57

0

5

10

15

20

25

30

2015 2016 2017 Jan to Sep

Australia Mongolia Canada Russia

29 (e)

26.5(e)

4.1(e)5(e)

8. OUR FORECAST FOR YEAR 2018

• Steel production volume maintains at a similar level as this year.

• Steel price remains at a high level.

• Steelmill’s margin keeps high.

• Coke production remains around the same.

• Domestic coal production shall increase slightly.

• Import volume shall be higher than this year – growth from Australia/US/Mongolia.

• Coking Coal price stays at a high level, however, could be be lower than average price level of 2017.

T h a n k Y o u

China HeadquarterSinomet International CorporationTel: +86 10 6530 8787Mobile: +86 133 1125 5097 (Vincent Liu)Address: Level 33, Fortune Plaza A

No.7 Dongsanhuan Zhong RoadBeijing, China 100020

Singapore Office Exen Resources Pte LtdTel: +65 6323 9277Mobile: +65 9721 6470 (Asheesh Bhat)Address: 20 Collyer Quay

#23-01Singapore 049319