Inner Mongolia Yitai Coal : SUPPLEMENTARY CIRCULAR TO THE CIRCULAR DATED 14 NOVEMBER 2019 PROPOSED ISSUE OF SUPER SHORT-TERM COMMERCIAL PAPERS AND SUPPLEMENTARY NOTICE OF THE EGM

THIS SUPPLEMENTARY CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this supplementary circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this supplementary circular.

If you are in any doubt as to any aspect of this supplementary circular or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional advisers.

If you have sold or transferred all your shares in Inner Mongolia Yitai Coal Co., Ltd., you should at once hand this supplementary circular together with the accompanying revised form of proxy to the purchaser(s) or the transferee(s) or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or the transferee(s).

SUPPLEMENTARY CIRCULAR TO THE CIRCULAR DATED 14 NOVEMBER 2019

PROPOSED ISSUE OF SUPER SHORT-TERM COMMERCIAL PAPERS

AND

SUPPLEMENTARY NOTICE OF THE EGM

This supplementary circular (the "Supplementary Circular") should be read in conjunction with the circular to Shareholders of the Company (the "Shareholders") dated 14 November 2019 (the "First Circular").

A notice convening the Extraordinary General Meeting (the "EGM") to be held at Room 1, Conference Center, Building of Inner Mongolia Yitai Coal Co., Ltd., Ordos, Inner Mongolia, the People's Republic of China (the "PRC") at 3:00 p.m. on Monday, 30 December 2019 was set out in the First Circular. The supplementary notice of the EGM (the "Supplementary Notice") is set out on pages 5 to 6 of this Supplementary Circular.

A revised form of proxy (the "Revised Form of Proxy") is enclosed herewith and also published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.yitaicoal.com). The Revised Form of Proxy enclosed herewith shall supersede the form of proxy enclosed in the First Circular. Shareholders who intend to appoint a proxy to attend the EGM shall complete the enclosed Revised Form of Proxy in accordance with the instructions printed thereon and return the same not less than 24 hours before the time fixed for holding the EGM or any adjournment thereof (as the case may be). Completion and return of the Revised Form of Proxy will not preclude you from attending the EGM and voting in person if you so wish.

13 December 2019

* For identification purpose only

CONTENTS
	Page
LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
SUPPLEMENTARY NOTICE OF EXTRAORDINARY GENERAL MEETING . . . . . . . .	5

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LETTER FROM THE BOARD

Executive Directors:	Registered Office:
Liu Chunlin	Yitai Building, North Tianjiao Road
Ge Yaoyong	Dongsheng District, Ordos
Zhang Dongsheng	Inner Mongolia, China
Liu Jian
Lv Guiliang	Principal place of business in Hong Kong:
	40/F, Sunlight Tower
Independent non-executive Directors:	248 Queen's Road East
Du Yingfen	Wanchai
Zhang Zhiming	Hong Kong
Huang Sujian
Wong Hin Wing
	13 December 2019
To the Shareholders
Dear Sir or Madam,

SUPPLEMENTARY CIRCULAR TO THE CIRCULAR DATED 14 NOVEMBER 2019

PROPOSED ISSUE OF SUPER SHORT-TERM COMMERCIAL PAPERS

AND

SUPPLEMENTARY NOTICE OF THE EGM

INTRODUCTION

This Supplementary Circular should be read together with the First Circular. Unless indicated otherwise, the capitalised terms used in this Supplementary Circular shall have the same meanings as those defined in the First Circular.

In accordance with the Articles of Association, Shareholder(s) separately or jointly holding 3% or more of the shares in the Company are entitled to submit written proposal of additional resolution(s) to the convener of Shareholders' general meeting ten (10) days before the date of the meeting. The convener shall issue a supplemental notice of meeting containing details of the additional resolution(s) within two (2) days after the receipt of the proposal.

* For identification purpose only

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LETTER FROM THE BOARD

The form and procedure of the proposed additional resolution(s) are in compliance with the relevant applicable laws and regulations as well as the Articles of Association.

The purpose of this Supplementary Circular is to give you the Supplementary Notice, which is set out on pages 5 to 6 of this Supplementary Circular and to provide you with all the information reasonably necessary to enable you to make an informed decision on whether to vote for or against the supplementary resolution(s) at the EGM.

PROPOSED ISSUE OF SUPER SHORT-TERM COMMERCIAL PAPERS

In order to expand financing methods, optimize and adjust the debt structure of the Company and reduce financing costs, as well as further improve financing efficiency, the Company proposed to register and issue super short-term commercial papers (the "Super Short-termCommercial Papers") in the National Association of Financial Market Institutional Investors. The details of the Super Short-term Commercial Papers are as follows:

1. Issuance Plan
2. 1. Scale of registration of the Super Short-term Commercial Papers
      The scale of registration of the Super Short-term Commercial Papers will not exceed RMB5 billion (inclusive), and will be issued in installments based on the capital situation of the Company.
   2. Validity period of registration and term of maturity
      The validity period of registration is 2 years; the Company has an option to issue within the registered amount based on the market environment within the validity period of registration, and each tranche of the Super Short-term Commercial Papers has a term of not more than 270 days (inclusive).
   3. Interest rate and method of determination
      It is determined based on the Company's credit rating, the market interest rate level during the issuance period and the situations of inter-bank bond market and underwriters.
   4. Issue targets
      The issue targets are institutional investors in the inter-bank bond market of the PRC (excluding those in respect of which subscription is prohibited under PRC laws and regulations).

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LETTER FROM THE BOARD

1. 1. Use of proceeds
      The Company intends to use the proceeds raised in each tranche of the Super Short-term Commercial Papers to supplement the working capital of the Company (including its subsidiaries) or to repay the debts and bank borrowings of the Company (including its subsidiaries), and other corporate operations that meet national laws, regulations and policy requirements.
   2. Date of issue
      It will be issued in one-time or installments within the validity period of registration in the National Association of Financial Market Institutional Investors based on the market environment and the actual funding requirements of the Company.
2. Matters Related to Issuance
   The issue of Super Short-term Commercial Papers shall be submitted to the general meeting of the Company for consideration and approval. The Chairman of the Board or the legal representative of the Company is proposed to be authorized by the general meeting of the Company to decide and handle matters related to the issue of Super Short-term Commercial Papers at his sole discretion in the above issuance plan, including but not limited to:
3. 1. formulating specific plans for the issue of Super Short-term Commercial Papers, revise and adjust the issuance terms of Super Short-term Commercial Papers, including the issuance period, time, specific amount, issuance interest rate, underwriting method, use of proceeds and other matters relating to the issuance terms;
   2. engaging the lead underwriter and other intermediaries to provide services for the issuance, and handling the reporting, registration, disclosure and other matters;
   3. within the scope of the above authorization, being responsible for amending and signing all necessary documents relating to the issue of Super Short-term Commercial Papers;
   4. making corresponding adjustments to the specific plan for the issuance and other relevant matters according to the opinion of regulatory authorities in the event of changes in regulatory policies or market conditions;
   5. handling other matters relating to the issue of Super Short-term Commercial Papers;
   6. terminating the registration and issue of the Super Short-term Commercial Papers; and
   7. the validity period of the above authorization will commence from the date of approval at the general meeting of the Company till the date of completion of the above authorization.

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LETTER FROM THE BOARD

THE EGM

As at the date of this circular, none of the Shareholders of the Company is required to abstain from voting with respect to the proposed resolutions.

The Supplementary Notice is set out on pages 5 to 6 of this Supplementary Circular. The EGM will be held as originally scheduled at Room 1, Conference Center, Building of Inner Mongolia Yitai Coal Co., Ltd., Ordos, Inner Mongolia, the PRC on Monday, 30 December 2019.

Please refer to the notice of the Company dated 14 November 2019 for details in respect of other resolution(s) to be considered at the EGM, eligibility for attending the EGM, registration procedures, closure of register of members, procedures on demanding a poll and other relevant matters.

RECOMMENDATION

The Board believes that the proposed resolution(s) mentioned above is in the best interests of the Company and the Shareholders as a whole. Accordingly, the Board recommends that all the eligible Shareholders should vote in favour of the abovementioned resolution at the EGM.

By order of the Board

Inner Mongolia Yitai Coal Co., Ltd.*

Liu Jian

Executive Director

* For identification purpose only

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SUPPLEMENTARY NOTICE OF EXTRAORDINARY GENERAL MEETING

SUPPLEMENTARY NOTICE OF EXTRAORDINARY GENERAL MEETING

Reference is made to the notice of the EGM of Inner Mongolia Yitai Coal Co., Ltd. (the "Company") dated 14 November 2019 which set out the resolution(s) to be considered by Shareholders at the EGM to be convened at Room 1, Conference Center, Building of Inner Mongolia Yitai Coal Co., Ltd., Ordos, Inner Mongolia, the People's Republic of China (the "PRC") at 3:00 p.m. on Monday, 30 December 2019. Unless indicated otherwise, capitalised terms used in this supplementary notice shall have the same meanings as those defined in the circular (the "Circular") and supplementary circular of the Company dated 14 November 2019 and 13 December 2019, respectively.

SUPPLEMENTARY NOTICE is hereby given that the EGM will be held as originally scheduled. In addition to the resolution(s) set out in the notice of the EGM dated 14 November 2019 (the "Notice of EGM"), the following resolution will be considered and approved:

AS ADDITIONAL SPECIAL RESOLUTION

1. To consider and approve the resolution of the proposed issue of Super Short-term Commercial Papers.

By order of the Board

Inner Mongolia Yitai Coal Co., Ltd.*

Liu Jian

Executive Director

Inner Mongolia, the PRC, 13 December 2019

As at the date of this notice, the executive directors of the Company are Mr. Liu Chunlin, Mr. Ge Yaoyong, Mr. Zhang Dongsheng, Mr. Liu Jian and Mr. Lv Guiliang; and the independent non-executive directors of the Company are Ms. Du Yingfen, Mr. Zhang Zhiming, Mr. Huang Sujian and Mr. Wong Hin Wing.

* For identification purpose only

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SUPPLEMENTARY NOTICE OF EXTRAORDINARY GENERAL MEETING

Notes:

1. Save for the inclusion of the newly submitted resolution(s), there are no other changes to the resolutions set out in the Notice of the EGM. For the details and other matters in relation to the other resolution(s) to be considered at the EGM, please refer to the notice of the EGM and the Circular.
2. Since the form of proxy sent together with the Circular (the "First Form of Proxy") does not contain the additional proposed resolution as set out in this supplementary notice, a new form of proxy (the "Revised Form of Proxy") has been prepared and is enclosed with this supplementary notice.
3. The Revised Form of Proxy for use at the EGM is enclosed and is also published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.yitaicoal.com). Whether or not you intend to attend the EGM, you are requested to complete and return the enclosed Revised Form of Proxy in accordance with the instructions printed thereon not less than 24 hours before the time fixed for holding the EGM or any adjournment thereof (as the case may be). Completion and return of the Revised Form of Proxy will not preclude you from attending the EGM and voting in person if you so wish.
4. A Shareholder who has not yet lodged the First Form of Proxy in accordance with the instructions printed thereon is requested to lodge the Revised Form of Proxy if he or she wishes to appoint proxies to attend the EGM on his or her behalf. In this case, the First Form of Proxy should not be lodged.
5. A Shareholder who has already lodged the First Form of Proxy in accordance with the instructions printed thereon should note that:
6. 1. If no Revised Form of Proxy is lodged in accordance with the instructions printed thereon, the First Form of Proxy will be treated as a valid form of proxy lodged by the Shareholder if duly completed. The proxy appointed under the First Form of Proxy will also be entitled to vote in accordance with the instructions previously given by the Shareholder or at his/her discretion (if no such instructions are given) on any resolution(s) properly put to the EGM, including the additional proposed resolution as set out in this supplementary notice.
   2. If the Revised Form of Proxy is lodged in accordance with the instructions printed thereon not less than 24 hours before the time appointed to hold the EGM or any adjourned meeting (the "Closing Time"), the Revised Form of Proxy will be treated as a valid form of proxy lodged by the Shareholder if duly completed.
   3. If the Revised Form of Proxy is lodged after the Closing Time, the Revised Form of Proxy will be deemed invalid. It will not revoke the First Form of Proxy previously lodged by the Shareholder. The First Form of Proxy will be treated as a valid form of proxy if duly completed. The proxy appointed under the First Form of Proxy will also be entitled to vote in accordance with the instructions previously given by the Shareholder or at his/her discretion (if no such instructions are given) on any resolution(s) properly put to the EGM, including the additional proposed resolution as set out in this supplementary notice.
7. Shareholders are reminded that completion and return of the First Form of Proxy and/or the Revised Form of Proxy will not preclude them from attending and voting in person at the EGM or any adjournment thereof.

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