Yancoal Canada Resources Co., Ltd.

Yancoal Canada Resources Co., Ltd. (Yancoal Canada) is a Saskatoon based potash exploration and development company, with a registered capital of $290 million USD.  The company was established in 2011 and it is a wholly-owned subsidiary of Yanzhou Coal Mining Co., Ltd. (Yanzhou Coal).  Yanzhou Coal is an international mining company with over 40 years of mining experience and it is listed in the stock exchanges in New York, Hong Kong, Shanghai, and Sydney, and has businesses in China, Australia and South America.  Its core businesses include mineral resources exploration, coal-based chemicals production, power generation and manufacturing.  As one of their strategies, Yanzhou Coal has diversified from the coal industry to fertilizer production (e.g., urea and potash), chemical production, power generation, and financing.  Potash developments in Saskatchewan are attractive due to the competitive investment climate and the well-established regulatory framework.  A potash development fits Yanzhou Coal’s current vision of being recongized as a comprehensive provider of minerals, energy and fertilizers.

Exploration

  Within selected target areas, Yancoal Canada conducted preliminary investigation work (geological exploration activities such as 2D and 3D seismic programs and drilling and coring), as well as environmental baseline and effects assessment work.  Both areas of investigation were initiated in 2012 in KP377 and KP392, where the Southey Project is proposed.

The Southey Project Engagement Plan encompasses several stakeholders:

• local land owners;
• local communities (including interested members of the public);
• First Nations and Metis communities;
• municipal representatives; and,
• regulatory agencies.