Moodys -Credit Opinion

CORPORATES CREDIT OPINION 28 May 2020 Update RATINGS Golden Energy And Resources Ltd Domicile Singapore Long Term Rating B1 Type LT Corporate Family Ratings Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Maisam Hasnain, CFA +65.6398.8325 AVP-Analyst Hui Ting Sim +65.6311.2643 Associate Analyst Ian Lewis +65.6311.2676 Associate Managing Director Golden Energy And Resources Ltd Update following acquisition of Stanmore Coal Summary Golden Energy And Resources Ltd ' s (GEAR) B1 rating is supported by (1) its 67% effective ownership of PT Golden Energy Mines Tbk (GEMS), an Indonesian thermal coal producer with growing production volumes and a long reserve life, supported by its integrated operations; and (2) the group’s track record of prudent capital management and performance through the coal price cycle. However, GEAR's rating is constrained by (1) its dependence on cash dividends from subsidiaries, in particular from GEMS, to service its debt; (2) the risks related to its evolving acquisition strategy; and (3) its exposure to the cyclical thermal coal sector, with reliance on one mine for most of its cash flow. Exhibit 1 GEAR's consolidated leverage will stay within its rating thresholds despite weaker coal prices 40 50 60 70 80 90 100 110 120 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 2015 2016 2017 2018 2019 2020-proj. 2021-proj. Newcastle thermal coal price ($/ton) Consolidated adj Debt / EBITDA Consolidated adj. Debt/EBITDA - left axis Downgrade threshold (consolidated adj. Debt/EBITDA > 3x) Average Newcastle thermal coal price - right axis Sources: Moody's Financial Metrics™, Moody’s Investors Service estimates and Bloomberg Credit strengths » Growing production volume and long reserve life » Competitive cost position at GEMS and track record of performing through market downturns