U.S. Coal Demand and Peabody Strategic Overview

Peabody's Financial Approach: Invest Wisely ● Moderate maintenance capex required across 3-year plan Includes lease buyouts that lowers opex • Life extension projects offer multiple benefits: - Improves met production profile Allows access to stratified Planned Capital Expenditures ($ in millions) $275 - $325 Major Projects $325 - $375 Australia life extension projects thermal reserves through Wambo JV with Glencore - Extends life of lowest-cost, premier Australia thermal mine • Anticipate average capex of ~$250 - $300 million over next three years Peabody Sustaining $150 - $200 2018 2019 2020 43

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