According to resolutions made at the 23rd 2008 Meeting of the 1st Board of Directors, it has been recommended that the volume of related-party transactions with Shenhua Group Co., Ltd., the company's controlling shareholder, and its subsidiaries be adjusted upward.

As stipulated in a contract signed on 23 Mar 2007, the proposed maximum annual transaction limits for products and services to be supplied by the company and its affiliates in 2008, 2009 and 2010 are RMB 1.32 bln, RMB 1.65 bln and RMB 2.05 bln respectively. With respect to a dedicated coal supply contract signed on 23 Mar 2007, the maximum annual transaction limit was set at RMB 2.05 bln for 2008.

Board of Directors
29 Aug 2008

Source: Shanghai Stock Exchange

Date: 1 Sept 2008

CN01/NW/DM/BT/MM