Pursuant to the agreement signed between Shenhua Watermark Coal Pty Limited, a wholly-owned subsidiary of the company and the New South Wales Government of Australia, the state government has agreed to grant the exclusive prospecting rights to the Watermark prospecting area to Shenhua Watermark. The area totals approximately 190 sq.kms, with estimated over 1 bln tonnes of resources.

On 20 Nov 2008, Shenhua Watermark paid the state government AUD 299.9 mln, equal to approximately RMB 1.308 bln for the prospecting rights. Thus, Shenhua Watermark has fulfilled its initial obligation under the terms of the aforementioned agreement.

As of date of this announcement, approvals on the matter have been granted by relevant domestic and overseas governments.

Board of Directors
21 Nov 2008


Source: Shanghai Stock Exchange

Date: 21 Nov 2008

CN01/FL/JL/VW/JW