OREANDA-NEWS. October 27, 2011. Reference is made to the Announcements in respect of a series of continuing connected transactions and their respective annual caps for the two years ended 31 December 2010 and for the year ending 31 December 2011, reported the press-centre of China Coal Energy.

The Company expects to renew the relevant agreements giving rise to Continuing Connected Transactions and proposes to renew the annual caps for Continuing Connected Transactions for the three years ending 31 December 2014.

The Continuing Connected Transactions will be conducted between members of the Group and members of the Parent Group. The Parent is the controlling shareholder of the Company and a connected person of the Company. The relevant members of the Parent Group are all associates of the Parent and are therefore connected persons of the Company under the Hong Kong Listing Rules.

The transactions contemplated under the Continuing Connected Transactions constitute connected transactions of the Company under Chapter 14A of the Hong Kong Listing Rules.

As one or more of the applicable percentage ratios in respect of the Land Use Rights Leasing Framework Agreement and the Property Leasing Framework Agreement exceed 0.1% but less than 5%, the transactions thereunder are only subject to the reporting, annual review and announcement requirements, and are exempt from the independent shareholders’ approval requirement under Chapter 14A of the Hong Kong Listing Rules.

As one or more of the applicable percentage ratios (as defined under Rule 14A.10 of the Hong Kong Listing Rules) in respect of the Non-exempt Continuing Connected Transactions exceed 5%, the transactions contemplated under the Non-exempt Continuing Connected Transactions are subject to the reporting, announcement, annual review and independent shareholders’ approval requirements under Chapter 14A of the Hong Kong Listing Rules.

An Independent Board Committee has been formed to advise the Independent Shareholders on the Non-exempt Continuing Connected Transactions and the Independent Board Committee has approved the appointment of Independent Financial Advisor to advise the Independent Board Committee and the Independent Shareholders on the Non-exempt Continuing Connected Transactions and the proposed annual caps thereof in accordance with the Hong Kong Listing Rules.

A circular containing, among other things, further details of the Non-exempt Continuing Connected Transactions and the proposed annual caps thereof, the letter from the Independent Board Committee and the recommendation from the Independent Financial Adviser on the terms of the Non-exempt Continuing Connected Transactions and the proposed annual caps thereof, together with a notice convening the EGM, will be despatched to the Shareholders on or before 27 October 2011.