OREANDA-NEWS. February 27, 2013. The board of China Petroleum & Chemical Corporation (the “ Company ”) notes that there have been recent reports regarding (i) the Company’s possible acquisition of certain upstream oil and gas assets from the Company’s parent company, China Petrochemical Corporation (the “Parent”) (the “Possible Acquisition”); and (ii) the linkage between the Company’s share placement completed on 14 February 2013 (the “Placing”) and the Possible Acquisition.

The Company would like to make the following clarifications on this matter:

(i) Acquisition of upstream oil and gas assets from the Parent is part of the Company’s existing business plan;

(ii) Up to the date of this announcement, the Company has been evaluating a variety of assets owned by the Parent located outside China from business, legal and financial perspectives on a preliminary basis. However, as of the date of this announcement, the Company does not have a definitive timetable in relation to the Possible Acquisition;

(iii) As disclosed in the Company’s announcement dated 4 February 2013, the proceeds of the Placing would be used for general corporate purposes. The possible applications include (but not limited to) funding the working capital of the Company, repaying existing loans and conducting project investments, etc.; and

(iv) Apart from acquisition of assets under the Possible Acquisition from the Parent, the Company is not engaging in any discussions with parties (other than the Parent) for any significant acquisition plans which could potentially trigger the Company’s disclosure obligations under the Hong Kong Listing Rules and/or the Securities and Futures Ordinance.

The Company will closely monitor this matter and if, there is any inside information that needs to be disclosed under Part XIVA of the Securities and Futures Ordinance, the Company will make timely disclosure as appropriate.