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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ASIA ENERGY LOGISTICS GROUP LIMITED

亞 洲 能 源 物 流 集 團 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 351)

PROGRESS UPDATE ON THE DISPOSALS AND

DELAY IN DESPATCH OF CIRCULAR

Reference is made to the Announcements in relation to, among other things, the Very
Substantial Disposal and Connected Transactions of the Company.
PROGRESS UPDATE ON THE DISPOSALS
The Board wishes to update the potential investors of the Company and the Shareholders that the Company, the Vendor and the Purchaser have been working closely together to address the issues mentioned in the announcement of the Company dated 31 October 2014.
DELAY IN DESPATCH OF CIRCULAR
The Board also wishes to announce that the despatch of the Circular will be delayed to on or before 27 February 2015.
Reference is made to the announcements of Asia Energy Logistics Group Limited (the
''Company'') dated 28 February 2014, 21 March 2014, 25 April 2014, 30 May 2014, 27 June
2014, 31 July 2014, 29 August 2014, 29 September 2014 and 31 October 2014 respectively (collectively, the ''Announcements'') in relation to, among other things, the Very Substantial Disposal and Connected Transactions of the Company. Unless otherwise specified, terms used in this announcement shall have the same meanings as defined in the Announcements.
PROGRESS UPDATE ON THE DISPOSALS
The Board wishes to update the potential investors of the Company and the Shareholders that the Company, the Vendor and the Purchaser have been working closely together to address the issues mentioned in the announcement of the Company dated 31 October 2014. As mentioned, preliminary comments made by the relevant authorities were received in June 2014 and steps have been taken by the Company, the Vendor and the Purchaser in providing the relevant authorities with further supporting documents. Among which, the three core issues to be resolved are the additional land premium payable by the Target Company in respect of the land use rights relating the Tangcheng Section of the Zunxiao Railway (the ''Tangcheng
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Section''), the compensation payable to the owners of overlaid mine around the Tangcheng Section and the possible additional payment to the contractors in respect of the construction work already completed for the entire Zunxiao Railway.
During October to December 2014, the Company, the Vendor and the Purchaser have agreed on the amount payable to the contractors of the Zunxiao Railway by entering into several contracts. Apart from this, the Company, the Vendor and the Purchaser have been continuously coordinating with local governments to ascertain the amount of the additional land premium and the Company is also in the process of ascertaining the aggregate amount of the compensation payable to the owner of the overlaid mine.
Although it is uncertain as to when the approvals from the authorities will be obtained, the Company, the Vendor and the Purchaser are optimistic and at present do not foresee any material obstacles in obtaining such approvals. The Company, the Vendor and the Purchaser are working proactively to obtain the relevant approvals and intend to proceed with the Disposals. The Board reckons that there have been a prolonged delay in obtaining the requisite approvals and in the despatch of the Circular which in turn causing a delay in the Completion. In view that the financial position and operations of the Group will be significantly improved after the Completion and the prolonged delay would not hinder the approval process nor would it incur material additional resources for the Company to carry out its daily operations, the Board is of the view that notwithstanding the prolonged delay, the Disposals in the long run are in the interest of the Company and its shareholders as a whole.
DELAY IN DESPATCH OF CIRCULAR
As disclosed in the Announcements, it was expected that the Circular containing, among others, further information about the Disposals and a notice of EGM would be despatched to the Shareholders on or before 31 December 2014. As additional time is required for the Company to finalise the financial and other information of the Group for disclosure in the Circular and to resolve the issues stated above, the despatch of the Circular will be delayed to on or before 27 February 2015.
By order of the Board
Asia Energy Logistics Group Limited
Liang Jun
Executive Director
Hong Kong, 31 December 2014
As at the date of this announcement, the executive directors of the Company are Mr. Liang Jun, Mr. Fung Ka Keung, David and Ms. Yu Sau Lai; the non-executive directors of the Company are Mr. Yu Baodong (Chairman), Mr. Tse On Kin and Ms. Sun Wei; and the independent non- executive directors of the Company are Mr. Chan Chi Yuen, Mr. Zhang Xi and Prof. Sit Fung Shuen, Victor.
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