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CHINA HUARONG ENERGY COMPANY LIMITED

中國華榮能源股份有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01101) VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE ON DEVELOPMENT OF OILFIELD ZONES IN KYRGYZSTAN

This announcement is made by China Huarong Energy Company Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis with the purpose of keeping the shareholders of the Company and potential investors informed of the latest business development of the Company in relation to the project involving four oilfields located in the Fergana Valley of Kyrgyzstan (the "Kyrgyzstan Project").
The board (the "Board") of directors of the Company (the "Directors") is pleased to announce that, the production test process of oil well M656 was completed with a result of flowing wells and considerable production volume on 14 June 2015. During the production test, it recorded a daily production of approximately 850 barrels and 402 barrels of oil when using 8mm oil choke and 3mm oil choke, respectively. Oil well M656 is located in Maili-Su IV oilfield zone. Drilling of the oil well commenced on 7 April 2015 and was completed on 8
May 2015 with well completion on 14 May 2015. Oil well M656 is expected to commence production in the near future.
The Board is of the view that the production test results of oil well M656 have indicated huge development potential of the Kyrgyzstan Project, and is optimistic and encouraged by this. Maili-Su IV contains large areas of oil reserves where development has not commenced, representing significant potential in development and increase in production.
As of 15 June 2015, the drilling work of 36 new wells (mainly by cluster drilling) in the Kyrgyzstan Project had been completed and a daily production of approximately 737 barrels of oil was recorded on 15 June 2015. With further optimized production environment, the Group is proactively preparing for perforation and production of the existing drilled cluster wells, and is accelerating the pace of new well development in order to realise the development potential of the Kyrgyzstan Project.

By Order of the Board

China Huarong Energy Company Limited

LEE Man Yee

Company Secretary

Hong Kong, 16 June 2015

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As at the date of this announcement, the directors of the Company are:

Executive directors:

Mr. CHEN Qiang (Chairman), Mr. WU Zhen Guo, Mr. HONG Liang, Mr. Sean S J WANG, Mr. WANG Tao, Mr. WEI A Ning and Ms. ZHU Wen Hua;

Independent non-executive directors:

Mr. XIA Da Wei, Mr. HU Wei Ping, Mr. WANG Jin Lian and Ms. ZHOU Zhan.

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