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.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01088)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

The "Announcement Regarding the Progress of the Watermark Phase One Open-cut Coal Mine Project" as published in Chinese in the China Securities Journal, the Shanghai Securities News, the Securities Times and the Securities Daily and on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 27 September 2014 is enclosed hereto as overseas regulatory announcement.

By Order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors

Beijing, 26 September, 2014

As at the date of this announcement, the Board comprises the following: Dr. Zhang Yuzhuo, Dr. Ling Wen, Mr. Han Jianguo and Mr. Wang Xiaolin as executive directors, Mr. Chen Hongsheng and Mr. Wu Ruosi as non-executive directors, and Ms. Fan Hsu Lai Tai, Mr. Gong Huazhang and Mr. Guo Peizhang as independent non-executive directors.

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Stock Code: 601088 Stock Short Name: China Shenhua No. of Announcement: Lin 2014-060

China Shenhua Energy Company Limited Announcement Regarding the Progress of the Watermark Phase One Open-cut Coal Mine Project

The board of directors and all directors of China Shenhua Energy Company Limited guarantee that the information set out in this announcement does not contain any false statements, misleading representations or material omissions, and severally and jointly accept

responsibility as to the truthfulness, accuracy and completeness of the content herein.


Recently, the Watermark Phase One Open-cut Coal Mine Project in Australia (the "Project") of China Shenhua Energy Company Limited (the "Company") was approved by the National Development and Reform Commission (Document No.: Fa Gai Neng Yuan [2014] No. 1641). The details of the document are as follows:
(I) Shenhua Australia Holdings Pty Limited, a wholly-owned subsidiary established by the Company's wholly-owned subsidiary China Shenhua Overseas Development and Investment Co., Ltd. (the "Overseas Company") in Australia, will be responsible for the exploration and development of the Project.
(II) The three open-cut mining areas of the Project have recoverable reserves of
290 million tonnes, a designed capacity of 10 million tonnes/year and a designed service life of 24 years. The construction period is 18 months.
(III)The total investment of the Project is AUD1,470 million (equivalent to approximately RMB8,525 million calculated based on an exchange rate of AUD1 to RMB5.8), of which 40% will be financed by foreign currency purchased using the own funds of the Company and the Overseas Company, and the remaining 60% by way of bank loans.
The investors are advised to note that the Project is still subject to the approval by the state government of New South Wales of Australia on the environmental impact assessment report on the Project and the relevant documents for commencement of construction of the Project.
The Planning Assessment Commission designated by the state government of New South Wales of Australia has recently published the environmental assessment review report on the Project that future mining activities of the Project will not have significant impact on the agricultural activities in and the environment of the surrounding areas. Therefore, it has proposed to the government of New South Wales that support should be given to the approval of the development of the Project on the condition that the relevant environmental assessment conditions have been satisfied.
Despite the above, there are still great uncertainties as to whether the Project will be approved by the local government in Australia, and therefore investors are advised to be aware of investment risks.

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By order of the board of directors China Shenhua Energy Company Limited Huang Qing

Secretary to the Board of Directors

26 September 2014

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