China Shenhua Energy : APPROVAL ON THE OVERALL PLAN FOR XINJIE TAIGEMIAO MINES

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

This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Recently, China Shenhua Energy Company Limited (the "Company") has been informed that the Overall Plan for Inner Mongolia Xinjie Taigemiao Mines (the "Plan") obtained approval from the National Development and Reform Commission. The major details of the approval document (Document No.: Fa Gai Neng Yuan [2017] No. 1305) are as follows:

1. In order to rationally develop and utilize the coal resources at Xinjie Taigemiao Mines and facilitate regional economy and social development, the development idea of mainly constructing extra-large coal mines in the mining area was agreed in principle. The Plan serves as the guidance document on the development of coal resources in the mining area and the basis for approving the coal mine projects in the mining area.

2. Xinjie Taigemiao Mines covers an area of approximately 766 square kilometers, with total coal resources of approximately 14.4 billion tonnes (under PRC standard). The mining area is divided into five well fields and one reserve area, with the planned construction of wells which are designed to have a production capability of 62 million tonnes per year, and further exploration is needed in determining the mode of developing the reserve area. Newly constructed coal mine projects shall execute relevant procedures for construction to maintain consistency with the national development plan for the coal industry.

3. The newly constructed coal mines shall be equipped with coal preparation plants of corresponding scale. Coal products in the mining area are transported mainly through Bazhun Railway, Baoshen Railway and Dazhun Railway operated by the Company as well as railways operated by third parties.

4. The main developer of the mining area is Shenhua Xinjie Energy Co., Ltd., a controlled subsidiary of the Company.

The coal seam of Xinjie Taigemiao Mines is in a relatively favorable storage condition and with low gas, sulfur, and ash density. The coal type of the said mines mainly consists of non-stick coal. The Company will continue to advance the preliminary work regarding the newly constructed coal mine projects at Xinjie Taigemiao Mines. The environmental evaluation of the Plan has not obtained any approval yet. The time of approval of the projects is subject to uncertainty and the specific schedule on construction commencement has yet to be determined. Investors are advised to be cautious about investment risks involved.

By order of the Board

Secretary to the Board of Directors

Beijing, 11 August 2017

As at the date of this announcement, the Board comprises the following: Dr. Ling Wen, Dr. Han Jianguo and Dr. Li Dong as executive directors, Mr. Zhao Jibin as non-executive director, and Dr. Tam Wai Chu, Maria, Dr. Jiang Bo and Ms. Zhong Yingjie, Christina as independent non-executive directors.