(For immediate release)

Press Release

(For immediate release)

China XLX: Innovative technology boosts the circular economy, coal ash comprehensive utilization project initiates

(8 January 2015, Hong Kong) China XLX Fertiliser Ltd. ("China XLX Fertiliser" or the "Company") (HKSE: 01866.HK) announced that the company recently signed a cooperative agreement of pilot testing the coal ash intense utilization with Nanyang Oriental Application Chemical Research Institute ("Nanyang Oriental"). The cooperation has profound significance to boosting enterprise upgrading with the help of technological innovation as well as developing the circular economy, which was highly valued by the regional technology bureaus of both parties.
According to the agreement, both parties will perform assessment, laboratory testing and pilot testing against coal ash produced by boilers of China XLX Fertiliser. The testing was aimed to demonstrate the value of coal ash intense utilization and steadily boost the project of coal ash utilization, verifying for industrialization devices. Compared with the coal ash roasting process, the technology is able to extract aluminum to prepare high purity alumina and prepare white carbon black or instant sodium silicate using its silicon content as well as prepare high purity iron oxide using its iron content. Compared with using coal ash in cement production, this technology could bring broader profit and market space. Meanwhile, coal ash deep utilizing technology finds a better approach for dealing with solid waste thus bringing environmental, economical and social benefits.
Compared to traditional pulverized coal roasting procedure, Nanyang Oriental's depth-using technology of pulverized coal ash has advantages in lower equipment cost and investment. It is also more environmental and better value product.

" The cooperation combined production and research in one seamless process. It also helps conducting research on further processing technology to meet nation's industrial policies of resource conservation and comprehensive utilization. The utilization of pulverized coal ash will help establishing the circular economy industrial park of China XLX, and meanwhile providing an innovative approach of achieving high utilization of resources and lowering pollution," said Liu Xingxu, Chairman and Chief Executive of China XLX.

Nanyang Oriental Application Chemical Research Institute is a well-known privately operated scientific research institute of applied chemical industry with more than ten-year experience of cooperation with Science and Technology Bureau of Wancheng District of Nanyang. Its technology has been successfully applied by enterprises both nationally and overseas, and it was also granted in 2013 as Nanyang technology and research center of

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comprehensive utilization of non-metallic minerals. The technology research labs for comprehensive utilization of industrial waste began to develop new approaches of comprehensive utilization of pulverized coal in 2000.
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About China XLX Fertiliser Ltd.

China XLX Fertiliser Ltd., one of the largest and most cost efficient coal-based urea producers in China, is mainly engaged in the production and sale of urea, compound fertiliser and methanol. Its annual production capacity of urea, compound fertiliser and methanol is 2.1 million tons, 1.1 million tons and 200,000 tons, respectively. Besides, the 5th plant in Xinxiang, which is under construction, is expected to commence trial production next year. The Group forged a strategic partnership with Primavera Capital, an internationally renowned private equity fund, at the end of 2011, aiming to leverage on its extensive experience and resources network in the capital market to sustain stable business growth. The Company's shares are traded on the main boards of the Stock Exchange of Hong Kong Limited (stock code:
01866.HK).

Investor and Media Enquiries:

China XLX Fertiliser Ltd. Zhu Weiwei
Tel: 86-138 4939 1363
Email: weiwei.zhu@chinaxlx.com.hk
PRChina Limited
Gina Liu/ Vivian Cheung
Tel: 852-2522 1368 / 852-2521 2823
Email: gliu@prchina.com.hkvcheung@prchina.com.hk

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