The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in r

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.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 0270) ANNOUNCEMENT

Further to the announcement dated 21 October 2014 issued by Guangdong Investment Limited (the "Company"), the board of directors of the Company (the "Board") wishes to provide an update on the discussion on the supply of water to Hong Kong from Guangdong Province between the government of the Hong Kong Special Administrative Region (the "HKSAR Government") and the People's Government of
Guangdong Province (the "Guangdong Provincial Government").

Update on the Discussion on the Supply of Water to Hong Kong from Guangdong Province between the HKSAR Government and the Guangdong Provincial Government

By way of background, the supply of water to Hong Kong from Guangdong Province is regulated by an agreement (the "Hong Kong Water Supply Agreement") between the HKSAR Government and the Guangdong Provincial Government which sets out the principal terms of such water supply. Pursuant to a concession agreement dated 18
August 2000 entered into between Guangdong Yue Gang Water Supply Company
Limited ("WaterCo", a subsidiary of the Company) and the Guangdong Provincial Government, the Guangdong Provincial Government has, amongst other things, granted to WaterCo the right to supply water to Hong Kong.
The HKSAR Government and the Guangdong Provincial Government have finalized the water supply arrangement for 2015 to 2017 and have on 28 May 2015 signed a new water supply agreement (the "2015 Hong Kong Water Supply Agreement") for a term of three years from 1 January 2015 to 31 December 2017. The annual fixed price for the capped volume of water supply for the three years 2015, 2016 and 2017 are HK$4,222.79 million, HK$4,491.52 million and HK$4,778.29 million, respectively (2014: HK$3,959.34 million). The Guangdong Provincial Government will maintain the water quality at its current level and will endeavor to enhance its efforts to conserve water resources.

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Shareholders and investors are recommended to exercise caution in dealing in or exercising their rights in relation to securities in the Company.
This announcement is made by the Company on a voluntary basis.
By Order of the Board HUANG Xiaofeng Chairman
Hong Kong, 28 May 2015

As at the date of this announcement, the Board of Directors comprises three Executive Directors, Mr. HUANG Xiaofeng, Mr. WEN Yinheng and Mr. TSANG Hon Nam; six Non-Executive Directors, Mr. HUANG Zhenhai, Mr. WU Jianguo, Mr. ZHANG Hui, Ms. ZHAO Chunxiao, Mr. LAN Runing and Mr. LI Wai Keung; and five Independent Non-Executive Directors, Dr. CHAN Cho Chak, John, Dr. the Honourable LI Kwok Po, David, Mr. FUNG, Daniel R., Dr. CHENG Mo Chi, Moses and Mr. WU Ting Yuk, Anthony.

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