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.

NAN NAN RESOURCES ENTERPRISE LIMITED

(Incorporated in Bermuda with limited liability) (Stock Code: 1229)

CLARIFICATION ANNOUNCEMENT IN RELATION TO THE 2012 ANNUAL REPORT

Reference is made to the 2012 annual report (the "2012 Annual Report") of Nan Nan Resources Enterprise Limited (the "Company") published on 6 July 2012. Capitalized terms used herein shall have the same meanings as those defined in the 2012 Annual Report, unless the context requires otherwise.
The Board hereby would like to provide more information about the coal reserve of Kaiyuan Open Pit Coal Mine of the Company (the "Coal Reserve"). As shown in the section "Reserves and Resources" on page 7 of the 2012 Annual Report, the Coal Reserve as at 31 March 2012 was stated as 16 million tons. The Board would like to state here how such Coal Reserve was calculated. Such Coal Reserve was calculated by using the following formula, which was in line with the market practice:
Coal Reserve as at 31 March 2012 = Coal Reserve as at 31 March 2011 - amount of coal extracted by the Group (the "Coal Extracts") during the financial year 2012
The Coal Extracts during the period from 1 April 2011 to 31 March 2012 amounted to 2.1 million tons, which was verified by Xinjiang Jiangwei Survey Company Limited* (JT