The Board of Directors of CITIC Envirotech Ltd. announce that the Company had entered into a conditional construction and cooperation agreement ("Construction and Cooperation Agreement") with Karazhanbasmunai JSC ("KBM") for, the construction of the facility to be constructed, and subsequently operated and managed by the Company for the demineralisation of reservoir water in the field of Karazhanbas ("Facility"), the provision of technology, equipment and all intellectual property rights in connection thereto, the provision of reservoir water demineralisation services to the reservoir water in the field of Karazhanbas, and the long-term supply of desalinated water by the Company to KBM during the service concession period of 15 years up to 2035 as stated in the Construction and Cooperation Agreement ("Service Concession Period") ("Proposed Transaction") ("Project").