China Lng Group Limited 中國天然氣集團有限公司*

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CHINA LNG GROUP LIMITED 中國天然氣集團有限公司 * (Incorporated in the Cayman Islands with limited liability) (Stock Code: 931)

INSIDE INFORMATION – INVESTMENT COOPERATION AGREEMENTS

(1) THE SHALE GAS LIQUEFACTION PLANT AND LNG CLEAN ENERGY LOGISTICS BASE PROJECT IN XINGWEN COUNTY, SICHUAN PROVINCE; (2) THE COALBED METHANE LIQUEFACTION PROJECT IN QINSHUI COUNTY, SHANXI PROVINCE; (3) THE LNG PEAK SHAVING RESERVE PROJECT IN GAOYI COUNTY, HEBEI PROVINCE; AND (4) THE LNG PEAK SHAVING RESERVE AND INDUSTRIAL COMPREHENSIVE LNG UTILISATION PROJECT IN PINGQUAN COUNTY, HEBEI PROVINCE

This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions.

INSIDE INFORMATION

On 30 January 2018, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and the People’s Government of Xingwen County, Sichuan Province entered into an investment framework agreement in relation to the shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base project in Xingwen County, pursuant to which a subsidiary will be established for the investment, construction and operation of the shale gas liquefaction plant and LNG clean energy logistics base project in Xingwen County.

On the same date, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and Mr. Wang Chaofeng entered into an investment cooperation framework agreement, pursuant to which CLNG Natural Gas will invest in, develop and operate the 600,000 Nm³/day Coalbed Methane liquefaction project under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* (山西嘉沁煤層氣開發有限公司), under the effective control of Mr. Wang Chaofeng, by acquiring its controlling interest. Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* has obtained the land for the project and an investment project ﬁ ling certiﬁ cate issued by the National Development and Reform Commission. 1 On the same date, Hebei Gangzhong, a wholly-owned subsidiary of the Company, and the People’s Government of Gaoyi County entered into a strategic cooperation framework agreement in relation to the LNG peak shaving reserve project with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre, pursuant to which Hebei Gangzhong will invest in, develop and operate the Gaoyi LNG peak shaving reserve with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre.

On the same date, CLNG Investment, a wholly-owned subsidiary of the Company, and the People’s Government of Pingquan County, Hebei Province entered into an investment agreement in relation to the LNG peak shaving reserve and industrial comprehensive LNG utilisation project, pursuant to which a subsidiary will be established for the investment and construction of a LNG peak shaving reserve and urban-rural ancillary pipeline network in Pingquan Economic Development Zone.

The Board wishes to emphasise that no binding agreement in relation to the investments has been entered into as at the date of this announcement. Therefore, the investments may or may not proceed. Investors and Shareholders are urged to exercise caution when dealing in the shares of the Company. Further announcements in respect of the investments will be made by the Company as and when appropriate in accordance with the Listing Rules.

This announcement is made by China LNG Group Limited (the “Company”, together with its subsidiaries, the “Group”) pursuant to Rule 13.09(2) of the Rules (the “Listing Rules”) Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The purpose of this announcement is to enable the shareholders of the Company (the “Shareholders”) and the public to appraise the position of the Group.

INVESTMENT FRAMEWORK AGREEMENT IN RELATION TO THE SHALE GAS LIQUEFACTION PLANT 1 MILLION Nm3/DAY AND LNG CLEAN ENERGY LOGISTICS BASE PROJECT

The board (“Board”) of directors (“Directors”) of the Company announces that on 30 January 2018, CLNG Natural Gas Co., Ltd. (港能天然氣有限責任公司) (“CLNG Natural Gas”), a wholly-owned subsidiary of the Company, and the People’s Government of Xingwen County, Sichuan Province (四川省興文縣人民政府) entered into an investment framework agreement in relation to the shale gas liquefaction plant 1 million Nm3/day and liquefied natural gas (“LNG”) clean energy logistics base project in Xingwen County, pursuant to which a subsidiary will be established for the investment, construction and operation of the shale gas liquefaction plant and LNG clean energy logistics base project in Xingwen County.

2 INFORMATION ABOUT XINGWEN COUNTY, SICHUAN PROVINCE

Xingwen County, located at Yibin City, Sichuan Province, is richly endowed with shale gas resources and recognised as a national demonstration zone of shale gas development with recoverable shale gas resource reserves of over 100 billion Nm³. Shale gas industry is ranked first among the top five high- end developing industries in Sichuan Province. Xingwen County Government, being the local competent authority with significant power in use of resources, intends to cooperate with the Company to promote the comprehensive utilisation of shale gas within its territory.

Pursuant to the investment framework agreement, details of the collaboration are as follows:

(1) The total investment of the shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base project in Xingwen County will be approximately RMB1.068 billion, including investment in shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base of RMB668 million and RMB400 million, respectively. Each of the shale gas liquefaction plant 1 million Nm3/day and the LNG clean energy logistics base will be developed on a land of 200 mu. It is estimated that the annual sales income will reach approximately RMB1 billion.

(2) CLNG Natural Gas will invest in, develop and operate the shale gas liquefaction plant 1 million Nm3/ day and LNG clean energy logistics base project in Xingwen County through its newly established wholly- owned subsidiary.

(3) Xingwen County Government will assign the land according to law.

The Group proposes to set up a shale gas liquefaction plant of 1 million Nm³ per day in Xingwen County to promote the use of natural gas by way of LNG in the county and transfer the resources to the surrounding areas such as Yunnan and Guizhou. This project will secure one more source of LNG supply to the Group, which enhances the Group’s capability to safeguard its natural gas supply and reduces the cost.

INVESTMENT COOPERATION FRAMEWORK AGREEMENT IN RELATION TO THE 600,000 NM3/DAY CBM LIQUEFACTION PROJECT

The Board announces that on 30 January 2018, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and Mr. Wang Chaofeng entered into an investment cooperation framework agreement, pursuant to which CLNG Natural Gas will invest in, develop and operate the 600,000 Nm³/day coalbed methane (“CBM”) liquefaction project under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* (山西嘉沁煤層氣開發有限公司), under the effective control of Mr. Wang Chaofeng, by acquiring its controlling interest.

3 INFORMATION ABOUT QINSHUI COUNTY, SHANXI PROVINCE AND SHANXI JIA QIN COALBED METHANE DEVELOPMENT CO., LTD.*

Qinshui County, located at Jincheng City, Shanxi Province, is a major coal producing zone in China. The project is situated at the hinterland of Qinshui coalfield, the area with the most abundant CBM resources in China. Our partner, Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*, possesses valid qualification for CBM liquefaction and processing, and has entered into agreements of intent in relation to gas supply with two upstream gas resource companies, namely China United Coalbed Methane Corporation, Ltd.* (中聯煤層氣有限責任公司)(a wholly-owned subsidiary of China National Offshore Oil Corporation) and Shanxi Blue Flame Coalbed Methane Group Co., Ltd.* (山西藍焰煤層氣集團有限責任公司). It has obtained the land for the project and an investment project filing certificate issued by the National Development and Reform Commission.

Pursuant to the investment cooperation framework agreement, details of the collaboration are as follows:

(1) The 600,000 Nm³/day CBM liquefaction project is under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*, which has obtained the filing certificate for the project and land use rights certificates for part of the land.

(2) CLNG Natural Gas will become a shareholder of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* by holding its 60% equity interest through equity transfer.

(3) CLNG Natural Gas will develop and operate the 600,000 Nm³/day CBM liquefaction project through its holding in Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*.

Upon commencement of cooperation, the Company will utilise the land and qualification of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* to set up a CBM liquefaction plant with CBM liquefaction capacity of 600,000 Nm³ per day. This project will secure another source of LNG supply to the Group, and safeguards the Company’s LNG supply in northern and central China, facilitating the development of end-user markets in such regions.

STRATEGIC COOPERATION FRAMEWORK AGREEMENT IN RELATION TO THE LNG PEAK SHAVING RESERVE PROJECT

The Board announces that on 30 January 2018, Hebei Gangzhong Natural Gas Co., Ltd.* (河北港眾天然氣有限公司) (“Hebei Gangzhong”), a wholly-owned subsidiary of the Company, and the People’s Government of Gaoyi County (高邑縣人民政府) entered into a strategic cooperation framework agreement in relation to the LNG peak shaving reserve project with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre, pursuant to which Hebei Gangzhong will invest in, develop and operate the Gaoyi LNG peak shaving reserve with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre.

4 INFORMATION ABOUT GAOYI COUNTY, HEBEI PROVINCE

Shijiazhuang City, Hebei Province is a national key area for environmental pollution control. Due to the government’s extensive promotion of “coal-to-gas” conversion for industrial enterprises and resident users, a considerable unmet demand for natural gas has arisen in Hebei Province. Accordingly, Hebei Provincial Government has proposed to set up LNG reserve facilities of 900,000 m³ in total within its territory, including the Gaoyi LNG peak shaving reserve project.

Pursuant to the framework agreement, details of the collaboration are as follows:

(1) The total investment of the Gaoyi LNG peak shaving reserve project will be approximately RMB550 million. A 10,000 m³ LNG reserve station with daily gas supply capacity of 1.5 million Nm³, together with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre, is proposed to be set up in the western area of Gaoyi Economic Development Zone (高邑經濟開發區).

(2) Hebei Gangzhong will invest in, develop and operate the Gaoyi LNG peak shaving reserve project.

(3) Hebei Gangzhong will be recognised as a “key protected enterprise in Gaoyi County” and be provided with “one-stop” services by the People’s Government of Gaoyi County.

Upon completion, the Gaoyi LNG peak shaving reserve project will be responsible to guarantee LNG supply for the entire Hebei Province and the peripheral areas. Annual sales of natural gas will exceed 350 million Nm³ in short term and 900 million Nm³ in long term. This project will consolidate the Group’s position in the end-user LNG supply market in northern China, which enhances the Group’s capability to safeguard its end-user LNG supply in northern China and notably facilitates the market development of the Group in northern China to capture numerous emergent gas market share.

INVESTMENT AGREEMENT IN RELATION TO THE LNG PEAK SHAVING RESERVE AND INDUSTRIAL COMPREHENSIVE LNG UTILISATION PROJECT

The Board announces that on 30 January 2018, CLNG Investment (Shanghai) Co., Limited* (港能投資（上海）有限公司) (“CLNG Investment”), a wholly-owned subsidiary of the Company, and the People’s Government of Pingquan County, Hebei Province (河北省平泉縣人民政府) entered into an investment agreement in relation to the LNG peak shaving reserve and industrial comprehensive LNG utilisation project, pursuant to which a subsidiary will be established for the investment and construction of a LNG peak shaving reserve and urban-rural ancillary pipeline network in Pingquan Economic Development Zone (平泉經濟開發區).

INFORMATION ABOUT PINGQUAN COUNTY, HEBEI PROVINCE

Pingquan County, located at Chengde City, Hebei Province, has not yet set up a natural gas pipeline network. For now, only a small part of demand for gas has been met by liquefied petroleum gas, and the users have to pay a high price for it. Pingquan County Government, being the competent authority to solve the problem of natural gas supply within its jurisdiction, intends to authorise the Group to provide the entire Pingquan County with a package of solutions to gas supply.

5 Pursuant to the investment agreement, details of the collaboration are as follows:

(1) The total investment of the LNG peak shaving reserve and industrial comprehensive LNG utilisation project will be approximately RMB240 million, including investment in fixed assets of approximately RMB220 million which covers 12 LNG tanks of 150m³, 20 filling rigs, 3 loading racks, 1 LNG dewar flask storage warehouse, 3 LNG filling stations, 1 LNG logistics vehicle parking lot, 50 LNG trucks, urban natural gas pipeline network as well as ancillary fire services, green and office facilities. The construction period is 18 months.

(2) CLNG Investment will invest in, develop and operate the LNG peak shaving reserve and industrial comprehensive LNG utilisation project through its newly established subsidiary.

(3) Pingquan County Government will assign a land of 70-100 mu by way of “land tender, auction and listing”, and grant a franchise for the urban natural gas pipeline network according to law.

The Group proposes to supply natural gas to gas users in the urban area of Pingquan County by setting up LNG reserve stations and pipeline network; to small-scale users scattered within the region by setting up LNG dewar flask filling stations and LNG filling stations; and to industrial users beyond the pipeline network coverage by setting up small-scale independent LNG supply devices. Upon completion of the project, it is expected to supply natural gas of not less than 300,000 Nm³ per day to Pingquan County.

INFORMATION ABOUT THE GROUP

The principal activities of the Group are development of LNG businesses in China, including point-to- point supply and wholesale of LNG, provision of LNG logistic services, sales of LNG vehicles, provision of finance leasing services for LNG vehicles, vessels and equipment in China as approved by Ministry of Foreign Trade and Economic Cooperation of China, while in Hong Kong in the business of trading of securities, provision of securities brokerage, margin financing and securities investments and financial services through provision of money lending business.

The LNG business of the Group is to provide comprehensive solutions for the promotion and utilisation of LNG in the industrial, commercial, residential and transportation sectors throughout China by establishing regional clean energy supply centers (including facilities for end-users such as point-to- point supply of LNG, LNG satellite stations and regional gas pipeline networks, LNG refuelling stations, natural gas centralised heat supply and distributed energy). At the same time, the Group builds related LNG source facilities, storage facilities and logistic system to secure LNG supply for the end-user supply business. It will eventually establish a comprehensive LNG platform for online matching of supply and demand, trading, payment, settlement and financial services, to drive the use of LNG in China and contribute to environmental protection through the mutual support of online and offline operations.

6 End-user market and the LNG supply assurance (integration of LNG trading and logistics) are the established strategies of the Group. Vigorously driving the establishment of a system of trading and logistics (including LNG sources and reserves) and end-user market is an important measure to solve the issue of gas shortage in China. It is also the inevitable course for advancing the use of LNG nationwide. The signing of the four agreements mentioned above reflects the implementation of the strategy of the Group to integrate LNG supply assurance and end-user market. The Board considers that the entering into of these four agreements will enable the Group to safeguard LNG supply for its end-user market and further expand its market share of end-user market. Also, as an integral part of the “integrated trading and logistics”, the entering into of these four agreements plays an important role in the expansion of the LNG resource trading business and LNG logistics and transport business, turning the Group into a whole-industry-chain LNG supply enterprise with exceptional competitiveness based on its strong foundation in end-user market, efficient LNG logistics (in relation to the acquisitions of cryogenic semi- trailers and tractors (LNG refilling trucks) as announced by the Group on 18 and 24 October 2017) and a powerful upstream business partner (in relation to the cooperation agreement entered into with CNOOC Gas and Power Group Co., Limited Trading & Marketing Branch as announced by the Group on 18 January 2018).

By Order of the Board China LNG Group Limited Kan Che Kin, Billy Albert Chairman

Hong Kong, 6 February 2018

As at the date of this announcement, the executive Directors are Dr. Kan Che Kin, Billy Albert, Mr. Chen Li Bo and Mr. Li Kai Yien, Arthur Albert; the non-executive Directors are Dr. Lam, Lee G. and Dr. Simon Murray; and the independent non-executive Directors are Mr. Li Siu Yui, Mr. Au Yeung Po Fung and Mr. Lam Lum Lee.

* for identification purpose only