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Zhunxing Heavy Haul Expressway Invested and Developed by CRTG Commences Operation Tomorrow

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Zhunxing Heavy Haul Expressway Invested and Developed by CRTG Commences Operation Tomorrow Press Release (For immediate release) Zhunxing Heavy Haul Expressway invested and developed by CRTG commences operation tomorrow (20 November 2013, Hong Kong) China Resources and Transportation Group Limited ("CRTG" or the “Company”, together with its subsidiaries known as the “Group”) (stock code: 00269) is pleased to announce that the Inner Mongolia Zhunxing Heavy Haul Expressway invested and developed by the Company will officially open tomorrow. With a total investment of RMB15 billion, it spreads across 265 km and took three years to be completed. After commencement of its operation, the coal transportation bottlenecks in Inner Mongolia will be substantially improved, thereby laying a solid foundation for the sustainable development of local economy. The Inner Mongolia Zhunxing Heavy Haul Expressway is a core development project under the "11th Five-year Plan" of Inner Mongolia Autonomous Region and “China’s Western Development”. The 265 km-long expressway extends towards northeast from Jungar Banner, a major coal production area of the Ordos in Inner Mongolia to Xinghe County, a major logistics hub for coal distribution in Northern China connecting with the Beijing-Tibet Expressway. Inner Mongolia is the largest coal production base in the PRC in terms of coal reserves and output. As a major coal production area in Inner Mongolia, Jungar Banner has robust demand for coal transportation facilities because 75% of its coal production is transported to other regions. With roadbed width of 27.75 meters, this project is designed to sustain 100-ton trucks. It has 3 eastbound lanes mainly for heavy-haul trucks and 2 westbound lanes mainly for light-haul vehicles. The estimated annual traffic capacity of the expressway is about 150 million tons, making it an essential channel to transport coal from western region of Inner Mongolia to the eastern region. The opening of the expressway is strategically important to energy resources logistics in Northern China, as it connects the coal production area with the distribution centre in the shortest, most convenient and economical way. Moreover, the Inner Mongolia Zhunxing Heavy Haul Expressway is also one of the key networks linking up the five northwestern provinces in China (Tibet, Qinghai, Ningxia, Gansu and Inner Mongolia) with Hebei, Beijing and the Beijing-Tianjin-Tangshan Bohai Economic Rim. Through holding an 82.27% stake in Inner Mongolia Zhunxing Heavy Haul Expressway Company Limited (“Zhunxing”), the Company has the exclusive rights to operate this project for a 30 year-period (excluding the construction period). The Company believes that it can continuously generate stable cash inflow, thereby driving robust growth of its operations. Mr. Cao Zhong, the Chairman of CRTG, said, “The Group has vigorously pushed ahead with the construction of this expressway. With joint efforts of entire staff, it will officially open tomorrow. This is really exciting to us. The opening of the Zhunxing Heavy Haul Expressway marks another significant achievement for the development of transportation networks in central and western Inner Mongolia. This is a masterpiece featuring advanced technology and green concept. It was developed with more than 10 state-of-the-art technologies, new materials and advanced technique, which ensure the expressway to carry fast-moving heavy-haul vehicles. During the construction period, we received enthusiastic support from local government of Inner Mongolia, leading domestic experts and scholars as well as a number of Chinese financial institutions. As a result, we can complete the project smoothly. The Zhunxing Heavy Haul Expressway is by far the largest highway investment project in Inner Mongolia made by Hong Kong companies. Its opening not only signifies that our business transformation has entered into a new phase, but also means that our operations are mounting on a fast track, thereby delivering better returns to shareholders.” ~ End ~ About China Resources and Transportation Group Limited China Resources and Transportation Group Limited is listed on the Main Board of Hong Kong Stock Exchange (stock code: 00269). The Company and its subsidiaries (the “Group”) is engaged in operation and management of toll expressway in Inner Mongolia through the investment in Inner Mongolia Zhunxing Heavy Haul Expressway Company Limited (“Zhunxing”). Zhunxing has the exclusive rights to operate China’s first heavy haul toll expressway designed mainly for coal transportation in Inner Mongolia for a 30 year-period (excluding the construction period). Zhunxing Expressway will run from Jungar Banner, the major coal production area in Inner Mongolia, towards the north-east for 265 km to Xinghe County, a major logistics hub for coal distribution in Northern China connecting with the Beijing-Tibet Expressway. This project is strategically important to energy resources logistics in Northern China, as it connects the coal production area with the distribution centre in the shortest, most convenient and economical way. Investor and Media Enquiries: Henry Chik / David Shiu / Denise Tse PRChina Limited Tel: 852-2522-1838 / 852-2522-1368 / 852-2521-2823 Email: [email protected] / [email protected] / [email protected] .
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