Hong Kong Exchanges and Clearing Limited and 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 reliance upon the whole or any part of the contents of this announcement.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01088)

VOLUNTARY ANNOUNCEMENT

ANNOUNCEMENT ON PROGRESS OF

THE WATERMARK PROJECT

This announcement is made by China Shenhua Energy Company Limited (the "Company" , together with its subsidiaries, the "Group") on a voluntary basis. The purpose of this announcement is to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

On 6 August 2020, Shenhua Watermark Coal Pty Limited ("Watermark Pty"), a wholly-owned subsidiary of the Company, issued the announcement of mining lease application in Watermark exploration area ("Application Announcement"). According to the relevant regulations of the Mining Act 1992 and the Mining Regulation 2016 of the New South Wales Government of Australia (the "NSW Government"), Watermark Pty has submitted the mining lease application for the coal resources in the Watermark exploration area, to the Mining Exploration and Geoscience of the NSW Government. The open pit mining lease applied for covers an area of approximately 95 km2. The open pit mining area has a marketable reserve of approximately 196 million tonnes under the JORC standard, with a maximum lease duration of 21 years. According to the requirements in connection with the mining lease application, Watermark Pty shall pay AUD200 million (equivalent to approximately RMB1.004 billion) for the mining lease within 30 days upon approval of the mining lease.

In 2008, the Company won the bid for the Watermark exploration area project and obtained the exploration license covering an area of approximately 195 km2. In 2017, the Watermark exploration area was adjusted to 95 km2 after negotiation. In 2018, the license of Watermark exploration area was extended to 22 October 2021.

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The Company and Watermark Pty will strictly implement the laws and regulations in relation to the local mining and environmental protection, fully consider the opinions of the NSW Government and the community, and prudently handle the relevant works after obtaining the mining lease.

This Application Announcement is made in accordance with the laws of the NSW Government. In order to ensure that the Company's investors are properly informed, an announcement is hereby given. Shareholders and potential investors of the Company are advised to pay attention to investment risks and exercise in caution when dealing in the shares of the Company.

By Order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors

Beijing, 6 August 2020

As at the date of this announcement, the Board comprises the following: Mr. Wang Xiangxi, Mr. Yang Jiping and Mr. Xu Mingjun as executive directors, Mr. Jia Jinzhong and Mr. Zhao Yongfeng as non-executive directors, Dr. Yuen Kwok Keung, Dr. Bai Chong-En and Dr. Chen Hanwen as independent non-executive directors, and Mr. Wang Xingzhong as employee director.

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CSEC - China Shenhua Energy Company Ltd. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2020 08:38:12 UTC