China Railway : Announcement of China Railway Group Limited on Winning of Bid for a Material Project

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.

中 國 中 鐵 股 份 有 限 公 司

CHINA RAILWAY GROUP LIMITED

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

(Stock Code: 390)

This overseas regulatory announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Please refer to the attached "Announcement of China Railway Group Limited on Winning of Bid for a Material Project" published by China Railway Group Limited on the Shanghai Stock Exchange website on 5 February 2020 for your information.

By Order of the Board

China Railway Group Limited

Zhang Zongyan

Chairman

5 February 2020

As at the date of this announcement, the executive directors of the Company are ZHANG Zongyan (Chairman), CHEN Yun and ZHANG Xian; the independent non-executive directors are GUO Peizhang, WEN Baoman, ZHENG Qingzhi and CHUNG Shui Ming Timpson; and the non-executive director is MA Zonglin.

A Shares Stock Code: 601390	A Shares Stock Name: China Railway	Announcement No.:
H Shares Stock Code: 00390	H Shares Stock Name: China Railway	Lin 2020-010

Announcement of China Railway Group Limited on

Winning of Bid for a Material Project

The board of directors of China Railway Group Limited (the "Company") and all the directors hereby undertake that this announcement does not have any false or misleading statements or any material omissions, and assume the joint and several liability for the truthfulness, accuracy and completeness of the contents.

Recently, the consortium (also referred to as the "Private Capital Investor") comprising the Company, its wholly owned subsidiary China Railway No.2 Engineering Group Co., Ltd., and other parties won the bid for the public-private partnership (PPP) project of the National Highway No. 109 New Line Expressway (West Sixth Ring Road - City Boundary Section). The Private Capital Investor and the government representative intend to jointly establish a project company to implement the investment and construction of the project with shareholding percentages of 60% by the government representative and 40% by the Private Capital Investor. According to the project design, the project begins at Junzhuang Interchange Bridge at the West Sixth Ring Road of Beijing, towards the west passes by Junzhuang, Miaofeng Mountain, Wang Ping, Yanchi, Zhaitang, Qingshui, and ends at the city boundary, intersecting with the Zhangjiakou - Zhuozhou Expressway in Hebei Province. The total length of the Beijing Section is 65.49 km. The construction standard of expressway is adopted for the project and the design speed is 80 km/h.

The total investment of the project is RMB22.092 billion (including the construction cost of RMB15.394 billion). In particular, the project capital, accounting for 50% of the total investment, is approximately RMB11.046 billion, all of which is registered capital, to be contributed by the Private Capital Investor and the government representative according to the agreed shareholding percentages; and the

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project loan, accounting for 50% of the total investment, is approximately RMB11.046 billion, which will be raised by the project company (as the borrower) through a bank loan. The cooperation period of the project is 29 years, comprising a construction period of 4 years and an operation period of 25 years. During the cooperation period, the project company recovers the investment and reasonable return through user-charges and viability gap funding. Upon expiration of the cooperation, the project company will hand over the project facilities to the government or its designated agency without compensation.

The bid for the above-mentioned project was considered and approved by the 29th meeting of the fourth session of the board of directors of the Company.

Notice is hereby given.

The Board of Directors of China Railway Group Limited

6 February 2020

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