China Shenhua Energy : ANNOUNCEMENT REGARDING THE PROGRESS IN OBTAINING EXPLORATION RIGHTS OF COAL RESOURCES AT TAIGEMIAO

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

(Stock Code: 01088)

ANNOUNCEMENT REGARDING THE PROGRESS IN OBTAINING EXPLORATION RIGHTS OF COAL RESOURCES AT TAIGEMIAO

This announcement is made pursuant to Rule 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the announcement (the "Announcement") of China Shenhua Energy Company Limited ("the Company") dated 28 May 2015 in relation to the progress in obtaining exploration rights of coal resources at Taigemiao. Unless otherwise defined herein, terms used in this announcement shall have the same meanings as in the said Announcement.

Recently, the Company obtained from the Ministry of Natural Resources of the People's Republic of China the exploration permit of preliminary exploration of the coal resources in the southern area of Taigemiao of Dongsheng Coalfield in Inner Mongolia Autonomous Region ("Exploration Permit"). The major details of the Exploration Permit are as follows:

1. Exploration rights permit holder: Shenhua Xinjie Energy Co., Ltd.
2. Name of exploration project: Preliminary exploration of the coal resources in the southern area of Taigemiao of Dongsheng Coalfield in Inner Mongolia Autonomous Region
3. Geographic location: Wushen Banner and Ejin Horo Banner, Ordos City, Inner Mongolia Autonomous Region
4. Exploration area: 393.89 square kilometers
5. Validity period: 23 March 2021 to 23 March 2024

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The exploration area of Taigemiao of Dongsheng Coalfield is located in Ordos City, Inner Mongolia Autonomous Region, which is divided into two exploration areas: the south and the north, with a total exploration area of 737.58 square kilometers and coal reserves of approximately 14.162 billion tons under the Chinese standard, and a total scale of mining area of 62 million tons/year. In October 2020, the Company has obtained the exploration permit of prospecting of the coal resources in the northern area of Taigemiao of Dongsheng Coalfield in Inner Mongolia Autonomous Region. The directors of the Company believe that obtaining the Exploration Permit is of great significance for promoting the exploration, development and construction of Taigemiao Coalfield in Xinjie.

The Company will disclose the subsequent progress of the project in accordance with the requirements of the securities regulatory rules. Investors are advised to take note of investment risks.

By order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board

Beijing, 27 April 2021

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 as non-executive director, 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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