CNNC : Expected Decrease in Loss

Microsoft Word - Announcement July 2016.doc

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.

CNNC INTERNATIONAL LIMITED

中核國際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2302) EXPECTED DECREASE IN LOSS

This announcement is made by CNNC International Limited (the "Company", together with its subsidiaries shall be referred to as the "Group") pursuant to Rule 13.09 (2) 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 (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on a preliminary review on the unaudited consolidated management account for the six months ended 30th June, 2016 (the "2016 Half Year") of the Group and information presently available to the Board, the Group is expected to record a material decrease in loss for the 2016 Half Year as compared to the loss recorded for the corresponding period in 2015 (the "2015 Half Year"), due to the absence of the following items in the 2016 Half Year:- the Group (i) shared the loss of its associate (Société des Mines d'Azelik S.A.) for approximately HK$88,756,000; and (ii) had made full provision of approximately HK$119,857,000 for its investment equity of and loan receivables from the associate for the 2015 Half Year. As the carrying amount of interest in an associate was nil at 31st December, 2015, the Group is no longer required to share any further losses in the associate in 2016, if any, until it becomes a positive net asset position. Further details of the provision and share of loss of an associate are disclosed in the Interim Report 2015 and the Annual Report 2015 of the Group.

The information contained in this announcement is only a preliminary assessment by the management of the Company based on the information currently available to the Group, and

is not based on any figures or information which has been audited or reviewed by the auditors. Shareholders and potential investors should refer to the announcement of the interim results of the Group for the 2016 Half Year which is expected to be released before the end of August 2016, and the subsequent publication of the Group's Interim Report 2016.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

CNNC International Limited

中核國際有限公司 Li Philip Sau Yan Company Secretary

Hong Kong, 15th July, 2016

As at the date of this announcement, the Board comprises chairman and non-executive director, namely Mr. Du Yunbin, executive directors, namely Ms. Wang Ying and Mr. Gao Shangxiong, non-executive director, namely, Mr. Xu Shouyi and independent non-executive directors, namely, Mr. Cheong Ying Chew Henry, Mr. Cui Liguo and Mr. Zhang Lei.