King Stone Energy : APPOINTMENT OF INDEPENDENT NON-EXECUTIVE DIRECTOR

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KING STONE ENERGY GROUP LIMITED

金 山 能 源 集 團 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00663)

APPOINTMENT OF INDEPENDENT NON-EXECUTIVE DIRECTOR

The board (the "Board") of directors (the "Directors") of King Stone Energy Group Limited (the "Company") announces Mr. Lee Kwok Wan ("Mr. Lee") has been appointed as an independent non-executive Director of the Company with effect from 8 November 2019.

Mr. Lee, aged 56, graduated with a Master in Finance in 1989 from Macquarie University and has more than 30 years of experience in merger and acquisitions, manufacturing, banking, and investment management. He also has an in-depth knowledge and experience of a wide array of business sectors having worked as both the vice president in Beijing and consultant in Hong Kong of Elion Resources group, after being acted as the director of China-Ukraine Fund and Association, senior vice president of private equity in charge of operations of Jin Dou Development Fund under the platform of China Investment Corporation (CIC) in Kazakhstan, and held a series of management positions with multi-national companies and OCBC Baking Group of Singapore in Singapore, Malaysia, Abu Dhabi of United Arab Emirates, Germany, Hong Kong, Kazakhstan and China. Currently, he is the general manager of Heritage Resources Limited which serves as a private equity fund service provider platform.

Save as disclosed above, Mr. Lee does not hold any other position in the Company or any of its subsidiary, nor does he have any other directorship in listed public companies in the past three years in Hong Kong or overseas.

There is no service contract between Mr. Lee and the Company and he has no fixed term of service with the Company. The remuneration of Mr. Lee is HK$15,000 per month by reference to his duties and responsibilities with the Company and prevailing market conditions. Pursuant to the articles of association of the Company, Mr. Lee will retire and be eligible for re-election at the next annual general meeting. Thereafter, he will be subject to retirement by rotation and reelection in accordance with the articles of association of the Company.

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Mr. Lee does not have any relationship with any directors, senior management, substantial shareholders or controlling shareholders (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) of the Company. As at the date of this announcement, Mr. Lee does not have any interests in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance, Chapter 571 of the Laws of Hong Kong.

Mr. Lee has confirmed that he has met the independence criteria as set out in Rule 3.13 of the Listing Rules and save as disclosed above, Mr. Lee is not aware of any other matters that need to be brought to the attention of the shareholders of the Company nor is there any information to be disclosed pursuant to any of the requirements under Rules 13.51(2)(h) to 13.51(2)(v) of the Listing Rules.

The Board would like to express its warmest welcome to Mr. Lee on his appointment.

By order of the Board

King Stone Energy Group Limited

Zong Hao

Executive Director

Hong Kong, 8 November 2019

As at the date of this announcement, the executive Directors are Ms. Gloria Chang Wong, Mr. Zong Hao, Mr. Xu Zhuliang, Mr. Benjamin Clark Danielson and Ms. He Qing, and the independent non-executive Directors are Mr. Chiu Sui Keung, Mr. Lu Binghui, Mr. Lee Ping, Mr. Liu Shengming and Mr. Lee Kwok Wan.

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