King Stone Energy : RESIGNATION OF DIRECTORS AND CHANGE OF MEMBERS OF BOARD COMMITTEES

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.

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)

RESIGNATION OF DIRECTORS

AND CHANGE OF MEMBERS OF BOARD COMMITTEES

The Board announces that with effect from 1 March 2020:

1. Ms. Gloria Chang Wong will resign as an executive director, chairman of the Board and nomination committee of the Company;
2. Mr. Lu Binghui will resign as an independent non-executive director and members of audit committee, nomination committee and remuneration committee of the Company;
3. Mr. Liu Shengming will resign as an independent non-executive director of the Company;
4. Mr. Xu Zhuliang will be appointed as chairman of the Board and nomination committee of the Company and will resign as member of the remuneration committee of the Company;
5. Ms. He Qing will be appointed as the member of the remuneration committee of the Company; and
6. Mr. Lee Kwok Wan will be appointed as members of audit committee, nomination committee and remuneration committee of the Company.

- 1 -

RESIGNATION OF EXECUTIVE DIRECTOR AND INDEPENDENT NON-EXECUTIVE DIRECTORS

The board (the "Board") of directors (the "Directors") of King Stone Energy Group Limited (the "Company") announces that, with effect from 1 March 2020:

1. Ms. Gloria Chang Wong ("Ms. Chang") will resign as an executive director, chairman of the Board and nomination committee of the Company due to retirement;
2. Mr. Lu Binghui ("Mr. Lu") will resign as an independent non-executive director and members of audit committee, nomination committee and remuneration committee of the Company due to his other personal commitments; and
3. Mr. Liu Shengming ("Mr. Liu") will resign as an independent non-executive director of the Company due to his other personal commitments.

Ms. Chang, Mr. Lu and Mr. Liu have confirmed that they have no disagreement with the Board and there are no matters that need to be brought to the attention of the shareholders of the Company or the Stock Exchange in relation to their resignations.

The Board would like to take this opportunity to express its appreciation for the efforts of Ms. Chang, Mr. Lu and Mr. Liu and their valuable contributions to the Group during their tenure of office.

CHANGE OF MEMBERS OF BOARD COMMITTEES

Following the resignations of Ms. Chang, Mr. Lu and Mr. Liu, the Board also announces that, with effect from 1 March 2020:

1. Mr. Xu Zhuliang will be appointed as chairman of the Board and nomination committee of the Company and will resign as member of the remuneration committee of the Company;
2. Ms. He Qing will be appointed as the member of the remuneration committee of the Company; and
3. Mr. Lee Kwok Wan will be appointed as members of audit committee, nomination committee and remuneration committee of the Company.

By order of the Board

King Stone Energy Group Limited

Zong Hao

Executive Director

Hong Kong, 28 February 2020

As at the date of this announcement, the executive Directors are Ms. Gloria Chang Wong, Mr. Xu Zhuliang, Mr. Zong Hao, 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.

- 2 -