The Board of Silk Road Energy Services Group Limited announces that, on 17 June 2020, the Group and the Remaining Customer has entered into a termination agreement ("Termination Agreement") to terminate the Existing Agreement with immediate effect ("Termination") in order to comply with the Measure. Upon the Termination Agreement taking effect, the Group will no longer offer coal mining services to the Remaining Customer under the Existing Agreement. During the nine months ended 31 March 2020, revenue attributable to the Existing Agreement accounted for approximately 50% of the Group's total revenue. As a result of the Termination, it is expected that a further impairment losses of approximately HKD 20 million will be recognised by the Group in respect of customer contracts. In view of the long term business relationship between the Group and the Remaining Customer, the Remaining Customer may consider engaging the Group for other coal mining related services which are not governed by the Measure. No definitive agreement has been entered into in this respect as at the date of this announcement. On the other hand, the Group will approach other coal mine owners or participate in tenders for overall entrusted management service of other coal mines. Further, as disclosed in the Third Quarterly Report, the Group has been reallocating its resources to focus in coal mine infrastructure construction of above-the-ground infrastructures and peripheral land use planning of the coal mine area before commencement of extraction (whereas the previous coal mining services offered by the Group or the overall entrusted management services concern the extraction stage). To this end, the Group has entered into a coal mine infrastructure construction agreement with an independent third-party new customer and has commenced the relevant construction work in May 2020.