Yuan Heng Gas : SUPPLEMENTAL INFORMATION RELATING TO THE THREE CONTINUING CONNECTED TRANSACTIONS

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YUAN HENG GAS HOLDINGS LIMITED

元 亨 燃 氣 控 股 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 332)

SUPPLEMENTAL INFORMATION RELATING TO

THE THREE CONTINUING CONNECTED TRANSACTIONS

Reference is made to the announcement of the Company dated 31 March 2021 (the "Announcement") in relation to the three continuing connected transactions. Capitalized words used in this announcement shall have the same meaning as defined in the Announcement unless the context requires otherwise.

The Board would like to provide more information regarding the pricing basis in respect of the purchase and sale of the LNG under the LNG Purchase Agreement and the LNG Supply Agreement as described below.

The Board noted that since the National Development and Reform Commission of the People's Republic of China ("NDRC") have signed a memorandum of understanding with a leading intelligence provider in China, namely Sublime China Information Co., Limited, commonly known as SCI, and that the Department of Price of NDRC has taken SCI as the national direct reporting site for commodity prices monitoring, the members of our Group and members of the GG Group have been subscribing and utilizing the services of SCI to obtain nationwide natural gas pricing and other relevant data for the pricing basis of the purchase and sale of the LNG under the LNG Purchase Agreement and the LNG Supply Agreement.

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With the extensive data available from SCI, parties to both the LNG Purchase Agreement and the LNG Supply Agreement would be able to literally calculate the prevailing average monthly market price of LNG in China. In respect of the LNG Purchase Agreement, the price will also be subject to the adjustments that may be made by the NDRC, China National Petroleum Corporation and other relevant government departments to the price of natural gas products to be sold by members of GG Gas since GG Group is a PRC's state- controlled enterprise with the Guiyang State Owned Assets Supervision and Administration Commission holding around 35.9% of the equity interests of Guizhou Gas. In respect of the LNG Supply Agreement, the price will not be subject to similar requirements because our Group is not a PRC's state-controlled enterprise.

SCI is an Independent Third Party, and to the best of the Directors' knowledge, information and belief having made all reasonable enquiry, SCI is a third party independent of the

1. Group. Based on publicly available information, SCI was established in 2004 and has been providing independent market information, consulting and events services for energy, chemical, metal and agriculture industry in China and around the world.

For and on behalf of the Board

Yuan Heng Gas Holdings Limited

Wang Jianqing

Chairman and Chief Executive Officer

Hong Kong, 9 April 2021

As at the date of this announcement, the executive Directors are Mr. Wang Jianqing, Mr. Bao Jun and Mr. Zhou Jian; and the Independent non-executive Directors are Dr. Leung Hoi Ming, Mr. Wong Chi Keung and Mr. Tom Xie.

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