Press Release

Huarong Energy's

Kyrgyzstan Project Production Boosted After Oil Well Perforation

(12 May 2015, Hong Kong) - China Huarong Energy Company Limited ("Huarong Energy", the "Company" or "We", and together with its subsidiaries, the "Group"; stock code: 01101.HK) is pleased to announce that, with the arrival of working teams and perforating charges and other materials to the oilfields site, the production of the Kyrgyzstan Project has been boosted and further optimized. One of the oil wells, namely Izbaskent 225, underlined the progressive results in enhancing production after recent perforation work and records of high volume of production.

On 9 May 2015, Izbaskent 225 of the Kyrgyzstan Project has been conducted perforation in IX-layer and recorded a satisfactory increase in production volume of oil. With a perforation interval from 2,287.9 meters to 2,293.9 meters, the working teams recorded a significant increase of the daily production of oil which amounted to approximately 388 barrels after conducting the perforation, without using blowout preventers. After using an 8mm oil choke, the daily production of oil could still reach approximately 278 barrels. Completed drilling in 2014, Izbaskent 225 has been conducted perforation in V-layer on 9 October 2014 and commenced production on 16 October in the same year, with a daily production of oil of approximately 36 barrels at its initial stage.

The daily production of oil of the Kyrgyzstan Project has exceeded 500 barrels on 9 May 2015, even at the moment the oilfields was partially in operation after its initial development stage. After the arrival of working teams and perforating charges and other materials to the construction site, the Company planned to further complete the production work of 20 newly-drilled wells and fracturing operation of 10 old wells in the near term.

With the advantages of low cost and stable domestic oil price in Central Asia, we are of the view that exposure to the energy sector will contribute to diversify our operations and broaden our source of revenue, as well as proactively drive us transforming towards an oil and gas development and production operator, thereby enhancing contributions to the overall interests of shareholders of the Company.

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