China Resources (Holdings) Co., Ltd signed Strategic Collaboration Framework Agreement with Hunan Valin Steel Group Co., Ltd

On November 13, China Resources (Holdings) Co., Ltd ( CRC ), represented by Mr. Song Lin, Chairman of CRC, signed Strategic Collaboration Framework Agreement with Hunan Valin Steel Group Co., Ltd ( Hunan Valin ), represented by Mr. Li Xiaowei, Chairman of Hunan Valin. Both parties agree to cooperate in various business fields, including capital collaboration, coal resources, power projects, steel supply and etc. Based on above agreement, China Resources Power Co., Ltd ( CR Power ) and China Resources Coal Co., Ltd ( CR Coal ) signed sub-agreement with subsidiary companies of Hunan Valin. Mr. Mo Dewang (head of State-owned assets supervision and administration commission of Hunan provincial people s government), senior management team of China Valin, Mr. Wang Shuai Ting (Vice Chairman of CRC), senior management team of CRC (including Mr. Zhu Jinkun and Mr. Li Fuzuo) and senior management team of CRP and China Resources Investment Enterprises Limited (including Mr. Wang Yujun, Mr. Li Shetang, Mr. Wu Ding, Mr. Zhao Houchang, Mr. Wang Qingjiang and etc.) attended the signing ceremony.

According to the strategy collaboration agreement, CRC agrees to supply coking coal and coking coal resources required by China Valin. Both parties agree to implement government s policy on energy saving, develop circular economy and green economy, actively carry forward the collaboration in power project, vigorously impel direct power supply from subsidiary power plants of CRC to subsidiary companies of Hunan Valin, by integrating national and provincial policy on direct power supply. In addition, both parties agree to cooperate in steel supply. Based on the principle of priority to procure under the same conditions , CRC provides priority to purchase the high pressure seamless pipe, heavy plate, wire rod produced by Hunan Valin.

Hunan Valin was established at the end of 1997, by joining of three large-scaled steel corporations Hunan Steel, Lianyuan Steel and Hengyang Steel. As of today, Hunan Valin is one of the top ten iron and steel enterprises in China. In August of 2007, Hunan Valin acquired 55% equity interest of Wuxi Steel, a subsidiary company of CRC. CRC remained 45% equity interest in Wuxi Steel. Wuxi Steel has moved to Jiangyin economy development zone, and started construction of new mill. The new project is expected to commence commercial operation in 2011.