CStone Pharmaceuticals — Regulatory Filings 2000

Aug 25, 2000

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

兗州煤業股份有限公司

Yanzhou coal mining COMPANY LIMITED

(a joint stock limited company incorporated in

the People's Republic of China with limited liability)

CLARIFICATION OF PRESS ARTICLE

This announcement is made in relation to a recent press article relating to a proposed issue of H shares in Yanzhou Coal Mining Company Limited (the "Company").

The directors of the Company (the "Directors") have noted a recent press article in Hong Kong stating that the Company has released certain information at its web-site relating to a proposed H share issue. The Directors understand from the article that some of the information contained in the article is based on the content (the "Content") released at a web-site of its parent company (the "Parent Company").

The Company wishes to clarify that:

(1) although the Company is using the Parent Company's web-site, the Content was not released by the Company;

(2) at the Company's Annual General Meeting on 16 June 2000, its shareholders granted a general mandate to the Directors to issue H shares. Accordingly, as a matter of procedure, the Company obtained approval from the China Securities Regulatory Commission for the issue of such H shares. Similar procedures were followed last year; and

(3) as disclosed in the announcement dated 4 August 2000, the Company is proposing to acquire the Jining III coal mine from the Parent Company (the "Acquisition"). The Company has been in discussions with various parties in reviewing various proposed financing options (including possible equity issues) for its general funding requirements (including its possible funding requirements for the proposed Acquisition) but no agreement has been reached with any party. The Company does not have any present intention to make any issue of its H Shares.

If the Company decides to proceed with any issue of its H shares, the Company will make such disclosures as may be required under the relevant laws and regulations.

The Directors also confirm that save as disclosed above there are presently no negotiations or agreements relating to any intended acquisitions or realisations by the Company which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature.

Made by the order of the Board of the Company, the Directors of which individually and jointly accept responsibility for the accuracy of this announcement.

By order of the Board

Chen Guangshui

Secretary of the Board of Director

Shangdong Province, PRC, 24 August, 2000