Sinopec Engineering Group Co Ltd. - Regulatory Filings 2014

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

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**中石化煉化工程(集團)股份有限公司 SINOPEC Engineering (Group) Co., Ltd.[*]**

(a joint stock limited liability company incorporated in the People’s Republic of China)

(Stock Code: 2386)

PURPORTED TERMINATION OF A PROJECT IN THE UNITED STATES

This announcement is made by Sinopec Engineering (Group) Co., Ltd. (the “ Company ”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong).

On 25 February 2014, the Company received a written notice from Medicine Bow Fuel & Power LLC (“ Medicine Bow ”) purporting to terminate three agreements from 2012 relating to the engineering, procurement and construction of a coal gasification and liquefaction facility near Medicine Bow, Wyoming in the United States. The Company has also received a demand for arbitration that appears to have been filed by Medicine Bow with the American Arbitration Association on 24 February 2014, in which Medicine Bow seeks an award for damages claimed to arise from the alleged breach by the Company of the above alleged agreements to construct a coal gasification and liquefaction facility near Medicine Bow, Wyoming. The Company denies that it has any liability to Medicine Bow and has engaged legal counsel to represent it and intends to defend against the claims vigorously.

As at the date hereof, no payment has been made to the Company by Medicine Bow, and no revenue with respect to Medicine Bow has been recognized by the Group. In light of Medicine Bow’s purported termination, and with regards to the Company’s announcement dated 17 February 2014, the total value of backlog of the Group as at 31 December 2013, excluding any amounts from Medicine Bow, should be adjusted to approximately RMB103.97 billion. The board of directors of the Company (the “ Board ”) wishes to emphasize that the above information in relation to the total value of backlog shall not constitute any forecast or prediction of the profits of the Group.

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Having reviewed and considered available information, the Board does not currently anticipate that Medicine Bow’s claim will create any material adverse impact on its existing operations, business plans or business development strategies.

Further announcement will be made as and when appropriate in relation to the major developments of the above matter. Shareholders and potential investors are advised to exercise caution in dealing with the shares of the Company.

Yours faithfully, By order of the Board