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(Stock Code: 603)

VOLUNTARY ANNOUNCEMENT

This is a voluntary announcement made by the Company.
The Board is pleased to announce that CCNG entered into the Exclusive Concession Right Agreement with Longde People's Government, pursuant to which Longde People's Government has agreed to grant to CCNG an exclusive concession right for operation of gas business in the geographical areas (within the administrative regions of Longde County) for a term of 30 years (from the date of signing of the Exclusive Concession Right Agreement).
The Board is also pleased to announce that CCNG entered into the Framework Agreement with Shandong Aerospace, pursuant to which, CCNG and Shandong Aerospace will set up a Joint Venture in Weishan County for the investment and construction of marine and automotive natural gas utilization project.
Through the use of the piped gas exclusive concession right and the establishment of the Joint Venture, the Group will further develop its domestic natural gas and gas markets, strengthen and expand its market share of domestic natural gas and gas businesses.
This is a voluntary announcement made by the Company.

PIPED GAS EXCLUSIVE CONCESSION RIGHT AGREEMENT

The board (the "Board") of directors (the "Directors") of China Oil And Gas Group Limited (the "Company", together with its subsidiaries referred to as the "Group"), is pleased to announce that