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HENGSHI MINING INVESTMENTS LIMITED

(incorporated in the British Virgin Islands and continued in the Cayman Islands with limited liability)

(Stock Code: 1370) INSIDE INFORMATION

This announcement is made by Hengshi Mining Investments Limited (the "Company", together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The Company wishes to inform shareholders of the Company (the "Shareholders") and potential investors that, the Company has received a notice from the Office of the Laiyuan County People's Government, Baoding City, Hebei Province (���[2015]58ht) (Laiyuan Government Office Notice No. 58 of 2015)* (the "Notice"). Due to the hosting of the IAAF World Championships and the celebration activities in respect of the 70th anniversary of the victory of the Chinese people's war of resistance against Japanese aggression in Beijing from the period 20 August 2015 to 4 September 2015 (the "Period"), the serious pollution weather Grade I responsive measure has been implemented. As a result, all mining companies must cease production during the Period.
Four of the Group's mines, namely Zhijiazhuang Mine, Shuanmazhuang Mine, Wang'ergou Mine and Gufen Mine, are all located within the geographical boundaries as specified in the Notice, and shall therefore cease production during the Period pursuant to the Notice.
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The estimated production loss as a result of the production cessation is expected to be approximately 5.46% of the Group's yearly production plan. Details of the impact of the cessation of production are shown as below:

Daily Production Volume(1) Yearly Production Plan Affected Production Volume(2)

(t) (t) (t)

Jiheng Mining 2,849 1,000,000 56,970
Jingyuancheng Mining 1,549 620,000 30,973
Xinxin Mining 519 180,000 10,379

Total 4,917 1,800,000 98,322

Proportion 5.46%

Notes:

(1) Daily production volume is estimated based on the production data of the most recent month (July); and

(2) The affected production volume is estimated based on the cessation of production for 20 days.

The Group shall actively organise facilities maintenance works during the Period so as to enhance the production efficiency after the resumption of production. The Group shall also closely follow the relevant authorities' notifications and resume production immediately after the Period in order to minimize the impact of production cessation on the Group's yearly production plan.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Hengshi Mining Investments Limited Mr. Li Yanjun

Chairman

Beijing, 25 August 2015

As at the date of this announcement, the executive directors of the Company are Mr. Li Yanjun, Mr. Leung Hongying Li Ziwei (also known as Li Ziwei), Mr. Xia Guoan, Mr. Sun Jianhua, Mr. Huang Kai and Mr. Tu Quanping and the independent non-executive directors of the Company are Mr. Ge Xinjian, Mr. Meng Likun and Mr. Kong Chi Mo.

* for identification purpose only.

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