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CHINA RAILWAY GROUP LIMITED

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 390) CLARIFICATION ANNOUNCEMENT

The board of directors (the "Board") of China Railway Group Limited (the "Company") noted that there were media reports on 6 January 2014, reporting that the Company has high debt burden (the "Report").
Regard the Report, the Company would like to make the following clarification: as of 31
December 2012, the Company's total assets was RMB550.728 billion, total liabilities was RMB462.165 billion, gearing ratio was 83.92%; as of 30 June 2013, the Company's total assets was RMB605.685 billion, total liabilities was RMB515.18 billion, gearing ratio was
85%; as of 30 September 2013, the Company's total assets was RMB626.557 billion, total liabilities was RMB531.597 billion, gearing ratio was 84.84%. The Company is of the view that the level of liabilities of the Company is due to the characteristic of the industry and is comparable to companies of the same industry. At present, the debt position of the Company is normal, the risk is controllable and the operation of the Company remains normal. (Please refer to the periodic reports of the Company for the above data).
Shareholders and investors are advised to exercise caution when dealing in the shares of the
Company.
By Order of the Board

China Railway Group Limited Yu Tengqun Tam Chun Chung

Joint Company Secretaries

6 January 2014

As at the date of this announcement, the executive directors of the Company are LI Changjin (Chairman) and YAO Guiqing; the non-executive director is HAN Xiuguo; and the independent non-executive directors are HE Gong, GONG Huazhang, WANG Taiwen and SUN Patrick.

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