King Stone Energy : (1) Poll Results of the Annual General Meeting Held on 2 June 2017; (2) Retirement of Executive Director; and (3) Change of Chairman of the Company and Member of Nomination Committee

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KING STONE ENERGY GROUP LIMITED 金 山 能 源 集 團 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00663)

1. POLL RESULTS OF THE ANNUAL GENERAL MEETING HELD ON 2 JUNE 2017;
2. RETIREMENT OF EXECUTIVE DIRECTOR; AND
3. CHANGE OF CHAIRMAN OF THE COMPANY AND MEMBER OF NOMINATION COMMITTEE

Reference is made to the circular (the ''Circular'') and the notice of annual general meeting of King Stone Energy Group Limited (the "Company") both dated 28 April 2017 in relation to, among others, (i) proposed grant of general mandates to issue new shares and repurchase by the Company of its own shares; and (ii) proposed re-election of directors. Capitalised terms used herein shall have the same meanings as defined in the Circular unless the context states otherwise.

1. POLL RESULTS OF THE ANNUAL GENERAL MEETING

   The Board is pleased to announce the poll results in respect of the ordinary resolutions as set out in the Notice, which were all duly passed by the Shareholders by way of poll at the AGM.

   Tricor Secretaries Limited, the share registrar of the Company, was appointed to act as scrutineer for vote-taking at the AGM. Set out below are the poll results in respect of the resolutions put to vote at the AGM:

   ORDINARY RESOLUTIONS		Number of votes (%)
   		FOR	AGAINST
   1.	To receive, consider and approve the audited financial statements, the Directors' report and the auditors' report for the year ended 31 December 2016	1,221,511,152 (100.00%)	0 (0.00%)
   2.	(A) To re-elect Mr. Zong Hao as an executive director of the Company	1,221,510,152 (99.99%)	1,000 (0.01%)
   	(B) To re-elect Ms. Gloria Chang Wong as an executive director of the Company	1,221,510,152 (99.99%)	1,000 (0.01%)
   	(C) To re-elect Ms. He Qing as an executive director of the Company	1,221,510,152 (99.99%)	1,000 (0.01%)
   	(D) To re-elect Mr. Liu Shengming as an independent non-executive director of the Company	1,221,510,152 (99.99%)	1,000 (0.01%)
   	(E) To authorise the board of directors to fix the remuneration of the directors of the Company	1,221,511,152 (100.00%)	0 (0.00%)
   3.	To re-appoint Messrs. Ernst & Young as auditors of the Company and to authorise the Board to fix their remuneration	1,221,511,152 (100.00%)	0 (0.00%)
   4.	To grant a general mandate to the Directors as set out in item 4 of the Notice	1,221,511,152 (100.00%)	0 (0.00%)
   5.	To grant a general mandate to the Directors as set out in item 5 of the Notice	1,221,511,152 (100.00%)	0 (0.00%)
   6.	To extend the general mandate to the Directors as set out in item 6 of the Notice	1,221,511,152 (100.00%)	0 (0.00%)

   As more than 50% of the votes were cast in favour of each of the resolutions of the AGM, all the resolutions of the AGM were duly passed as ordinary resolutions of the Company.

   As at the date of the AGM, the number of issued Shares entitling the Shareholders to attend and vote for or against all the resolutions at the AGM was 7,010,055,568 Shares, which is the total number of issued Shares of the Company. No Shareholder is required to attend and vote only against any of the resolutions proposed at the AGM and no Shareholder is required to abstain from voting at the AGM.

2. RETIREMENT OF EXECUTIVE DIRECTOR

   As disclosed in the Circular, Mr. Zhang Wanzhong ("Mr. Zhang") did not offer himself for re-election at the AGM and he retired as executive Director at the AGM to pursue his personal development. Upon his retirement, Mr. Zhang also ceased to be the chairman of the Company and nomination committee of the Company. Mr. Zhang has confirmed that he has no disagreement with the Board and there are no matters that need to be brought to the attention of the shareholders of the Company or the Stock Exchange in relation to his retirement.

   The Board would like to take this opportunity to express its appreciation for Mr. Zhang's valuable contributions to the Group during his tenure of office.

3. CHANGE OF CHAIRMAN OF THE COMPANY AND MEMBER OF NOMINATION COMMITTEE

Following the retirement of Mr. Zhang, the Board is also pleased to announce that, with effect from 2 June 2017, Ms. Gloria Chang Wong, the executive Director, has been appointed as the chairman of the Company and nomination committee of the Company.

By order of the Board

King Stone Energy Group Limited Zong Hao

Executive Director

Hong Kong, 2 June 2017

As at the date of this announcement, the executive Directors are Ms. Gloria Chang Wong, Mr. Zong Hao, Mr. Xu Zhuliang, Mr. Benjamin Clark Danielson and Ms. He Qing, and the independent non-executive Directors are Mr. Chiu Sui Keung, Mr. Lu Binghui, Mr. Lee Ping and Mr. Liu Shengming.