China Longyuan Power : ANNOUNCEMENT - UPDATE ON CHANGE OF CONTROLLING SHAREHOLDER……

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ANNOUNCEMENT

UPDATE ON CHANGE OF CONTROLLING SHAREHOLDER

This announcement is made by China Longyuan Power Group Corporation Limited* (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 of the Laws of Hong Kong).

References are made to the announcements of the Company dated 28 August 2017, 29 August 2017 and 11 September 2017 (the "Announcements"). Unless the context requires otherwise, terms defined in the Announcements will have the same meanings when used herein.

On 4 January 2018, the Company was informed by China Guodian Corporation Ltd. ("Guodian Group"), its controlling shareholder, that on 4 January 2018, Guodian Group held a board meeting and considered and passed the resolution on the Consolidation and the proposed signing of the Consolidation agreement between Guodian Group and China Energy Investment Corporation Limited ("China Energy"). Pursuant to the Consolidation plan and the proposed Consolidation agreement, China Energy proposed to consolidate Guodian Group by absorption. Upon completion of the Consolidation, Guodian Group will be revoked and China Energy, as the consolidated company, will continue to subsist. Since the completion date of the Consolidation, all the assets, liabilities, businesses, staff, contracts, qualifications and all other rights and obligations of Guodian Group will be inherited and held by China Energy, the continuing entity after the Consolidation, and the shareholding or interest of the subsidiaries and branches of Guodian Group as well as the subordinate enterprises held by Guodian Group will also be vested in China Energy, the continuing entity after the Consolidation.

After the Consolidation, the controlling shareholder of the Company will be changed from Guodian Group to China Energy, while the actual controller remains to be the SASAC.

Guodian Group and the predecessor of China Energy have applied for and the SFC has granted, a waiver pursuant to Note 6(a) to Rule 26.1 of the Takeovers Code of the obligation of China Energy to make a general offer for the shares of the Company which may otherwise arise as a result of the Consolidation.

The Company will pay close attention to the development of the above-mentioned matters and perform its obligation on information disclosure in accordance with the relevant laws and regulations.

The implementation of the Consolidation is subject to the completion of necessary procedures and the obtainment of necessary approvals, ratifications and permissions by competent governmental authorities. There may exist certain uncertainties, thus Shareholders and the potential investors are advised to exercise with due caution when trading in the Shares.

By order of the Board

China Longyuan Power Group Corporation Limited*

Li Enyi

Executive Director and President

Beijing, the PRC, 4 January 2018

As at the date of this announcement, the non-executive directors of the Company are Mr. Qiao Baoping, Mr. Wang Baole, Mr. Luan Baoxing and Mr. Yang Xiangbin; the executive directors are Mr. Li Enyi and Mr. Huang Qun; and the independent non-executive directors are Mr. Zhang Songyi, Mr. Meng Yan and Mr. Han Dechang.

* For identification purpose only