King Stone Energy : SUPPLEMENTAL ANNOUNCEMENT ON ISSUE OF CONVERTIBLE BOND UNDER GENERAL MANDATE

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company.

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)

SUPPLEMENTAL ANNOUNCEMENT ON

ISSUE OF CONVERTIBLE BOND

UNDER GENERAL MANDATE

Reference is made to the announcement of King Stone Energy Group Limited (the "Company") dated 15 July 2020 in relation to issue of convertible notes under general mandate (the "Announcement"). Unless otherwise defined herein, capitalised terms used in this supplemental announcement shall have the same meanings as those defined in the Announcement.

The Company wishes to clarify that the ultimate beneficial owners of Subscriber 2 include Ms. Liu, Mr. Chen Zhong Min (spouse of Ms. Liu) and Mr. Gerard John Morrison (an employee of Subscriber 2), all of whom, directly and indirectly hold approximately 30.2%, 16.5% and 0.2% interest in Subscriber 2 respectively. And there are also 11 other independent investors (the "Other Investors") in Subscriber 2, out of which 3 of them holds more than 10% but not more than 13.1% interest each. Each of the remaining of the Other Investors holds not more than 10% interest in Subscriber 2. Subscriber 2's principal investment objective is to seek to achieve long term capital appreciation by investing in listed and unlisted companies that, in its investment manager's opinion, will benefit from China's economic growth. Subscriber 2's investment portfolio includes, amongst others, (i) listed equities include A shares or structured products to gain access to the A shares, B shares, H shares, companies listed predominantly in Hong Kong, Singapore or NASDAQ, and Red-Chip companies and (ii) debt securities mainly through investing in convertible bonds.

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The supplementary information provided in this announcement does not affect other information contained in Announcement. Save as disclosed above, all other information in the Announcement remains unchanged.

By order of the Board

King Stone Energy Group Limited

Xu Zhuliang

Chairman

Hong Kong, 4 August 2020

As at the date of this announcement, the executive Directors are Mr. Xu Zhuliang, Mr. Zong Hao and Ms. He Qing, and the independent non-executive Directors are Mr. Chiu Sui Keung, Mr. Lee Ping and Mr. Lee Kwok Wan.

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