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 disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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

(Stock Code: 568) CHANGE OF SUPERVISOR

The Supervisory Committee announces that:

（1）Mr. Liu Huaiduo has tendered his resignation as a supervisor and the Chairman of the

Supervisory Committee with effect from 22 August 2014.

（2）Mr. Hao Liang has been appointed as a supervisor with effect from 25 August 2014.

This announcement is made pursuant to Rule 13.51(2) of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").
All the supervisors (the "Supervisors") of the supervisory committee (the"Supervisory Committee") of Shandong Molong Petroleum Machinery Company Limited (the "Company") warrant the truthfulness, accuracy and completeness of the contents in this announcement, and jointly and severally accept responsibilities for any false statements, misleading representations or material omissions in this announcement.

RESIGNATION OF SUPERVISOR

The Supervisory Committee announces that due to personal reasons, Mr. Liu has tendered his resignation as a Supervisor representing the employees and the chairman of the Supervisory Committee with effect from 22 August 2014.
Mr. Liu confirms that he does not have any disagreement with the Supervisory Committee and that there is no other matter relating to his resignation which needs to be brought to the attention of the shareholders of the Company.
The Supervisory Committee would like to express its sincere gratitude to Mr. Ling for their invaluable contribution to the Supervisory Committee during his term of office with the Company.

APPOINTMENT OF SUPERVISOR

On 25 August 2014, the staff representatives of the Company held a meeting and resolved to elect Mr.
Hao Liang as the staff representative to act as a Supervisor with a term of office from 25 August
2014 to 25 May 2015.
Mr. Hao Liang was born on 27 November 1981, graduated and got his college degree from Qingdao University of Science and Technology in 2003, and majoring in industrial automation. He joined the Company in May 2007, and is currently involved in the management of the QHSE (Quality, Health, Safety and Environment) system. During his time with the Company, Mr. Hao Liang acquired a few qualifications including "QES Internal Auditor", "API Internal Auditor", "Certified Energy Manager" etc. through training.
Save as disclosed above, Mr. Hao Liang does not hold any other positions in the Company or other members of the Company, nor did he hold any directorship in any listed companies in the past three years.

TERM OF SERVICE AND REMUNERATION

Mr. Hao will have a term of office from 25 August 2014 to 25 May 2015. Mr. Hao will not receive any remuneration for being a Supervisor.

RELATIONSHIP

Mr. Hao does not have any relationship with any directors of the Company, Supervisors or senior management or any management shareholders, substantial or controlling shareholders of the Company.

SHARE INTERESTS

To the best knowledge of the directors of the Company, as at the date of this announcement, Mr. Hao is not interested in any shares of the Company (as defined in Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)).

MATTERS REQUIRING ATTENTION OF THE SHAREHOLDERS

Regarding the appointment of Mr. Hao as a Supervisor, there is no information required to be disclosed nor are there any matters required to be disclosed pursuant to Rule 13.51(2)(h) to Rule
13.51(2)(v) of the Listing Rules or any matters which should be brought to the attention of the
shareholders of the Company.
Shandong, the PRC
25 August 2014

Shandong Molong Petroleum Machinery Company Limited

Supervisory Committee

As at the date of this announcement, the Board is comprised of Mr. Zhang En Rong, Mr. Zhang Yun San, Mr. Lin Fu Long and Mr. Guo Huan Ran as executive Directors of the Company, Mr. Xiao Qing Zhou and Mr. Guo Hong Li as non-executive Directors of the Company and Mr. John Paul Cameron, Ms Wang Chun Hua and Mr. Qin Xue Chang as independent non-executive Directors of the Company.

* For identification purpose only

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