Jintai Energy Holdings Limited board of directors announced that on 26 August 2022 (Hong Kong time), the Company entered into a oil sands mines (oil and gas) exploration and development cooperation agreement (the Agreement'), pursuant to which the Company and Tacheng Xingta Energy Investment Development and Construction Co. Ltd. agreed to explore and develop jointly the Aladesai Oil Sand Mine and Xinan Chanreng Oil Sands Mine both locating in Xinjiang Autonomous Region of the PRC and the Company agreed to contribute an initial cost of the exploration of Xinjiang Oil Sands Mines at around RMB 2.43 million (equivalent to approximately HKD 2.84 million). Pursuant to the Agreement, the Company is granted with an option to decide whether to proceed further with the Agreement after the exploration results of the hydrocarbons emissions from the oil sands of Xinjiang Oil Sands Mines are available.

The Group is principally engaged in four businesses: (i) energy trading which comprised mainly the trading of fuel oil and kerosene; (ii) operation of digital energy trading park; (iii) drilling services; and (iv) customs declaration services. As at the date of this announcement, Tacheng Xingta is the holder of the exploration permit of Xinjiang Oil Sands Mines, covering an area of approximately 39.37 square kilometres, for a term of 5 years commencing on 11 August 2020. To the best knowledge, belief and information available to the Company, if the exploration results of the hydrocarbons emissions (including crude oil and natural gas) from the oil sands of Xinjiang Oil Sands Mines are satisfactory to the Company, the estimated total revenue derived from the exploration and extraction of the oil sands from the Xinjiang Oil Sands Mines to the Company would be at around RMB2 billion.

A more precise and accurate estimation on revenue shall be assessed by a professional surveyor. The said surveyor shall be engaged for further assessment before the Company decides to exercise the option to proceed further with the Agreement. The entering into of the Agreement may allow the Company to further expand its business in the upstream energy business.

The Board considers that the arrangement of entering into the Agreement is in the interests of the Company and its shareholders as a whole.