China's largest coal miner with substantial power generating capacity, China Shenhua Co. (1088.HK), announced changes to on-grid tariffs its power plans will charge in the future. Shenhua is not only China's larget coal miner by output but operates a significant power generating capacity in various regions in China. Based on capacity and other factors, the above increase represents an average increase of 13.8/Mwh Yuan or an increase of 4.53%.

The tariff increase varies depending on where the coal power power plant is located. The following increases are scheduled:

1. In northern Hebei provine, increase is 16.0/Mwh Yuan
2. In southern Hebei province, increase is 16.8/Mwh Yuan
3. In inner Mongolia Autonomus region, increase is 9.0/Mwh Yuan
4. In Beijing, increase is 10.3/Mwh Yuan
5. In Tianjin, increase is 11.6/Mwh Yuan
6. In Lianoing province, increase is 11.7/Mwh Yuan
7. in Zhejiang province, increase is 21.2/Mwh Yuan
8. In Shaanxi province, increase is 15.0/Mwh Yuan
9. In Guangdong province, increase is 26.0/Mwh Yuan

The Company and all the members of its Board of Directors hereby warrant the authenticity, accuracy and completeness of the contents of this announcement, and jointly accept full responsibility for any false representation, misleading statement or material omission contained in this announcement.

China Shenhua Energy Company Limited (the “Company”) has recently received the “Notice on the relevant Issues Regarding Increase of Power Tariffs”(Fa Gai Dian [2008] No. 207) (the "Notice") issued by the National Development and Reform Commission (the “NDRC”). The notice requires adjustments of the on-grid power tariffs of power plants in the power grids of East China, North China, Central China, Northwest China, Northeast China and South China from 1 July 2008.

1. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units (including the co-generation units, same hereinafter) in the northern region of Hebei province have been increased by RMB16.0/MWh;

2. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in the southern region of Hebei province have been increased by RMB16.8/MWh;

3. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in the western region of Inner Mongolia Autonomous Region have been increased by RMB9.0/MWh;

4. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Beijing have been increased by RMB10.3/MWh;

5. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Tianjin have been increased by RMB11.6/MWh;

6. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Liaoning province have been increased by RMB11.7/MWh;

7. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Zhejiang province have been increased by RMB21.2/MWh;

8. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Shaanxi province have been increased by RMB15.0/MWh;

9. The on-grid power tariffs of the Company’s power grid central dispatch coal-fired units in Guangdong province have been increased by RMB26.0/MWh.

Notes: as at the date of this announcement, Shendong Coal and Shendong Power of the Company have not received the notice from the relevant government administration authority regarding adjustment of power tariffs, therefore, the on-grid power tariffs of Shendong Coal and Shendong Power are represented temporarily without changes.

On-grid power tariff referred to by the Company is the power tariff corresponding to the power volume as specified in the power purchase contracts entered into with power grid companies, which is different from the meaning of power tariffs normally used by the Company for the sale of power. Power tariff is the ultimate realized average selling price of power in a specified reporting period, including but not limited to on-grid power tariff, power generation transaction tariff and direct supply power generation tariff.

Based on the above power tariff adjustment plan, the Company’s average on-grid power tariff (excluding VAT) increased by RMB13.8/MWh as compared with that prior to such adjustments, representing an increase of approximately 4.53% (based on the weighted average installed capacity as at 30 June 2008).

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