09:42     BEAUFORTE INV<00021> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes 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.               
                                                                              
    BEAUFORTE INVESTORS CORPORATION LIMITED                                   
    (incorporated in Hong Kong with limited liability)                        
    (Stock code: 21)                                                          
                                                                              
    DISCLOSABLE TRANSACTION -                                                 
    INVESTMENT IN A JOINT VENTURE COMPANY                                     
                                                                              
    On 15 December 2004, Eastern Energy, a wholly owned subsidiary            
    of the Company, and the Chinese Parties entered into the JV Agreement     
    in relation to an investment of an aggregate of HK$12 million             
    (equivalent to RMB12.6 million as stipulated in the JV Agreement) in      
    Century Energy, a PRC company, by Eastern Energy. The capital             
    injected by Eastern Energy represents 11.2% of the enlarged               
    registered capital of Century Energy.                                     
                                                                              
    The Investment constitutes a discloseable transaction for the             
    Company. A circular containing further information on the Investment      
    in Century Energy and the Group will be despatched to the                 
    shareholders of the Company as soon as practicable.                       
                                                                              
                                                                              
    1. JV AGREEMENT                                                           
                                                                              
    Date                                                                      
    15 December 2004                                                          
                                                                              
    Parties                                                                   
    Existing shareholders of       :                                          
    Century                                                                   
    Energy                                                                    
                                                                              
    (1)                                                                       
                                                                              
    (Shandong Risen Industry Company Limited), a company incorporated         
    in the PRC with limited liability                                         
                                                                              
    (2)                                                                       
                                                                              
    (Shenyang Tianqin Asset Management Company Limited), a company            
    incorporated in the PRC with limited liability                            
                                                                              
    (3)                                                                       
                                                                              
    (Shenzhen Tianqin Asset Management Company Limited), a company            
    incorporated in the PRC with limited liability                            
                                                                              
    To the best of the Directors' knowledge, information and belief having    
    made all reasonable enquiries, the Chinese Parties and their respective   
    ultimate beneficial owners are Independent Third Parties.                 
                                                                              
    New investor                   :                                          
                                                                              
    (4)                                                                       
                                                                              
    China Eastern Energy Holdings Limited, an investment holding company      
    incorporated in Samoa and a wholly owned subsidiary of the Company        
                                                                              
    Capital contribution                                                      
    Pursuant to the JV Agreement, Eastern Energy has agreed to inject an      
    aggregate of HK$12 million (equivalent to RMB12.6 million as              
    stipulated in the JV Agreement) in Century Energy. The capital            
    injected by Eastern Energy represents 11.2% of the enlarged               
    registered capital of Century Energy.                                     
                                                                              
    The capital contribution amount has been determined after arm's           
    length negotiations and taking into account the book value of the         
    assets of Century Energy as stated in the paragraph headed `Financial     
    information' below. Taking into account the amount of the Investment      
    of an aggregate of HK$12 million (equivalent to RMB12.6 million as        
    stipulated in the JV Agreement), the adjusted net assets of Century       
    Energy as at 30 November 2004 is RMB114.9 million (equivalent to          
    HK$109.4 million). On such basis, the amount of the Investment of         
    HK$12 million (equivalent to RMB12.6 million) represents a premium of     
    approximately 2% to the adjusted net assets of Century Energy as at       
    30 November 2004.                                                         
                                                                              
    Payment terms and source of funding                                       
    Pursuant to the JV Agreement, the capital contribution shall be           
    injected into Century Energy by Eastern Energy in accordance with the     
    following schedule:                                                       
                                                                              
    (1)                                                                       
    an amount of HK$10 million, representing 83% of the total amount of       
    the Investment, shall be paid within three months from the day on         
    which Century Energy has obtained a new business licence