09:20 MB-CNOOC@EC0509<03873> & MB-SMIC @EC0510<03874> - Ann (2) As at the date of this announcement, the Issuer has short-term and long- term credit ratings of, respectively, A1 and A by Standard and Poor's Ratings Group; P-1 and A2 by Moody's Investors Service Inc.; F-1 and A+ by Fitch Ratings Ltd. Prospective purchasers of Warrants should be aware that the price of Warrants may fall in value as rapidly as they may rise and prospective purchasers should be prepared to sustain a total loss of the purchase price of their Warrants. In choosing to deal in the Warrants a prospective purchaser should consider carefully whether the Warrants are suitable for him/her in light of his/her experience, objectives, financial position and other relevant circumstances. The Issuer has appointed Macquarie Equities (Asia) Limited of 19th Floor, Citic Tower, 1 Tim Mei Avenue, Central, Hong Kong, (in respect of the 1st Series Warrants, the Broker ID Number is 9557 and in respect of the 2nd Series Warrants, the Broker ID Number is 9589) as liquidity provider (the "Liquidity Provider") by responding to requests for bid and offer quotes for the purpose of making a market in the Warrants. A request for a quote may be obtained by calling the telephone number 2823 3788. Prospective purchasers of the Warrants should be aware that such appointment does not guarantee liquidity in the market in the Warrants, further, the Liquidity Provider may be the only market maker for the Warrants and the secondary market in the Warrants may therefore be limited. Based on the Issuer's own calculations and information, implied volatility, effective gearing, gearing and premium in respect of each series of Warrants are as follows: Warrants Implied Volatility Effective Gearing Gearing Premium 1st Series Warrants 32.00% 5.81x 12.17x 11.98% 2nd Series Warrants 49.00% 3.53x 6.19x 18.72% It should be noted that the above values should not be compared to similar information provided by other derivative warrant issuers as different issuers adopt different valuation models. The Issuer may enter into discount, commission or fee arrangements with brokers and/or any of its affiliates with respect to the primary and/or secondary market in the Warrants. In respect of the Warrants, the Issuer has entered into arrangements where it will agree to pay commission of up to 1.00% to certain brokers on behalf of clients of the relevant brokers. Such arrangements may result in a benefit to persons buying and selling the Warrants through nominated brokers by reducing the commission that would have been paid directly by such holders of the Warrants. The Issuer is regulated by the Australian Prudential Regulation Authority and is not regulated by any of the bodies referred to in Rules 15A.13(2) or (3) of the Listing Rules. The Issuer does not carry on banking business in Hong Kong. It is not an Authorised Institution under the Banking Ordinance (Chapter 155 of the Laws of Hong Kong) and therefore is not subject to the supervision of the Hong Kong Monetary Authority. 2 February 2005 Macquarie Bank Limited