10:18     SINOPEC KANTONS<00934> - 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.                                                             
                                                                              
    SINOPEC KANTONS HOLDINGS LIMITED                                          
    *                                                                         
    (a limited liability company incorporated in Bermuda)                     
    (Stock Code: 934)                                                         
                                                                              
    Existing Ongoing Connected Transactions                                   
                                                                              
    Upon the listing of the Company's shares on the Stock Exchange            
    in June 1999, the Company applied for and was granted the First           
    Waiver for the Existing Ongoing Connected Transactions for a              
    term of three (3) years commencing from the date of the listing.          
    The First Waiver expired in June 2002 and the Second Waiver was           
    granted and approved in August 2002. The Second Waiver expired            
    on 31 December 2004. The Company conducts the Existing Ongoing            
    Connected Transactions and will have to comply with the reporting,        
    announcement and independent shareholders' approval                       
    requirements under Chapter 14A.35 of the Listing Rules.                   
                                                                              
    DBS Asia Capital Limited has been appointed as the independent            
    financial adviser for the purpose of advising the independent             
    board committee and the independent shareholders in relation              
    to the Existing Ongoing Connected Transactions.                           
                                                                              
    A circular will be sent to the shareholders of the Company setting        
    out (1) the terms of the Existing Ongoing Connected Transactions;         
    (2) the recommendation of the independent board committee in              
    respect of the Existing Ongoing Connected Transactions; (3) the           
    recommendation from the independent financial adviser; and (4)            
    notice of the SGM to be convened at which ordinary resolutions            
    will be proposed to be considered, and if thought fit, approving          
    and ratifying by poll the Existing Ongoing Connected                      
    Transactions and all matters contemplated there under.                    
                                                                              
                                                                              
    This announcement is issued by the board of directors of Sinopec          
    Kantons Holdings Limited (the "Company") in respect of the                
    Existing Ongoing Connected Transactions.                                  
                                                                              
    Upon the listing of the Company's shares on the Stock Exchange            
    in June 1999, the Company applied for and was granted the First           
    Waiver for the Existing Ongoing Connected Transactions for a              
    term of three (3) years commencing from the date of the listing.          
    The First Waiver expired in June 2002 and the Second Waiver was           
    granted and approved in August 2002. The Second Waiver expired            
    on 31 December 2004. The Company conducts the Existing Ongoing            
    Connected Transactions and will have to comply with the reporting,        
    announcement and independent shareholders' approval                       
    requirements under Chapter 14A.35 of the Listing Rules.                   
                                                                              
    (A)     Services and trading activities with Sinopec Corp.                
                                                                              
    On 18 February 2005, the Company and Sinopec Corp. entered into           
    the Sinopec Corp. Framework Master Agreement to set out a                 
    framework and to regulate the following services and trading              
    activities between the Group and Sinopec Corp. Conditional upon           
    the approval and ratification in the SGM, this agreement will             
    commence retrospectively from 1 January 2005 for a term of 3              
    years up to 31 December 2007.                                             
                                                                              
    1.      Services and facilities in relation to the Huizhou