10:22     SINOPEC KANTONS<00934> - Announcement (11)                          

    established under the laws of the PRC with limited liability.             
    Unipec is one of the State authorised import agents of crude              
    oil in the PRC and is a State-owned enterprise established under          
    PRC laws. Sinopec Corp. and Sinochem Corporation own 70 per cent.         
    and 30 per cent. of Unipec's registered capital respectively.             
                                                                              
    CPIC (China Petrochemical International Co. Ltd. * is a company           
    established under the laws of the PRC,                                    
    a direct wholly-owned subsidiary of Sinopec Corp. and the sole            
    shareholder of SKI.                                                       
                                                                              
    CPIGC (China Petrochemical International Guangzhou Company * is a company 
    established under the laws of                                             
    the PRC and a wholly-owned subsidiary of GPC.                             
                                                                              
    GPC (Sinopec Guangzhou Petrochemical Complex * is an enterprise           
    established under the laws of the                                         
    PRC and a wholly-owned subsidiary of Sinopec Group Company.               
                                                                              
    SKI (Sinopec Kantons International Limited) is a limited                  
    liability incorporated in the British Virgin Islands, and is              
    the immediate controlling shareholder of the Company.                     
                                                                              
    (G)     General                                                           
                                                                              
    Sinopec Group Company is the ultimate controlling shareholder             
    of the Company and indirectly holds approximately 72.34 per cent.         
    (750 million shares) of the entire issued share capital of the            
    Company. Pursuant to the Listing Rules, the Existing Ongoing              
    Connected Transactions constitute connected transactions to the           
    Company. Sinopec Group Company, Sinopec Corp., CPIC, SKI and              
    their associates will abstain from voting in the special general          
    meeting to approve and ratify the Existing Ongoing Connected              
    Transactions.                                                             
                                                                              
    The Company has established an independent board committee                
    comprising of the three independent non-executive Directors of            
    the Company, namely Mr. Wong Po Yan, Ms. Tam Wai Chu, Maria and           
    Mr. Fong Chung, Mark, to consider the Existing Ongoing Connected          
    Transactions and to recommend to the shareholders how to vote             
    in the special general meeting. 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.                    
                                                                              
    (H)     Definitions                                                       
                                                                              
    "Company"       Sinopec Kantons Holdings Limited (and for                 
    identification only *, an exempted company                                
    incorporated in Bermuda with limited liability.                           
                                                                              
    "CPIC"  * (China Petrochemical International                              
    Co. Ltd.), a company established under the laws of the PRC, which         
    is a direct wholly-owned subsidiary of Sinopec Corp. and the              
    sole shareholder of SKI.                                                  
                                                                              
    "CPIC Framework Master  the agreement dated 18