09:27     HANS ENERGY<00554>-Announcement&Resumption of Trading (3)           

    The Group is also in negotiations regarding an exclusive lease            
    arrangement for an oil pipeline, jetties and storage facilities in        
    a location outside the PRC (the ``Pipeline Project''). The pipeline       
    has an annual maximum pumping capacity of approximately 60 million        
    metric tons, the jetties have a maximum docking capacity of               
    approximately 500,000 deadweight tons and the storage facility has        
    an aggregate capacity of approximately 1.5 million cubic metres. The      
    Group plans to sublease such facilities to oil companies and oil          
    tankers. The Group expects the arrangements to be completed around        
    June 2005 and the Directors believe that such arrangements will give      
    the Group a significant competitive advantage by providing customers      
    with an attractive location for docking and storage.                      
                                                                              
    There is no assurance that any of the plans and/or transactions           
    described above in relation to the Pearl River Project and/or the         
    Pipeline Project will proceed as planned or at all. Shareholders and      
    potential investors are reminded to exercise caution when dealing         
    in the securities of the Company. The Company will make such further      
    announcements in relation to the above projects as and when required      
    under the Listing Rules and comply with the requirements under the        
    Listing Rules in relation to notifiable transactions if and when          
    applicable.                                                               
                                                                              
    The Directors also refer to the profit forecast of Union                  
    Petro-Chemicals (BVI) Company Limited (a wholly-owned subsidiary of       
    the Company) and its subsidiaries (the ``UPC Group'') for the year        
    ended 31 December 2004, as set out in appendix VII to the Company's       
    circular dated 7 December 2004, and note that they are not aware of       
    any matter or circumstance which would cause the UPC Group not to         
    be able to achieve the aforementioned profit forecast.                    
                                                                              
    Suspension and resumption of trading                                      
                                                                              
    Trading in the Shares on the Stock Exchange has been suspended from       
    9:44 a.m. on 24 February 2005 pending the release of this                 
    announcement. Trading in the Shares on the Stock Exchange will resume     
    from 9:30 a.m. on 25 February 2005.                                       
                                                                              
    By Order of the Board                                                     
    Hans Energy Company Limited                                               
    David An                                                                  
    Chairman                                                                  
                                                                              
    Hong Kong, 24 February 2005                                               
                                                                              
    As at the date of this announcement, Mr. David An, Ms. Feng Ya Lei,       
    Mr. Zhou Nan Zheng and Ms. Kwan Po Wan are executive Directors, and       
    Mr. Li Wai Keung, Mr. Liu Jian and Mr. Liu Wei are independent            
    non-executive Directors.