09:12     DAQING PECHEM<00362> - Announcement & Resumption (3)                

    Court of Mudanjiang City, Heilongjiang Province, to                       
    oversee the liquidation of the PVC Factory by                             
    disposing the fixed assets and land use rights of the                     
    PVC Factory.                                                              
                                                                              
    The Company confirms that, to the best of the                             
    Directors' knowledge, information and belief having                       
    made all reasonable enquiry, the Liquidation                              
    Committee is a third party independent of the Company                     
    and its connected persons.                                                
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    As MDGC is an indirectly wholly-owned subsidiary of                       
    the Company and each of the assets ratio and the                          
    consideration ratio (as defined in the Listing Rules)                     
    is 5% or more but less than 25%, the Acquisition                          
    constitutes a discloseable transaction for the                            
    Company under Chapter 14 of the Listing Rules and the                     
    Company will send a circular containing further                           
    details regarding the Acquisition as soon as                              
    practicable and in accordance with the Listing Rules.                     
                                                                              
    SUSPENSION AND RESUMPTION OF TRADINGS                                     
    Trading in the shares of the Company was suspended                        
    from 9:30 a.m. on 17 May 2005. An application has been                    
    made by the Company to the Stock Exchange for                             
    resumption of trading in its shares with effect from                      
    9:30 a.m. on 18 May 2005.                                                 
                                                                              
    DEFINITIONS                                                               
    "Acquisition"   the subsequent acquisition of the                         
    fixed assets and land use rights in the PVC Factory                       
    from the Liquidation Committee pursuant to the                            
    Auction                                                                   
                                                                              
    "Announcements" the announcements dated 10 March                          
    2005 and 5 May 2005 issued by the Company relating                        
    to the Auction                                                            
                                                                              
    "Auction"       the auction of the fixed assets and land                  
    use rights of the PVC Factory) on 15 May 2005 in the                      
    auction hall of the Auction Agent in Mudanjiang, the                      
    PRC                                                                       
                                                                              
    "Auction Agent" * (Mudanjiang City                                        
    Auction House), which was authorised by the                               
    Liquidation Committee to handle the auction                               
    properties of the PVC Factory in accordance with * (Auction Law of the    
    PRC)                                                                      
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Company"       Daqing Petroleum & Chemical Group Limited,                
    a company incorporated in the Cayman Islands with                         
    limited liability and the shares of which are listed                      
    on the main board of the Stock Exchange and together                      
    with its subsidiaries, the "Group"                                        
                                                                              
    "Consideration" RMB78.7 millions, being the highest                       
    bid offered to the Liquidation Committee at the                           
    Auction, excluding the RMB20 millions expected to be                      
    paid as development funds to an account designated                        
    by the Economic Committee for use in technological                        
    improvements and environmental protection in respect                      
    of the operations of the assets of the PVC Factory                        
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Economic Committee"    * (Mudanjiang                                     
    City Economic Committee), a committee of the People's                     
    Government of Mudanjiang City, Heilongjiang Province,                     
    PRC