368-370 Conadilly St, Gunnedah NSW 2380Tel: +61 2 6741 8800 Fax +61 2 9290 14 98

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08 July 2015

MEDIA RELEASE

Commonwealth approves $1 billion Watermark Project

Shenhua Australia today welcomed Federal Environment Minister Greg Hunts approval of the $1 billion

Watermark Project, subject to stringent controls under the Environment Protection and Biodiversity Conservation

(EPBC) Act 1999.

Shenhua Australia Chairman, Mr Liu Xiang said the approval was the culmination of more than five years of

unprecedented scientific scrutiny during the New South Wales and Commonwealth government assessment

processes.

With the formal assessment now concluded, we can begin the next phase of the Project, to put in place the strict

operating conditions required by both levels of Government. Our immediate priority is to carefully review the

Commonwealth approval conditions to determine if they will have any impact on the projects technical feasibility

and economic viability, Mr Liu said.

Shenhua Watermark Project Manager, Paul Jackson said Mr Hunts decision reflects advice from a number of

independent experts, including the Commonwealth Independent Expert Scientific Committee, the NSW Planning

Assessment Commission and specialist hydrogeologists.

We know the Minister has taken this decision very seriously given he stopped the assessment process to seek

advice of the Independent Expert Scientific Committee, Mr Jackson said

Todays decision to approve the Watermark Project is the final, irrefutable confirmation there will be no adverse

impacts on the regions groundwater and impacts on sensitive ecological areas have been appropriately managed

and offset, Mr Jackson said.

The Ministers decision relies on one of the most comprehensive groundwater studies undertaken in NSW and

demonstrates mining can coexist with agriculture while unlocking new opportunities for employment and

economic growth in regional Australia.

Mr Hunts approval is the final piece in an overwhelming body of evidence showing the Watermark Project will

not harm the regions valuable agricultural enterprises, Mr Jackson said.

After years of rigorous and scientific assessment, it is time to put aside emotive arguments and acknowledge the

science clearly shows the Project should proceed, Mr Jackson said.

Shenhua will now progress the development of a number of operating and management plans which demonstrate

how the company will comply with the strict operating conditions imposed by both the NSW and Commonwealth

Governments. Many of these plans must be approved before any works can commence. The Project expects to

have these plans ready for assessment by Q4 2015.

Further information regarding the Project is available on the Shenhua Watermark website

(www.shenhuawatermark.com) or by contacting the companys Gunnedah office on (02) 6741 8800.

ENDS

Media Enquiries: Jonathon Moore 0405 167 675