A Vote of Confidence from Parent Company

TransactionHighlights

1. Yanchang Petroleum International hasreceived independent shareholder approval for issuing a USD60 million two-yearconvertible bonds to its parent group Yanchang Petroleum Group at a coupon rateof 6% p.a. The CB represents a vote of confidence of the parent group towardsthe Company's development potential and is an affirmation of the Company'sposition as an international listed mergers and acquisitions platform of theparent group;
2. The net proceeds, amounting to HK$469.9million, will be applied to redeem an existing CB and injected as workingcapital to the Company's operations in Canada for development and expansionneeds;
3. The Company's financing costs will besubstantially reduced after replacing the existing 10% coupon rate CB with thenew CB at 6%;
4. The Company has been identifyingmergers and acquisitions opportunities in Canada and along the Belt and Roadregion to expand its scale of operation and business footprint.

HONG KONG,CHINA - Media OutReach - November 26, 2018 - Yanchang Petroleum International Limited ("Yanchang PetroleumInternational" or the "Company"; stock code: 00346), is pleased to announcethat its independent shareholders approved the issuance of convertible bonds(the "CB") to its controlling shareholder Shaanxi Yanchang Petroleum (Group)Co., Ltd ("Yanchang Petroleum Group") at a Special General Meeting held on 23November 2018.

TheUS$60 million CB has a two-year maturity, bearing 6% interest per annum and aconversion price of HK$0.076 per share. If fully converted, the parentcompany's shareholding will increase from 53.5% to 68.9%.

Thenet proceeds will be used for the repayment of an existing CB and asworking capital for the oil producingactivities in Canada. This willsubstantially reduce the Company's financing cost as the coupon rate is reduced by a considerable 4%p.a..

Mr.Li Yi, Chairman and Executive Director of Yanchang Petroleum International, commented, "We are pleased with the unwavering support that our parent groupYanchang Petroleum Group has offered us. It affirms the Company's strategicposition as the parent group's international listed acquisition platform. TheCB will provide new capital to establish a solid funding base for the Companyto achieve improved business performance and future expansion."

Mr.Bruno Deruyck, Chief Executive Officer and Executive Director of YanchangPetroleum Internationalsaid, "The new CB not only substantially lowers our financing costs, but also enableus to inject capital to support the growth of our Novus operation. It alsorepresents a vote of confidence from our parent group towards our businessstrategy and prospect. Looking forward, we will continue to seek new mergersand acquisitions opportunities in both Belt and Road region and Canada tofurther expand our business footprint and achieve better economies of scale."

About Yanchang Petroleum International(stock code: 00346)

YanchangPetroleum International is principally engaged in the following activities (i)exploration, exploitation and operation of oil and gas; and (ii) fuel oiltrading and distribution. In its upstream operations, Yanchang PetroleumInternational possesses operating oilfields in Saskatchewan and Alberta,Canada, through its wholly owned subsidiary Novus, a Canadian enterprise. Novusengages in the business of acquiring, exploring for, developing and producingcrude oil and natural gas. In its downstream operations, Yanchang PetroleumInternational is principally engaged in wholesale, retail, storage andtransportation of oil products through its 70% owned subsidiary, Henan YanchangPetroleum Sales Co., Limited, and which has been granted valid licenses fordistribution and sales of oil products in China.

For details, please refer tohttps://www.yanchanginternational.com