Downstream Market

Access to established infrastructure enables sales to target markets with significant demand for CBM

Both the Panzhuang and Mabi concessions are located close to established gas transportation and processing infrastructure. This infrastructure was constructed and connected to our concessions by third parties who were attracted by the quality and significant potential volume of the CBM in the Qinshui Basin. This infrastructure provides us with access to gas distribution facilities and our markets and customers, which include industrial users, city gas distributors, pipeline gas distributors and LNG producers in Shanxi, Henan and Shandong provinces and in other coastal regions in China. Because of this infrastructure, we are able to contract for the sale of most of our CBM under long-term take-or-pay sales agreements. Our access to infrastructure will allow us to take to market our increased production volumes as we continue to ramp up production in our concessions.

We also sell our gas to various LNG producers, such as ENN Energy and Shuntianda. Both ENN Energy and Shuntianda have built plants connected to our gas gathering stations in thePanzhuang concession in order to process and transport our CBM to downstream users in Henan Province as well as coastal cities. We have been selling gas to ENN Energy since 2008, to Shuntianda since October 2013, and to Sanxia Yizhong, a LNG producer connected to the Tongyu Pipeline in Henan Province, since December 2014. There are a number of additional LNG producers in the vicinity of our concessions that we can sell to.

Disclaimer

The information contained in this website intended solely for your personal reference. Such information is subject to change without notice and no representation warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completeness or correctness of the information contained in this presentation. This website does not intend to provide, and you may not rely on this website providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability (in negligence or otherwise) whatsoever for any loss or damage howsoever arising from any use of this website or its contents or otherwise arising in connection with this presentation.

This website contains projections and forward looking statements that may reflect the Company's current views with respect to future events and financial performance. Readers are cautioned not to place undue reliance on these forward-looking statements which are subject to various risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This website does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or the provision of any investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto, nor does this website constitute a recommendation regarding the securities or financial instruments of the Company.

Ownership of the copyright of this site

The copyright in the contents and any downloads from this website is owned by AAG or its subsidiaries unless otherwise stated. You are responsible for obeying all applicable copyright laws. We permit you to make copies of this website as necessary incidental acts during your viewing of it; and you may take a print for your personal use of so much of the site as is reasonable for private purposes. All other use is strictly prohibited. You may not frame this site nor link to a page other than the home page without our express permission.

Use of any Hyperlink

Neither we nor any of our subsidiaries are responsible for the content of any other website, including any website through which you may have gained access to our website or to which you may gain access from our website. We do not accept any liability in connection with any such sites or links.

Where we provide a hyperlink to a third party's website, we do so because we believe in good faith that such a website contains or may contain material which is relevant to that on our website. Such a hyperlink does not signify that AAG or its subsidiaries have reviewed or approve of the connected third party's website or its contents - indeed in certain instances a hyperlink may connect you to a third party's website containing views contradictory to those expressed on our website or otherwise held by AAG and its subsidiaries.

Operations