THE Guojiawan and Qinglongsi coal mines, owned by Yulin Shenhua Energy Co Ltd., a 50.1%-owned subsidiary of China Shenhua Energy (601088.SH), have been granted the approval of delineation of mining zone by the department of Land and Resources of Shaanxi Province, China Shenhua Energy said.

The approved coal field area of Guojiawan coal mine covered approximately 119.208 square kilometers while the coal field area of Qinglongsi coal mine covered approximately 50.3801 square kilometers.

The above-mentioned approval was granted pursuant to the "Notice on Experimental Reform of the Administration of Examination and Approval of Coal Mining Rights" issued by the Ministry of Land and Resources of the PRC and has laid a foundation for the further development of the projects, including the obtaining of project approvals and the application for mining rights. Pursuant to the relevant regulations of the "Measures for the Registration Administration of Mineral Resources Exploitation", the scope of mining zone refers to the zone available for exploitation of mineral resources legally delineated by the registration administration authority.