**Announcement of the Resolution of the Board of Directors of Shanghai Shenhua Holdings Co., Ltd.**
The Company’s Board of Directors and its Directors guarantee that this announcement does not contain any false records, misleading statements, or material omissions, and they jointly and severally assume responsibility for its truthfulness, accuracy, and completeness.
The eighth meeting of the seventh session of the Board of Directors of Shanghai Shenhua Holdings Co., Ltd. was held via communication means on August 17, 2011. A total of 10 directors were supposed to attend, and all 10 directors participated in the meeting. All directors of the Company were present and voted. The Company's supervisors and executives also attended the meeting. The convening and holding procedures of this meeting complied with relevant laws, regulations, and the Company’s articles of association.
The meeting was chaired by Mr. Qi Yumin, Chairman of the Company. After deliberation, the following resolutions were unanimously adopted:
1. Approval of the 2011 semi-annual report and the 2011 semi-annual summary of the report.
2. Approval of the motion regarding changes to the company’s organizational structure.
3. Approval of the necessary funds for the development of the company's transaction management system and financing. After consideration, the Board agreed to apply for a comprehensive credit line of 40 million yuan from the Hongkou Branch of Guangdong Development Bank in Shanghai, with a term of 1 year.
This is hereby announced.
Shanghai Shenhua Holdings Co., Ltd.
Board of Directors
August 18, 2011