Blue Flame Holdings: A wholly-owned subsidiary successfully bid 2.01 billion yuan for the exploration rights of coalbed methane in the Fa Zhong block of the Qinshui Basin in Shanxi Province.

Blue Flame Holdings Announcement: Its wholly-owned subsidiary Shanxi Blue Flame Coalbed Methane Group Limited participated in the bidding for the coalbed methane exploration rights in the Fazhong block of the Qinshui Basin in Shanxi Province, and successfully bid for the exploration rights with a total of 201 million RMB. The exploration rights cover an area of 297.9 square kilometers. The company has received the "Transaction Notice" from the Shanxi Province Natural Resources Development Center and will sign the "Transaction Confirmation Letter" within 5 working days for public disclosure. The funds for this bidding come from the company's own funds or self-raised funds, and will not have a significant adverse impact on the financial condition and operating results.