Singapore, 10 April 2003 - The Board of Directors of China Aviation Oil (Singapore) Corporation Ltd (the "Company") refers to the announcement on 27 March 2003 relating to the proposed bonus issue (the "Bonus Issue") of 115,200,000 new ordinary shares of S$0.05 each in the capital of the Company ("Bonus Shares") on the basis of one (1) Bonus Share for every five (5) existing ordinary shares of S$0.05 each held by the shareholders of the Company (the "Shareholders") as at a date to be determined by the Directors of the Company (the "Books Closure Date"), fractions of a Bonus Share to be disregarded.

On 7 April 2003, the Company made an application for the admission to the Official List of the Singapore Exchange Securities Trading Limited ("SGX-ST") and for the dealing in and quotation of the 115,200,000 Bonus Shares.

The Board of Directors of the Company is pleased to announce that the SGX-ST has today granted in-principle approval for the listing and quotation of the Bonus Shares arising from the Bonus Issue. Such approval is not an indication of the merits of the Company, its subsidiary or the Bonus Issue.

In relation to the Company's announcement on 31 March 2003 that the Bonus Issue may be subject to the approval of certain relevant governmental or regulatory authorities in the People's Republic of China, the Board of Directors of the Company wishes to confirm that no such governmental or regulatory approvals are required for the Bonus Issue.

The Bonus Issue is subject to the approval of Shareholders at an extraordinary general meeting ("EGM") to be convened. A circular to Shareholders setting out, inter alia, the details of the Bonus Issue and the Notice of EGM will be despatched to Shareholders in due course.