The Sinochem Board of Directors and the Emerald Board of Directors reports the terms of recommended Proposals for an all cash acquisition by Sinochem Resources UK Limited of the entire issued and to be issued share capital of Emerald. The Offeror is a newly incorporated indirect wholly-owned Subsidiary of Sinochem Corporation formed for the purpose of making the Proposals.

• Under the terms of the Proposals, Emerald Shareholders will be entitled to receive 750 pence in cash for each Emerald Share, valuing the entire issued and to be issued ordinary share capital of Emerald at approximately £532.1 million. • The Offer Price represents a premium of: 33.81 per cent. to the Closing Price of 560.50 pence per Emerald Share on 10 July 2009, the last Business Day prior to the announcement by Emerald that it had received an approach; • 11.11 per cent. to the Closing Price of 675.00 pence per Emerald Share on 11 August 2009, the last Business Day prior to this Announcement; and • 46.64 per cent. to the average Closing Price of 511.44 pence per Emerald Share over the three-month period ended on 9 July 2009.

The Emerald Board of Directors, which has been so advised by Harland Capital, considers the terms of the Proposals to be fair and reasonable. In providing its advice, Harland Capital has taken into account the commercial assessments of the Emerald Board of Directors.

Accordingly, the Emerald Board of Directors unanimously recommends that Emerald Shareholders vote in favour of each of the Resolutions to be proposed at the Meetings.

Emerald offers Sinochem the opportunity to expand its exploration and production presence in Sinochem’s focus areas of the Middle East and Latin America • Emerald’s portfolio enhances Sinochem’s existing reserves and production base and offers attractive growth potential in Syria and Colombia; • Emerald provides access to a talented management team and employee base; and • The transaction marks an important further step in Sinochem’s strategy to become a leading diversified, global energy company.

Mr. Han Gensheng, President of the Offeror and Sinochem Corporation, said, "Sinochem is delighted to have agreed to acquire Emerald, which will increase our reserves and production in new geographies, diversifying our oil and gas assets further. Emerald’s Syrian and Colombian assets have attractive growth potential and, by bringing Emerald into the Sinochem group, will reinforce our position in the Middle East and South America. The acquisition strengthens our operations and represents another step in our strategy of building a global energy company."

Alastair Beardsall, Executive Chairman of Emerald, said, “We welcome today's recommended offer from Sinochem, which represents fair value for Emerald Shareholders and reflects the value of our business and assets. We believe Sinochem will continue to build on our successful track record to develop the business further and bring benefits for our employees and partners.”

Tags: Emerald Energy Plc, Sinochem