China Aviation Oil (Singapore) Corporation Ltd ("the Company")

Singapore, 7 December 2004 - The Company wishes to clarify the report made by Platts Global Alert on 6 December 2004 entitled "Singapore impounds passports of key CAO Officials".

It is incorrect to say that our key CAO officials' passports have been impounded. Our key CAO officials have informed us that they have in fact voluntarily submitted their passports to the Commerical Affairs Department ("CAD"). The Directors, traders and employees of the Company have been extending their full support and co-operation to the CAD to assist them in their investigations.