CHINA AVIATION OIL ANNOUNCE:
The Board wishes to announce that the Company and BPS have reached an agreement
on the main terms of the 2013 Term Contracts and the Second Supplemental
Agreement to the Collaboration Agreement which provides for the suspension of the
Collaboration Agreement for a further period of one year from 1 January 2013. The
parties are currently reviewing certain technical details and are in the process of
finalising the same for execution.