SET Announcements

(Translation) No. CK-10-0000-PO-L-0024 March 26, 2010 Re: Notification of Resolutions of the Board of Directors' Meeting No. 2/2010 Attn.: President of the Stock Exchange of Thailand CH. Karnchang Public Company Limited (CK) hereby informs the resolutions of the Board of Directors' Meeting No. 2/2010 which was held on March 25, 2010 as follows: 1. Approval was granted for the Company to establish a subsidiary for the purpose of the electricity production concession granted by the Lao People's Democratic Republic, named Xayaburi Power Company Limited (XPCL), which would be registered as legal entity under the law of the Lao People's Democratic Republic, with an initial registered capital of Baht 800 Million, in which 100 percent of shares will be held by the Company with the initial share payment at 30 percent. In this regard, the Executive Board has been authorized to consider approaching strategic investors in Xayaburi Power Company Limited in the future. The Company shall comply with the applicable rules of the Office of the Securities and Exchange Commission and/or the Stock Exchange of Thailand. Remark: CK signed the Project Development Agreement ("PDA") with the Government of the Lao People's Democratic Republic in 2008 to conduct the feasibility study of the construction of the Mekong Mainstream Run-of-River Hydropower in Xayaburi Province (Xayaburi Hydroelectric Power Project). Based on the initial study, the Xayaburi Hydroelectric Power Project would have the electricity production capacity up to 1,280 MW, and, upon completion of the construction, would be able to generate approximately 7,370 GWh/year of electricity for sale to the Electricity Generating Authority of Thailand (EGAT); the catchment area of the Xayaburi dam covers approximately 280,000 square kilometers. In this regard, it is expected that such project would have the total construction value of more than US$ 2,000 Million, whereby the Company would appoint CH. Karnchang (Lao) Co., Ltd. as main construction contractor, and the Company expects that the construction would be completed and electricity would be generated for sale to EGAT in and around 2019. At present, the feasibility study of such project has been already completed, and the National Energy Policy Council's meeting has granted approval for signing the memorandum of agreement for power purchase from the Xayaburi Hydroelectric Power Project, the Lao People's Democratic Republic, for sale to Thailand, in the amount of 1,220 MW, at the price of Baht 2.159 per unit. 2. Approval was granted for the Company and/or Xayaburi Power Company Limited (XPCL) to sign the Memorandum of Understanding (MOU) with the Electricity Generating Authority of Thailand (EGAT). The levelized tariff in the MOU would be set at Baht 2.159/unit (GWh). Such MOU shall be valid for 18 months from the signing date or until the Power Purchase Agreement would be signed, whichever occurs first. Please be informed accordingly. Very truly yours, (Mr. Plew Trivisvavet) Chief Executive Officer