Remuneration of Directors

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中國航天國際控股有限公司

(Incorporated in Hong Kong with limited liability)

The Board announces that, having been approved at a meeting of the Board on 23 February 2017, Mr Xu Liangwei is entitled to receive a director's fee and an allowance and that will retrospect to the date of his appointment on 24 August 2016; and Mr Mao Yijin will not receive any remuneration.

Reference is made to the announcement made by China Aerospace International Holdings Limited (the ''Company'') dated 23 August 2016 in relation to, among other things, the appointment of new directors to the Board of Directors of the Company (the ''Board''). As disclosed in the announcement, the remuneration of both Mr Mao Yijin and Mr Xu Liangwei has yet to be confirmed by the Board and that will be announced by the Company in due course.

The Board announces that, having been approved at a meeting of the Board on 23 February 2017, Mr Xu Liangwei is entitled to receive a director's fee of RMB80,000 per annum and an allowance of attending each board meeting and committee meeting of RMB2,000 and RMB1,000 respectively and that will retrospect to the date of his appointment on 24 August 2016; and Mr Mao Yijin will not receive any remuneration from the Company as he is being a senior officer of a subsidiary of the substantial shareholder of the Company, China Aerospace Science & Technology Corporation.

The amount of remuneration of Mr Xu Liangwei considered by the Board was based on director duties and responsibilities, the operation situation of the Company and the prevailing market condition.

Save as disclosed above, there is no other information that needs to be brought to the attention of the shareholders of the Company or disclosed pursuant to Rule 13.51(2) of the Listing Rules.

Hong Kong, 23 February 2017

By order of the Board

Executive Director & President