MGC establishes a new subsidiary to participate ina shale gas development & production and a LNG projectin British Columbia, CanadaDecember 19, 2014

Mitsubishi Gas Chemical Company, Inc. (MGC) has decided to participate in a shale gas
development and production project in British Columbia, Canada and a planned LNG project on
the western coast of the same province, both of which are undertaken by Petroliam Nasional
Berhad (PETRONAS).

MGC has also decided to invest in JAPEX Montney Ltd. (JML), which is a subsidiary of Japan
Petroleum Exploration (JAPEX) and owns a 10% interest of this project, through a newly
established Canadian subsidiary, MGC Montney Holdings Ltd. (MML)

Through this investment, MGC will acquire a 10% interest of JML, including a commitment toofftake 120 KMtonnes/y of LNG (shale gas based Liquefied Natural Gas) which is undercontemplation in the western coast of British Columbia, Canada (estimated LNG production
volume: 12 MMtonnes/y).

PETRONAS, the operator of this project, has extensive experience in the LNG business and iscurrently undertaking development, production and sales of natural gas in Canada. PETRONAS is
now planning to transport the gas to the west coast of Canada through pipelines and export it asLNG.

JAPEX has interests of petroleum and natural gas and is operating development, production
and sales of them. JAPEX has rich knowledge of and technological strength in energy
development. MGC cooperates closely with JAPEX as an energy development partner through thedevelopment of the Higashi-niigata and Iwafune-oki oil-gas fields in Japan.

In 1952, MGC was the first in Japan to succeed in synthesizing methanol from natural gas fields
that exist underground in Niigata prefecture. Since then, MGC has been operating the prospection
and development of natural gas resources with JAPEX and another mining company. And throughthe usage of natural gas as a raw material and fuel, MGC also has provided society with uniqueproducts from basic chemicals to high-performance products generated from its own technologies.

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MGC believes that participation in this project will make a profit through the development,production and sales of natural gas. MGC also is aiming to improve the profitability of the domestic
operation through the usage of competitive LNG obtained from this project as a raw material andfuel in its domestic plants.

Outline of the new subsidiary
Company name:

MGC Montney Holdings LIMITED (MML)

President:

Yukio Sakai (Senior managing executive officer of MGC)

Location:

Vancouver, British Columbia, Canada

Date of establishment:

December 2014

Business:

Investment to JML

Capital:Approximately ¥ 9.6 billion

Investment ratio:

MGC 100%

Reference:

Natural gas development and production project
Location:

North Montney, British Columbia, Canada

LNG Project
Plant location:

Lelu Island, within the District of Port Edward on land administered by
the Port of Prince Rupert, British Columbia, Canada

LNG production:

12MMtonnes/yFirst LNG production:

Planned end of 2018

Outline of JML
Company name:

JAPEX Montney Ltd.

Location:

Calgary, Alberta, Canada

President:

Osamu Watanabe (President of JAPEX)

Investment ratio:

JAPEX 45%, Japan Oil, Gas and Metals National Corporation 45%,
MML 10%-2-