Announcement on the establishment of a subsidiary company with the relevant partners

The Board of Directors and all directors of the Company guarantee that there are no false records, misrepresentations or major omissions in the announcement and take individual and joint responsibilities for the authenticity, accuracy and completeness of the contents of the announcement.

Important note:

● Name of investment object: Tiandi International Mining Co., Ltd. (tentative name, subject to registration name)

● Investment amount: The company invested $ 9.8 million, accounting for 49% of registered capital.

I. Overview of Foreign Investment

The Company intends to set up Tiandi International Mining Co., Ltd. (“Tiandi International Mining" for short ), which is subject to registration) together with Guizhou Geological and Mineral Resources Development Company Limited ("Mineral Stock" for short). Tiandi International Mining registered capital of $ 20 million, among which the company invested $ 9.8 million, accounting for 49% of registered capital; Mineral Stock invested $10.2 million, accounting for 51% of registered capital.

The foreign investment matters do not constitute a related party transaction; the matter has been examined and approved by the 34th interim meeting of the 8th Board of Directors of the Company without being submitted to the Shareholders' General Meeting for approval. The foreign investment shall also be approved by the relevant government departments.

II. Basic information of investment subjects

Mineral Stock, Uniform social credit code/Registration No. : 91520000214411585C/520000000024442; Legal representative: Zhong Chao; Registered capital: RMB 120 million; Address: No. 219 Beijing Road, Yunyan District, Guiyang City, Guizhou Province; Business scope: mineral resources exploration and development focusing on domestic gold investment, gold and silver processing. Gold and silver products, jewelry wholesale and retail; investment in international mineral resources exploration and development; domestic and international trade; wholesale and retail of iron ore, manganese ore, lead-zinc mine, alum Earth, phosphate rock, barite, pyrite, iron ore, fluorite, copper, precious stones, crystal, Iceland stone, steel, nonferrous metals, precious metals, electrolytic manganese; Export trade on goods and technics. There was no association of the company and Mineral Stock.

As of December 31, 2015, the total assets of the Mineral Stock id RMB 871,338,982.98, net assets of RMB 485,332,068.99; operating income in 2015 is RMB 2,101,059,156.04, net profit of RMB 17,465,704.36.

III. General Information on Investment Objects

Tiandi International Mining Co., Ltd., Address: Room 04, 7th Floor, Kai Tou Development Building, 33 Mong Kok Road, Kowloon, Hong Kong; Registered Capital: $ 20 million, among which the Company invested $ 9.8 million, accounting for 49% of registered capital, Mineral Stock invested $10.2 million, accounting for 51% of registered capital; Organization : limited liability company; Business Scope: mineral resources risk exploration, mineral resources development (mining, election, metallurgical) mineral processing and sales. (subject to registration content)

IV. The impact of this investment on the company

Through the joint investment on the subsidiary, the Company implement foreign mineral resources project exploration and development, overseas mining mergers and acquisitions, to give full play to their advantages, effectively reduce the risk of overseas M & A; the investment will help to further expand the company's mining development space, enhance the company market competition force, and thus enhance the company's continuing operating capacity and profitability, to maximize the interests of shareholders.

As the company locates in Hong Kong, it may face operational management, internal control and market policies and other risk factors. The company will pay close attention to the joint company's management situation and strengthen risk control, to ensure that the investment is safe and beneficial.

Hereby announced.

 

 

Shandong Tyan Home Co., Ltd.

Board of Directors

October 14, 2016