Central Development Holdings Limited — Capital/Financing Update 2011

Apr 29, 2011

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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CHINA TIMBER RESOURCES GROUP LIMITED （中國木業資源集團有限公司[*] ）

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 269)

VOLUNTARY ANNOUNCEMENT

The Company continues to actively push ahead with its proposed investment into the Target Company, which has the exclusive right to build, and operate for 30 years (excluding the construction period), the first PRC heavy-duty toll expressway designed for coal transportation in the Inner Mongolia Autonomous Region.

Reference is made to the Third Announcement. Defined terms used in the Third Announcement take the same meaning herein.

The Company confirms that it has, after entering into the letter of intent with the Target Company on 12 January 2011, been all this while actively pushing ahead with its proposed investment into the Target Company. As disclosed in the Second Announcement, the Company, through its wholly owned subsidiary, has subscribed for an 11% equity interest in the Target Company at a total cash consideration of RMB500,000,000 and has been granted the exclusive right to subscribe for additional registered capital of the Target Company up to 66% on or before 31 December 2011 at a consideration of RMB2.5 billion.

The Third Announcement, which announced the termination of the Subscription Agreements, related only to a change in the fund-raising method for this investment project, and the new fundraising arrangements are currently still in the course of being explored and discussed. We will, in accordance with the progress of the investment project, and the requirements pertaining to the disclosure of information, disclose further information on the details of the new fund-raising arrangements at an appropriate time.

* For identification purposes only

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According to the information provided by the Target Company, it has the exclusive right to build, and operate for 30 years (excluding the construction period), the first PRC heavy-duty toll expressway designed for coal transportation in the Inner Mongolia Autonomous Region. The toll expressway will run from the Jungar Banner（准格爾旗）which is the major coal production area in Inner Mongolia towards the north east for 265 km to Xinghe County（興和縣）which is a major logistics hub for coal distribution in Northern China, and is expected to be opened to traffic in January 2013. The toll expressway is designed to sustain 100-ton trucks whereas most other expressways in the PRC can only allow 50-ton trucks.

The aforesaid expressway is a priority project under the Eleventh Five-Year Plan of the PRC, and is of strategic importance for energy logistics in Northern China, and is intended to resolve the serious deficiencies currently faced by Inner Mongolia with respect to coal distribution. The Directors consider that this project, when compared to other PRC expressway projects, has higher commercial value and once it is opened to traffic it will produce desirable cash flows and profits, and bring to the Company desirable returns.

In this announcement, the following definition applies:

“Third Announcement”

the announcement issued by the Company on 28 April 2011

By Order of the Board China Timber Resources Group Limited Cao Zhong Chairman

Hong Kong, 29 April 2011

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Cao Zhong, Mr. Fung Tsun Pong and Mr. Tsang Kam Ching, David; a non-executive Director namely Mr. Neil Bush; and three independent non-executive Directors, namely Mr. Yip Tak On, Mr. Jing Baoli and Mr. Bao Liang Ming.

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