Chiho Environmental Group Limited — Capital/Financing Update 2012

Mar 1, 2012

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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CHIHO-TIANDE GROUP LIMITED 齊合天地集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 976)

COMPLETION OF THE CONNECTED TRANSACTION RELATING TO

THE ISSUE BY THE COMPANY OF THREE-YEAR 4% COUPON CONVERTIBLE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF HK$815,800,000 WITH DETACHABLE THREE-YEAR WARRANTS TO SUBSCRIBE FOR SHARES IN AN AGGREGATE AMOUNT OF HK$75,830,646

The Board is pleased to announce that all conditions precedent under the Subscription Agreement have been fulfilled and completion of the Subscription Agreement took place on 1 March 2012.

COMPLETION OF THE SUBSCRIPTION AGREEMENT

Reference is made to the announcements of the Company dated 17 January 2012 and 27 February 2012 and the circular of the Company dated 9 February 2012 (the “ Circular ”) in relation to the issue by the Company of three-year 4% coupon Convertible Bonds in the aggregate principal amount of HK$815,800,000 with detachable three-year Warrants in registered form to subscribe for an aggregate of 12,638,441 Shares for an aggregate principal amount of HK$75,830,646 at the initial exercise price of HK$6.00 per Share. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Circular.

The Board is pleased to announce that all conditions precedent under the Subscription Agreement have been fulfilled and completion of the Subscription Agreement took place on 1 March 2012. The Convertible Bonds and the Warrants were issued to the Subscribers on the terms of and as contemplated under the Subscription Agreement. An aggregate amount of HK$815,800,000 has been received by the

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Company. HWH and Delco have duly assigned their respective Warrants to Sims in accordance with the terms of the Memorandum of Undertakings and the Subscription Agreement.

By Order of the Board CHIHO-TIANDE GROUP LIMITED Fang Ankong Chairman

Hong Kong, 1 March 2012

As at the date of this announcement, the Board comprises:

Executive Directors: Fang Ankong, Stephanus Maria van Ooijen, Gu Liyong Non-executive Director: Michael Charles Lion Independent non-executive Directors: Loke Yu, Li Xikui, Zhang Jingdong

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