China Environmental Resources Group Limited — M&A Activity 2011

Jan 28, 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 ENVIRONMENTAL RESOURCES GROUP LIMITED 中國環境資源集團有限公司

(Incorporated in the Cayman Islands with limited liability) (Stock Code: 1130)

COMPLETION OF DISCLOSEABLE TRANSACTION ACQUISITION OF 100% EQUITY INTEREST IN BRIGHT DELIGHT GROUP LIMITED

Reference is made to the announcement (the “Announcement”) of CHINA ENVIRONMENTAL RESOURCES GROUP LIMITED (the “Company”) dated 4 December 2010 in relation to the Acquisition. Unless otherwise defined, terms used herein shall have the same meanings as in the Announcement.

The Board is pleased to announce that all conditions precedent under the Agreement have been fulfilled and the Acquisition has been completed on 28 January 2011.

The Company has issued the Consideration Shares to the Vendor in accordance with the terms of the Agreement. The Consideration Shares, representing approximately 7.21% of the issued share capital of the Company as enlarged by the allotment and issue of the Consideration Shares, rank pari passu with the existing issued shares of the Company.

Upon Completion, the Target Company becomes subsidiary of the Company and its results will be consolidated in the consolidated financial statements of the Group.

By Order of the Board China Environmental Resources Group Limited Kam Yuen Chairman

Hong Kong, 28 January 2011

As at the date of this announcement, the Board comprises three executive directors, namely Ms. Kam Yuen (Chairman and Chief Executive Officer), Mr. Kwok Wai, Wilfred and Mr. Leung Kwong Choi; and three independent non-executive directors, namely Mr. Cheung Ngai Lam, Mr. Wong Kwai Sang and Mr. Christopher David Thomas.