China Silver Group Limited — Capital/Financing Update 2016

Sep 14, 2016

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 SILVER GROUP LIMITED 中國白銀集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 815)

COMPLETION OF THE ISSUE OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcement of China Silver Group Limited (the “ Company ”) dated 7 August 2016 in relation to the issue of new Shares under the General Mandate (the “ Announcement ”). Unless defined otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

COMPLETION OF THE ISSUE OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that the conditions of the Subscription as set out in the Subscription Agreement have been fulfilled and Completion took place on 14 September 2016. An aggregate of 30,000,000 Subscription Shares were allotted and issued to the Subscriber at the Subscription Price of HK$1.80 per Subscription Share pursuant to the terms and conditions of the Subscription Agreement.

To the best of the knowledge, information and belief of the Directors and having made all reasonable enquiries, each of the Subscriber and its ultimate beneficial owner is an Independent Third Party and does not hold any Shares before the date of this announcement. All the net proceeds of the Subscription of approximately HK$54 million will be applied for the development of the Company’s downstream silver exchange business and general working capital.

The 30,000,000 Subscription Shares represent approximately 2.09% of the issued share capital of the Company immediately before Completion and approximately 2.05% of the issued share capital of the Company immediately after Completion as enlarged by the allotment and issue of the Subscription Shares.

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CHANGES IN SHAREHOLDING STRUCTURE

The changes of the shareholding structure of the Company as a result of the Subscription are as follows:

	Immediately before Completion	Immediately before Completion	Immediately after Completion	Immediately after Completion
		Approximate %		Approximate %
		of the		of the
		Company’s		Company’s
	Number of	issued share	Number of	issued share
	Shares	capital	Shares	capital
Chen Wantian_(Note)_	406,772,187	28.38	406,772,187	27.80
Luo Shandong	132,996,000	9.28	132,996,000	9.09
FIL Investment Management
(Hong Kong) Limited	72,018,000	5.02	72,018,000	4.92
Public Shareholders:
The Subscriber	–	–	30,000,000	2.05
Other public Shareholders	821,560,402	57.32	821,560,402	56.14
Total	1,433,346,589	100.00	1,463,346,589	100.00

Note:

Chen Wantian, an executive Director and Chairman of the Company, is deemed to be interested in 405,722,187 Shares owned by Rich Union Enterprises Limited as the legal owner of the entire issued share capital of Rich Union Enterprises Limited and is personally interested in 1,050,000 Shares.

By order of the Board China Silver Group Limited Chen Wantian Chairman

Hong Kong, 14 September 2016

As at the date of this announcement, the executive Directors are Mr. Chen Wantian, Mr. Sung Kin Man, Mr. Song Guosheng and Mr. Chen Guoyu; and the independent non-executive Directors are Mr. Guo Bin, Mr. Song Hongbing, Dr. Li Haitao and Dr. Zeng Yilong.

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