China Silver Group Limited — Capital/Financing Update 2017

Feb 23, 2017

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.

==> picture [183 x 131] intentionally omitted <==

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 PLACING OF NEW SHARES UNDER GENERAL MANDATE

Placing Agent

==> picture [260 x 31] intentionally omitted <==

COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that as the condition of the Placing Agreement has been fulfilled, Completion took place on 23 February 2017, and 13,800,000 Placing Shares were allotted and issued to the five Placees, at the Placing Price of HK$1.51 per Placing Share pursuant to the terms and conditions of the Placing Agreement.

Reference is made to the announcement dated 15 February 2017 (the “ Announcement ”) of China Silver Group Limited (the “ Company ”) in relation to the placing of new shares of the Company. Unless otherwise specified, terms used herein shall have the same meanings as defined in the Announcement.

COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that as the condition of the Placing Agreement has been fulfilled, Completion took place on 23 February 2017 and 13,800,000 Placing Shares were allotted and issued to five Placees at the Placing Price of HK$1.51 per Placing Share pursuant to the terms and conditions of the Placing Agreement.

The net proceeds from the Placing (after deducting the placing commission payable to the Placing Agent and other expenses incurred in the Placing) are approximately HK$20 million. The Company intends to apply the net proceeds from the Placing for general working capital.

1

The 13,800,000 Placing Shares represent approximately 0.84% of the issued share capital of the Company immediately before Completion and approximately 0.83% of the issued share capital of the Company immediately after Completion as enlarged by the Placing Shares.

To the best of the knowledge, information and belief of the Directors having made all reasonable enquiries, the Placees and its respective ultimate beneficial owner(s) are Independent Third Parties.

EFFECT ON SHAREHOLDING OF THE PLACING

The shareholding structure of the Company before and after Completion, are as follows:

Chen Wantian_(Note)_Luo ShandongPublic Shareholders:The PlaceesOther public ShareholdersTotal	As at the date of thisannouncementNo. of SharesApproximateper cent.406,772,18727.80134,969,2009.22––921,605,20262.981,463,346,589100.00	Immediately after CompletionNo. of SharesApproximateper cent.406,772,18727.54134,969,2009.1413,800,0000.93921,605,20262.391,477,146,589100.00

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, 23 February 2017

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.

2