CHYY Development Group Limited — Report Publication Announcement 2012

May 24, 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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CHINA GROUND SOURCE ENERGY LIMITED 中國地能有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8128)

FURTHER DELAY IN DESPATCH OF CIRCULAR

Reference is made to the announcement of China Ground Source Energy Limited (the “ Company ”) dated 12 April 2012 in relation to, among others, the subscription of new shares under the general mandate and specific mandate (the “ Announcement ”) and the announcement of the Company dated 3 May 2012 in relation to the delay in despatch of the circular (the “ Delay Despatch Announcement ”). Unless otherwise stated, capitalized terms used herein shall have the same meanings as those defined in the Announcement and the Delay Despatch Announcement.

As disclosed in the Delay Despatch Announcement, the despatch date of the circular was expected to be delayed to a date on or before 25 May 2012.

As additional time is required for the Company to prepare and finalise certain information in the Circular, the despatch date of the Circular will be further postponed to a date falling on or before 29 June 2012.

By order of the board of China Ground Source Energy Limited Chan Wai Kay, Katherine Chairman

Hong Kong, 24 May 2012

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As at the date of this announcement, the Board comprises Ms. Chan Wai Kay, Katherine, and Mr. Xu Shengheng as executive Directors, Ms. Luk Hoi Man as non-executive Director, Mr. Jia Wenzeng, Mr. Paul Chow Wan Hoi and Mr. Wu De Sheng as independent non-executive Directors.

This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website with the domain name of www.hkgem.com on the “Latest Company Announcement” page for at least 7 days from the date of publication and on the website of the Company at www.cgsenergy.com.hk

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