CHYY Development Group Limited — Share Issue/Capital Change 2014

Aug 10, 2014

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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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8128)

GRANT OF SHARE OPTIONS

This announcement is made pursuant to Rule 23.06A of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited.

The Board of Directors (“ Board ”) of China Ground Source Energy Industry Group Limited (“ Company ”) announces that the Company has granted the following share options, subject to acceptance of the grantees, under its share option scheme adopted on 28 July 2010 with details as follows:

Date of Grant:

9 August 2014

Exercise price of share options HK$0.455 to subscribe for one ordinary share of US$0.01 granted: each in the capital of the Company (“ Share ”)

Number of share options granted: 290,000,000 share options (each share option shall entitle the holder of the share option to subscribe for one Share)

Average closing price of the Shares HK$0.446 per Share for the 5 business days immediately preceding the date of grant:

Closing price of a Share on the Date HK$0.455 per Share of Grant (as 9 August 2014 is not a trading day, so the closing price on the Date of Grant is the closing price on 8 August 2014):

Validity period of the share options: Valid for 2 years from the date of grant

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Out of the 290,000,000 share options granted, a total of 36,984,000 share options were granted to directors and chief executives of the Company, details of which are as follows:

Name of Director/chief		Number of share
executive	Position/Capacity	options granted
Chan Wai Kay Katherine	Deputy Chairman and Executive Director	15,000,000
Xu Shengheng	Executive Director, Chief Executive Officer	10,984,000
	and substantial shareholder
Daiqi	Non-executive Director	8,000,000
Jia Wenzeng	Independent Non-executive Director	1,500,000
Wu Desheng	Independent Non-executive Director	1,500,000

The granting of share options to the above directors and chief executives of the Company has been approved by the independent non-executive directors of the Company (excluding the independent non-executive director who is the grantee of the share options).

By Order of the Board of China Ground Source Energy Industry Group Limited Zheng Qiyu Chairman

Hong Kong, 9 August 2014

As at the date of this announcement, the Board comprises Mr. Zheng Qiyu, Ms. Chan Wai Kay, Katherine, Mr. Xu Shengheng and Mr. Zang Yiran as executive Directors, Mr. Zhao Youmin and Mr. Daiqi as non-executive Directors, Mr. Jia Wenzeng, Mr. Wu Desheng and Mr. Hu Zhaoguang 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 Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited 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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