Kinetic Development Group Limited — Capital/Financing Update 2012

Apr 16, 2012

Unless otherwise defined in this announcement, terms defined in the prospectus of Kinetic Mines and Energy Limited (the “ Company ”) dated 13 March 2012 (the “ Prospectus ”) have the same meanings when used in this announcement.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Shares.

The material set forth herein is for informational purposes only and does not constitute an offer of securities for sale in the United States or any other jurisdiction in which such an offer or solicitation is unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “ Securities Act ”), or the laws of any state, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of securities will be made in the United States.

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited (the “ Hong Kong Stock Exchange ”) and Hong Kong Securities Clearing Company 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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Kinetic Mines and Energy Limited 力量礦業能源有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1277)

STABILIZING ACTIONS AND END OF STABILIZING PERIOD AND LAPSE OF OVER-ALLOTMENT OPTION

The Company announces that the stabilizing period in connection with the Global Offering ended on 15 April 2012. The stabilizing actions undertaken during the stabilizing period were:

• (1) over-allocations of an aggregate of 61,000,000 Shares in the International Offering, representing 6.6% of the total number of Offer Shares initially available under the Global Offering before any exercise of the Over-allotment Option;

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• (2) the borrowing of an aggregate of 61,000,000 Shares from King Lok pursuant to the stock borrowing agreement dated 16 March 2012; and

• (3) the purchase of an aggregate of 61,000,000 Shares at prices ranging from HK$1.10 to HK$1.26 per Share on market (exclusive of brokerage of 1%, SFC transaction levy of 0.003% and Hong Kong Stock Exchange trading fee of 0.005%).

The last purchase made in the course of the stabilizing period in the open market was on 29 March 2012 at the price of HK$1.12 per Share.

The Company further announces that the Over-allotment Option was not exercised during the stabilizing period and that the Over-allotment Option lapsed on Sunday, 15 April 2012.

1 STABILIZING ACTIONS AND END OF STABILIZING PERIOD

The Company makes this announcement pursuant to Section 9(2) of the Securities and Futures (Price Stabilizing) Rules (Cap. 571W of the Laws of Hong Kong) and announces that the stabilizing period in connection with the Global Offering ended on 15 April 2012.

The stabilizing actions undertaken during the stabilizing period were:

• (1) over-allocations of an aggregate of 61,000,000 Shares in the International Offering, representing 6.6% of the total number of Offer Shares initially available under the Global Offering before any exercise of the Over-allotment Option;

• (2) the borrowing of an aggregate of 61,000,000 Shares from King Lok pursuant to the stock borrowing agreement dated 16 March 2012; and

• (3) the purchase of an aggregate of 61,000,000 Shares at prices ranging from HK$1.10 to HK$1.26 per Share on market (exclusive of brokerage of 1%, SFC transaction levy of 0.003% and Hong Kong Stock Exchange trading fee of 0.005%).

The last purchase made in the course of the stabilizing period in the open market was on 29 March 2012 at the price of HK$1.12 per Share.

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2 LAPSE OF OVER-ALLOTMENT OPTION

The Company further announces that the Over-allotment Option was not exercised during the stabilizing period and that the Over-allotment Option lapsed on Sunday, 15 April 2012.

The Company continues to comply with the public float requirements under Rule 8.08(1)(a) of the Listing Rules.

By order of the Board of Kinetic Mines and Energy Limited Zhang Li Chairman

Hong Kong, 16 April 2012

As at the date of this announcement, the executive Directors are Mr. Zhang Li, Mr. Wang Changchun and Mr. Zhang Liang, Johnson, the non-executive Director is Ms. Zhang Lin, and the independent non-executive Directors are Mr. Shi Xiaoyu, Ms. Liu Peilian and Mr. Dai Feng.

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