Newton Resources Ltd — Major Shareholding Notification 2012

Sep 11, 2012

Announcement

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11 September 2012

High Concentration of Shareholding in Newton Resources Limited (Stock Code: 1231)

This announcement is made by the Securities and Futures Commission (“SFC”) in respect of the concentration of the shareholding of Newton Resources Limited (“the Company”) in the hands of a limited number of shareholders as at 29 August 2012.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the shares of the Company (“Shares”) could fluctuate substantially even with a small number of shares traded, and should exercise extreme caution when dealing in the Shares.

The SFC has recently completed an enquiry into the shareholding of the Company. Our findings suggested that, as at 29 August 2012, 18 shareholders held an aggregate of 844,265,760 Shares, representing 21.11% of the issued Shares. Such shareholding, together with 3,000,000,000 Shares (representing 75% of the issued Shares) held by 2 substantial shareholders, namely Faithful Boom Investments Limited and Fast Fortune Holdings Limited, amounted to 96.11% of the issued Shares. Thus, only 3.89% of the issued Shares were held by other investors.

As at 29 August 2012, the shareholding structure of the Company was as follows:

Faithful Boom Investments Limited(Note 1)Fast Fortune Holdings Limited(Note 2)A group of 18 shareholdersOther shareholdersTotal	Number of Shares held(shares)% of total number ofissued Shares(%)1,920,000,00048.001,080,000,00027.00844,265,76021.11155,734,2403.89
	4,000,000,000100.00

• Note 1: Faithful Boom Investments Limited (“Faithful Boom”) is beneficially owned by NWS Holdings Limited (“NWS”, stock code: 659). Dr. Cheng Kar Shun Henry is both the chairman of NWS and the Company.

Note 2: Fast Fortune Holdings Limited (“Fast Fortune”) is beneficially owned by Ms. Mak Siu Hang, Viola.

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The Company is principally engaged in the business of mining, ore processing, and sales of iron concentrates business in the PRC. For the two-month period from 1 June 2012 to 31 July 2012, share price of the Company closed between HK$0.370 and HK$0.425. Since August 2012, share price of the Company began to surge and gained a total of 92% from HK$0.390 on 31 July 2012 to HK$0.750 on 29 August 2012. On 10 September 2012, share price of the Company closed at HK$0.750.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the Shares could fluctuate substantially even with a small number of shares traded, and should exercise extreme caution when dealing in the Shares.

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Tel: (852) 2840 9222

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