Persistence Gold Group Ltd — Board/Management Information 2006

Aug 8, 2006

SHANGHAI MERCHANTS HOLDINGS LIMITED

*

(Incorporated in Bermuda with limited liability)

(Stock code: 1104)

APPOINTMENT AND RESIGNATION OF INDEPENDENT NON-EXECUTIVE DIRECTOR

The board of directors (the “Board”) of Shanghai Merchants Holdings Limited (the “Company”) is pleased to announce that Mr. Yang Weiming (“Mr. Yang”) has been appointed as an independent non-executive director (“INED”), member of the audit committee and remuneration committee of the Company with effect from 8 August 2006.

Appointment of Mr. Yang as INED

Mr. Yang Weiming, aged 47, graduated with a bachelor’s degree from the correspondence school of Guangdong Provincial Committee Party School of CPC in 2003. Mr. Yang had worked at the Centre for Development and Leasing of Housing, Shenzhen Housing Bureau ( ) from 1997 to 2004, specializing in the development of properties in China. Presently, Mr. Yang is also a director of New Gold International Limited. Mr. Yang had not held any other directorship in listed public companies in the three years preceding his appointment.

Pursuant to the service contract, Mr. Yang has been appointed for a specific term and shall continue until 30 June 2007, but subject to the relevant provisions of retirement and re-election at the annual general meetings in accordance with the bye-laws of the Company. He will hold office only until the next following annual general meeting of the Company and then be eligible for re-election at such meeting. Mr. Yang’s remuneration is to be fixed at HK$40,000 per annum, which should commensurate with his duties and responsibilities as INED and the prevailing market situation.

Mr. Yang had not previously held and is not, until his appointment as INED, holding any position with the Company and/or its subsidiaries. He is independent of the directors, senior management, substantial or controlling shareholders of the Company for the purpose of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Mr. Yang does not have any interests in shares or convertible securities of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) as at the date hereof.

The Board is not aware of any other matters or information that need to be brought to the attention of the shareholders of the Company or to be disclosed pursuant to Rule 13.51(2) (a) to (v) in relation to the aforesaid appointment.

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Resignation of Mr. Wu Guo Jian (“Mr. Wu”) as INED

The Board announces that Mr. Wu has resigned as INED, member of the audit committee and remuneration committee of the Company with effect from 8 August 2006 due to personal reasons. Mr. Wu has confirmed that there is no disagreement with the Board and is not aware of any matters that need to be brought to the attention of the shareholders of the Company.

The Board would like to express sincere appreciation to Mr. Wu for his valuable contribution to the Company during his tenure of service.

By Order of the Board Shanghai Merchants Holdings Limited Yue Jialin Chairma

Hong Kong, 8 August 2006

As at the date of this announcement, the Board comprises (after appointment of Mr. Yang and resignation of Mr. Wu) of two executive Directors, namely Mr. Yue Jialin (Chairman) and Mr. Lau Yau Cheung (Chief Executive Officer) and three independent non-executive Directors namely Mr. Wong Wing Kuen, Albert, Mr. Tsui Robert Che Kwong and Mr. Yang Weiming.

* For identification purpose only

Please also refer to the published version of this announcement in The Standard.

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