Persistence Gold Group Ltd — Capital/Financing Update 2004

Aug 31, 2004

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SHANGHAI MERCHANTS HOLDINGS LIMITED 上海商貿控股有限公司

(incorporated in Bermuda with limited liability)

(Stock Code 1104)

FINANCE OBTAINED BY THE COMPANY INVOLVING SECURITY OVER ASSETS OF THE COMPANY

The Company announces that it had on 30th August 2004 entered into the Loan Agreement which will be secured by a debenture on a first floating charge over the undertaking, property and assets of the Company.

Trading in Shares has been suspended with effect from 9:30 a.m. on 2 June 2003 and remains suspended until further notice.

The Company announces that it had on 30th August 2004 entered into the Loan Agreement pursuant to which the lender, being an Independent Third Party and qualified money lender under the Money Lenders Ordinance, had agreed to provide to the Company a six months term loan facility commencing from the drawdown date on 30th August 2004, for an amount of HK$5,000,000 at the interest rate of 1% per month payable monthly in arrears.

The Loan Agreement will be secured by a debenture on a first floating charge over the undertaking, property and assets of the Company for the duration thereof. Such amount of loan will be applied as general working capital of the Company.

GENERAL

This announcement is made by the Company pursuant to Rules 13.09 of the Listing Rules. Apart from the aforesaid, the Board has no further information and is not aware of any other information in respect of the above which is or may be of a price-sensitive nature. If the Company shall become aware of any further material development or information and thereby become obliged to make a disclosure pursuant to the Listing Rules, the Board will in such event comply with the appropriate disclosure requirements as appropriate.

Trading in Shares has been suspended with effect from 9:30 a.m. on 2 June 2003 and remains suspended until further notice.

DEFINITIONS

In this announcement, the following expressions have the meanings set out below unless the context otherwise requires:

“Board”

the board of Directors

“Company”

Shanghai Merchants Holdings Limited, a company incorporated in Bermuda with limited liability, the Shares of which are listed and traded on the Stock Exchange

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“Director(s)”

the director(s) of the Company

• “Independent Third Party” a person or a company independent of and not connected with any of the Directors, chief executives, substantial shareholders of the Company or any of its subsidiaries or their respective associates (such terms as defined in the Listing Rules)

“Loan Agreement”

• the agreement between, inter alia , the lender and the Company dated 30th August 2004 regarding the provision of finance from the lender to the Company

• “Listing Rules” The Rules Governing the Listing of Securities on the Stock Exchange

• “Money Lenders Ordinance” Money Lenders Ordinance (Chapter 163 of The Laws of Hong Kong)

• “Shares” ordinary shares of nominal value HK$0.10 each in the share capital of the Company

• “Stock Exchange” The Stock Exchange of Hong Kong Limited

DIRECTORS OF THE COMPANY

As at the date of this announcement, the Directors currently comprises of Mr. Yue Jialin and Mr. Lau Yau Cheung Brent, both of whom are executive Directors and Mr. Wong Wing Kuen, Albert, Mr. Tsui Robert Che Kwong and Mr. Wu Guo Jian, all of them are independent non-executive Directors.

By Order of the Board Yue Jialin Chairman

Hong Kong, 30th August, 2004

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

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