Persistence Gold Group Ltd — M&A Activity 2002

Jan 3, 2002

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.

YING WING HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

POSSIBLE CHANGE IN CONTROL OF YING WING HOLDINGS LIMITED

The board of directors of the Company has been informed today by its controlling shareholder, FLH, whose entire issued capital is beneficially owned as to 80%, 5%, 5%, 5% and 5% respectively by Mr. Tsoi Hon Chung (the Company's chairman), Mr. Tsoi Chun Bun (the Company's director), Mr. Tsoi Chun Hung (the Company's director), Ms. Lin Feng Qing (the spouse of Mr. Tsoi Hon Chung) and Mr. Tsoi Chun Yau that it has been approached by an independent third party not connected with the substantial shareholders, directors and chief executive of the Company and any of its subsidiaries or associates with a view to buying substantial portion of FLH's interest in the Company which may result in the change in control of the Company and the disposal of certain of its assets.

In the meantime, shareholders of the Company are reminded to exercise caution in dealing in the securities of the Company.

The board of directors of Ying Wing Holdings Limited (the "Company") has been informed today by its controlling shareholder, Feng Lin Holdings Limited ("FLH"), which has approximately 74.48% shareholding interest in the Company and whose entire issued share capital is beneficially owned as to 80%, 5%, 5%, 5% and 5% respectively by Mr. Tsoi Hon Chung (the Company's chairman), Mr. Tsoi Chun Bun (the Company's director), Mr. Tsoi Chun Hung (the Company's director), Ms. Lin Feng Qing (the spouse of Mr. Tsoi Hon Chung) and Mr. Tsoi Chun Yau that it has been approached by an independent third party not connected with the substantial shareholders, directors and chief executive of the Company and any of its subsidiaries or associates with a view to buying substantial portion of FLH's interest in the Company which may result in the change in control of the Company, a general offer being made for the shares in the Company under Rule 26.1 of the Code on Takeovers and Mergers and the disposal of certain of its assets to the current controlling shareholders of FLH. The negotiations are preliminary and no agreement in principle has been reached between FLH and the independent third party with regard to the terms of such sale at the moment and such negotiation may or may not proceed. Further announcement will be made if there are further developments in the matter.

Save for the above, the board of directors confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the listing agreement, nor is the board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the listing agreement which is price sensitive in nature.

In the meantime, shareholders of the Company are reminded to exercise caution in dealing in the securities of the Company.

By order of the Board

Ying Wing Holdings Limited

Cheung Chun Ying

Director

Hong Kong, 2 January 2002

The directors of the Company jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm having made all reasonable enquiries, that to the best of their knowledge and belief, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

Please also refer to the published version of this announcement in the Hong Kong iMail Post dated 3 January 2002.