reductive catalyst production plant in the PRC

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the shareholding of the JV company and a RMB9.8 million loanInvestment in JV company totals RMB19.6 million, comprising RMB9.8 million for 49% of

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total industry output of 780 tonnesNew plant will have an annual production capacity of 900 tonnes, exceeding the current

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limited industry competition, enhances the prospects of the investmentAnchun’s technological edge, coupled with increasing demand for reductive catalyst and

Singapore, 11 January 2011

“

technology solutions provider to the PRC petrochemical and chemical industries, in particular

manufacturers of ammonia and methanol based products, has entered into a joint venture to

become the largest producer of reductive catalyst in the PRC.

The agreement was made between Anchun’s wholly-owned subsidiary, Hunan Anchun

Advanced Technology Co., Ltd. (the “

Ltd. (“

venture company named as Henan XLX Anchun Catalyst Co. Ltd. (the “

undertake the manufacturing, distribution and sale of reductive catalyst, as well as other related

services.

The total investment to build the reductive catalyst production plant is about RMB40 million.

Hunan Anchun will contribute a total amount of RMB19.6 million, which comprises RMB9.8

million for 49% of the shareholding of the JVC and a RMB9.8 million loan.

To the best of the Company’s knowledge and belief, there are currently only 3 players in China,

there are only 3 reductive catalyst producers in the PRC, with a total annual production capacity

of 780 tonnes. The commencement of the new plant, with an annual production capacity of 900

tonnes, will make the JVC the largest producer in the country.–Anchun International Holdings Limited (“Anchun” or theGroup”, or “安淳国际控股有限公司”), a leading integrated chemical systems engineering andHunan Anchun”), and Henan XLX Chemical Group Co.Henan XLX”), a company incorporated in the PRC. Both parties will establish a jointJVC”), which will