Hoifu Energy : Announcements and Notices -

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

(Incorporated in Bermuda with limited liability)

(Stock Code: 7)

VOLUNTARY ANNOUNCEMENT IN RELATION TO

CLARIFICATION AND STATEMENT

Reference is made to the announcements of Hoifu Energy Group Limited (the "Company") dated 2 September 2016, 11 September 2016, 22 September 2016, 12 September 2017 (collectively the "September 2016 Announcements") and 8 November 2017 (the "November 2017 Announcement", together with the September 2016 Announcements, the "Announcements") respectively, in relation to the conditions of the agreed equity interest transaction and contracting arrangement of the Target. Capitalized terms used herein shall have the same meanings as those defined in the Announcements unless otherwise defined.

As disclosed in the September 2016 Announcements, pursuant to the Agreement (as supplemented by the Supplemental Agreement and the second supplemental agreement entered into among the parties to the Agreement) (the "Amended Agreement") entered into among, among others, Zhang Ling, who held 45% equity interests in Hebei Panbao Zeolite Technology Co., Ltd.* €ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡ and the contracting right, Weng Tao€ॽᏹand Ji Hailin€వऎ؍and related legal documents, Guangdong Hoifu Energy Limited*€ᄿ؇௱బঐ๕Ϟࠢʮ̡, the wholly-owned subsidiary of the Company which held 55% of equity interests in Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ ߅ҦϞࠢʮ̡, conditionally agreed Zhang Ling to transfer 45% equity interests in Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡and the contracting rights to Hoifu United Group Limited€௱బᑌΥණྠϞࠢʮ̡(of which the directors and shareholders are Weng Tao€ॽᏹand Ji Hailin€వऎ؍) at a consideration of RMB200 million. Pursuant to the Amended Agreement, Hoifu United Group Limited€௱బᑌΥණ ྠϞࠢʮ̡shall pay an introduction fee of RMB60 million to Guangdong Hoifu Energy

Limited*€ᄿ؇௱బঐ๕Ϟࠢʮ̡.

As advised by Zhang Ling, the transfer of 45% equity interests in Hebei Panbao Zeolite Technology Co., Ltd.* €ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡ to Kaifu Chuangtong United Holdings Group Limited*€௱బ௴ஷᑌΥછٰණྠϞࠢʮ̡, which was designated by Hoifu United Group Limited€௱బᑌΥණྠϞࠢʮ̡, has been completed in accordance with the Amended Agreement in March 2017. Following which, Zhang Ling only received RMB69 million of the payment of the equity interest transaction, and has not received the remaining payment of RMB131 million. After several failed attempts to collect the remaining payment, Zhang Ling has filed a claim against (1) Hoifu United Group Limited€௱బᑌΥ ණྠϞࠢʮ̡and its guarantors, namely Weng Tao€ॽᏹand Ji Hailin€వऎ؍and (2) Kaifu Chuangtong United Holdings Group Limited*€௱బ௴ஷᑌΥછٰණྠϞࠢʮ ̡and its shareholders and directors, namely Weng Tao€ॽᏹand Ji Hailin€వऎ؍, at the Zhangjiakou Intermediate People's Court of Hebei Province. According to the litigation procedures and the relevant court order, the arbitration and negotiation in relation to the payment of equity interest transaction and the termination of the equity transfer agreement, as well as the demand for responsibility of both parties such as the restoration of the equity interests, are in progress. In the event that the representatives of both parties fail to reach a consensus within the timeframe designated by the court, the court will make a judgement according to the laws and regulations.

As disclosed in the September 2016 Announcements, pursuant to the Amended Agreement, Hoifu United Group Limited€௱బᑌΥණྠϞࠢʮ̡and its shareholders and directors, namely Weng Tao€ॽᏹand Ji Hailin€వऎ؍, shall pay an introduction fee of RMB60 million to Guangdong Hoifu Energy Limited*€ᄿ؇௱బঐ๕Ϟࠢʮ̡for the acquisition of 45% equity interests in Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ߅Ҧ Ϟࠢʮ̡and the contracting rights from Zhang Ling. As at the date of this announcement, Guangdong Hoifu Energy Limited*€ᄿ؇௱బঐ๕Ϟࠢʮ̡has only received RMB30 million of the introduction fee and the introduction fee amounting to RMB30 million remained outstanding.

As disclosed in the September 2016 Announcements, Hoifu United Group Limited€௱బᑌ ΥණྠϞࠢʮ̡and its shareholders and directors, namely Weng Tao€ॽᏹand Ji Hailin €వऎ؍(as the contractor of the undertakings of Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡and the guarantors of the Guaranteed Profit), also did not pay any contracting fee as agreed to Guangdong Hoifu Energy Limited€ᄿ؇௱బঐ๕ Ϟࠢʮ̡or Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡ pursuant to the Amended Agreement. As disclosed in the November 2017 Announcement, the Group has instituted legal proceedings at the High Court of Hong Kong on 8 November 2017, in relation to the outstanding contracting fee payable by Hoifu United Group Limited€ ௱బᑌ ΥණྠϞࠢʮ̡and its shareholders and directors, namely Weng Tao€ॽᏹand Ji Hailin €వऎ؍, to Guangdong Hoifu Energy Limited*€ᄿ؇௱బঐ๕Ϟࠢʮ̡and Hebei Panbao Zeolite Technology Co., Ltd.*€ئ̏ᖂᘒخͩ߅ҦϞࠢʮ̡, in order to take legal action and file a claim for breach of the Amended Agreement committed by Hoifu United Group Limited€௱బᑌΥණྠϞࠢʮ̡and its guarantors, namely Weng Tao€ॽᏹand Ji Hailin€వऎ؍.

The Group would like to hereby clarify and state that the Group has no affiliate relationship with Hoifu United Group Limited*€௱బᑌΥණྠϞࠢʮ̡, Kaifu Chuangtong United Holdings Group Limited* €௱బ௴ஷᑌΥછٰණྠϞࠢʮ̡ and their shareholders and directors, namely Weng Tao€ॽᏹand Ji Hailin€వऎ؍. The Group or any of the Directors has no affiliate relationship and do not assume responsibility for the multi-level marketing and economic issues allegedly involving Hoifu United Group Limited* €௱బ ᑌΥණྠϞࠢʮ̡and Kaifu Chuangtong United Holdings Group Limited*€௱బ௴ஷ ᑌΥછٰණྠϞࠢʮ̡and their shareholders and directors, namely Weng Tao€ॽᏹ and Ji Hailin€వऎ؍. Any information released or fabricated by individuals with ulterior motives implying that the Group or any of the Directors being involved in the issues is untrue, fabricated and defamatory. The Group will continue to follow up with the development of the event and take appropriate legal action to safeguard the interests of the Group and the

Directors.

The Group will continue to monitor the updates of such matters and announcement(s) will be made as and when appropriate to keep the Shareholders and potential investors informed.

By order of the Board Hoifu Energy Group Limited Dr. Hui Chi Ming, G.B.S., J.P.

Chairman

Hong Kong, 22 January 2018

As at the date of this announcement, the Honorary Chairman and Senior Consultant of the Company is Dr. Yukio Hatoyama; the Board comprises eight executive Directors, namely, Dr. Hui Chi Ming, G.B.S., J.P., Mr. Neil Bush, Dr. Chui Say Hoe, Mr. Xu Jun Jia, Mr. Cao Yu, Mr. Ren Qian, Mr. Lam Kwok Hing, M.H., J.P., and Mr. Nam Kwok Lun; and four independent non-executive Directors, namely, Mr. Chen Weiming, Eric, Mr. Kwan Wang Wai, Alan, Mr. Ng Chi

Kin, David and Mr. Yim Kai Pung.

* For identification purpose only