CECEP COSTIN New Materials : Announcements and Notices - Inside Information, Extension of Scope of Investigation, Resignations of Co-chairmen and Executive Directors and Appointment of Chairman

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CECEP COSTIN NEW MATERIALS GROUP LIMITED

中國節能海東青新材料集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2228) INSIDE INFORMATION, EXTENSION OF SCOPE OF INVESTIGATION, RESIGNATIONS OF CO-CHAIRMEN AND EXECUTIVE DIRECTORS AND APPOINTMENT OF CHAIRMAN

This announcement is made by CECEP COSTIN New Materials Group Limited (the "Company") pursuant to Rules 13.09 and 13.51(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

EXTENSION OF SCOPE OF INVESTIGATION

Reference is made to the Company's announcements dated 22 and 30 August 2016, 22 and 30

September 2016, 14, 20 and 27 October 2016, 11 and 29 November 2016, 13 and 16 December 2016 and 5 January 2017 (the "Announcements"). Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings as defined in the Announcements.

The Board has resolved to extend the scope of the Investigation under the Special Investigation Committee to include investigation on the Guarantees and the Judgements as disclosed in the Company's announcement dated 5 January 2017.

RESIGNATIONS OF CO-CHAIRMEN AND EXECUTIVE DIRECTORS

On 11 January 2017, Mr. Chim Wai Kong ("Mr. WK Chim") has tendered his resignations as a co- chairman, an executive director and a member of the nomination committee of the Company, and the directors of all Hong Kong and British Virgin Islands subsidiaries of the Company with effect from 11 January 2017 due to health problem.

Save for the potential disagreement in relation to the COSTIN Group's business and/or financial conditions that may arise as a result of the alleged Misappropriation, Mr. WK Chim has confirmed that he has no other disagreement with the Board and there are no matters relating to his resignations that need to be brought to the attention of the shareholders of the Company.

On 11 January 2017, Mr. Wang Li ("Mr. Wang") has tendered his resignation as a co-chairman of the Company with effect from 11 January 2017 due to his obligations and commitments in other business positions outside the COSTIN Group. Mr. Wang has confirmed that he has no disagreement with the Board and there are no matters relating to his resignation that need to be brought to the attention of the shareholders of the Company. Subsequent to the above resignation, Mr. Wang will remain an executive Director.

In addition, on 11 January 2017, Mr. Chim Wai Shing Jackson ("Mr. Jackson Chim") has tendered his resignations as an executive director and a member of the remuneration committee of the Company and the directors of all Hong Kong and British Virgin Islands subsidiaries of the Company with effect from 11 January 2017 as Mr. Jackson Chim wishes to focus on developing his other business. Mr. Jackson Chim has confirmed that he has no disagreement with the Board and there are no matters relating to his resignation that need to be brought to the attention of the shareholders of the Company.

APPOINTMENT OF CHAIRMAN

Mr. Xue Mangmang is appointed as the sole chairman of the Board with effect from 11 January 2017. In addition, Mr. Xue Mangmang is appointed as a director of all Hong Kong and British Virgin Islands subsidiaries of the Company with effect from 11 January 2017.

Reference is made to the announcements of the Company dated 22 August 2016 and 30 September 2016 regarding, inter alia, Mr. WK Chim's alleged Misappropriation and the appointment of forensic accountants, respectively. The Board would like to emphasis that subject to the findings of the forensic accountants on the Misappropriation, the Guarantees and the Judgements, the Company reserves all claims and rights to take all necessary actions, including legal action, against any person, including but not limited to any resigned Directors, for non-compliance of any rules, laws or regulations.

The Company will keep its shareholders and investors informed of developments in relation to the borrowings, the Investigation, the COSTIN Group's financial position and other matters by way of further announcement(s) as and when appropriate.

SUSPENSION OF TRADING OF THE SHARES

At the request of the Company, trading in the shares of the Company on the Stock Exchange has been suspended with effect from 3:17 p.m. on 15 August 2016. Trading in the shares of the Company will continue to be suspended until further notice and full satisfaction of the Resumption Conditions and such other further conditions that may be imposed by the Stock Exchange.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

CECEP COSTIN New Materials Group Limited Chan Kwok Yuen Elvis

Company Secretary

Hong Kong, 11 January 2017

As at the date of this announcement, the Board comprises two executive Directors, Mr. Xue Mangmang and Mr. Wang Li; two non-executive Directors, Mr. Zeng Wu and Ms. Ma Yun; and three independent non-executive Directors, Mr. Feng Xue Ben, Mr. Wong Siu Hong and Mr. Xu Qinghua.