China Hanking : INSIDE INFORMATION HEDGING OF OVER 86,872 OUNCES OF GOLD AT AUD1,626.85 PER OUNCE FOR MORE THAN AUD141 MILLION

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CHINA HANKING HOLDINGS LIMITED

中國罕王控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock code: 03788)

INSIDE INFORMATION HEDGING OF OVER 86,872 OUNCES OF GOLD AT AUD1,626.85 PER OUNCE FOR MORE THAN AUD141 MILLION

This announcement is made by China Hanking Holdings Limited (the "Company", together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board (the "Board") of directors (the "Directors", each a "Director") of the Company is pleased to announce that Hanking Gold Mining Pty Ltd ("Hanking Gold"), a wholly-owned subsidiary of the Company, hedged 86,872 ounces of gold at a weighted average price of AUD1,626.85 per ounce.

Hanking Gold reached agreements to hedge part of its gold production for a total of 86,872 ounces at the weighted average price of AUD1,626.85 per ounce and the hedged value in total is over AUD141 million. These include 55,000 ounces of gold hedging with the Commonwealth Bank of Australia, 21,372 ounces of gold hedging with Mitsui Precious Metals (Hong Kong branch of a New York based trading firm) and 10,500 ounces of gold with Auramet International, LLC (a New York based precious metal trading firm). The hedging is on a flat forward basis for gold delivery from January 2016 to August 2017.

Dr. Qiu Yumin, the executive Director and the president and the chief executive officer of Hanking Gold expressed that, "hedging is part of our financial risk management strategy. The hedging secured the sale of 86,872 ounces of gold at an average selling price of AUD1,626.85 per ounce for an income of AUD141,327,426. The successful hedging with world renowned financial institutions is also a vote of confidence in our ability to produce gold from our successful gold operations at the SXO Gold Project".

Hanking Gold is a low-cost gold producer in Western Australia (Figure 1), with JORC Code- compliant resources of more than 3 Moz Au (Table 1). The hedged amount represents about 40% of our scheduled gold production for the period. Hanking Gold intends to make further hedging as opportunities arise. The balance of gold production is sold at international spot gold price.

Dr. Pan Guocheng, the executive Director, the president and the chief executive officer of the Company expressed that, "the successful hedging demonstrates our team's ability in financial risk management as well as gold production; it secured the profit of the hedged portion of our planned gold production. It is part of the Company's strategy to create values for the shareholders of the Company".

FIGURE 1 - MAJOR GOLD MINES OF HANKING GOLD'S SXO GOLD PROJECT

TABLE 1 - JORC CODE-COMPLIANT GOLD RESOURCES STATISTICAL TABLE OF HANKING GOLD (UP TO 31 DECEMBER 2015)

Cut On Grade (g/t) Measured Indicated Inferred Total

Deposit	Open Cut	Underground	Ore (KT)	grade (g/t)	Au (KoZ)	Ore (KT)	grade (g/t)	Au (KoZ)	Ore (KT)	grade (g/t)	Au (KoZ)	Ore (KT)	grade (g/t)	Au (KoZ)
Marvel Loch	2.2	n/a	287	3.1	2.9	2,930	3.2	299	1,400	2.5	112	4,617	3.0	440
Nevoria	0.6	2	-	-	-	3,513	3.4	381	328	4.0	42	3,841	3.4	423
Transvaal	Note	2.6	-	-	-	1,630	4.7	249	1,800	4.9	286	3,430	4.8	535
Jaccoletti	2.6	2.6	-	-	-	-	4.6	-	715	5.5	126	715	5.5	126
Axehandle	0.7	n/a	2,330	2.6	193	990	2.5	78	440	2.2	31	3,760	2.5	301
Cornishman	0.9	2.5	878	4.4	124	627	4.6	92	460	5.3	79	1,965	4.7	295
Edwards Find	0.7	0.7	-	-	-	381	3.1	38	363	2.6	30	744	2.8	68
Frasers	Note	Note	-	-	-	1,117	4.6	165	1,474	6.1	289	2,591	5.5	454
Yilgarn Star	4	4	-	-	-	385	6.6	82	-	-	-	385	6.6	82
Redwing	0.5	-	-	-	-	-	-	-	1,400	2.4	108	1,400	2.4	108
Others	Note	Note	367	1.0	12	1,610	2.7	140	345	4.5	50	2,322	2.7	202
Total	3,862	2.9	358	13,183	3.6	1,524	8,725	4.1	1,153	25,770	3.7	3,034

Note: Data shown in the table above cover data of various deposits of the SXO Gold Project. Among which, data of the Redwing gold deposit are extracted from the resource estimate report signed by Mr. J F Brigden, the resource geologist of Sons of Gwalia Ltd., who is the competent person for the JORC resource estimate; data of Frasers and Cornishman are extracted from the resource estimate report signed by Dr. Shi Bielin, a senior resource geologist of CSA Global Pty Ltd., in accordance with the JORC Code. Dr. Shi Bielin is a member of both of AusIMM and AIG, and has extensive experience in such type of gold mines at the SXO Gold Project. Data of other mines are extracted from the resource estimate report issued by St Barbara Mining Ltd. ("SBM") in 2012. The report was signed by Mr. Phillip Uttley, the chief geologist of SBM, in accordance with the JORC Code. Mr. Phillip Uttley is a member of AusIMM and has extensive experience in such type of gold mines at the SXO Gold Project.

By Order of the Board

China Hanking Holdings Limited Yang Min

Chairlady and Executive Director

Shenyang, the PRC, 26 January 2016

As at the date of this announcement, the executive Directors are Ms. Yang Min, Dr. Pan Guocheng, Mr. Xia Zhuo, Dr. Qiu Yumin and Mr. Liao Pin-tsung; the non-executive Directors are Mr. Yang Jiye and Mr. Kenneth Jue Lee; and the independent non-executive Directors are Mr. Wang Ping, Mr. Wang Anjian and Mr. Jiang Zhouhua.