BURSA ANNOUNCEMENTS

Subsequent to the announcements made by the Company on 13 July 2012 and 17 July 2012 in relation to the above matter whereby the decision in the arbitration award by the China International Economic and Trade Arbitration Commission, Shanghai sub-commission (“CIETAC”) was held to be final, the Board of Directors of Taliworks wishes to inform that the Applicant had applied for a further arbitration and Ningxia Eco had received the new Arbitration Notice from CIETAC on 15 October 2013. The details of the arbitration application are as follows:-
1) The penalty for breach of contract to be borne by the Respondent shall be raised from the rate stated in the contract i.e., 8% to 20% of the total contract value;

2) The penalty amount to be paid by the Respondent would be equivalent to RMB11,298,900, being the total contract value of RMB63,200,000 x 89.39% x 20%. (work done before termination of contract was 10.61%); and

3) The Respondent shall bear the arbitration cost, applicant’s legal cost and property preservation fee.

The hearing date is not fixed yet. As this arbitration is at the preliminary stage, the Board is not in a position to determine the financial impact on the financial results of the Group for the current financial year.

The Company is seeking legal advice on the matter and will make further announcement in respect of any material development thereof.

This announcement is dated 21 October 2013.