China Zhongsheng Resources : Announcements and Notices - Termination of Discloseable Transaction in Respect of Wind Turbine and Ancillary Equipment Purchase Contract for the Wind Power Project

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Add New Energy Investment Holdings Group Limited

愛 德 新 能 源 投 資 控 股 集 團 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 02623) TERMINATION OF DISCLOSEABLE TRANSACTION IN RESPECT OF WIND TURBINE AND ANCILLARY EQUIPMENT PURCHASE CONTRACT FOR THE WIND POWER PROJECT

Reference is made to the announcements of Add New Energy Investment Holdings Group Limited (the "Company") dated 22 and 29 September 2016, and two announcements both dated 3 October 2016 and an announcement dated 4 October 2016 (the "Announcements") relating to, among others, the entering into of EPC Engineering Contract and the Wind Turbine and Ancillary Equipment Purchase Contract for the Power Wind Project. Unless otherwise defined, capitalized terms used herein shall have the same meanings as those defined in the Announcements.

The Board announces that following the signing of the Purchase Contract, the Equipment for Wind Power Project supplied by Sany Heavy Energy did not meet the equipment and technological requirements for the Wind Power Project and therefore Yishui Shengrong and Sany Heavy Energy have agreed to terminate the Purchase Contract and the EPC Engineering Contract.

Yishui Shenrong has not yet paid any consideration in respect of the purchase of the Equipment.

Due to the termination of the Purchase Contract and the EPC engineering Contract, the grid-connected power generation of the Wind Power Project will be delayed. Yishui Shengrong is actively approaching other promising suppliers to supply equipment for the Wind Power Project in order to realize the grid-connected power generation as soon as possible. It is anticipated that equipment supply contract with better terms than the Purchase Contract will be entered into and the Company will make related announcement when and where appropriate.

The Board considers that the termination of the Purchase Contract and the EPC Engineering Contract has no material adverse impact on the Company. It is expected to bring rewards to the Company upon finalizing the entering into new equipment purchase contract and engineering contract, which is in the interest of the Company and its Shareholders as a whole in the long term.

By order of the Board

Add New Energy Investment Holdings Group Limited Li Yunde

Chairman

Hong Kong, 3 January 2017

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Li Yunde (Chairman), Mr. Geng Guohua (Chief Executive Officer) and Mr. Lang Weiguo; one non-executive Director, namely Ms. Chau Ching; and three independent non-executive Directors, namely Mr. Zhang Jingsheng, Mr. Li Xiaoyang and Mr. Lin Chu Chang.