KO YO : Resignation of Executive Director and Independent Non-executive Director

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Ko Yo Chemical (Group) Limited

玖 源 化 工 (集 團) 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00827)

1. Resignation of Executive Director

2. Resignation of Independent Non-executive Director and

3. Appointment of Vice Chairman, Member of Remuneration Committee and Chairman of Nomination Committee

The Board announces that with effect from 1 May 2016:

1. Mr. Li Shengdi has resigned as an executive director and nomination committee member of the Company;

2. Mr. Qian Laizhong has resigned as an independent non-executive director, audit committee, remuneration committee and nomination committee member of the Company; and

3. Mr. Yuan Bai has been appointed as vice chairman of the Company. Mr. Sun Tongchuan has been appointed as a member of the remuneration committee and chairman of nomination committee of the Company.

Resignation of Executive Director and Nomination Committee Member

The board of directors (the "Board") of Ko Yo Chemical (Group) Limited (the "Company", together with its subsidiaries, collectively the "Group") hereby announces that with effective from 1 May 2016, Mr. Li Shengdi ("Mr. Li"), age 63, has resigned as an executive director and nomination committee member of the Company due to his retirement. Mr. Li confirmed that he has no disagreement with the Board and is not aware of any matters relating to his resignation that need to be brought to the attention of the shareholders of the Company or The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

Take this opportunity, the Board would like to express its appreciation and gratitude to Mr. Li for his contribution and services to the Company in the past.

Resignation of Independent Non-executive Director, Audit Committee Member, Remuneration Committee Member and Nomination Committee Member

The Board also announced that with effective from 1 May 2016, Mr. Qian Laizhong ("Mr. Qian"), age 73, has resigned as an independent non-executive director, audit committee member, remuneration committee member and nomination committee member of the Company due to health concerns. Mr. Qian confirmed that he has no disagreement with the Board and is not aware of any matters relating to his resignation that need to be brought to the attention of the shareholders of the Company or the Stock Exchange.

The Board would like to express its appreciation and gratitude to Mr. Qian for his valuable efforts and contribution to the Company during his tenure of appointment.

As at the date of this announcement, the Board comprises ten directors, of which three are independent non-executive directors. Under Rule 3.10A of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"), the Company must appoint independent non-executive directors representing at least one-third of the Board. The current number of independent non-executive executive directors in the Company therefore falls below the requirement under the Listing Rules. The Board is currently identifying suitable candidate to fill the vacancy and will ensure that an additional independent non-executive director will be appointed as soon as practicable and within three months from 1 May 2016 in order to ensure compliance by the Company with Rules 3.10A of the Listing Rules. The Company will release a further announcement as soon as practicable after the appointment of the new independent non-executive director of the Company.

Appointment of Vice Chairman, Member of the Remuneration Committee and Chairman of Nomination Committee

The Board has resolved to appoint Mr. Yuan Bai as vice chairman of the Company and Mr. Sun Tongchuan as a member of the remuneration committee and chairman of nomination committee of the Company with effective from 1 May 2016. Mr. Yuan Bai and Mr. Sun Tongchuan are an existing executive director and an existing independent non-executive director of the Company respectively.

By Order of the Board

Ko Yo Chemical (Group) Limited

Chairman

Li Wei Ruo

Hong Kong, 1 May 2016

As at the date of this announcement, the Board comprises six executive directors, being Mr. Li Weiruo, Mr. Yuan Bai, Ms Chi Chuan, Ms Man Au Vivian, Mr. Li Feng and Mr. Li Ciping, one non-executive director being Mr. Zhang Fubo and three independent non-executive directors being, Mr. Hu Xiaoping, Mr. Woo Che-Wor, Alex and Mr. Sun Tongchuan.