Loudong Gen Nice Res China Hldgs : Announcements and Notices - Second Supplemental Agreement

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(Incorporated in Bermuda with limited liability)

(Stock code: 988) SECOND SUPPLEMENTAL AGREEMENT

References are made to the announcements of Loudong General Nice Resources (China) Holdings Limited (the "Company") dated 30 March 2016, 6 April 2016, 8 April 2016 and 28 June 2016 respectively in relation to the Acquisition (the "Announcements"). Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcements.

The Board is pleased to announce that on 25 January 2017 (after trading hours of the Stock Exchange), Tewoo Import and Export and Guang'an Tianjin entered into the Second Supplemental Agreement, pursuant to which Tewoo Import and Export and Guang'an Tianjin jointly agreed and confirmed that in computing the profit guarantee given by Tewoo Import and Export under the Supplemental Agreement, the actual net profit after taxation of Qian'an Logistics should be construed as follows:

The actual net profit after taxation of Qian'an Logistics for each of the four years ending 31 December 2019 should be the audited net profit of Qian'an Logistics after taxation and extraordinary and exceptional items (i.e. exclusive of assets appreciation or depreciation, guarantees, indemnities or revenue not arising from ordinary course of business or other income) for each of the four years ending 31 December 2019. The audited report (the "Audited Report") of Qian'an Logistics should be ready within 3 months from each of the four years ending 31 December 2019.

In the event that the Actual Profit is less than the Guaranteed Profit for any of the four years ending 31 December 2019, Tewoo Import and Export shall compensate Guang'an Tianjin for such year(s) an amount equivalent to the following formula:

(Guaranteed Profit - Actual Profit) x 70%,

which shall be payable by Tewoo Import and Export within 30 days from the date of issue of the audited report of Qian'an.

By Order of the Board

Loudong General Nice Resources (China) Holdings Limited Ng Tze For

Executive Director

Hong Kong, 25 January 2017

As at the date of this announcement, the Board consists of four executive Directors, namely Mr. Geng Tao, Mr. Zhao Cheng Shu, Mr. Ng Tze For, and Mr. Han Binke, and four independent non-executive Directors, namely, Ms. Choy So Yuk, Mr. Leung Yuen Wing, Mr. Wu Zhao and Mr. Zhu Dengkai.