Xinjiang Tianshan Wool Textile Limited By Share Ltd Stock Trading Abnormal Fluctuation Announcement

All members of the company and its board of Directors ensure that the contents of the information disclosure are authentic, accurate and complete, without false records, misleading statements or major omissions.

1. Abnormal fluctuations in stock pactions

The company's stock rose sharply in July 13, 2010 and July 14th. The two consecutive trading day's closing price deviation rose to 20%. It was abnormal fluctuations in stock trading, and the company suspended its verification in July 15, 2010.

Two, the company concerned and verified the relevant situation.

1. After verification of the controlling shareholder and actual controller of the company, the controlling shareholder and the actual controller confirm that there are no matters that should be disclosed but not disclosed to the stock price.

2, verified by the management of the company, so far, there is no information that should be disclosed and not disclosed.

3, the company disclosed in June 18, 2010 "Xinjiang Tianshan wool textile Limited by Share Ltd issued shares to buy assets and related pactions report (Draft)" related announcement, at present, the work is proceeding normally.

Three, there is no declaration of major information that should be disclosed and not disclosed.

The board of directors of the company confirmed that the company did not disclose any matters that should not be disclosed in accordance with the relevant provisions of the Shenzhen Stock Exchange listing rules or related matters such as planning, negotiation, intention, agreement, etc., and the board of directors has not received the information that the company has disclosed in accordance with the relevant provisions of the Shenzhen Stock Exchange Listing Rules and has not been disclosed, which has a greater impact on the trading price of the company's stock and its derivatives.

Four, risk warning

1. According to the relevant provisions of the reorganization measures, the trading conditions that the company needs to meet in this major asset reorganization paction includes, but is not limited to:

(1) the shareholders' meeting of the company adopts this paction;

(2) the approval of the CSRC for this paction;

(3) approval of the paction by the business department;

2, the company's risk of inject assets into profitability.

The company intends to inject

According to the asset assessment report, combined with the current stock price of 12.24 yuan / share, after the directional issuance of shares, the company's share capital is 486422391 shares, which has been injected into assets for nearly five years, affecting the earnings per share and earnings per share of listed companies as follows:

3, the risk of asset appreciation.

The total assets of the company's Xi Tuo mining company are evaluated by the income method and the cost method respectively. Based on the principle of reliability and prudence, the cost method is adopted to evaluate the results.

Xi Tuo mining net assets accounted for 212 million 188 thousand and 500 yuan, the assessed value was 927 million 986 thousand and 300 yuan, the appreciation value was 715 million 797 thousand and 800 yuan, and the appreciation rate was 337.34%.

The intangible assets of Xi Tuo mining assets are a mining right and a prospecting right. The book value of the assets is 70 million 264 thousand yuan, the assessment value is 787 million 577 thousand and 400 yuan, the appreciation value is 717 million 313 thousand and 400 yuan, and the appreciation rate is 1020.4%.

Among them, the estimated value of mining rights is 764 million 577 thousand and 500 yuan, and the value of prospecting right is 22 million 999 thousand and 900 yuan.

4, the risk of unprofitable earnings of the west mining and listed companies;

Since the proposed injection of Xi Tuo mining will be formally put into operation in 2012, it is impossible for Xi Tuo mining and listed companies to make profit forecasts.

5, there is a big difference between the paction price and the historical paction price.

In May, 09, May, the paction price between 50% of the shares of Sino west mining was 165 thousand yuan (Australian dollar) in the paction between Australia's Hua Lu mining industry and Qinghai's snow Chi and Fu Min Lu. In July 09, in July, the paction price of 50% shares of the Sino West mining industry was 306 million 500 thousand yuan in the paction between snow and chi, Fu Min Lu and Katie mining.

The three paction price is quite different.

6, the risk of listed companies after this major asset reorganization.

(1) industry and policy risk

Through this reorganization, the company will enter the nonferrous metal industry.

Nonferrous metals industry is an important pillar industry in China, which is greatly influenced by macroeconomic regulation and control policies.

(2) operational risk

After this reorganization, the operation of mineral products will become the main business of the company. The west mining industry is still in the construction stage and will only produce economic benefits by 2012.

The company is faced with the risk of large investment in project construction capital, the technical risk that it is unable to achieve the expected mining scale, the risk of natural conditions constraints, the risk of administrative examination and approval and the risk of safe production and operation.

(3) risk of mining right mining value

It is proposed that Xi Tuo mining currently has the right mining area in Hami loess slope area of 2.021 square kilometers, and the exploration right area is 71.389 square kilometers.

If there is no economic ore value found in the area of the prospecting warrant, the company will have the assessed value of 22 million 999 thousand and 900 yuan and the risk of expenditure in the prospecting process.

(4) renewal risks of exploration rights and mining rights

The prospecting and mining rights of the company's assets to be purchased in 2011 are due in 2011. The company can register with the registration and management authorities 30 days before the expiry date. However, the renewal of the relevant prospecting rights and mining warrants is still uncertain, which may have an impact on the operation of the company and remind investors to take note of the risk.

(5) integration risks of assets and business

After this asset reorganization is completed, the total assets, net assets and business scale of the company will increase significantly.

The reorganization of assets has brought challenges to the management and operation of the company while expanding its scope of operation and improving its profitability. It may cause the company to integrate risks in business, personnel, assets and management.

7, the situation and risk of stock price movements.

Five, the company designated the "Securities Times" and "tide" information network as the company's information disclosure media.

All information of the company is based on the information contained in the above designated media. The board of directors of the company draws the majority of investors to invest rationally and pay attention to investment risks.

The company's shares will resume trading in July 20, 2010.

This is hereby announced.

July 19, 2010