Inner Mongolia Erdos Cashmere Products Limited By Share Ltd 2010 Fifth Extraordinary General Meeting Resolution Announcement

A share code 600295A shares referred to as Ordos [19.33 6.15%] number: pro 2010-029

B share code 900936 B shares referred to as [1.76 3.54%]

2010 fifth provisional shareholders meeting resolution announcement

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All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the announcement, and are jointly and severally liable for false statements, misleading statements or major omissions of the announcement.

I. meetings and attendance

1, Inner Mongolia Erdos cashmere products Limited by Share Ltd held fifth extraordinary shareholders' meetings in 2010 in the conference room of the four floor of Erdos intelligent office building in Ordos City, Inner Mongolia. The shareholders and shareholders of the meeting attended 23 delegations, representing 428403737 shares of shares, accounting for 41.40% of the total share capital of the company, in line with the relevant provisions of the company law and the articles of association of the company.

The meeting was presided over by Mr. Li Changqing, managing director and general manager.

2. At the meeting, 3 representatives of A share shareholders and shareholders, 420125079 shares representing shares, 20 representatives of B-share shareholders and shareholders, and 8278658 shares representing shares.

Two. Consideration of motions

The following motion was adopted by the voting by ballot:

1. The motion on the pfer of equity in project investment:

Related shareholder Inner Mongolia Erdos Cashmere Refco Group Ltd avoided voting.

6699700 shares were agreed, accounting for 79.72% of the total number of valid voting shares at the conference, 0 shares against and 1704037 shares abstention, accounting for 20.28% of the total number of valid voting shares.

Among them, A shares agree to 125079 shares, accounting for 100% of the total number of valid voting shares of A shareholders, 0 shares and 0 shares abstention, B shares agree 6574621 shares, accounting for 79.42% of the total number of voting shares of B-share shareholders attending the conference, 0 shares and 1704037 shares abstention.

2. The motion to pfer part of the shareholding shares of the subordinates.

Related shareholder Inner Mongolia Erdos Cashmere Refco Group Ltd avoided voting.

6699700 shares were agreed, accounting for 79.72% of the total number of valid voting shares at the conference, 0 shares against and 1704037 shares abstention, accounting for 20.28% of the total number of valid voting shares.

Among them, A shares agree to 125079 shares, accounting for 100% of the total number of valid voting shares of A shareholders, 0 shares and 0 shares abstention, B shares agree 6574621 shares, accounting for 79.42% of the total number of voting shares of B-share shareholders attending the conference, 0 shares and 1704037 shares abstention.

3. The motion of accounting firms engaged in the 2010 annual audit of the company.

426699700 shares were agreed, accounting for 99.6% of the total number of valid voting shares at the conference, 0 shares against and 1704037 shares abstention, accounting for 0.4% of the total number of valid voting shares.

Among them, A shares agree to 420125079 shares, accounting for 100% of the total number of valid voting shares of A shareholders, 0 shares and 0 shares abstention, B shares agree to 6574621 shares, accounting for 79.42% of the total number of voting shares of B-share shareholders attending the conference, 0 shares and 1704037 shares abstention, accounting for 20.58% of the total number of voting shares of B-share shareholders.

4. The motion of the company on the related pactions in connection with the day-to-day operation in 2010.

Related shareholder Inner Mongolia Erdos Cashmere Refco Group Ltd avoided voting.

6699700 shares were agreed, accounting for 79.72% of the total number of valid voting shares at the conference, 0 shares against and 1704037 shares abstention, accounting for 20.28% of the total number of valid voting shares.

Among them, A shares agree to 125079 shares, accounting for 100% of the total number of valid voting shares of A shareholders, 0 shares and 0 shares abstention, B shares agree 6574621 shares, accounting for 79.42% of the total number of voting shares of B-share shareholders attending the conference, 0 shares and 1704037 shares abstention.

5, the motion of a company providing guarantees to its subsidiaries.

421216900 shares were agreed, accounting for 98.32% of the total number of valid voting shares at the conference, 5482800 against 5482800, 1.28% of the total effective voting shares, and 1704037 abstentions, accounting for 0.4% of the total number of valid voting shares.

Among them, A shares agree to 420000000 shares, accounting for 99.97% of the total number of valid shares voted by A shareholders and 125079 shares against A, representing 0.03% of the total number of valid voting shares of A shareholders and 0 abstention of shares. B shares agree 1216900 shares, accounting for 14.7% of the total number of voting shares of B-share shareholders attending the meeting, and oppose 5357721 shares, accounting for 64.72% of the total number of voting shares of B-share shareholders.

Three, notarization or lawyer testimony

The shareholders' meeting witnessed Liu Huaikuan, a lawyer in Jianzhong law firm of Inner Mongolia, and issued a "legal opinion". The concluding opinion: the lawyer held that the convening and convening procedure of the fifth provisional shareholders' meeting of the Limited by Share Ltd in 2010 was the qualification of the convenor and the main qualification for attending the meeting. The voting procedures and voting results of the general assembly were in conformity with the relevant provisions of the laws, administrative regulations, the rules of the general meeting of shareholders and the articles of association of the company, so the resolutions adopted by the general assembly were all valid and lawful.

Notice hereby

Inner Mongolia Erdos cashmere products Limited by Share Ltd

December 29, 2010