As at 22 Jan 2013, the Subscriber has exercised its right to convert a total of S$60,000,000 of the Notes on hand. The converted Notes, with an aggregate principal value of S$60,000,000, were converted into 2,978,568,374 conversion shares. Following this final issuance of Notes and Conversion, the whole principal value of S$60 million Notes issued to date have been fully converted and the existing issued share capital of the Company has increased from 3,633,299,986 ordinary shares to 4,660,799,986 ordinary shares. Further to the Company’s announcements of 18 Jan 2013, 21 Jan 2013 and 23 Jan 2013, the Board of Directors of the Company wishes to announce the utilization of the proceeds from the Notes to date as follows:

USE OF PROCEEDS:

Funds transferred to Grand Prosper Group Ltd and its subsidiary Deshi Oil and Gas Exploration Co. Ltd (3,463,000)

Funds transferred to Anlu, Dawu and XiaoChang Gas distribution network and CNG Fuel Station projects for business expansion of the Company (5,873,000)

Legal professional fees for Proposed Issue (153,000)

Working Capital (5,868,000). Balance 43,743,000

The above utilization (Funds transferred to Anlu, Dawu and XiaoChang Gas distribution network, Legal professional fees and working capital amounting to S$11.894 million) of the net proceeds is within the limit of the balance (approximately S$12 million) of the total estimated net proceeds of about S$59 million from the S$60 million Notes, after setting aside the 80% portion (approximately S$47 million) intended to fund the expansion plans of the Deshi subsidiary as approved by the shareholders at the EGM held on 27 June 2008.