A stirling result from Sunshine !

The group has reverse their loss in the FY2008 to almost RMB $200million profit in FY2009.

1.(a)(i) An income statement (for the Group), for the year ended 31 December 2009 together with a comparative statement for the corresponding year of the immediate preceding financial year

Unaudited income statements of the Group for the year ended 31 December 2008 and 31 December 2009 .

FULL SETTLEMENT OF:

Unless otherwise stated, all capitalized terms herein shall have the same

meanings as that ascribed in the announcement made by Sunshine Holdings

Limited (the “Company”) on 23 September 2009 (the “Announcement”)

Reference is made to the Announcement and the announcements made by the

Company on 24 September 2009, 28 September 2009 and 14 November 2009.

The Board of Directors of the Company is pleased to announce that the Group has fully

settled its obligations of US$75.6 million due to the Lenders under the FA Settlement

Agreement and US$17.68 million due to the Convertible Bond Holder under the CB

Settlement Agreement (the “Settlement”). The Settlement was completed fully in cash,

without invoking the Proposed Share Issue and undertaking by the Sponsor.

Consequence to the Settlement:

(a) the Group shall be completely and unconditionally discharged and released from

all obligations and claims under and relating to (i) the Finance Documents (in

respect of the US$120 million syndicated loan due to the Lenders); (ii) the Bond

Documents (in respect of the US$32 million convertible bond due to the

Convertible Bond Holder); and (iii) all security interests granted thereunder

(collectively, the “Discharge and Release”); and

(b) each Stark Party shall immediately withdraw and/or discontinue the Existing

Winding-Up Proceedings (the “Withdrawal/Discontinuance”).

The Company will keep the Shareholders further updated once the Discharge and

Release a well as the Withdrawal/Discontinuance have been completed.

Based on the audited accounts of the Group for the financial year ended 31 December

2008 and taking into account the net gain on disposal of certain assets of the Group

(as part of the Asset Monetisation Program under the Disposal Mandate granted by the

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Shareholders on 20 November 2009), the Settlement, which will result in the write-off

of liabilities due to the Lenders and the Convertible Bond Holder, is expected to:

(a) significantly reverse the loss-making position of the Group from a loss per share

of about S$0.069 per share to an earning per share of about S$0.022 per share;

(b) significantly increase the net tangible asset of the Group by about 61.5% from

about S$0.13 per share to about S$0.21 per share; and

(c) significantly improve the gearing of the Group by about 76.7% from about 2.70

times to 0.63 times.

By Order of the Board

Mr Guo Yinghui

Chairman

4 January 2010

(i) US$120 MILLION SYNDICATED LOAN; AND

(ii) US$32 MILLION CONVERTIBLE BOND