Sinoma International has a notification as follows:

 

On behalf of Sinoma International, the Board and board directors avow that there are no false records, misleading statements or major omissions in this notification. The Board and directors bear joint and several responsibility for the authenticity, accuracy and the completeness of the notification.

 

On July 15^th, 2009, Chengdu Design and Research Institute of Building Materials Industry Co., Ltd (Chengdu Institute), a subsidiary holding company of Sinoma International Engineering Co., Ltd (the Company), entered into contract with Wuan Xinfeng Cement Co., Ltd (Wuan Xinfeng) for two generally contracted clinker production lines with capacity of 4800t/d, which are located in Wuan area, Hebei Province. The Contract Price for these two lines is 805.88 million RMB, specifically: the price for the first stage project is 486 million RMB; the price for the second stage project is 319.88 million RMB. The projects will be executed in two stages. If the time-span between the commence dates of the first stage and second stage projects is over 8 months, the Contract Price for the second stage project will be increased by 1.5 million RMB. The scope of works for the two production lines includes the engineering design, equipment procurement, equipment manufacturing, equipment transportation, civil construction, equipment installation, passing the guaranteed standards and capacity, training of the production operating staff at site, supply of spare parts for the trial operation, and supply of technical services during the normal production time for one year. The Time for Completion is 15 months, starting from the commencement to the time when the installation of the plant is completed and start-up conditions are met. The projects commence after 1) Wuan Xinfeng finishes the leveling of the site; 2) the two Parties inspect and accept construction site; 3) and the Advance Payment is received.

 

The Contract doesn’t come into force and effect on the date of the contract notification. It is advisable for the investors to consider investment risks.

 

The Board of Directors

Sinoma International Engineering Co., Ltd

July 16, 2009