Reference is made to the announcements by the Company on 29 July 2015, 31 July 2015, 3 August 2015, 23 October 2015 and 29 February 2016 in relation to the Proposed Acquisition.

Unless otherwise stated, defined terms used in this reply shall have the same meanings as those used in the abovementioned announcements.

In relation to the Mutual Termination, the Company wishes to further clarify that the Parties were unable to come to an agreement on the Acquisition Consideration as well as the proportion of cash and the number of consideration shares for the satisfaction of the Acquisition Consideration. Arising therefrom, the Parties have mutually agreed to terminate the HOA.

This announcement is dated 8 March 2016.