Announcement On The Resolution Of The Fifth Extraordinary General Meeting Of Shareholders In 2010 Of Inner Mongolia Erdos Cashmere Products Co., Ltd

Code of A-share 600295A, short for Ordos [19.33 6.15%] No.: Lin 2010-029

B share code 900936 B share is called E Rong B share [1.76 3.54%]

　　 Inner Mongolia Erdos Cashmere Products Co., Ltd

Announcement on the Resolution of the Fifth Extraordinary General Meeting of Shareholders in 2010

hot tip

The Company and all members of the Board of Directors guarantee that the contents of the announcement are true, accurate and complete, and they are jointly and severally liable for the false records, misleading statements or major omissions of the announcement.

　 1、 Convening and attendance of the meeting

1. On December 28, 2010, Inner Mongolia Erdos Cashmere Products Co., Ltd. held the fifth extraordinary general meeting of shareholders in 2010 in the conference room on the fourth floor of Erdos Intelligent Office Building, Erdos, Inner Mongolia. There were 23 shareholders and authorized representatives of shareholders attending the meeting. The number of shares represented was 428403737 shares, accounting for 41.40% of the total share capital of the company, in line with the Company Law And the Articles of Association. The meeting was presided over by Mr. Li Changqing, director and general manager.

2. Three A-share shareholders and shareholder representatives attended the meeting, with 420125079 representative shares, 20 B-share shareholders and shareholder representatives, and 8278658 representative shares.

　　 2、 Deliberation of proposals

The meeting adopted the following proposals by open ballot:

1. Proposal on Transfer of Project Investment Rights:

The related shareholder, Inner Mongolia Erdos Cashmere Group Co., Ltd., withdrew from voting;

6699700 shares were agreed, accounting for 79.72% of the total number of effective voting shares attending the meeting; There were no dissenting shares and 1704037 abstaining shares, accounting for 20.28% of the total number of effective voting shares attending the meeting. Among them, 125079 A-share holders agreed, accounting for 100% of the total number of effective voting shares of A-share holders attending the meeting, 0 dissenting shares and 0 abstention shares; 6574621 shares of B shares agreed to the meeting, accounting for 79.42% of the total number of effective voting shares of B shareholders attending the meeting, 0 shares opposed, and 1704037 shares abstained, accounting for 20.58% of the total number of effective voting shares of B shareholders attending the meeting.

2. Proposal on Transferring Part of Equity of Subordinate Participating Companies;

The related shareholder, Inner Mongolia Erdos Cashmere Group Co., Ltd., withdrew from voting;

6699700 shares were agreed, accounting for 79.72% of the total number of effective voting shares attending the meeting; There were no dissenting shares and 1704037 abstaining shares, accounting for 20.28% of the total number of effective voting shares attending the meeting. Among them, 125079 A-share holders agreed, accounting for 100% of the total number of effective voting shares of A-share holders attending the meeting, 0 dissenting shares and 0 abstention shares; 6574621 shares of B shares agreed to the meeting, accounting for 79.42% of the total number of effective voting shares of B shareholders attending the meeting, 0 shares opposed, and 1704037 shares abstained, accounting for 20.58% of the total number of effective voting shares of B shareholders attending the meeting.

3. Proposal on Engaging an Accounting Firm to Conduct Audit for the Company in 2010;

426699700 shares were agreed, accounting for 99.6% of the total number of shares effectively voted at the meeting; There were no dissenting shares and 1704037 abstaining shares, accounting for 0.4% of the total number of effective voting shares attending the meeting. Of which: 420125079 A-share holders agreed to vote at the meeting, accounting for 100% of the total number of effective voting shares of A-share holders, 0 dissenting shares and 0 abstention shares; 6574621 shares of B shares agreed to the meeting, accounting for 79.42% of the total number of effective voting shares of B shareholders attending the meeting, 0 shares opposed, and 1704037 shares abstained, accounting for 20.58% of the total number of effective voting shares of B shareholders attending the meeting.

4. Proposal on the Company's Review of Related Party Transactions Related to Daily Operations in 2010;

The related shareholder, Inner Mongolia Erdos Cashmere Group Co., Ltd., withdrew from voting;

6699700 shares were agreed, accounting for 79.72% of the total number of effective voting shares attending the meeting; There were no dissenting shares and 1704037 abstaining shares, accounting for 20.28% of the total number of effective voting shares attending the meeting. Among them, 125079 A-share holders agreed, accounting for 100% of the total number of effective voting shares of A-share holders attending the meeting, 0 dissenting shares and 0 abstention shares; 6574621 shares of B shares agreed to the meeting, accounting for 79.42% of the total number of effective voting shares of B shareholders attending the meeting, 0 shares opposed, and 1704037 shares abstained, accounting for 20.58% of the total number of effective voting shares of B shareholders attending the meeting.

5. Proposal on Guarantee Provided by the Company to Subordinate Subsidiaries.

421216900 shares were agreed, accounting for 98.32% of the total number of effective voting shares attending the meeting; 5482800 dissenting shares, accounting for 1.28% of the total number of effective voting shares attending the meeting; 1704037 shares were abstained, accounting for 0.4% of the total number of shares effectively voted at the meeting. Of which: 420000000 shares of A-shares agreed, accounting for 99.97% of the total number of effective voting shares of A-share shareholders attending the meeting, 125079 shares opposed, accounting for 0.03% of the total number of effective voting shares of A-share shareholders attending the meeting, and 0 shares abstained; 1216900 shares of B shares were approved, accounting for 14.7% of the total number of effective voting shares of B shareholders attending the meeting; 5357721 shares were opposed, accounting for 64.72% of the total number of effective voting shares of B shareholders attending the meeting; 1704037 shares were abstained, accounting for 20.58% of the total number of effective voting shares of B shareholders attending the meeting.

　　 3、 Notarization or witness by lawyer

Liu Huaikuan, a lawyer from Inner Mongolia Jianzhong Law Firm, witnessed the shareholders' meeting and issued the Legal Opinion. The conclusion is that the lawyer believes that the convening and procedures of the fifth extraordinary shareholders' meeting of Inner Mongolia Erdos Cashmere Products Co., Ltd. in 2010, the qualifications of the convener and the main qualifications of the participants in the meeting, The voting procedures and results of the General Meeting are in accordance with the relevant provisions of laws, administrative regulations, the Rules of the General Meeting of Shareholders and the Articles of Association of the Company, so all resolutions passed by the General Meeting are legal and valid.

It is hereby announced that

Inner Mongolia Erdos Cashmere Products Co., Ltd

December 29, 2010