HUBEI XINGFA CHEMICALS GROUP CO. LTO.

,
A 807, SANXIASHANGCHENG, 52-1 JIEFANG ROAD, YICHANG
XiNGFA
HUBEI 443000, CHINA
Tel: Fax: +86(717)6760308


HubeiXingfaChemicalsGroupCo., LtdThe Reply Letterto
EffinghamCounty IndustrialDevelopmentAuthorityAboutOur
Investment Projects
From: Hubei Xingfa Chemicals Group Co., Ltd.
To : Georgia Department of Economic Development and Effingham County
Industrial Development Authority
81 IB]: 2013 iF 12 .FI 29 E3
Time: December 29, 2013
Dear Ms. Xu and distinguished Effingham County Industrial Development
Authority officials,


First of all, we would like to expresse our deep gratitude for your support
HUBEI XINGFA CHEMICALS GROUP CO. LTO.,
A 807, SANXIASHANGCHENG, 52-1 JIEFANG ROAD, YICHANG
XiNGFA
HUBEI 443000, CHII\JA
kl: (717) 6760283 Fa,: r86 (717) 6760308
and help of our investment project at your county. Thank you for giving us
fully enthusiastic help in the past few months. During the course of project
negotiations, we deeply feel the attention from local government and strong
support for our project, which makes us very confident for the investment
environment at Effingham County.


As you know, our project is in collaboration with a U.S. company to
produce a phosphate product. We prepare to buy 80 acres of land with 30
acres of land will be purchased by that company for the construction of
related facilities. Moreover, in accordance with the consensus reached with
that company, 60% of the finished products of our facility will be sold to
them for the production of downstream products. It is not difficult to see our
partners will have a decisive impact for our project and decisions.




HUBEI XINGFA CHEMICALS GROUP CO. LTD.,
A 807 SANXIASHANGCHENG, 52-1 ,IIEFANG ROAD, YICHANG
XiNGFA
HUBEI 443000, CHINA
Td: -86 (717) 676028J Fa.'\.: +86 (717) 6760J08
In the past few months, Mr zhong on behalf of our company has been
negotiating on the project and paid a great deal of effort. We also hired a
Danish design company with technicians to Effinham County fieldwork of the
project and make a blueprint. While The situation in recent months were far
way from our expectations. The first is that our partner not willing to continue
to talk about the purchase of land matters, on the other hand we have sold
100 tons product to them and still not receive the payment. Our initial
determine is that the problems is the financial situation of the company.
Based on this, the Board considers that the project does not have the
conditions to be discussed.
As previously we expressed our wishes during our communication, The
internationalization strategy and investment projects in United States is one
of the important strategic of XINGFA Group development, and it is also a
long-term and unchanged policy of us. The company has also recognized
HUBEI XINGFA CHEMICALS GROUP CO. LTO.,
A 807, SANXIASHANGCHENG, 52-1 JIEFANG ROAD, YICHANG
fAXiNGFA
HUBEI 443000, CHINA
lei: (717) 6760283 Fax: +86 (717) 6760308
that Georgia Effingham County already has a good investment environment.
We believe that finding a suitable alternative investment program, we will be
successful in investment projects at Effingham county.
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Since the original partners have a decisive adverse impact in the project,
It forcing us to abandon the original investment plan .which makes us feel
very sorry. But the confidence and enthusiasm of our investment in your
county still does not change. We hope that our investment projects in
Effingham County is a healthy and vibrant project which can not only
promote the local economic development but also carry on the job
opportunity at Effingham.
Taking into account the preparation and timing of related work, we hope
to visit the Effingham County Industrial Development Authority, after the
Chinese New Year in February, to discuss about the following cooperation.
HUBEI XINGFA CHEMICALS GROUP CO. LTO.,
A 807, SANXIASHANGCHENG. 52-1 JIEFANG ROAD, YICHANG
XiNGFA
HUBEI 443000, CHINA
Tel: - 86 (717) 6760283 Fa:--: +86 (717) 6760308
Finally sincerely hope that we can get your maximum understanding and
support, we hope our cooperation will be successful. we wish you all a
Happy New Year!
Yours,
Hubei Xingfa Chemicals Group Co., Ltd.
2013.12.30