HanKore Environment Tech. Group Limited 汉科环境科技集团 Room 1105-1110, 11F, Jialong International Tower, No.19 Chaoyang Park Road, Chaoyang District, Beijing, PRC 100125 北京市朝阳区朝阳公园路 19 号佳隆国际大厦 1105-1110，邮编 100125

Press Release – For Immediate Release

HanKore’s seals two BOT Supplementary Agreement to increase wastewater treatment tariff and bags contract to manage and operate water reuse plant

 Nanjing Liuhe wastewater plant gunning for 57% increase in wastewater treatment tariff upon completion of upgrading work  Nanjing Pukou wastewater plant estimated to increase unit water tariff by 10.2%  Appointed by Xianyang authority to manage and operate water reuse plant; To increase water reuse plant capacity by more than 6 folds

Singapore, 14 May 2013 – HanKore Environment Technology Group (“HanKore” or “the Group”) ( 汉科环境科技集团), an international group investing and operating in the water environment sector and a leader in the water environment market in China, is pleased to announce that the Group’s wholly owned subsidiary, Nanjing Jin Huan Water Development Co., Ltd. (“”Nanjing Jin Huan) , has entered into a Built-Operate Transfer (“BOT”) Supplementary Agreement with the Administration of Housing and Urban-Rural Development of Liuhe District, Nanjing City, Jiangsu Province, in relation to the upgrade of the Nanjing Liuhe Wastewater Plant (“Nanjing Liuhe Plant”). This is the third agreement the Group entered into within the month of April.

Due to more stringent requirements from the recent changes in the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants set by the Chinese local authorities, the water discharge standard of the Nanjing Liuhe Plant has been raised from Grade B to Grade A. As a result, the upgrading work for the Nanjing Liuhe Plant now comprised upgrading water standard after treatment from Grade B to Grade A and also the moisture content of sludge after treatment

Page 1 of 3 HanKore Environment Tech. Group Limited 汉科环境科技集团 Room 1105-1110, 11F, Jialong International Tower, No.19 Chaoyang Park Road, Chaoyang District, Beijing, PRC 100125 北京市朝阳区朝阳公园路 19 号佳隆国际大厦 1105-1110，邮编 100125 will not be higher than 60%. The upgrading work has commenced in March 2013 and is expected to be completed in September this year.

According to independent assessment report, the revised unit price for the wastewater treatment due to policy change is temporarily increased by 57.1% or RMB0.53, from RMB0.92 per tonne to RMB1.45 per tonne.

Mr. David Chen, Chairman of HanKore commented, “The higher water tariff and water treatment capacity which the Group can potentially achieve in the short run signifies our capability to accelerate progress of our wastewater plants and bring in higher recurring income upon commercial operations.”

In April this year, the Group’s subsidiary, Nanjing Golden Idea Water Development Co., Ltd. (“Nanjing Golden Idea”), has entered into similar BOT Supplementary Agreement with the Administration of Housing and Urban-Rural Development of Pukou District, Nanjing City, Jiangsu Province. The unit water tariff is estimated to increase by 10.2%, from RMB0.89 per tonne to RMB0.98 per tonne. The construction of the Nanjing Pukou plant will be completed by 30 June 2013, with an initial water treatment capacity of 40,000m3 per day which will be gradually stepped up to the maximum water treatment capacity of 80,000m3 per day by 2017.

On the other hand, the Group’s subsidiary, Beijing Hankelin Environmental Technology Co., Ltd. (“Beijing Hankelin”), has entered into a Reuse Water Frame Agreement (“Frame Agreement”) with Xianyang City Environmental Protection Bureau (“Xianyang EPB”). With this, Xianyang EPB appoints Beijing Hankelin to manage and operate a water reuse plant (“Qingwei Plant”) with a capacity of 30,000 tonnes per day. The current water reuse tariff is RMB0.56 per tonne. Xianyang EPB will assist Beijing Hankelin to increase the water reuse capacity to 200,000 tonnes per day.

“We have made tremendous progress within a month and all these projects will be contributing positively in FY2014. We hope to maintain this momentum and win more projects with our specialized technical know-how going forward.

Page 2 of 3 HanKore Environment Tech. Group Limited 汉科环境科技集团 Room 1105-1110, 11F, Jialong International Tower, No.19 Chaoyang Park Road, Chaoyang District, Beijing, PRC 100125 北京市朝阳区朝阳公园路 19 号佳隆国际大厦 1105-1110，邮编 100125

Our higher wastewater treatment and water reuse capacity coupled with improved water discharge quality affirm our strength and dedication in generating clean and sustainable water assets to the local communities in China.” Mr. David Chen, Chairman of HanKore

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About HanKore Environment Technology Group Ltd

HanKore Environment Technology Group (汉科环境科技集团) is an international group investing and operating in the water environment sector. Headquartered in Beijing, HanKore is a leader in the water environment market in China.

Leveraging on its well defined strategic planning and responsive operational philosophy, HanKore has expanded throughout China rapidly with its competitive strengths in technology and capital funding. Following the successful project executions in Xianyang, Kunshan, Lianyungang, Nanjing, Suzhou, Beijing, Binzhou and Jiangdu, the Group has built a wealth of experience in the project funding, construction and operation in the municipal public utilities segment.

Presently, HanKore has invested in 17 large scale municipal water/wastewater projects in Beijing, Jiangsu, Shandong, Shaanxi and Henan. The Group is now a large scale integrated water environment group in the financing, engineering & construction, operation, equipment and engineering contracting in municipal public utilities. The Group’s operations extend over water supply, waste water treatment, treated water recycling businesses.

HanKore was listed on the Mainboard of the Singapore Exchange in February 2004.

For more information, please visit www.hankore.com.

Issued for and on behalf of HanKore Environment Tech. Group Limited By Financial PR Pte Ltd For more information please contact: Yit Sung NGO, [email protected] Jasmine LEONG, [email protected] Kathy ZHANG, [email protected] Tel: (65) 6438 2990 Fax: (65) 6438 0064

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