10:34     SIMSEN INT'L<00993> - Announcement (7)                              

             CAD million             HK$ million                              
                                                                              
    Net income      (0.23   )       (1.46   )       (0.15   )       (0.92   ) 
         (0.033  )                                                            
            (0.205)                                                           
    Net asset value 0.40            2.53            0.41            2.60      
         0.27                                                                 
            1.69                                                              
                                                                              
    Based on the information obtained from Bloomberg, Goldsat has             
    a market capitalization of approximately CAD0.60 million                  
    (HK$3.74 million) as at 1 February 2005 (being the last trading           
    day of the Goldsat Shares on the TSX Venture Exchange immediately         
    before the date of the Disposal Agreement) in Canada time. The            
    highest, lowest and average adjusted price of the consolidated            
    Goldsat Shares (as if after the Capital Reorganization) during            
    the 12-month period from 1 February 2004 to 1 February 2005 was           
    CAD2.0, CAD0.4 and CAD0.799 respectively with an average daily            
    trading volume of approximately 633 consolidated Goldsat Shares.          
                                                                              
    INFORMATION ON THE VENDOR AND THE ALEXIS GROUP                            
                                                                              
    The Vendor, a wholly owned subsidiary of the Company, was                 
    incorporated in the British Virgin Islands on 22 August 1994              
    and is principally engaged in the holding of the Group's                  
    investments in the PRC. One of the investments held by the Vendor         
    is its 49.44% interest in Alexis Resources, which was                     
    incorporated on 18 August 1998. The principal business of Alexis          
    Resources is its investment in Yakesi and Jubao.                          
                                                                              
    As at the date of this announcement, Alexis Resources has a total         
    issued share capital of US$10,000 divided into 10,000 shares              
    of US$1.00 each, out of which, 4,944 shares, representing 49.44%          
    equity interest thereof are owned by the Vendor and the remaining         
    shares, representing 50.56% equity interest thereof are owned             
    by Belmont (which is beneficially owned as to 28.04% by Good              
    Omen, a company wholly and beneficially owned by Mr. Tan, the             
    Deputy Managing Director of the Company). As at the date of this          
    announcement, Alexis Resources is indebted to the Vendor and              
    Belmont for the respective amounts of CAD2,066,614                        
    (HK$12,999,000) and CAD2,113,123 (HK$13,291,542).                         
                                                                              
    Yakesi was established as a Sino-foreign equity joint venture             
    enterprise in the PRC on 12 October 1999 and Jubao was established        
    as a Sino-foreign equity joint venture enterprise in the PRC              
    on 12 July 1999. Such companies are principally engaged in the            
    mining of base metals in Hami region of the PRC through their             
    mining rights in the PRC.                                                 
                                                                              
    The table below sets out the unaudited financial information              
    of the Alexis Group for each of the two years ended 30 April              
    2004 based on the Generally Accepted Accounting Principles in             
    Hong Kong:                                                                
                                                                              
    For the year ended 30 April     2003            2004                      
    HK$'000         HK$'000                                                   
                                                                              
    Consolidated profit (loss) before taxation and minority                   
    interests       (147    )       3,164                                     
                                                                              
    Consolidated net profit (loss)  (528    )       2,404                     
                                                                              
    As at 30 April  2003            2004                                      
    HK$'000         HK$'000                                                   
                                                                              
    Consolidated net asset (liability) value        (10,574 )                 
            27,422                                                            
                                                                              
    FINANCIAL EFFECT OF THE DISPOSAL                                          
                                                                              
    For illustrative purpose only, the Company would be expected              
    to have a gain on Disposal of approximately HK$31,293,000 as              
    at 30 April 2004, based on the carrying