09:29     ASIA RESOURCES<00899> - Announcement (2)                            

    Currently, the Group also engages in production of intravenous            
    fluids and therefore knows well the usage and commercial                  
    exploitation of the products. Siping Yatai operates its only              
    production plant located in Jilin Province, PRC, which is next            
    to a production plant of the Group manufacturing similar products.        
    Siping Yatai has yet commenced business but is currently in a             
    trial run and it is expected to commence production by the end            
    of March 2005. According to a certificate issued by the Siping            
    City Food and Drug Regulatory Bureau (*)                                  
    dated 16 March 2005, the production capacity of Siping Yatai              
    is expected to reach 30 million bottles of intravenous fluids             
    per annum.                                                                
                                                                              
    Conditions precedent                                                      
                                                                              
    Completion of the Acquisition is conditional upon the following           
    conditions being fulfilled on or before 30 April 2005:                    
                                                                              
    1.      resignation without any claim for compensation by the sole        
    director of Silver Epoch; and                                             
                                                                              
    2.      execution by the Vendor of a waiver of debt releasing Silver      
    Epoch from repaying the Vendor a shareholder's loan in the sum            
    of about HK$47,200,000.                                                   
                                                                              
    Consideration and Basis for Determining the Consideration                 
                                                                              
    The consideration for the Acquisition is HK$30,000,000 and will           
    be financed by internal resources of the Group. A refundable              
    deposit of HK$2,400,000 has been paid on the sigining of the              
    Agreement and the balance is payable on the completion. The               
    consideration for the Acquisition was determined after arm's              
    length negotiations and on normal commercial terms with                   
    reference to the net liability of Silver Epoch taking into                
    account of (1) the expected production capacity of Siping Yatai;          
    (2) the estimated time of two and half years and costs of                 
    approximately RMB90 million to be involved should the Company             
    decide to build a similar manufacturing plant on its own; (3)             
    the competition from Siping Yatai and the negative impact to              
    the Company's market share in the intravenous fluids business             
    once Siping Yatai starts its production which is expected to              
    be by the end of March 2005.                                              
                                                                              
    The Company is not required under the Agreement and has no present        
    plan to make any finanical commitment on Silver Epoch.                    
                                                                              
    As Siping Yatai has yet commenced business, no profit and loss            
    accounts is available. Based on the unaudited balance sheet of            
    Siping Yatai as at 28 February 2005, the total net assets value           
    was approximately RMB50,000,000 (about HK$47,125,000)                     
    including fixed assets of production plant, equipment and land            
    use right and other receivables. The said receivables consist             
    an advance to an individual in the PRC (the "Debtor") amounting           
    to approxmiately RMB73,624,000 (about HK$69,391,000). The                 
    Debtor is an independent third party not connected with the               
    directors, chief executive or substantial shareholders of the             
    Company or any of its subsidiaries or their respective associates         
    (as defined in the Listing Rules). As the advance to the Debtor           
    was unsecured and the creditworthness of the Debtor is uncertain,         
    the Board is not hopeful as to the recoverability of the said             
    receivables. In any event, the Board has taken into account of            
    the unrecoverability of those receivables in determining the              
    consideration to be paid for the Acquisition.                             
                                                                              
    The unaudited net loss after extraordinary items of Silver Epoch          
    for the year ended 31 December 2004 was approximately HK$320.             
    Based on the unaudited balance