09:50 HANG FUNG GOLD<00870> - Announcement (2) Total number Total of excess Rights Excess Number of of excess number of Shares applied Rights Shares valid Rights Shares Rights Shares for in this applied for applications applied for allotted category Allotment basis 667 to 1,999 17 22,015 22,015 100% In full 2,000 to 7,999 9 57,338 57,338 100% Odd lot in full plus additional 8,000 to 19,999 12 154,202 124,202 80.54% allotted Shares at 20,000 to 29,999 6 134,468 96,468 71.74% approximately 68.40% on the 30,000 to 39,999 8 255,334 181,334 71.02% remaining excess Rights 40,000 to 49,999 7 298,252 212,252 71.17% Shares applied and rounded 50,000 to 59,999 3 151,934 109,934 72.36% up to a board lot of 2,000 60,000 to 99,999 3 222,834 156,834 70.38% Shares100,000 to 199,999 15 1,652,351 1,158,351 70.10% 200,000 to 800,000 10 3,671,357 2,523,357 68.73% 4,387,968 1 4,387,968 3,003,968 68.46% 99,879,436 1 99,879,436 68,319,095 68.40% Approximately 68.40% TOTAL 92 110,887,489 75,965,148 The Directors consider that the allocation of the excess Rights Shares is on a fair and reasonable basis. Mr. Lam has taken up (i) his provisional allotment of 677,332 Rights Shares, representing approximately 0.36% of the Rights Shares under the Rights Issue; and (ii) 67,494,163 excess Rights Shares applied for by himself, representing approximately 36.11% of the Rights Shares under the Rights Issue. The Underwriter has taken up 55,802,250 Rights Shares in lieu of acceptance by Quality Prince Limited of its provisional allotment of the same number of Rights Shares for the reasons described above, representing approximately 29.85% of the Rights Shares under the Rights Issue. Accordingly, the shareholding of Mr. Lam and his Concert Parties in the Company increased from 169,438,750 Shares (representing approximately 30.01% of the Company's share capital immediately before completion of the Rights Issue) to 293,412,495 Shares (representing approximately 39.04% of the issue share capital of the Company as enlarged by the Rights Issue). Quality Prince Limited, a Concert Party of Mr. Lam, has not taken up any Rights Shares. The following is a table showing the changes in shareholding structure of the Company prior to and immediately following completion of the Rights Issue: Immediately before Immediately after completion of the completion of the Rights Issue Rights Issue Number of Shares % Number of Shares % Quality Prince Limited 167,406,750 29.65% 167,406,750 22.28% Mr. Lam 2,032,000 0.36% 70,203,495 9.34% The Underwriter - - 55,802,250 7.42% Sub-total of Mr. Lam and his Concert Parties 169,438,750 30.01% 293,412,495 39.04% Phenomenal Limited 68,843,250 12.19% 68,843,250 9.16% Public Shareholders (Note) 326,312,000 57.80% 389,269,588 51.80% Total 564,594,000 100.00% 751,525,333 100.00% Note: After the Record Date and up to the date of this announcement, there were 3,800,000 Share Options exercised by the employees of the Company, thus increasing the total number of Shares held by the public Shareholders from 322,512,000 Shares to 326,312,000 Shares immediately before completion of the Rights Issue. DESPATCH OF CERTIFICATES FOR RIGHTS SHARES AND COMMENCEMENT OF DEALINGS OF RIGHTS SHARES IN FULLY-PAID FORM It is expected that the share certificates of the Rights Shares will be despatched to the address (as shown on the register of members of the Company) of those persons who have accepted or applied for and paid for the Rights Shares by ordinary post on or before Thursday, 28 April 2005 at their own risk. Dealings in the Rights Shares, in their fully-paid