09:15     CHINA TREASURE<00810> - Announcement & Resumption (2)               

    Placing Shares  an aggregate of 20,600,000 new                            
    Shares                                                                    
                                                                              
    Pursuant to the Placing Agreement, the Placing Agent                      
    agrees to place the Placing Shares on a best effort                       
    basis at the issue price of HK$0.13 per Placing Share                     
    and will receive a placing commission of 2% on the                        
    gross proceeds of the Placing.                                            
                                                                              
    The Company shall pay the placing commission, legal                       
    costs, printing costs and other expenses incurred in                      
    fulfilment of the Company's obligations under the                         
    Placing Agreement, which will amount to approximately                     
    HK$120,000.00.                                                            
                                                                              
    Placing Shares                                                            
    The Placing Shares represent approximately 20% of the                     
    existing issued share capital of the Company                              
    comprising 103,000,000 Shares and approximately                           
    16.67% of the enlarged issued capital of the Company                      
    immediately after by the Placing comprising                               
    123,600,000 Shares. The Placing Shares will rank,                         
    upon issue, pari passu in all respects with the Shares                    
    in issue on the date of allotment and issue of the                        
    Placing Shares.                                                           
                                                                              
    Placing Price                                                             
    The Placing Price is HK$0.13 per Placing Share, which                     
    represents                                                                
                                                                              
    (i)     a premium of approximately 1.56 % to the closing                  
    price of HK$0.128 per Share quoted on the Stock                           
    Exchange on 29 April 2005, being the last trading day                     
    of the Shares immediately before and including the                        
    date of the Placing Agreement; and                                        
                                                                              
    (ii)    a premium of approximately 1.246% to the average                  
    closing price per Share of approximately HK$0.1284                        
    per Share as quoted on the Stock Exchange for the last                    
    five trading days of the Shares up to and including                       
    28 April 2005.                                                            
                                                                              
    After deducting the commission payable to the Placing                     
    Agent and other expenses in relation to the Placing,                      
    the net placing price will be approximately HK$0.124                      
    per Placing Share. The terms of the Placing Agreement,                    
    including the Placing Price, were determined after                        
    arm's length negotiations between the Company and the                     
    Placing Agent. The closing price of the Shares on 29                      
    April 2005, being the date on which the terms of the                      
    issue of the Placing Shares were fixed, was HK$0.128                      
    per Share. The Board considers that the terms of the                      
    Placing Agreement are fair and reasonable and in the                      
    best interest of the Company and the Shareholders as                      
    a whole.                                                                  
                                                                              
    Conditions of the Placing Agreement                                       
    The Placing is conditional upon the Listing Committee                     
    of the Stock Exchange granting approval for the                           
    listing of, and permission to deal in, the Placing                        
    Shares and trading in Shares on the Stock Exchange                        
    not being suspended for any single period of more than                    
    10 trading days prior to the Closing Date (for reason                     
    other than suspension for the purpose of clearing by                      
    the Stock Exchange and/or SFC of any announcement                         
    relating to the Placing and other matters).                               
    Completion of the Placing shall take place on the                         
    fourth business day after the fulfilment of the                           
    aforesaid condition or such other date as the Company                     
    and the Placing Agent may agree in writing. The date                      
    for fulfillment of the Conditions shall not be later                      
    than 31 May 2005.