China Kingstone Makes Strategic Move to Acquire 49% Equity Stake in Guangdong Jiapeng Construction

Integrating resources and advantages to serve high-end users and strengthening leading market position

HONG KONG, July 26, 2011 /PRNewswire-Asia/ -- China Kingstone Mining Holdings Limited ("China Kingstone" or the "Company"; stock code: 1380.HK), the largest marble producer in China, announced an equity transfer agreement with Guangdong Jiapeng Construction Co., Ltd. ("Guangdong Jiapeng Construction"). The Company will acquire a 49% stake in Guangdong Jiapeng Construction for a consideration of RMB15 million. Upon completion of the deal, both parties will integrate their resources and advantages to serve high-end users, strengthening the Company's leading position in the marble manufacturing industry.

Guangdong Jiapeng Construction is an engineering company, which is a renowned constructer of large-scale public construction in Guangzhou and Pearl River Delta region, specializing in the design and construction of curtain walls, renovation and decoration. It has offered one-stop services, including design solutions, marble materials, curtain walls, decoration and renovation, to the Guangdong Government and property developers across Guangzhou. Its profound industry experiences and high quality offerings are well received by property owners and recognized by peers. Landmark projects include the 68-floor Guangdong Telecom Plaza (awarded Tien-Yow Jeme Civil Engineering Prize, Golden Award), Guangzhou Customs Office (awarded Luban Award), Zhongshan Culture and Art Center (awarded China Design Biennial, Golden Award), Guangsheng International Building and Guangzhou West Tower. The annual stone consumption by Guangdong Jiapeng Construction exceeds 460,000 square meters, of which 60% are marbles.

As a marble producer who owns the largest beige marble mine in China, China Kingstone has, in the past, sought potential acquisitions to boost its competitiveness. The profound construction experience and quality brand of Guangdong Jiapeng Construction will be integrated with our excellent marble resources to create synergy. The consolidation will enable the Company to reach high-end users, reduce selling costs and increase profits as well as raising brand awareness through construction of well-known landmarks, while Guangdong Jiapeng Construction will be able to secure the source of high quality beige marbles. Both parties can benefit mutually from jointly exploiting the construction, decoration and renovation markets which have high development potentials.

Ms. Chen Tao, Chairlady and Chief Executive Officer of China Kingstone said, "Looking ahead, we will continue to increase our mining and processing capabilities, develop a strong customer base, strengthen customer relationships, enhance our brand awareness and maintain our pricing advantage. We also plan to increase our marble resources by further expansion as well as target acquisitions. We are confident that the deal will drive our business growth and profitability, maximizing value for shareholders and investors."

About China Kingstone Mining Holdings Limited

China Kingstone is the largest marble producer in China. It owns and operates the Zhangjiaba Mine, which is the largest beige marble mine in China in terms of marble reserves, according to a certification issued by CSMA in August 2010, containing 44.2 million cubic meters of measured and indicated marble resources and representing 16.8 million cubic meters of proved and probable marble reserves. The Company's principal products are premium beige marble slabs and blocks. China Kingstone has successfully listed since 18 March 2011 on the Main Board of the Stock Exchange of Hong Kong Limited.

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