Dear Shareholder

I am pleased now to enclose your shareholder pack for our Annual General Meeting to be held at 2pm on Monday, 29th June 2015. I look forward to seeing and greeting as many of you as can make it this year. The audited financial statements of the company for the year ended 31st December 2014 and the statutory notice convening the Annual General Meeting are enclosed and also available on the company's website.

I am pleased to report that as at the end of 2014 we had been able to convert all of the quoted investments held by the Company into cash at prices which were at a considerable increase over previous offers and estimates. It was a long task, both to establish legal ownership and to conclude these disposals but it has indeed been a very fruitful one to the advantage of all shareholders.

In my letter to shareholders of 5th May 2015 I provided an update on the progress being made towards a distribution to all shareholders. As all shareholders are aware it has been my overriding intention to bring forward proposals that ensure that shareholders will receive a distribution as soon as possible. I believe that we are now nearer to finding the route that will enable shareholders to see a way forward. In that letter I referred to the need for us to ensure that there were distributable reserves available for distribution and that the status of the company as a public limited company would need to be looked at. These are complex matters which are requiring considerable legal and accounting advice before I can make formal proposals to shareholders. I do hope to be in a position to make a definitive announcement regarding these matters at the AGM on 29th June 2015.

It is clear now that the Section 110 Proposals will no longer proceed because of what have proven to be insurmountable difficulties about valuations. It is the intention of your Board to continue working with representatives of your Far Eastern shareholder to ensure a successful plan that will enable shareholders to exit by converting their shares into cash through an appropriate facility or else to stay with the company whilst it seeks agreement on a way forward. In this regard, I have asked Paul Bobroff, our current CEO, to join the Board of Directors as well as Ms Li Jiawei who has been suggested by our largest shareholder and represents our partner in the Zhongying joint venture.

I can confirm that Sir Jeremy Hanley retired from the Board at the end of last year and that Peter Hewitt retired from the Board on 31st May in order for him to pursue his other extensive interests. Fenton Higgins has also indicated his wish to step down from the Board at the forthcoming Annual General Meeting.

I would like to thank them all for their hard work and valued counsel over these past two years. Their wise and thoughtful contributions have greatly assisted the process of putting the company in the best possible position to be able to resolve the long standing problems that have prevented an acceptable solution for all shareholders.

Yours sincerely

David Buchler
Chairman
4 June 2015