Dear Shareholder

I have pleasure in enclosing your shareholder pack for our forthcoming Annual General Meeting to be held at 11am on Friday 30th June 2017 and look forward to seeing as many shareholders as possible at the meeting. The audited financial statements of the company for the year ended 31st December 2016 and the statutory notice convening the Annual General Meeting are enclosed and have been posted on the company's website.

Your board was greatly heartened that the long standing deadlock surrounding the company's investment in Zhongying was finally resolved in late 2016 and we were very pleased to have received the almost unanimous support of our shareholders at the meeting held on 7th December 2016 to approve the settlement and the fundraising that accompanied it. The settlement has been completed and we are now working harmoniously with our Chinese joint venture partners to agree the best way forward to create enhanced value for all Zhongying shareholders.

As shareholders will be aware, the company has been engaged in litigation to recover investments and hold to account those responsible for the significant losses incurred many years ago. I am pleased to
be able to report that earlier this year a settlement was reached with previous directors Simon Littlewood and Victor Ng and their respective families in relation to claims made by the company in Hong Kong and Singapore. The settlement included cash payments to the company as well as the transfer of all the shares previously registered to Simon Littlewood, Victor Ng and their families and associates.

As a result of these settlements there remain continuing legal proceedings in Singapore against Toby Parker. These proceedings are expected to be determined in court later this year. Our enquires into
the apparent fraud perpetrated on the company in Croatia have continued and a meeting has been held with the police in Croatia to further our criminal complaint.

All our efforts are now being put into enhancing the value of the company by a continuous process of engagement and cooperation with our joint venture partner in China so that our investment in Zhongying can be a source of benefit and growth in the coming years.

You will see from the Notice of Annual General Meeting that we are taking this opportunity to seek approval from shareholders to amend the Articles:

1. To enable the company to save costs by allowing it to communicate electronically with those shareholders who are happy to be contacted in that way.

2. To give authority to the Directors to change the name of the company.

A copy of the proposed changes to the Articles has been posted to our website so that shareholders can consider whether they wish to agree to electronic communication and to authorising the Directors to change the name of the company should it be appropriate in the future.

I should like to take this opportunity to thank all my colleagues and our professional team in the UK, China and Singapore. Our efforts require continuing application and international expertise while we progress along this new journey and once again I want to express the board's continuing appreciation of the support received from so many shareholders for our recent efforts.

Yours sincerely,
David Buchler
Chairman
05 June 2017