Chiho Environmental : Strategic Cooperation with Suzuki Shokai Co., Limited

(Incorporated in the Cayman Islands with limited liability)

CHIHO ENVIRONMENTAL GROUP LIMITED

(Stock Code: 976.HK)

Strategic Cooperation with Suzuki Shokai Co., Limited

Chiho Environmental Group ("CEG") is pleased to announce that we have entered into a Memorandum of Understanding (the "MOU") with Suzuki Shokai Co., Limited ("SZK"), one of our long-term business partners, to form a Strategic Cooperation regarding the sales of aluminium ingots and other businesses for the Japanese market.

CEG has been producing high quality aluminium alloy ingots from our plant in China, using recycled aluminium. Our product is mainly supplied to the automotive and building industry in China. We produce various types of ingots such as ADC12, A380, AC4B and YL112 in accordance with major industrial standards. We also produce ingots in accordance to customers' specifications. The cooperation with SZK aims to expand our reach into the Japanese market.

SZK is a company incorporated in Japan and is principally engaged in recycle business, including aluminium scrap, steel scrap, plastic, home appliances and end-of-life vehicles, for over 65 years in Japan, they are also one of the biggest recyclers in Hokkaido, Japan.

It is always our interest to widen our network and participate in the Japanese market, and throughout our years of business relationship with SZK, both CEG and SZK, recognise the visions and beliefs of each other, and trust a strategic cooperation relationship will mutually benefit both groups.

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