Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

China Modern Dairy Holdings Ltd.

中 國 現 代 牧 業 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1117) ISSUE OF DOMESTIC SHORT-TERM DEBENTURES IN THE PRC BY MODERN FARMING (GROUP) CO., LTD.*, A NON-WHOLLY OWNED SUBSIDIARY OF THE COMPANY

This announcement is made by the board of directors (the "Board") of China Modern Dairy Holdings Ltd. (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on the Stock Exchange of the Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

ISSUANCE OF DOMESTIC SHORT-TERM DEBENTURES IN THE PRC

Reference is made to the announcements of the Company dated 20 May 2015 regarding the approval obtained by Modern Farming (Group) Co., Ltd.* (the "Issuer"), a non-wholly owned subsidiary of the Company, from the National Association of Financial Market Institutional Investors to issue domestic short-term debentures of an aggregate principal amount up to RMB2.0 billion in the People's Republic of China (the "PRC"note).

Note: For the purposes of this announcement, excludes the Hong Kong Special Administrative Region of the People's Republic of China, the Macau Special Administrative Region of the People's Republic of China and Taiwan.

The Issuer has resolved to issue the domestic short-term debentures in the PRC with an aggregate principal amount of RMB500 million on 20 January 2017. This tranche of the domestic short-term debentures has a term of 270 days with interest rate of 5.39% per annum which was determined at the end of the subscription period through bookbuilding and placing processes. The net proceeds of this tranche of the domestic short-term debentures will be used for repayment of the bank loans, supplement of the working capital and as general working capital of Issuer and its subsidiaries.

This tranche of the domestic short-term debentures will be issued to domestic institutional investors in the PRC (other than those who are restricted from participating in such offering in accordance with the laws and regulations of the PRC). China Construction Bank Corporation (中國建設銀行股份有限公司) is the lead underwriter for the issue of the this tranche of the domestic short-term debentures and China Merchants Bank Co., Ltd. (招商銀行股份有限公司) is the joint lead underwriter. This tranche of the domestic short-term debentures will be subscribed by a group of financial institutions in the PRC.

The principal terms of this tranche of the domestic short-term debentures to be issued are as follows:

Issuer: Modern Farming (Group) Co. Ltd.* (現代牧業(集團)有 限公司)

This tranche of the

short-term debentures:

RMB500 million

Place of issue: the Inter-bank bond market in the PRC

Maturity: 17 October 2017

Credit rating: As assessed by Shanghai Brilliance Credit Rating &

Investors Service Co., Ltd. (上海新世紀資信評估投資 服務有限公司), the Issuer has been given an AA rating.

Interest rate: 5.39% per annum

Use of proceeds: The net proceeds from this tranche of the domestic

short-term debentures will be used for repayment of bank loans and as general working capital of Issuer and its subsidiaries.

Trading arrangements: This tranche of the domestic short-term debentures will

be traded on the Inter-bank Bond Market in the PRC from 22 January 2017.

In accordance with the relevant laws and regulations in the PRC, relevant documents in relation to the Issuer and the domestic short-term debentures will be published on the websites of Shanghai Clearing House (http://www.shclearing.com.cn) and China Foreign Exchange Trade System (www.chinamoney.com.cn). Shareholders and potential investors are reminded that such documents were prepared in accordance with the requirements in the PRC and are limited solely to the Issuer, and the information contained therein does not provide a full picture of the operation status of the Group.

Hong Kong, 22 January 2017

For and on behalf of the Board

China Modern Dairy Holdings Ltd. Ms. GAO Lina

Deputy Chairman, Chief Executive Officer and Executive Director

As of the date of this announcement, the executive directors are Ms. GAO Lina and Mr. HAN Chunlin, the non-executive directors are Mr. YU Xubo, Mr. WOLHARDT Julian Juul, Mr. HUI Chi Kin Max, Mr. ZHANG Ping and Mr. SUN Yugang, the independent non-executive directors are Mr. LI Shengli, Mr. LEE Kong Wai Conway, Mr. KANG Yan and Mr. ZOU Fei.

* For identification purposes only

China Modern Dairy Holdings Ltd. published this content on 23 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 January 2017 22:50:05 UTC.

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