The board of directors of China Rare Earth Holdings Ltd. announced that Mr. Liu Yujiu (Mr. Liu) has resigned as an independent non-executive Director with effect from August 1, 2012. Upon resignation of Mr. Liu as an independent non-executive Director, Mr. Liu ceased to be the chairman of the audit committee of the company and a member of each of the remuneration committee and nomination committee of the company. The Board also announced that Mr. Wang Guozhen (Mr. Wang) has been appointed as an independent non-executive Director, the chairman of the audit committee of the company and a member of each of the remuneration committee and the nomination committee of the company with effect from August 1, 2012. Mr. Wang had worked as a deputy manager and a senior engineer in Beijing Central Engineering and Research Institute of Nonferrous Metallurgical Industries. He held the office of the deputy secretary of the Party Committee and the deputy president of BINM and the manager of China National Nonferrous Metals Industry Corporation Environmental Assessment Company from 1984 to 1995. Since 1996, he has been a senior expert consultant in rare earth projects of China Enfi Engineering Corporation. He has been an independent non-executive director of Pan Asia Environmental Protection Group Limited. Mr. Wang is recognized as an expert in the rare earth industry. From 1987 to 1994, he served as a member of the Experts Group of the Rare Earth Leading Group of the State Council. From 1994 to 2006, he acted as a member of the Group of Rare Earth Experts of the National Development and Reform Commission and the head of its industry group. He also worked at the Chinese Society of Rare Earths consecutively as a director, a standing director, an expert in its rare earth experts group and a senior member of its Rare Earth Related Environmental Protection and Labor Hygiene Professional Committee from 1980 to 2009. In 2009, he was appointed as honorary executive of the CSRE.