KVB Kunlun Financial : VOLUNTARY ANNOUNCEMENT - SUSPENSION OF OPENING OF NEW TRADING POSITIONS FOR PRECIOUS METALS SPOT TRADING ON THE TIANJIN PRECIOUS METALS EXCHANGE LIMITED

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.

KVB KUNLUN FINANCIAL GROUP LIMITED

昆侖國際金融集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8077) VOLUNTARY ANNOUNCEMENT SUSPENSION OF OPENING OF NEW TRADING POSITIONS FOR PRECIOUS METALS SPOT TRADING ON THE TIANJIN PRECIOUS METALS EXCHANGE LIMITED

This is a voluntary announcement made by KVB Kunlun Financial Group Limited (the "Company").

Reference is made to the announcement of the Company dated 2 June 2016 (the

"Announcement") in relation to the Membership Agreement entered into between Zhuhai Hengqin Kunlun Financial Exchange Limited (珠海橫琴昆侖新金融交易中心有限公司), an indirect wholly-owned subsidiary of the Company, and 天津貴金屬交易所有限公司

(Tianjin Precious Metals Exchange Limited) ("TPME"). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

On 2 June 2017, the Group received a notice from TPME to the effect that TPME will adjust its precious metals spot trading business with a view to reduce the trading risks. Amongst others, TPME will suspend the opening of new trading positions for all spot commodities traded on TPME with effect from 12 June 2017 (the "Suspension"). The closing of existing trading positions will not be affected.

The Group was not informed when or if the Suspension will be lifted.

As a result of the Suspension, other than the closing of existing positions, the Group will no longer be able to generate revenue from the spot trading business in precious metals on the TPME after 12 June 2017.

To the best of the Directors' knowledge, information and belief, the impact of the Suspension will not be significant to the business and current financial position of the Group as a whole. The Group intends to continue to explore other opportunities in respect of commodities trading in the PRC.

By order of the Board

KVB Kunlun Financial Group Limited Mr. Liu Stefan

Executive Director

Hong Kong, 2 June 2017

As at the date of this announcement, the Directors are as follows:

Executive Directors

Mr. Liu Stefan (Chief Executive Director)

Mr. Ng Chee Hung Frederick

Non-executive Directors

Mr. Li Zhi Da (Chairman)

Mr. Stephen Gregory McCoy

Independent Non-executive Directors

Ms. Zhao Guixin

Mr. Cornelis Jacobus Keyser Mr. Lin Wenhui

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief, the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website at www.hkgem.com on the "Latest Company Announcements" page for at least seven days from the day of its posting and on the website of the Company at www.kvblistco.com.