DEBAO PROPERTY DEVELOPMENT LTD. (Incorporated in Singapore on 16 August 2007) (Registration Number: 200715053Z)

ESTABLISHMENT OF SUBSIDIARY

The Board of Directors of Debao Property Development Ltd. (the “Company”) is

pleased to announce that the Company’s wholly-owned subsidiary, Foshan Nanhai

Debao Property Development Co., Ltd ( )

(“Foshan Debao”), has established a subsidiary in Sihui City, Guangdong Province,

the People’s Republic of China (the “PRC”), known as Sihui Debao Jiangnan Mingju

Property Development Co., Ltd (

“Subsidiary”).

) (the

The Subsidiary has a registered and paid-up capital of RMB10 million, and its principal activities will be that of property development in Sihui City, specifically for the purpose of tendering for a piece of industrial land and building for redevelopment into an integrated residential and commercial property development (the “Land”).

Foshan Debao currently holds 95% of the shareholding interest in the Subsidiary and the remaining 5% shareholding interest is held by the owner of the Land, Mr Feng Luo.

The establishment of the Subsidiary was funded through the Company's internal resources and is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company for the current financial year ending 31 December 2011.

To the best of the knowledge of the directors of the Company ("Directors"), none of the Directors or substantial shareholders of the Company has an interest, direct or indirect, in the establishment of the Subsidiary.

By order of the Board

Yuan Le Sheng

Executive Chairman and CEO

27 June 2011

Kim Eng Corporate Finance Pte. Ltd. was the issue manager ("Issue Manager") for the Company’s initial public offering. The Issue Manager assumes no responsibility for the contents of this announcement.