Yulong Eco-Materials Limited announced that it has signed a new contract with one of the 13 administrative offices of the Zhengzhou City Airport Zone (Zhengzhou Comprehensive Experimental Zone for Airport-based Economy), to provide construction waste management (CWM) services for over 1,000 homesteads to be demolished in the Wangzhuang and Wangdao villages. The contract requires the Company to complete processing the construction waste within 6 months which, when completed, is expected to generate approximately $600,000 in revenue with a gross margin of over 70%.  To service the contract, Yulong is currently using 3 mobile recycling stations, each with an annual designed processing capacity of two million metric tons. The Company may deploy additional stations in the area, as new assignments are received.

To date, the Company has signed contracts with five out of 13 administrative offices in the zone, and is negotiating with the other administrative offices.  As a result, the Company is processing waste from approximately 3,300 demolished homesteads and expects to report strong fiscal 2016 third quarter revenue for its CWM segment.