Kingold Jewelry, Inc. has entered into a convertible note purchase agreement with a majority-owned subsidiary of Fosun International Limited that will result in $15 million of gross proceeds to the company when the transaction closes. In conjunction with the Purchase Agreement, the company will increase the size of the Board from five to seven members, effective immediately upon the closing of the sale of the Note through the appointment of Mr. XiaoFeng Lu and Ms. Min Zhou to the Board. Mr. Lu has been designated by Fosun.

The Board also determined to appoint Mr. Lu to the Audit Committee and Ms. Zhou to the Compensation Committee, each to be effective immediately upon the closing of the sale of the Note. Mr. Lu, age 44, is currently Executive General Manager of Fosun Financial Group. Ms. Zhou, age 42, is currently Vice President of Shanghai Yuyuan Jewelry (Group) Ltd.