Xiangtian (USA) Air Power Co., Ltd. announced that on July 29, 2014, Mr. Zhou Deng Rong submitted a letter to the Board of Directors of the company resigning from the positions of Chief Executive Officer and Director, effective on such date. Mr. Zhou resigned due to uncertainty about a Chinese government investigation into an offering of securities to Chinese investors by an entity not affiliated with the company, but which securities were later exchanged for common stock of the Company in September 2013. On July 20, 2014, Mr. Zhou received a verbal summons from the Public Security Bureau for investigation assistance purposes and Mr. Zhou has been responding to questions by the authorities.

Effective as of July 29, 2014, the Board appointed Mr. Zhiqi Zhang as the company's Chief Executive Officer, Roy Thomas Phillips as the company's Chief Operating Officer and Acting Chief Financial Officer and Zhou Jian, who has served as a Director since June 2012, as the Chairman of the Board of Directors. Mr. Zhang, age 50, has been an attorney with Heibei Jianan Law Firm that has served as outside general counsel since May 2013 and the outside general counsel of Sanhe City Lucksky Electrical Engineering Co., Ltd. since January 2014. Mr. Zhang has approximately 22 years' experience as an attorney in China.

Mr. Phillips, age 45, has served as a consultant to an affiliate of LuckSky Holding (Group) Co. Ltd. since May 2013. From October 2009 to the present, Mr. Phillips directed the business development of clients who's operations were typically based in China and worked as a consultant to the U.S. Federal government in international development programs in S.E. Asia and Africa.

Mr. Zhou, age 35, has served as a member of Board of Directors since June 2, 2012, as General Manager since May 15, 2012 and as the Executive Director of Sanhe since April 12, 2014. From January 2005 to the present, Mr. Zhou has been the Chief Financial Officer of Hong Kong Xiangtian International Investment Group Co., Ltd.