Jiang Diamond Shares: Announcement of Foreign Investment

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosure, and there are no false records, misleading statements or major omissions.

I. Overview of foreign investment

The 5th meeting of the 5th Board of Directors of Jianghan Petroleum Drill Bit Co., Ltd. (hereinafter referred to as “Company” or “Company”) reviewed and approved the “Company's acquisition of 40% equity of PDC Logic Co., Ltd. (hereinafter referred to as “PDCL Company”) And the company's proposal to establish a joint venture with Hijet Bit Co., Ltd. of the United States. According to the deliberation of the board of directors, this foreign investment will be completed in two steps:

(1) The company or company establishes a wholly-owned subsidiary in the United States to acquire a 40% stake in PDCL held by Hijet. After the completion of the acquisition, the company holds 40% of the shares of PDCL, and Hijet holds 60% of the shares of PDCL;

(2) The company and Hijet jointly funded the establishment of Wuhan Diamond Bit Co., Ltd. (tentative name), in which the company holds 60% of the shares and Hijet holds 40%.

For all the above-mentioned foreign investment matters including equity acquisition and establishment of joint venture company, the company intends to invest a total of RMB 10 million in cash and physical assets.

The above announcement of foreign investment (Announcement No.: 2011-028) can be found on the website of http:// and Securities Times on September 20, 2011.

In September 2012, the company established a wholly-owned subsidiary in the United States, Kingdream USA, Inc., and received a registration certificate issued by the State of Texas, the certificate number. For details, please refer to the announcement of the company's foreign investment progress on Securities Times, China Securities Journal, Shanghai Securities News and http:// on September 21, 2012. 》 (Announcement No.: 2012-024).

Second, the completion of foreign investment

1. Kingdream USA, Inc., a wholly-owned subsidiary established by the company in the United States, acquired a 40% stake in PDCL held by Hijet.

According to a document signed by Kingdream USA, Inc. and Hijet, Kingdream USA, Inc. invested US$607,400 to acquire a 40% stake in PDCL held by Hijet. Upon completion of the acquisition, PDCL's shareholding structure is: Hijet holds 60% of its equity; Kingdream USA, Inc. holds 40% of its equity.

2. The company and Hijet jointly funded the establishment of a joint venture company

The company and Hijet have jointly invested in the establishment of Wuhan Jiangdui Haijieite Diamond Drill Co., Ltd. Among them, the company invested US$915,000 in equipment and held 60% of its shares; Hijet Company invested US$610,000 in cash and held 40% of its shares.
On October 30, 2013, Wuhan Jiangdui Haijiete Diamond Bit Co., Ltd. was awarded the “Business License of Enterprise Legal Person” issued by Wuhan Administration for Industry and Commerce. The specific information is as follows:

Registration Number

Name: Wuhan Jiang Drill Sea Jett Diamond Bit Co., Ltd.

Legal representative: Liu Xuezhong

Registered capital: US dollar: 壹佰伍拾贰万仟仟元

Paid-up capital: US dollar: 壹佰伍拾贰万仟仟元

Company type: limited liability company (sino-foreign joint venture)

Business Scope: Engaged in petroleum exploration and R&D, product production, market development and product sales in the People's Republic of China and provide after-sales service. (In the above-mentioned business scope, the project with special provisions in the country will be operated after approval or with the permit within the approved time limit)

Shareholder (sponsor): HIJET BIT, LLC (America Haijie Drill Co., Ltd.) Jianghan Petroleum Drill Co., Ltd.

Business period: August 6, 2013 to August 5, 2033

The investment projects described in the “Proposal on the Company's Acquisition of 40% Equity of PDCLogic Co., Ltd. and the Establishment of Joint Venture Company of Hijet Bit Co., Ltd.” have been completed by the 5th meeting of the 5th Board of Directors.
Third, the documents for reference

1. Documents signed by Kingdream USA, Inc. and Hijet (FIRST AMENDED ANDRESTATED OPERATING AGREEMENT OF PDC LOGIC, LLC).

2. Business license of Wuhan Jiangdeng Haijiete Diamond Bit Co., Ltd.

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