Mountain China Resorts (Holding) Limited

Mountain China Resorts (Holding) Limited

December 15, 2011 01:04 ET

Mountain China Updates on Non-Brokered Private Placement and Announces New Director Appointments

BEIJING, CHINA--(Marketwire - Dec. 15, 2011) - Mountain China Resorts (Holding) Limited (TSX VENTURE:MCG) ("MCR" or the "Company"), is pleased to provide an update on its non-brokered private placement (the "Private Placement") announced on September 16, 2011. The Company has received conditional acceptance of the Private Placement from the Exchange and has also received subscription proceeds of $19,026,000 from three investors: Grandluck Assets Management Limited, a personal holding company of Mr. CHENG, Kin Ming, who has been involved in real estate development in Hong Kong and Greater China; Keen Best International Limited, a personal holding company of Mr. CHEN, Dongsheng, who is the founder of Taikang Life Insurance Co., Ltd.; and China Entrepreneurs Forum Limited, a company equally owned by 50 Chinese entrepreneurs. The closing of the Private Placement is subject to final acceptance of the Exchange, which is currently conducting background checks on the investors as these investors will become insiders of the Company.

Secondly, MCR is pleased to announce that MCR's Board resolved on 28 November 2011 to increase the number of the Company's directors from eight (8) to ten (10), appointing Mr. CHEN, Dongsheng and CHEN, Shi as directors of the Company. Mr. CHEN, Dongsheng is the founder and currently the President and CEO of Taikang Life Insurance Co. Ltd., which is one of the largest life insurance companies in China with revenue of 74.4 billion RMB in the year of 2010. Mr. CHEN, Dongsheng holds a doctorate degree in economics from the Wu Han University of China. Mr. CHEN, Shi is the President of Hong Kong Kangrui Investment Co. Ltd. and has participated in numbers of economic research projects for the government of Hong Kong SAR. Mr. Chen holds a master degree in economics from the Wu Han University of China and a doctorate degree in economics from The Graduate School of Chinese Academy of Social Sciences.

Furthermore, the Company has appointed Mr. Wang Lian, currently our Director of Corporate Finance and Investor Relations, onto our audit committee.

About MCR

MCR is the premier developer of four season destination ski resorts in China. MCR is transforming existing China ski properties into world-class, four seasons luxury mountain resorts with excellent real estate investment opportunities for discerning buyers. In February 2009, the Company's Sun Mountain Yabuli Resort was awarded Best Resort Makeover in Asia by TIME Magazine. Yabuli is also the permanent home of the China Entrepreneur's Forum the leading and most influential community of China's most distinguished and successful entrepreneurs and business leaders with over 5,000 members from across a variety of key industries.


Gang Han, Chief Financial Officer


Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, and actual results may vary from the forward-looking information. Implicit in this information are assumptions regarding future operations, plans, expectations, anticipations, estimates and intentions, such as the plans to develop the ski resorts in China. These assumptions, although considered reasonable by MCR at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of MCR are subject to a number of risks and uncertainties, including general economic, market and business conditions, the ability of MCR to obtain required approvals for the non-brokered private placement or approvals may contain subject conditions that are unacceptable to the parties, the investors and the director candidates being able to successfully complete their respective background checks, MCR's ability to obtain additional financial resources and sufficient working capital, currency fluctuations and other risks, and could differ materially from what is currently expected as set out above.

Forward-looking information contained in this press release is based on current estimates, expectations and projections, which MCR believes are reasonable as of the date of this press release. MCR uses forward-looking statements because it believes such statements provide useful information with respect to the operation and financial performance of MCR, and cautions readers that the information may not be appropriate for other purposes. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While MCR may elect to, it does not undertake to update this information at any particular time except as required by applicable law.

The TSX Venture Exchange nor its Regulation Services Provider has neither approved nor disapproved the contents of this press release.

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