Siskinds LLP



Siskinds LLP

October 15, 2012 10:18 ET

Zungui Haixi Corporation Securities Class Action

Notice of the Granting of Leave to Proceed With Statutory Secondary Market Misrepresentation Claims

LONDON, ONTARIO--(Marketwire - Oct. 15, 2012) - This notice is directed to all persons, wherever they may reside or be domiciled, who acquired securities of Zungui Haixi Corporation ("Zungui") during the period from and including December 11, 2009 to and including August 22, 2011 (the "Proposed Class Period").

On October 9, 2012, The Honourable Mr. Justice P. M. Perell of the Ontario Superior Court of Justice, in the proposed class proceeding styled Zaniewicz et al. v Zungui Haixi Corporation., et al., Court File No. CV-11-436360-00CP (the "Action") granted leave to Jerzy Zaniewicz and Edward Clarke (the "Plaintiffs"), pursuant to section 138.8 of the Ontario Securities Act, RSO 1990, c S. 5, to assert, as against the Defendants Fengyi Cai, Jixu Cai and Yanda Cai (the "Cai Brothers"), the statutory cause of action for misrepresentation in certain core documents of Zungui (the "Leave Order").

The Leave Order means that the Plaintiffs can assert, under Part XXIII.1 of the Ontario Securities Act, that the Defendant Cai Brothers each have liability for alleged misrepresentations in Zungui's secondary market disclosure documents disseminated during the Proposed Class Period.

Leave is a preliminary procedural matter. The merits of the claims in the Action, and the allegations of fact on which the claims are based, have not been finally determined by the Court. Leave has not yet been obtained against any Defendants other than the Cai Brothers. The Defendants other than the Cai Brothers have appeared in the Action and deny that the claims in the Action have merit.

ADDITIONAL INFORMATION

The Ontario Superior Court of Justice offices cannot answer any questions about the matters in this notice. The claim, orders of the court and other information are available on the Plaintiffs' counsel's website at www.classaction.ca.

Questions relating to the Action should be directed by email or telephone to the Plaintiff's counsel:

Nicholas C. Baker
Siskinds LLP
680 Waterloo Street
London, ON N6A 3V4
Tel: 1.800.461.6166 ext. 7868 (toll free)
Email: nicholas.baker@siskinds.com

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