Warm Congratulations on the Successful Signature of the Share Transfer Agreement between Jingmen GEM Co., Ltd. and Shu Powder Ltd.

On 12th October 2016, Jingmen GEM Co.,Ltd. (hereinafter called “Jingmen GEM”) and Shu Powders (Hong Kong) Ltd. (hereinafter called “Shu Powders”) announced that they have signed the share transfer agreement. Jingmen GEM will benefit from “One Belt One Road” strategy and develop the channel of cross-border mining to extend its core business - ultrafine cobalt powder from domestic market to global market.

The signing ceremony was held at the International Conference Hall of GEM (Jingmen) Recycling Industrial Park. The attendees included Mayor of Jingmen Municipal Government, Zhang Yitao; Director of the Working Party Committee of High-Tech District an d Secretary of Duodao District Party of Jingmen City, Lv Yibin; Secretary General of Jingmen Municipal Government, Chen Qianhua; Director General of Jingmen Environmental Protection Bureau, He Xiaojun; Deputy Director General of Jingmen Environmental Protection Bureau, Liu Houan; Chairman of District Political Consultative Conference (PCC) of Duodao District of Jingmen City, Xu Xiande; Deputy Director of Party Committee Member of High-Tech District an d Deputy Governor of Duodao District of Jingmen City, Wang Shuhua; Shareholders of Shu Powders Ltd., Philippe Lavagna an d Justin Nell; China Regional Representative of Shu Powders Ltd., Zhang Peng; Chairman of the Board of GEM Co., Ltd., Xu Kaihua an d Deputy General Manager of GEM Co., Ltd., Zhou Bo. Prior to the signing ceremony, accompanied by Zhou Bo, Philippe Lavagna an d Justin Nell were given a tour to witness how to turn trash into treasure at Jingmen GEM. They visited the “Urban Mining” museum, National Engineering Research Centre for Waste Electrical an d Electronic Equipment (WEEE) Recycling, WEEE Sustainable Dismantling Workshop, Ultrafine Cobalt Powder Recycling Workshop, etc. Mayor Zhang Yitao met with Philippe Lavagna an d Justin Nell, introduced the development of Jingmen city an d promised to provide government"s support for both companies. A brief introduction of Shu Powder was given by Mr. Philippe with his great confidence in this collaboration to develop a world-leading cobalt powder supplier with Jingmen GEM.

At the signing ceremony, Xu Kaihua (the Chairman of the Board of GEM) said that this collaboration with Shu Powder would be a significant step for GEM when the location of its industrial base has been extended to Durban in the South Africa. GEM has grabbed the opportunity of “One Belt One Road” strategy an d developed its global industrial layout. This collaboration will provide GEM with the opportunity to share Shu Powder’s resources an d extend its core business – ultrafine cobalt powder from domestic market to global market. The great journey sets sail from Jingmen with Philippe Lavagna an d Justin Nell, aiming at developing a world’s leading cobalt powder manufacturer an d an international cobalt-nickel resource supply base to support the development of battery material industry.

Philippe Lavagna said at that “As a key player in the cobalt industry in China an d in the world, GEM produces the majority of the cobalt powder for Asian market that meets the requirements of Shu Powder. This collaboration will results in a synergistic effect which is in line with the “One Road One Belt” strategy proposed by the Chinese authority. Major Zhang Yitao said that “Shu Powder has an international reputation in producing an d distributing cobalt powder an d its products”.

Jingmen GEM is a global waste cobalt resource recycling company an d the largest ultrafine cobalt powder manufacturer in China. The successful signing ceremony indicates a beginning of a new chapter for both parties an d a new journey for Jingmen Municipal Government. We hope that both parties will keep their promises an d promote the win-win situation. We believe this opportunity will accelerate the development of GEM. In addition, a more flexible, convenient an d healthy business environment will be provided by the Jingmen Municipal Party Committee an d Government. Founded in 2004, Shu Power is one of the leading producers an d distributors of cobalt powder an d its products whose headquarter an d manufacturing base are located in Hong Kong an d Durban (South Africa), respectively. As an enterprise with international reputation, Shu Powder has a good relationship with the whole supply chain of cobalt industry an d long-term partnerships with major users of cobalt powder in the world such as Kenna Metal, Sandvik an d Ceratizit, etc. Jiao Hua, Assistant to General Manager of GEM Co., Ltd. an d Deputy Executive General Manager of Jingmen GEM Co., Ltd.; Zhangxiang, Assistant to General Manager of GEM Co., Ltd.; Liu Tao, Director of Environmental Management an d Control Centre; Song Wei, Director of Overseas Investment Department; an d Jiang Miao, Director of Import an d Export Department attended this signing ceremony.

Figure 1. Shareholders of Shu Power, Philippe Lavagna (the third from the left) an d Justin Nell (the second from the right) visited the Urban Mining Museum

Figure 2. Major of Jingmen Municipal Government, Zhang Yitao (the third from the right) met with the shareholder of Shu Powder, Philippe Lavagna (the third from the left)

Figure 3. The signing Ceremony between the Shu Powder an d GEM.

Figure 4. A toast to the successful signing ceremony.