China National Materials Company Limited

China National Materials Company Limited announced that Sinoma Science & Technology (Sinoma), a subsidiary of the Company, proposed to issue 50,000,000 new A Shares at a subscription price of RMB25.08 per share by way of private placement to the Company, Beijing Huaming and China Water Investment to raise funding in the amount of RMB931, 529,962.44 in order to satisfy its operation need. The Company entered into the Share Subscription Agreement with Sinoma, pursuant to which, the Company has agreed to participate in the A Share Issue and subscribe for 37,142,343 A Shares of Sinoma at a subscription price of RMB25.08 per share for an amount of RMB931,529,962.44 to be settled in cash by the Company. Beijing Huaming entered into the Huaming Share Subscription Agreement with Sinoma, pursuant to which, Beijing Huaming has agreed to participate in the A Share Issue and subscribe for 4,285,886 A Shares of Sinoma at a subscription price of RMB25.08 per share for an amount of RMB107, 490,000 to be settled by Beijing Huaming by way of the transfer of the Huaming Consideration Shares. China Water Investment entered into the CWI Share Subscription Agreement with Sinoma, pursuant to which, China Water Investment has agreed to participate in the A Share Issue and subscribe for 8,571,771 A Shares of Sinoma at a subscription price of RMB25.08 per share for an amount of RMB214, 980,000 to be settled by China Water Investment by way of the transfer of the CWI Consideration Shares.