LONG SUCCESS (HKG:8017) to form a joint venture company

LONG SUCCESS (HKG:8017) entered into an exclusive Letter of Intent with Zao Zhuang Hua Jin Paper Co., Ltd. Whereby the company has agreed to form a joint venture company with the JV Partner to engage in the manufacturing of coated white top kraft liner board, superior coated white top board and kraft liner paperboard in Shandong Province of the PRC. The JV Company will be held as to 60% by Jining Gangning and as to 40% by the JV Partner. The registered capital of the JV Company will be RMB20 million.
 
Neither party to the Letter of Intent has any binding obligations to form the JV Company as it is subject to the entering into of a formal agreement in relation to the formation of the JV Company and matters relating thereto.