China Silver : Profit Warning

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CHINA SILVER GROUP LIMITED 中國白銀集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 815)

PROFIT WARNING

This announcement is made by China Silver Group Limited (the "Company" and together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company wishes to inform the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 ("1H 2018") (which have not been confirmed, reviewed or audited by the Company's auditors or audit committee) and other information currently available to the Group, the Group expects to record a decrease of not less than 40% in its consolidated net profit attributable to owners of the Company for 1H 2018 as compared to that for the six months ended 30 June 2017 ("1H 2017") of RMB171 million. The expected decrease in consolidated net profit is mainly attributable to factors including but not limited to (i) the further tightening of environmental measures beginning in the second half of 2017 which has adversely affected the overall performance of the smelting business; and (ii) the absence in 1H 2018 of a significant reversal of an overprovision of income tax expense comparable to that recorded in 1H 2017.

The Company is still in the process of finalising its interim results for 1H 2018. Detailed financial information and performance of the Group for 1H 2018 will be disclosed in the Company's interim results announcement for 1H 2018 which is expected to be published by the end of August 2018. The information contained in this announcement is only based on the Company's preliminary review of the unaudited consolidated management accounts of the Group, which have not been confirmed, reviewed or audited by the Company's auditors or audit committee and may be subject to adjustments.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Silver Group Limited

Chen Wantian

Chairman

10 August 2018, Hong Kong

As at the date of this announcement, the executive directors are Mr. Chen Wantian, Mr. Sung Kin Man, Mr. Song Guosheng, and Mr. Chen Guoyu; and the independent non-executive directors are Mr. Guo Bin, Mr. Song Hongbing, Dr. Li Haitao and Dr. Zeng Yilong.