Date: Nov 18, 2013 Source: (
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COMPLETION OF ACQUISITION OF ASSETS OF HYDROFLAME
Reference is made to the announcement of the Company dated 28 October 2013 (the '' Announcement'' ) in relation to the acquisition of an advanced heavy oil recovery technology and the related assets of HydroFlame Technologies, L.L.C. (the Acquisition'' ). Unless otherwise stated, capitalized terms used herein shall have the same meanings as those defined in the Announcement. The Board is pleased to announce that the Acquisition has been completed on 15 November 2013 and a further consideration of US$2,975,000 has been paid by the Group upon Closing under the Asset Purchase Agreement. Dr. Dandina N. Rao, the inventor, has entered into an agreement to continue developing, upgrading, and improving the technology for the Group. The Group is working toward performing downhole tests at local oil wells and will endeavor to develop and commercialize the HydroFlame technology in near future.
UPDATE ON THE RECENT DEVELOPMENT OF THE GROUP
Leveraging on the strong and comprehensive oil and gas expertise and investment background of the management team, in addition to the Acquisition, the Group has also been exploring various oil and gas drilling opportunities and securing certain leases in North America. The Board considers that the Acquisition and the drilling projects are good opportunities for the Group to enter and soundly grow its oil and gas business in North America market at low cost with prominent upside potential. Hong Kong, 18 November 2013 By order of the Board
KING STONE ENERGY GROUP LIMITED
Xu Zhendong - Chairman
As at the date of this announcement, the executive Directors are Mr. Xu Zhendong, Mr. Zhang Wanzhong, Mr. Tian Wenwei, Mr. Zong Hao, Mr. Xu Zhuliang and Mr. Benjamin Clark Danielson, the non-executive Director is Mr. Zhang Yongli and the independent non-executive Directors are Mr. Chiu Sui Keung, Mr. Li Peiming, Mr. Lu Binghui, Mr. Lee Ping and Mr. Liu Shengming.
