The board of directors of Inner Mongolia Energy Engineering Co., Ltd. announced that the resolutions in relation to the change in the general manager of the company and changes to the Board were considered and approved at the Board meeting held on July 31, 2018, and unless otherwise stated, will take effect upon approval by the shareholders of the company at the company's second extraordinary general meeting of 2018. (a) Mr. Lu Dangzhu, the current chairman of the company, resigned as the General Manager, taking effect upon the receipt of Mr. Lu's resignation report by the Board, being the date of this announcement, and will be succeeded by Mr. Chao Ketu; (b) Mr. Chao Ketu was nominated as an executive Director, vice chairman of the company, and a member of each of the strategic investment committee and remuneration committee of the company; (c) The following current independent non-executive Directors of the Company will resign as independent non-executive Directors and the following positions: i. Mr. Wang Wen -- the chairman of the Remuneration Committee and a member of the Strategic Investment Committee; ii. Mr. Su Nan -- a member of each of the nomination committee and audit committee of the company; iii. Mr. Ding Zhiyun -- a member of each of the Audit Committee and Strategic Investment Committee; iv. Mr. Yang Hong -- a member of each of the Nomination Committee and Remuneration Committee; and (d) Mr. Duan Guiying was nominated as an independent non-executive Director and a member of each of the Audit Committee and Nomination Committee, and the chairman of the Remuneration Committee. Change In General Manager: In order to further strengthen the corporate governance structure and enhance the operation management efficiency of the Company, Mr. Lu Dangzhu, an executive Director, has resigned as the General Manager, taking effect upon the receipt of his resignation report by the Board, being the date of this announcement, and will be succeeded by Mr. Chao Ketu. The Board considered and approved the Proposal on Resignation of General Manager of the Company and the Proposal on Appointing General Manager of the company at the Board Meeting. Changes to the Board Appointment of Executive Director: The Board considered and approved the Proposal on Appointing Executive Directors of the company and the Proposal on Appointing the Vice Chairman of the company, and nominated Mr. Chao Ketu as the executive Director of the first session of the Board and the vice chairman of the company at the Board Meeting, and the tenure of Mr. Chao's appointment will commence from the date of consideration and approval at the EGM and end when the term of the first session of the
Board expires. The appointment of Mr. Chao is subject to the approval by Shareholders at the EGM. Mr. Chao Ketu, aged 55, has been the deputy secretary of the Party committee of Inner Mongolia Energy Engineering Investment (Group) Co., Ltd. since July 2018. Mr. Chao served as the deputy secretary of banner committee, acting banner chief, banner chief and secretary of banner committee of Chahar Right Rear Banner of Inner Mongolia Autonomous Region. In addition, from September 2010 to July 2018, Mr. Chao served as the deputy director and a member of the Party committee of the State-owned Assets Supervision and Administration Commission of Inner Mongolia Autonomous Region. Changes in Independent Non-Executive Directors: The Board of the company hereby announces that Mr. Wang Wen, Mr. Su Nan, Mr. Ding Zhiyun and Mr. Yang Hong, the current independent non-executive Directors of the company, will resign as independent non-executive Directors due to work arrangements, taking effect upon the receipt of each of their resignation reports by the Board, being the date of this announcement. The Board has considered and approved the Resolution of Resignation of Independent Non-executive Directors of the company at the board meeting. The four former independent non-executive Directors will continue to perform their duties as directors during the period from the Board approves the resignation of the Directors to the
approval of the appointment of new Directors at the EGM. Appointment of Independent Non-Executive Director: The Board considered and approved the Proposal on Appointing Independent Non-Executive Directors of the company at the Board Meeting. Mr. Duan Guiying was nominated as an independent non-executive Director of the first session of the Board for a tenure which will commence from the date of consideration and approval at the EGM and end when the term of the first session of the Board expires. The appointment of Mr. Duan is subject to the approval by Shareholders at the EGM. Mr. Duan Guiying, aged 55, has been a director of Inner Mongolia Energy Engineering (Group) Co., Ltd. since May 2018. Mr. Duan served as the staff member, section chief and deputy manager (deputy head) of the finance section of Inner Mongolia Salt Company Bameng Branch (Salt Affairs Bureau) from July 1986 to July 1999, and was the director of the Inner Mongolia Lake Salt Science Research Institute and the general manager of Inner Mongolia Yuantong Feed Co., Ltd. (division-head level) from April 1999 to April 2007. During the period from April 2007 to August 2013, Mr. Duan also served as the secretary and head of Ejinao'er Salt Works of Xilin Gol League. During the period from August 2013 to May 2018, Mr. Duan served as a member of the Party committee, deputy manager and deputy head of the Inner Mongolia Autonomous Region Salt Company (Administration Bureau of Salt Affairs). Changes to the composition of the board committees: The Board considered and approved the Proposal on Adjustment to the Members of the Special Committees of the Board at the Board Meeting. The tenure will commence from the date of consideration and approval by the Shareholders at the EGM and end when the term of the first session of the Board expires. The members of each of the special committees of the Board will be updated as follows: Members of the Strategic Investment Committee: Lu Dangzhu, Chao Ketu and Yue
Jianhua, and the chairman being Lu Dangzhu. Members of the Remuneration Committee: Duan Guiying, Chao Ketu and Yue Jianhua, and the chairman being Duan Guiying. Members of the Audit Committee: Lau Miu Man, Yue Jianhua and Duan Guiying, and the chairman being Lau Miu Man. Members of the Nomination Committee: Lu Dangzhu, Yue Jianhua and Duan Guiying, and the chairman being Lu Dangzhu.