Toronto, Ontario--(Newsfile Corp. - September 25, 2015) - Liuyang Fireworks Limited (TSXV: FWK) (the "Company") announces that, at the meeting of the Company's shareholders held on September 18, 2015 (the "Meeting"), the shareholders approved the amendments to the Company's bye-laws and the share consolidation in furtherance of a going private transaction involving a share purchase by the Company (the "Transaction"). In addition, on September 25, 2015, the Company entered into an agreement with Mr. Miao Hu, one of the Offerors (as defined below) under the Transaction, for the financing to complete the Transaction. Mr. Miao Hu is the owner of Better Invention Overseas Limited ("Better Invention") and is also a director and the President and Chief Executive Officer of the Company. At the Meeting, 33 shareholders were present in person and by proxy representing a total of 44,243,203 common shares (pre-consolidated basis) of the Company (the "common shares") that were voted at the Meeting. The matters were also approved by a majority of the minority shareholders of the Company, being those shareholders other than the three Offerors under the Transaction, who in the aggregate own 34,990,415 common shares.

As previously announced by the Company on August 18, 2015, the Company and Great Exploits Development Limited ("Great Exploits"), Better Invention and Bay Tree Enterprises Limited ("Bay Tree" and together with Great Exploits and Better Invention, the "Offerors") entered into an agreement (the "Agreement") pursuant to which the Offerors are to become the remaining shareholders of the Company after the Company purchases for cancellation all of the outstanding common shares of the Company not already owned by the Offerors.

The Transaction will be effected as soon as possible by way of a 6,000,000-to-1 share consolidation of all of the issued and outstanding common shares (the "consolidation"). Following the consolidation, the Company will purchase for cancellation all of the common shares held by shareholders whose aggregate holding is less than one whole post-consolidation share. As a result, upon completion of the Transaction, only the three Offerors will remain as shareholders of the Company. Shareholders holding less than a whole share, including shareholders holding fractional shares through CDS & Co. or other nominees, following the consolidation, will be entitled to receive a cash payment of CAN$0.048 for each pre-consolidation share on the purchase by the Company of such fractional post-consolidation shares. The Transaction will be effected by way of a share consolidation and share purchase under Bermuda corporate law.

Once the Transaction is completed, the common shares of the Company will be delisted from the TSX Venture Exchange and the Company will also apply to the applicable Canadian securities regulatory authorities to cease to be a reporting issuer in each province in which the Company is a reporting issuer.

Trading of the Company's common shares on the TSX Venture Exchange was voluntarily halted after market close on September 14, 2015, three business days prior to the Meeting; such halt is intended to avoid or minimize settlement and entitlement issues. Trading will remain voluntarily halted pending completion of the Transaction.

About Liuyang Fireworks Limited

Liuyang Fireworks Limited is a leading China-based manufacturer of fireworks distributed both domestically and within more than 15 countries in North America, South America and Europe. The Company has more than 17 years of experience in the fireworks industry and is a supplier to the world's top five fireworks wholesalers and retailers. The Company's ISO9001-certified manufacturing facilities are located in the Liuyang area of Hunan, China, where more than half of the world's fireworks are produced.

For further information, contact:

Jacky Long
Chief Financial Officer
Liuyang Fireworks Limited
Telephone: 647.350.8818
E-mail: jackylong@farocean.com

Forward-Looking Statements

This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this news release includes information relating to completion of the going private transaction. The forward-looking information is based on certain assumptions, which could change materially in the future. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risk that the Company is unable to complete the share consolidation or the share purchase, the necessary regulatory approvals are not obtained or the transaction may be terminated prior to completion. These and other risks are further described under "Risk Factors" in the Company's Filing Statement dated May 27, 2009 and in the management information circular for the shareholders' meeting to be held on September 18, 2015, which are available on SEDAR and may be accessed at www.sedar.com. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.