The board of directors of Shengli Oil & Gas Pipe Holdings Limited hereby announced that Huo Chunyong has tendered his resignations as an independent non-executive Director, chairman of the remuneration committee of the company and member of the audit committee and nomination committee of the company, all with effect from August 30, 2012, in order to focus on his other business commitments. Huo confirmed that he has no disagreement with the Board and there is no matter in respect of his resignations that need to be brought to the attention of the shareholders of the company. The company announced the position of the chairman of the remuneration committee of the company will be left vacant.