Huayue Electronics, Inc. entered into and consummated a Stock Purchase Agreement dated as of June 12, 2015 between the Company and Mr. Shudang Pan, the Chairman of the Board of the Company and the Chief Executive Officer of the Company's principal operating subsidiary, Changzhou Huayue Electronic Co. Ltd. On June 12, 2015, in connection with the transactions contemplated by the Purchase Agreement, Mr. Shudang Pan and his wife, Ms. Xinmei Li, resigned from the Board of Directors (the "Board") of the Company and, pursuant to the terms of the Shareholders' Agreement, the Company appointed Dr. YunZhong Wu and Ms. Yile Lisa Pan, the daughter of Shudang Pan and Xinmei Li, to the Board, to fill a vacancies on the Board created by the resignations of Mr. Pan and Ms. Li. Each of Dr. Wu and Ms. Pan will serve on the Board until the next meeting of stockholders of the Company at which directors are elected, at which time each of such directors is expected to stand for re-election.

Dr. Wu, age 46, has for more than the past five years been a senior professor in structural materials at Dalian Maritime University in Dalian, Liaoning Province, The People's Republic of China. Ms. Pan, age 26, has, since March 2014, been a Deputy General Manager of Changzhou Wujin Hengtong Metal Co. Ltd. and, from June 2011 to March 2013, was a Deputy General Manager of Changzhou Huayue Electronic Co.

Ltd.