Far East Holding Group Co., Ltd.

Announcement on Non-public Issuance Results of 2016 Exchangeable Bonds (Phase I)

The Board of Directors and all Directors guarantee that this announcement does not contain any false records, misleading statements or material omissions, and that they take severally and jointly responsibility for the truthfulness, accuracy and completeness of the contents.

Approved by Shanghai Stock Exchange Letter [2016] No. 330 Document, Far East Holding Group Co., Ltd. (hereinafter referred to as the "Issuer") is allowed for non-public issuance of exchangeable bonds no more than RMB 3 billion to qualified investors. Far East Holding Group Co., Ltd. successfully issued non-publically 2016 exchangeable bonds (Phase I) (hereinafter referred to as the "Bonds") on August 3, 2016, raising the funds of RMB 560 million, with the issued price reaching RMB100.

The Bonds were issued offline to qualified investors through inquiry and placement. The final issued size for variety A of the Bonds was RMB 200 million, with the coupon rate of 1.00%; the final issued size for variety B of the Bonds was RMB 360 million, with the coupon rate of 4.09%; and the final issued size for variety C of the Bonds was RMB 0 million.

We hereby make the above announcement.

The Issuer: Far East Holding Group Co., Ltd.

Leading underwriter: Haitong Securities Company Limited

Leading underwriter: Huatai United Securities Co., Ltd.

August 3, 2016