(17 January 2012– Hong Kong) CHIHO-TIANDE Group Limited (‘Chiho-Tiande’ or the ‘Company’, together with its subsidiaries, ‘the Group’, Stock code:976) announced that  the Company’s Chairman Mr. Fang Ankong, through HWH, together with Delco have executed the Share Sale and Purchase Agreement, to sell an aggregate of 166,696,754 Shares, representing approximately 16% of the existing issued share capital of the Company to Sims Metal Management Dragon Holdings Limited (Sims), a Hong Kong subsidiary of Sims Metal Management Limited (SMM), at the total consideration of HK$750,135,393 (representing HK$4.50 per Sale Share). Delco has irrevocably granted Sims the Option to purchase 20,837,095 Shares, representing a further 2% of the existing issued share capital of the Company, at HK$6.00 per Option Share on the terms and subject to the conditions set out in the Share Sale and Purchase Agreement.

In addition, in order to support the continuing growth of the Group and subject to the approval of the Independent Shareholders, the Company entered into the Subscription Agreement with HWH, Delco and Sims pursuant to which the Company will issue to Delco, HWH and Sims three-year 4% coupon Convertible Bonds in the aggregate principal amount of HK$815,800,000 with the detachable Warrants in registered form to subscribe for an aggregate of 12,638,441 Shares at the initial exercise price of HK$6.00 per Share for an aggregate principal amount of HK$75,830,646. Assuming full exercise of the Option and full conversion of the Convertible Bonds and the Warrants, Sims is expected to hold not more than approximately 20% of the fully diluted issued share capital of the Company. Daiwa Capital Market is the Company’s sole financial adviser for the transaction. 

SMM is the world’s largest listed metal recycler with ordinary shares listed on the Australian Securities Exchange (ASX: SGM) and American Depositary Receipts listed on the New York Stock Exchange (NYSE: SMS). The core business of SMM, its subsidiaries and its affiliated companies are metals and electronics recycling. During the Fiscal 2011, SMM generated approximately 85 percent of its revenue from operations in North America, the United Kingdom, Continental Europe, New Zealand and Asia.

The Board firmly believes that in view of SMM’s global reach and customer network, advanced technologies and solutions in the metals and electronics recycling industry together with its strong global resources with approximately 260 facilities worldwide, the proposed strategic collaboration with SMM will significantly add value and expertise which complements that of the Group, and will considerately enhance the Group’s current position for future expansion. The Group further believes that having SMM as a significant minority shareholder of the Group is a strong recognition of the Group’s competitiveness and achievements and will significantly enhance the overall reputation and strategic growth of the Group within the metal recycling industry.

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About CHIHO-TIANDE Group Limited

CHIHO-TIANDE Group Limited listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 July 2010, is a Mixed Metal Scrap recycler specialized in recycling, reuse and processing of mixed metal scrap. The Group specializes in the recycling and processing of imported mixed metal scrap. Its business operations are broadly classified into three categories: metal recycling business, foundry business and wholesale business. The Group is the largest Mixed Metal scrap recycler in China in terms of the total import volume for Mixed Metal Scrap approved by the MEP and the actual import volume of Mixed Metal Scrap. Chiho-Tiande possesses a well established procurement network for mixed metal scrap, and operating through its three sizable processing facilities locating in Taizhou, Ningbo, Shanghai, Hong Kong and a two megaton processing facility in Yantai.

This press release is issued by Wonderful Sky Financial Group Limited on behalf of CHIHO-TIANDE Group Limited.

For details, please contact:

Wonderful Sky Financial Group Limited

Katy Chan / Yolanda Wang / Melody Wang / Sharon Lau

Tel:   (852) 2851 1038

Fax:  (852) 2815 1352

Email: katychan@wsfg.hk / yolandawang@wsfg.hk / melodywang@wsfg.hk / sharonlau@wsfg.hk