Potato Starch manufacturer China Essence provides update on loan refinancing

The management of China Essence Group Ltd. (“China Essence” or the “Company”) wishes to provide an update on the refinancing of the US$50 million DBS bank loan.

Further to the announcement on 7 September 2010, the Company has agreed to make a US$10 million partial repayment to DBS Bank Ltd (“DBS”) before the end of the year and DBS has rolled over the outstanding US$50 million short-term loan in anticipation of the repayment. The Company is also working with DBS to term out the remaining US$40 million based on terms acceptable to both parties.

The Company will provide further updates when the financing terms and loan structure are finalised.