SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2013

NOTE 14 – SUBSEQUENT EVENTS

On October 23, 2013, Wuhan Kingold entered into an Acquisition Agreement (the “Acquisition Agreement”) with Wuhan Wansheng House Purchasing Limited (“Wuhan Wansheng”) and Wuhan Huayuan Science and Technology Development Limited Company (“Wuhan Science”). The Acquisition Agreement provides for the acquisition of the Shanghai Creative Industry Park, which is proposed to be renamed the Kingold Jewelry International Industry Park (the “Park”). The Park is located at No. 12, Han Huang Road, Jiang’An District, Wuhan.

Pursuant to the Acquisition Agreement, the Company acquired the operating rights for 66,667 square meters (approximately 717,598 square feet, or 16.5 acres) of industrial land for use in the development of the Park for approximately RMB1.0 billion (approximately USD$164 million at current exchange rates) from Wuhan Science (which had acquired the rights from Wuhan Wansheng in July 2013), and authorized Wuhan Wansheng, as agent, to complete construction of the Park.

The purchase price will be paid in several tranches based on production and completion milestones from October 2013 through approximately June 2015, in accordance with the terms of the Acquisition Agreement. The Company intends to fund the Park through a variety of financial resources including, but not limited to, bank loans, operating cash flows, divestiture of part of the land, and, where possible, deposits or advances the Company may receive from lessees.