Contract with National Retailer

HaiKe Chemical Group Ltd

A major sales agreement with a leading Chinese retailer of refined products

HaiKe Chemical Group Limited ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK) petrochemical, specialty chemical and biochemical business based in China, today announces that it has entered into agreement with a major Chinese retailer of refined products for sale of its diesel and gasoline.

Under the agreement, this retailer will buy a total of 180,000 tons and 300,000 tons of gasoline and diesel respectively from the Company in a twelve-month period from July 2011 to June 2012. This is a significant contract and equates to one third of the Company's output in the last year. The selling prices are higher than those sold to current wholesale clients which should therefore enhance the Company's profitability.

HaiKe's refinery business accounted for c.89% of group turnover and remained the largest profit contributor to the first half of this year.

Xiaohong Yang, Executive Chairman said:

"We are very excited to be joining forces with a retailer that has significant nationwide market share. This partnership represents significant progress for HaiKe as we pursue our objectives to grow the refinery business organically. The new alliance will create mutual benefits for both parties and increase HaiKe's presence in the domestic refined oil market."

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