New Share Option Plan

HaiKe Chemical Group Ltd

New Share Option Plan

HaiKe Chemical Group Limited ("HaiKe" or the "Group"), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, today announces the award of options to Group Directors, senior management and employees under a new share option plan (the "Option Scheme").

The Option Scheme is designed to ensure the Group is able to retain and attract qualified and experienced professionals with the necessary capabilities to ensure that the Group remains a leader in its field. The Option Scheme will give the Company added flexibility in structuring more competitive remuneration packages, which are designed to reward and retain personnel whose services are vital to the well-being, growth and success of the Company.

The Option Scheme comprises two underlying option schemes, one a conventional share option plan (the "Option Plan") and one an equivalent scheme for resident citizens of The People's Republic of China (the "Phantom Plan").

Options granted under the Option Plan are exercisable at 58.25p per share ("Options"). An award under the Phantom Plan shall entitle the beneficiary to a cash payment equivalent to the appreciation in value up to the date of exercise of the shares as if they had been awarded Options with an exercise price of 58.25p per share less such amount required to satisfy any tax liability incurred by the Group ("Phantom Options").

In each case, a beneficiary under the Option Scheme shall be able to exercise their entitlement in the following installments, 40% on the first anniversary of the Grant Date; 30% on the second anniversary of the Grant Date; and the remaining 30% on the third anniversary of the Grant Date. The Grant Date for the issued Options and Phantom Options is 1 February 2011.

In total, 536,950 Options and 3,298,407 Phantom Options are being awarded under the Option Scheme. The Options and Phantom Options issued under the Option Scheme comprise all the options in issue.

The Directors/PDMRs of the Company have been awarded the following number of Options and Phantom Options:

In addition, senior management and employees of the Group have been awarded an aggregate of 2,531,336 Phantom Options.

All Options and Phantom Options have an exercise price of 58.25p per ordinary share.

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