Trading Update and Appointment of CFO

HaiKe Chemical Group Ltd

Trading Update and Appointment of Chief Finance Officer

HaiKe Chemical Group Limited ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, today provides an update on trading ahead of its final results for the year to 31 December 2010.

For the year just ended, the Company has delivered a positive performance resulting in a significant increase in revenues and a small profit.

Revenues for the year to 31 December 2010 far exceeded the previous year driven by the increase in refinery capacity and consequently sales volumes. The Company has also benefited from higher selling prices for refined products which has helped to generate a modest profit for the year at Group level.

The Board is encouraged by the improved performance during 2010, particularly during the second half of the year. In the first half of January 2011, both sale volume and selling prices for major refinery and speciality chemical products have been stable but with rising feedstock prices eroding profitability, business conditions remain difficult and challenging.

The Company is pleased to announce the appointment of George Zeng as Chief Finance Officer. Mr Liu Dongguang has stepped down as Acting CFO and will continue his position as financial controller. Prior to joining the Company, Mr. Zeng was the Chief Financial Officer of Hong Kong Jinshi Holdings, a private company with revenues of c. US$ 200 million in 2010. Between 2006-2008, he was the Qualified Accountant and Company Secretary at Eyang Holdings Group, a publicly quoted company on the Hong Kong Stock Exchange. Between 1994-2001, he worked for Arthur Andersen and ABN AMRO as an auditor and investment analyst respectively. Mr. Zeng holds a Master's degree in Economics, and is a fellow of the Association of Chartered Certified Accountants and a member of the Hong Kong Institute of Certified Public Accountants. The Board would like to thank Mr. Liu Dongguang in his role as Acting CFO and welcomes Mr. Zeng to the Company.