Silver Base Group Holdings Limited (“Silver Base” or “the Company”, together with its subsidiaries, the “Group”; Stock Code: 0886.HK), is pleased to announce thaton 3 November 2013, 深圳銀基酒類銷售有限公司 (Shenzhen Silver Base Liquor Sales Co. Ltd.) (“Shenzhen Silver Base Sales”), a wholly-owned subsidiary of the Company, entered into a capital increase and share transfer agreement (the “Share Agreement”) with 中酒時代酒業(北京)有限公司 (Zhongjiu Shidai Winery (Beijing) Co., Ltd.) (“Zhongjiu Shidai Winery”) , the existing shareholders of Zhongjiu Shidai Winery and certain new investors. After completion of the Share Agreement, Shenzhen Silver Base Sales will own 20% equity interest inZhongjiu Shidai Winery.

The “Silver Base’s strategic investment in 中酒網 (Zhongjiu Net) (www.zhongjiu.cn) and Zhongjiu Net’s Online-to-Offline” project kicked off in Beijing on 3 November 2013. Mr. Wang Jindong, Executive Director and Chief Financial Officer of Silver Base; Mr. Lai Jinyu, Chairman of Zhongjiu Net; Mr. Gu Jiangxing, Chief Executive Officer of Zhongjiu Net; Mr. Wang Zexu, Chief Operating Officer of Zhongjiu Net;together with leaders of multiple major Chinese baijiu enterprises, as well as over 100 well-known media have witnessedthis important day of Silver Base’s development in wine/spirit E-commerce market .

The E-commerce market in China has experienced significant growth in the past two years. Chinese consumers are increasingly using online shopping due to its convenience, express delivery and more competitive prices. Facing the huge market potential of the E-commerce market, Silver Base has grasped this business opportunity to further expand its online sales channels and E-commerce business. The strategic investment in Zhongjiu Net will not only supplement Silver Base’s traditional distribution channels, but also further optimize Silver Base’s business philosophy of “Unity of traditional channel, E-commerce and chain stores”.

As the innovator in establishing the online-to-offline sales model in the Chinese wine/spiritindustry, Zhongjiu Net integrated the offline market with online opportunities througha four-in-one operational model of “offline chain store + mobile-commerce + open platform + group purchase”. This model will not only fulfill the demands of different customers but also complete the strategic layout in the E-commerce channels. Zhongjiu Net has already established “Zhongjiu Net Integrated Sales Platform” at the major online shopping platforms, including the official websites of Zhongjiu Net, Zhongjiu franchise stores, Tmall(天貓), Taobao (淘寶), JD (京東), Dangdang (當當), Amazon (亞馬遜), Suning (蘇寧), Gome (國美), QQ (騰訊), and hundreds of other distribution stores, to achieve full coverage in the E-commerce channels. As the leading distributor of Chinese baijiu, Silver Base has further developed its traditional distribution model to E-commerce platforms through the strategic cooperation with Zhongjiu Net. With synergy of both parties, a more diversified sales channel and marketing plan could be constructed and more choices would be offered to customers. Mr. Liang Guoxing,Chief Executive Officer and Chairman of Silver Base also said, “Zhongjiu Net possesses an up-to-date E-commerce platform and strong operational capability. This investment symbolizes the Group’s exploration and development of the new operating model. We strive to establish an influential wine/spirit sales platform with Zhongjiu Net to further strengthen our competitiveness in the industry.”