MCG Mountain China Resorts Holding Ltd

Mountain China Resorts (Holding) Limited (TSX VENTURE:MCG) ("MCR" or the
"Company"). The Company wishes to advise that on March 2, 2012, the Company's
Chinese operating subsidiary, Heilongjiang Yabuli On Snow Asian Game Village
Hotel Co., Ltd. ("Yabuli"), missed the second installment principal repayment in
the amount of RMB 30 million under Yabuli's RMB 250 million loan agreement (the
"Loan Agreement") with the China Construction Bank (the "Bank"). Even though the
Company recently completed a private placement for $19,026,000, due to foreign
exchange regulations of People's Republic of China, the Company is not able to
use the proceeds of this private placement to make the repayment to the Bank
within a short period of time. The Company is currently negotiating with the
Bank for postponement of this second installment principal payment for 2 years. 



According to the Loan Agreement between Yabuli and the Bank, the Bank has the
right to accelerate Yabuli's obligation to repay the entire unpaid principal
plus interest immediately and taking necessary legal actions to enforce on the
security. However, during the Company's initial negotiation with the Bank,
representatives of the Bank have advised the Company that the Bank will not take
immediate actions against Yabuli or the Company. The Company will provide an
update on its negotiation with the Bank as soon as any new development takes
place.  


On a different note, the Company is pleased to announce that its other Chinese
subsidiary, Heilongjiang Yabuluoni Zhiye Co., Ltd., has repaid its loan facility
of RMB 150 million with Harbin Bank and thereafter secured a new loan from
Harbin Bank for the amount of RMB 140 million (the "New Harbin Bank Loan"). The
New Harbin Bank Loan carries a three year term with a maturity date of February
15, 2015 and a fixed annual interest rate of 7.315%, which interest to be paid
on a monthly basis commencing February 16, 2012. The principal of the Harbin
Bank Loan is repayable in four installments of RMB 35 million each, starting
with the first installment repayment due on August 15, 2013 and each subsequent
installment repayment due every six months thereafter. The original RMB 150
million credit facility with Harbin Bank was first repaid with an advance from a
short term bridge loan made by a third party trust company. The Company then
used the advance from the New Harbin Bank Loan and RMB 10 million of its own
funds to repay the bridge loan from the third party trust company.  


About MCR  

MCR is the premier developer of four-season destination ski resorts in China.
MCR is transforming existing China ski properties into world-class, four-seasons
luxury mountain resorts with excellent real estate investment opportunities for
discerning buyers. In February 2009, the Company's Sun Mountain Yabuli Resort
was awarded Best Resort Makeover in Asia by TIME Magazine. Yabuli is also the
permanent home of the China Entrepreneur's Forum the leading and most
influential community of China's most distinguished and successful entrepreneurs
and business leaders with over 5,000 members from across a variety of key
industries.


ON BEHALF OF THE BOARD 

Gang Han, Chief Financial Officer

Mountain China Resorts (TSXV:MCG)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

Mountain China Resorts (TSXV:MCG)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024