CNA GROUP LTD.

(Company Registration No. 199000449K)

PROPOSED SPIN-OFF AND SEPARATE LISTING OF THE WASTE WATER
TREATMENT BUSINESS


The Board of Directors (the Board) of CNA Group Ltd. (the Company, and together with
its subsidiaries, the Group) wishes to inform shareholders that it has appointed
professional advisers to commence work on the proposed spin-off of the Companys waste
water treatment business (the Water Treatment Business) in the Peoples Republic of
China (the PRC) by way of a separate initial public offering (IPO) and listing on the
Catalist Board of the Singapore Exchange Securities Trading Limited (the Proposed
Listing).

The Water Treatment Business is currently carried out by the Companys wholly-owned
subsidiary, CNA Dongying Water Co., Ltd (CNA Dongying). A new investment holding
company (NewCo) will be incorporated as the listing vehicle to hold CNA Dongying (either
directly or indirectly), pursuant to a corporate restructuring exercise to streamline the
Groups corporate structure and facilitate the spin-off. The NewCo will also raise funds from
pre-IPO investors to provide for CNA Dongyings working capital needs and the expenses
relating to the Proposed Listing. The Company currently plans to retain a beneficial interest
in at least 40% of the total issued share capital of the NewCo following the completion of the
Proposed Listing.

The Company believes that the Proposed Listing will unlock shareholder value and increase
the overall financial capacity and flexibility of the Group, allowing it to focus on the growth of
its other strategic business units. The Proposed Listing will enable the Group to increase the
scale of its principal businesses going forward and continue to participate in the growth of
the Water Treatment Business with a more optimal capital structure for the foreseeable
future.

The Company is in discussions with potential pre-IPO investors for the fund-raising and
potential sponsors to undertake the sponsorship of the Proposed Listing. The Company will
make further announcements as and when appropriate to keep shareholders informed of
any material developments in respect of the Proposed Listing.

In the meantime and as the Proposed Listing is at its initial commencement stage,
Shareholders are advised to exercise caution when dealing in the securities of the
Company and refrain from taking any action in relation to their securities which may
be prejudicial to their interests.

The Board would like to further note that, separate from and independent of the Proposed
Listing, the Company has also been in discussions with its professional advisers and
potential investors on other possible fund raising and corporate actions to meet the Groups
working capital and other funding needs with respect to its on-going businesses.




On CNA Dongying and the Water Treatment Business

CNA Dongying is involved in providing sustainable waste water re-use and processing
solutions to meet the needs of its industrial and municipal customers. It provides innovative
solutions for clean and sustainable water, and assists its customers in industrial sites and
cities in complying with applicable discharge regulations and limiting their environmental
impact. Its primary activies are (i) waste water treatment and water recycling, and (ii)
designing, fabricating, assembling, installing and commissioning engineered water
purification and waste water treatment systems.

CNA Dongyings core project is its industrial waste water treatment plant (the Dongying
Plant) located in the Dongying Economic Development Zone in Dongying, Shandong, the
PRC. In August 2010 (and as disclosed in the Companys press release dated 23 August
2010), the Company entered a 30-year concession agreement with the Committee of the
Dongying Economic Development Zone (the Committee) to raise funds for investment in
the design, construction, operation and maintenance of a comprehensive industrial waste
water treatment plant. Following its construction, the Group would build and operate the
Dongying Plant for 30 years. After the expiration of the concession period, the Dongying
Plant will be transferred to the Committee.

During the 30-year concession period, the Committee will pay the Group a monthly fee for
waste water treatment based on the volume processed and the tariffs determined by the
Committee (Tariff), with a minimum payment amount guaranteed every month (the
Minimum Fees). The Minimum Fees will be determined based on the volume of waste
water expected to be processed at the applicable Tariff.

Physical construction of the Dongying Plant was completed in September 2013. The
Dongying Plant was subsequently commissioned and carried out its pilot run in May 2014,
and commercial operations will be commenced shortly. In addition to its processing capacity
of 30,000 tonnes per day, the Dongying Plant has achieved compliance with the PRCs
national Grade 1A emission standard. CNA Dongying received its first Tariff payment of
RMB500,000 for the pilot run in May in August, based on the minimum rate of RMB2.82 per
tonne of waste water processed.


By Order of the Board

Michael Lee Thiam Chye

Joint Company Secretary

8 September 2014