Sterling Group Ventures, Inc. ("Sterling") is a natural resource company
headquartered in Vancouver, Canada. Sterling signed two agreements (the "Agreements") with Chenxi County Hongyu Mining Co. Ltd. ("Hongyu") and its shareholders ("Hongyu
Shareholders") regarding the Gaoping phosphate mine (the "GP Property') located in Tanjiaxiang, Chenxi County, Hunan Province, China and other phosphate resources in Hunan Province. There
are about 168.7 million shares outstanding which are quoted on the Quality Board (QB) of the electronic system of OTCMarkets (OTCQB) under the symbol SGGV.
Hongyu is a Chinese private mining company with connections and resources in Hunan, China.
Hongyu is interested in exploring, developing and expanding its phosphate business. Hongyu is the
holder of a mining permit (the "Permit") covering phosphorite property 38 kilometers east of Chenxi
County in the Tanjiachang Phosphorite area, Chenxi County, Hunan Province, China. The mining permit is 0.425 square kilometers above an elevation of 510 meters. The phosphate is a
sedimentary deposit and occurs at the Jinjiadong Formation of Upper Sinian. The mining permit allows initial production up to 100,000 tonnes of phosphate ore per year. The Inferred Resource is
2,190,000 tonnes of 22.58% P2O5 within the mining permit.
Sterling through its wholly subsidiary – Silver Castle Investments Ltd also signed a Letter of Intent
with Chenxi County Merchants Bureau for a larger exploration area known as the Tanjiachang Village Phosphate Deposit.
On May 16, 2011, Chinese government approved the acquisition of Hongyu by Sterling's wholly subsidiary – Silver Castle Investments Ltd.
The new business license has been issued on June 15, 2011. The final payment to shareholders of Hongyu for the acquisition was made on July 8, 2011.
has commenced production operations on its Gaoping Phosphate Project located in Chenxi County, Hunan Province, China.
Sterling Group Ventures, Inc. ("Sterling") is pleased to report that on April 9, 2016, Sterling signed a definitive agreement with Chenguo
Capital Limited ("Chenguo"). As a result of the transaction, Sterling will diversify to also become a timeshare exchange provider, a manager of
timeshare assets through agreements, and a developer of timeshare assets with fee relationships with other organizations or resorts.
Under the terms of the agreement, Sterling acquired Euro Asia Premier Real Estate (HK) Ltd ("Euro Asia (HK)"), based in Hong Kong and
which is owned by Chenguo, to be used as a vehicle in the development of a leisure timeshare exchange platform to be operated in China and
in other parts of the world to take advantage of interest and outflow of tourism from China. Sterling will deploy US$ 1 million of its cash in
order to speed up the development of the aforementioned leisure timeshare exchange platform.
Chenguo also owns the rights to two (2) hotels currently under completion and a parcel of land in Weifang, Shandong Province. According to
appraisals done in 2011 by DTZ, a global real-estate appraisal and valuation company that recently merged with Cushman Wakefield, the
properties were appraised at a combined value of 327 million RMB or approximately US$50.6 million. These properties are presently
finalizing a court approved auction process due to a default on loans advanced by Mr. Guo through a trust company, under which Euro Asia
(HK) will either receive the proceeds from the auction, if the assets are sold for fair market value, or the titles to the properties. These
properties or the cash received from auction shall be reorganized into Euro Asia (HK), which Sterling has acquired. If properties are acquired
and vested to Sterling and/or its subsidiary, we will then sell the properties as timeshare units at an expected premium above appraised value.
The properties will be organized and securitized into retail timeshares and will be entered into the timeshare exchange network currently under development and which will be owned by Sterling.
Chenguo will also offer to Sterling other assets it owns, in full or in part, including other leisure property or third party assets it is presently
negotiating to be included in the platform. Sterling will agree to become the exclusive seller of these properties. It is projected that Sterling will
only repay 75% of the properties' appraised values. Projects under negotiation include over 1 billion RMB to be contracted over the next 12 months.
Sterling will also issue to Chenguo redeemable, voting, non-interest bearing, convertible, preferred shares in escrow. These preferred shares
shall be redeemable for cash equal to 75% of the appraised value of the aforementioned properties and will be convertible at no less than
US$0.50/share. Redemption will be subject to adequate discretionary cash on hand to continue operations. Any proceeds in excess of this amount will be retained as an asset of Sterling.