WAH LEE RES<1215> - Announcement

The Stock Exchange of Hong Kong Limited takes no 
responsibility for the contents of this announcement, 
makes no representation as to its accuracy or 
completeness and expressly disclaims any liability 
whatsoever for any loss howsoever arising from or in 
reliance upon the whole or any part of the contents of 
this announcement.

WAH LEE RESOURCES HOLDINGS LIMITED
(incorporated in Bermuda with limited liability)

FURTHER DELAY IN THE PUBLICATION
OF THE RESULTS OF THE GROUP
FOR THE YEAR ENDED 30 JUNE 1999
AND
DESPATCH OF THE ANNUAL REPORT
AND
DELAY IN THE PUBLICATION
OF THE UNAUDITED INTERIM RESULTS OF
THE GROUP FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
AND
NEGOTIATION WITH INDEPENDENT INVESTORS FOR POSSIBLE 
PLACEMENT

The board of directors (the "Directors") of Wah Lee 
Resources Holdings Limited (the "Company", which 
together with its subsidiaries, the "Group") announces 
that (i) the publication of the results of the Group 
for the year ended 30 June 1999 will be further 
postponed to on or before 28 April 2000; (ii) the 
despatch of the 1999 annual report and the interim 
report for the six months ended 31 December 1999 of the 
Company will be postponed further to on or before 5 May 
2000. The 1999 annual general meeting of the Company 
will be held on or before 31 May 2000 (iii) the 
publication of the unaudited interim results of the 
Group for the six months ended 31 December 1999 will 
be postponed to on or before 28 April 2000.

The Company acknowledges that the delay in the despatch 
of the 1999 annual report and the interim report for 
the six months ended 31 December 1999 of the Company 
to its shareholders constitutes  a breach of the 
listing agreement and hence, the Rules Governing the 
Listing of Securities on the Stock Exchange on the part 
of the Company. The Stock Exchange has indicated that 
the extension of the time will not be granted and has 
reserved the rights to take further action against the 
Company and/or the Directors for such breach. The delay 
in the publication of the annual results of the Group 
for the year ended 30 June 1999 and the unaudited 
interim results of the Group for the six months ended 
31 December 1999 will not constitute a breach of the 
memorandum of association and bye-laws of the Company 
and the applicable laws of Bermuda. The 1999 annual 
general meeting of the Company will be held on or before 
31 May 2000. The Group's legal advisers on Bermuda laws 
have advised that the convening and holding of the 1999 
annual general meeting of the Company on or after 31 
March 2000 will require the sanction of the Registrar 
of Companies in Bermuda. The Group has instructed its 
legal advisers on Bermuda laws to obtain such sanction.

The Company and its financial advisers are in 
negotiations with three short listed parties for the 
possible placement. Neither legally binding agreement 
nor legally binding agreement in respect of the 
possible placement has been reached yet.

In the meantime, shareholders and public investors are 
urged to exercise extreme caution in dealing in the 
shares and warrants of the Company.

Delay in release of financial information

Reference is made to the three announcements of the 
Company dated 14 December 1999, 24 December 1999 and 
14 March 2000 regarding the delay in the publication 
of the results of the Group for the year ended 30 June 
1999 and despatch of the annual report of the Company.

The Directors announce that there will be a further 
delay in the publication of the audited results of the 
Group for the year ended 30 June 1999 as the senior 
management of the Group are spending a lot of time on 
the negotiation with the Group's creditors and bankers 
for the purpose of restructuring the Group's debts, the 
Company does not have the extra resources to assist the 
Auditors to complete their audit. Therefore, the 
Directors have been informed by the Auditors that they 
have not yet obtained all the information they consider 
necessary for the purpose of finalising their audit. 
Moreover, the senior management of the Group are 
spending a lot of time to assist the financial adviser 
to conduct negotiations with the three short listed 
parties (among the six interested investors referred 
to in the announcement of the Company dated 23 March 
2000).

It is expected that the results of the Group for the 
year ended 30 June 1999 and the unaudited interim 
results of the Group for the six months ended 31 
December 1999 respectively will be published on or 
before 28 April 2000. The 1999 annual report and the 
interim report for the six months ended 31 December 1999 
of the Company will be sent to shareholders and for 
information only, to warrantholders on or before 5 May 
2000 and the 1999 annual general meeting of the Company 
will be held on or before 31 May 2000.

The Company acknowledges that the delay in the despatch 
of the 1999 annual report and the interim report for 
the six months ended 31 December 1999 of the Company 
to its shareholders constitutes  a breach of the 
listing agreement and hence, the Rules Governing the 
Listing of Securities on the Stock Exchange on the part 
of the Company. The Stock Exchange has indicated that 
the extension of the time will not be granted and has 
reserved the rights to take further action against the 
Company and/or the Directors for such breach. The delay 
in the publication of the annual results of the Group 
for the year ended 30 June 1999 and the unaudited 
interim results of the Group for the six months ended 
31 December 1999 will not constitute a breach of the 
memorandum of association and bye-laws of the Company and the applicable 
laws of Bermuda. The 1999 annual general meeting of the Company will be 
held on or before 31 May 2000. The Group's legal advisers on Bermuda laws 
have advised that the convening and holding of the 1999 annual general 
meeting of the Company on or after 31 March 2000 will require the sanction 
of the Registrar of Companies in Bermuda. The Group has instructed its 
legal advisers on Bermuda laws to obtain such sanction.

Details of the unaudited consolidated results of the Group for the year 
ended 30 June 1999 were announced in the announcement of the Company dated 
14 December 1999. Based on the unaudited consolidated management accounts 
of the Group for the year ended 30 June 1999, the Group recorded a loss 
of approximately HK$58.6 million. The results as shown in the unaudited 
consolidated management accounts of the Group for the year ended 30 June 
1999 may be subject to further changes upon the finalisation of the audit 
by the Auditors. The auditors' report may or may not contain a qualified 
opinion in respect of the audited financial statements of the Group for 
the year ended 30 June 1999. Shareholders and warrantholders of the 
Company and investors are reminded to exercise caution in interpreting 
the unaudited results as they are unaudited figures only and may be 
different from the audited results.

The Directors have not dealt in any shares and warrants of the Company 
since 30 October 1999. The Directors have undertaken to the Stock Exchange 
that they will not deal in the shares of the Company until the later of 
audited consolidated results of the Group for the year ended 30 June 1999 
and the unaudited consolidated results of the Group for the six months 
ended 31 December 1999 are published.

Negotiation with Independent Investors for Possible Placement

Reference is made to the announcements of the Company dated 14 and 23 
March 2000, the Company and its financial advisers are in discussions with 
three short listed parties for the possible placement. Neither legally 
binding agreement nor legally binding agreement in respect of the possible 
placement has been reached yet.

In the meantime, shareholders, warrantholders and public investors are 
urged to exercise extreme caution in dealing in the shares and warrants 
of the Company.

On behalf of the board of directors of
Wah Lee Resources Holdings Limited
Yeung Kwok Fan
Chairman and Managing Director
Hong Kong, 31 March 2000

The Directors of the Company jointly and severally accept full 
responsibility for the accuracy of the information contained in this 
announcement, and confirm, having made all reasonable inquiries, that to 
the best of their knowledge, the opinions expressed in this announcement 
have been arrived at after due and careful consideration and there are no 
other facts not contained in this announcement, the omission of which 
would make any statement in this announcement misleading.