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America’s Center forForeign Investment (ACFI )

Presents

Hybrid Kinetic MotorsAlabama Project

September 2010

America’s Center for Foreign Investment 150 S. Los Robles Ave., Suite 860 Pasadena, CA 91101 USA: (888) 688-ACFI Tel: (626) 683-9120 Fax: (626) 683-7393 Website: www.acfi-usa.com Hybrid Kinetic Motors Corp. 800 E. Colorado Blvd., Suite 888 Pasadena, CA 91101 Tel: (626) 683-7330 Fax: (626) 683-0693 Website: www.hkmotors.com

TABLE OF CONTENTS

America’s Center for Foreign Investment

I. Overview .............................................................................................................................. 1

II. Immigrant Investor Program ................................................................................................ 2

III. Benefits of Having a Green Card .......................................................................................... 2

IV. EB-5 Immigration Procedure Flowchart ............................................................................... 3

V. ACFI Background .................................................................................................................. 4

VI. ACFI Management ................................................................................................................ 5

VII. About Alabama .................................................................................................................... 7

HK Motors Alabama Project

I. Mission Statement ............................................................................................................... 8

II. Project Summary .................................................................................................................. 8

III. Management Team ............................................................................................................ 10

IV. Products ............................................................................................................................. 14

V. Technologies ....................................................................................................................... 15

VI. Marketing Strategies .......................................................................................................... 20

VII. Alabama Project ................................................................................................................. 21

VIII. Summary ............................................................................................................................ 27

APPENDIX

I. USCIS Approval of HK Motors Project A ............................................................................. 28

II. Frequently Asked Questions .............................................................................................. 29

III. Government Letters of Support ......................................................................................... 30

IV. Progress Timeline ............................................................................................................... 33

I. OVERVIEW

The EB-5 is an Employment-Based 5th Preference visa which was created by the Immigration Act of 1990. It provided for 10,000 immigrant visas per year to qualified individuals seeking permanent resident status on the basis of their investment in a new commercial enterprise. Due to disappointing results with this original immigrant investor program, in 1993, Congress enacted the Immigrant Investor Pilot Program, commonly referred to as the “Regional Center Program.” A Regional Center is defined as an economic unit which is involved with the promotion of economic growth, which includes improved regional productivity and job creation.

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II. IMMIGRANT INVESTOR PROGRAM Under Section 203(b)(5) of the Immigration and Nationality Act (INA), 8 USC §1153(b)(5), 10,000 immigrant visas are available annually to qualified individuals seeking permanent resident status on the basis of their investment in a new commercial enterprise. The Investor's investment in the new commercial enterprise must create at least 10 full time jobs for U.S. Citizens, lawful permanent residents and other immigrants lawfully authorized to be employed in the United States. This new commercial enterprise can be located in a Regional Center. A Regional Center is an entity, organization or agency that has been approved as such by the USCIS. It seeks to promote economic growth and improved regional productivity. The Investor must demonstrate that the qualifying investment is being made within an approved Regional Center. The Investor must also show using accepted econometric models that 10 or more jobs are actually created either directly or indirectly by the new commercial enterprise. Please note that ACFI will ensure that the Investor will meet these conditions. The investment must be $1,000,000 or at least $500,000 where the investment is being made in a “targeted employment area” which is an area that has experienced high unemployment or a rural area as designated by the Office of Management and Budget. Permanent Resident status based upon EB-5 eligibility is available to investors, their spouses and unmarried children under 21 years of age.

III. BENEFITS OF HAVING A GREEN CARD Upon receipt of conditional permanent resident status, the investors and their families are entitled to the same benefits as other lawful permanent residents (LPR). Some of these benefits include:

– Live and work anywhere in the U.S. – Start any business in the U.S. – Travel abroad and return to the U.S. without having to apply for an additional visa – Study in the U.S. at resident cost, and legally work while enrolled as a student – Establish eligibility for becoming a US citizen

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IV. EB-5 IMMIGRATION PROCEDURE FLOWCHART

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V. AMERICA’S CENTER FOR FOREIGN INVESTMENT (ACFI) On June 11, 2007, the Alabama Center for Foreign Investment (ACFI) was approved by United States Citizenship and Immigration Services (USCIS) as Alabama’s statewide Regional Center. On October 21, 2009, ACFI expanded its geographic region to include the state of Tennessee and portions of the states of Florida, Georgia and Mississippi. Subsequent to this expansion, ACFI was renamed America’s Center for Foreign Investment. As such, ACFI participates in the EB-5 Immigrant Investor Pilot Program, providing foreign nationals the opportunity to become permanent residents of the United States through a qualified investment. To ensure compliance with immigration laws and for the safety of the investor, ACFI carefully identifies, evaluates and selects investment projects which meet the Immigrant Investor requirements as specified by United States Citizenship and Immigration Services (USCIS). ACFI’s management team has decades of experience in immigration law, finance, economic development and governmental relations. This experience provides investors with quality professional assistance during the entire process. ACFI's premier investment opportunity is with Hybrid Kinetic Motors (HK Motors), an American car company using cutting-edge technology to produce vehicles that are destined to set a new standard in the automobile industry. HK Motors will produce a full line of high quality, affordable hybrid vehicles which are energy efficient and environmentally friendly without sacrificing performance. HK Motors’ management team has a strong background in the automotive industry and a proven track record of developing and manufacturing motor vehicles. On June 1, 2010, United States Citizenship and Immigration Services (USCIS) approved ACFI’s HK Motors Proposal for the Immigrant Investor EB-5 Program. USCIS has determined that all HK Motors Agreements, Memorandums and its Business Plan are in compliance with established EB-5 eligibility requirements. This approval will facilitate the approval of all I-526 (Immigration Petition by Alien Entrepreneur) petitions submitted by investors in the HK Motors Project A, LP. The investor petitioner will only have to provide biographic information and show the source and path of funds to be invested. Also in June, 2010, an HK Motors investor’s petition was successfully expedited by USCIS – approved only two weeks after expedited processing was requested. This is an unprecedented achievement for an EB-5 Regional Center. Shortly thereafter, HK Motors filed Form D with the United States Securities and Exchange Commission, ensuring full project compliance with US securities law. America’s Center for Foreign Investment, LLC (ACFI) is committed to provide quality consulting services to assist individuals in complying with all aspects of the Immigrant Investor Pilot Program, also known as the EB-5 Visa Program. ACFI carefully identifies, evaluates, and selects qualified investment projects for consideration by accredited investors. This selection process may include, but is not limited to, analysis related to financial statements, business plans, pro forma, market analysis, econometric models and project principals. ACFI professionals will assist the investor with this entire process from start to finish ensuring that all aspects of the program will be carried out as smoothly, effectively, and efficiently as possible. ACFI is committed to assist the investor throughout the entire process, by providing personal, professional, and quality service.

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VI. ACFI MANAGEMENT

James DeBates President and CEO America’s Center for Foreign Investment (ACFI) is directed by Mr. James DeBates. Mr. DeBates has more than 30 years experience working for the Federal Government. He was with the US Department of Justice – Immigration and Naturalization Service for twenty-six years and spent four years with the Department of Homeland Security – US Citizenship and Immigration Services. More than twenty-six years were in management and supervision, focused on granting the benefits of residency and citizenship. Mr. DeBates held numerous high level positions with the government. In Washington, D.C. he oversaw all US Immigration activities in Asia, Mexico, and

Central and South America. He was the Immigration Attaché at the American Consulate in Hong Kong where he was US Immigration's chief representative in Hong Kong, People's Republic of China, Macau, Mongolia and Taiwan. Mr. DeBates was also assigned to US Immigration offices in Los Angeles, San Diego, CA, Anaheim, CA, Detroit, MI and St. Croix, United States Virgin Islands. Among the varied duties and responsibilities of Mr. DeBates, such as participating in the drafting and revision of regulations for the EB-5 Investor Visa, he also gave training on US Immigration law, visa issuance, regulations, policies and procedures to US State Department officials in Washington, DC and at various US Embassies and Consulates. Mr. DeBates gave similar presentations to foreign government officials and was the designated US Immigration liaison person for these officials. During his career with the US Department of Homeland Security and the Department of Justice, Mr. DeBates was awarded 17 Outstanding Achievement Awards, received the Commissioner's Award for Excellence, received an Outstanding Merit Award from the President of the US Olympic Organizing Committee, was honored and awarded with Senator Ted Kennedy by the Los Angeles County Bar Association, and received international recognition from numerous governments throughout Asia. Mr. DeBates was also a member of the US Congressional Advisory Committee.

Ron Drinkard Board Director, Vice President Ron Drinkard is a lifelong resident of Alabama who graduated from Troy University in Troy, Alabama, with a Bachelor of Science degree in accounting. He is also a graduate of the Louisiana State University School of Banking in Baton Rouge, Louisiana. Drinkard was Director of Area Development for the Metropolitan Development Board of Birmingham, Alabama, before moving to an industrial development position with the Alabama Development Office in Montgomery. From 1979 to 1985, Drinkard was Vice President for Industrial Development at AmSouth Bank in Montgomery and from 1985 to 2005, he served as Senior Vice

President of SouthTrust Bank/Wachovia. Upon retirement from banking he started a governmental relations business, The Ron Drinkard Group, LLC.

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Drinkard's background in banking, economic development and governmental relations is combined with his dedicated community involvement and civic and charitable organizations throughout the state of Alabama. Currently, he serves as a board director and Vice President for government and public relations for America’s Center for Foreign Investment, LLC.

Boyd F. Campbell Board Director, Vice President, General Counsel Boyd Campbell was born in Germany and has practiced immigration and nationality law in Montgomery, Alabama, since 1988. He is a graduate of Montgomery public schools, the University of Alabama in Tuscaloosa, Alabama, and Columbia University in New York, New York. He received his law degree from Jones School of Law in Montgomery, Alabama, in 1987, and served as a law clerk for the Alabama Supreme Court before opening his law practice. Mr. Campbell has worked with individual foreign investors and multinational corporations in order to meet their needs and assist them in complying with U.S. immigration laws. He is a noted speaker on issues involving U.S. immigration law

and served on the American Bar Association's Coordinating Committee on Immigration Law from 1994 to 1998. He is a founding member of the International Law Section of the Alabama State Bar. More recently, Mr. Campbell became Vice-Chair of the AILA Investor EB-5 Committee. Mr. Campbell has 19 years of experience in working with foreign nationals to address legal matters involving U.S. immigration laws. Currently, he serves as a Board Director, Vice President, and General Counsel for America’s Center for Foreign Investment, LLC.

Judson C. Edwards, Ph.D. Economist

Dr. Judson C. Edwards is the Dean of the School of Business at Troy University. He received a B.S. in Economics and Geography from Troy University and M.S. and Ph.D. in International Development from The University of Southern Mississippi.

Before returning to his alma mater, Dr. Edwards served as tenure-track faculty at The University of Southern Mississippi and the University of North Dakota. While at Southern Miss, he directed the Economic Development Master’s Degree Program and led numerous applied research projects for economic development organizations and industry.

Dr. Edwards specializes in economic impact analysis, cost-benefit analysis, and retail trade studies. Currently, he serves as the Managing Editor of Applied Research in Economic Development and Editor of the Troy University Business and Economic Review. Dr. Edwards is a Board Member of The Council for Community and Economic Research (C2ER) and member of the Special Advisory Committee to the Executive Council of the Alabama Rural Action Commission.

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VII. ABOUT ALABAMA

Alabama is one of the fastest growing states in the United States. According to the Alabama Development Office (ADO), over $9 billion was invested in new or expanded foreign industry in Alabama between 2000 and 2006, which generated in excess of 36,000 jobs for Alabamians. The state’s pro-business climate has attracted more than 300 foreign-based manufacturers from more than 30 nations to Alabama including Mercedes-Benz U.S. International, Honda Manufacturing of Alabama, Hyundai Motor Manufacturing, Toyota Motor Manufacturing, Alabama, Inc., Siemens, Michelin, Eaton Corporation, and Goodyear. The State of Alabama has sixty-seven counties and a land area of 52,423 square miles. Alabama borders Tennessee to the North; Georgia to the East; Florida to the South; and Mississippi to the West. The largest metropolitan cities in Alabama are Birmingham, Montgomery, Mobile, and Huntsville.

* Southern Auto Corridor map provided by the Economic Partnership of Alabama (EDPA).

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Hybrid Kinetic Motors Alabama Project

I. MISSION STATEMENT Hybrid Kinetic Motors (HK Motors) strives to become the world’s leading enterprise for developing, manufacturing and marketing advanced technology vehicles with low emissions and high energy efficiency, while providing customers worldwide with high quality, superior performance vehicles and services. The company offers vehicles which will revolutionize the automotive industry, reduce greenhouse gas emissions, lessen oil dependence, create green jobs, improve state and local economies, and strengthen US competitiveness in green vehicle development, manufacturing, and marketing.

II. PROJECT SUMMARY The world economy is transitioning to a green economy for economic recovery after a severe economic recession and automotive crisis. Two components of the green economy include using alternative energy while improving energy efficiency and reducing greenhouse gas, especially carbon dioxide (CO2), emissions. Green transportation is one of the leading industries in the green economy because it requires a large investment, creates a large number of jobs, and has a significant impact on the economy, environment, and society. Hybrid Kinetic Motors is at the forefront of the trend and positioned to succeed. Hybrid Kinetic Motors is an American automobile company that designs, manufactures, and markets advanced technology vehicles which are characterized by high fuel efficiency, low emissions, high performance, and great affordability. HK Motors was incorporated in Delaware and is headquartered in Pasadena, California. Hybrid Kinetic Motors Project A, LP is the first project company of Hybrid Kinetic Motors.

HK Motors aims to become the world’s leading manufacturer of clean energy hybrid vehicles. Its ultimate success will reshape the American automotive landscape, help the US regain its leadership role in the global automotive industry and create a very large number of direct, indirect and induced jobs across the country. HK Motors Alabama Operations – The Project A, LP – will be the world’s largest manufacturing complex with annual production capacity of one million green vehicles. Full production capacity will be reached in 2018 after Phase 1 production (300,000 vehicles per year) starts in mid-2013 and Phase 2 (600,000vehicles per year) in late-2016. Through intensive studies of energy resources and distribution, crisis and continuously rising costs, HK Motors believes that in the next several decades, only compressed natural gas (CNG) can replace gasoline as the primary vehicle fuel in large quantity (30~40%) with relatively stable and affordable price (around $1-$2 per gas gallon equivalent). Conveniently, the world’s two largest automotive markets, US and China, also both hold significant proven natural gas reserves. The oil shortage and high oil prices are pushing up the demand for natural gas vehicles (NGVs). It is projected by the International Association of Natural Gas Vehicles (IANGV) that there will be 65 million NGVs in the year 2020, when NGVs will account for 9% of the world vehicle market. Currently, there are approximately 7 million retrofit NGVs in the world, and 130,000 NGVs, primarily buses, in the US. The United States is at the turning point for the rapid growth of NGV market that will provide a lifetime opportunity for HK Motors. By developing unique hybrid vehicles, HK Motors will be at the forefront of this transition.

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HK Motors’ unique multi-fuel engine and electric-drive hybrid power train technologies will utilize these natural gas reserves to provide a highly competitive, environmentally friendly alternative to gasoline. Technical simulations indicate that HK Motors’ engines not only easily outperform today’s leading automakers in terms of fuel economy and CO2 emissions but also meet the most stringent international standards, including the 2016 Corporate Average Fuel Economy (CAFÉ) standards mandated by the US Government (35.5 miles per gallon), the 2012 European Community CO2 emission standards (120 grams per kilometer) and 2015 EPA CO2 regulations (155 g/km). HK Motors’ strategy of adopting a single engine platform combined with several advanced power boosting technologies will allow HK to offer cutting-edge, high-performance engine systems at costs comparable to current gasoline engines of twice the size. This is the key to HK Motors’ overall cost advantage and technical advantages in high fuel economy and low emissions. HK Motors’ primary operations will be based in the state of Alabama, along the Southern Auto Corridor where Mercedes Benz, Honda, Toyota, and Hyundai have operations, and in a state that has a great workforce with strong work ethics and good skills. The targeted production capacity is 1,000,000 vehicles per year, with full product lines of three vehicle groups, including: – Passenger Cars Group: entry-level midsize, full size, luxury cars; – SUV/VAN Group: SUV (Sport Utility Vehicle), CUV (Crossover Utility Vehicle), Van

(mini-van and large vans); – Truck Group: pickup trucks, light-duty trucks. According to the current plan, production will begin in 2013 if all project financing benchmarks are reached. It is expected that full production of one million vehicles will be accomplished by 2018. Once full production is reached, the estimated revenues and profits are $35 billion and $2.8 billion per annum respectively, with an average net profit margin of 8%. HK Motors aims to be the first company in the world completely dedicated to the mass production of multi-fuel (natural gas and gasoline) electric-drive hybrid vehicles. Highlights of Investment Advantages:

• Unique opportunity for immigrant investors to become US permanent residents and invest in America’s future

• Innovative financing: EB-5 program backed by a public company, allowing investors a profitable exit after a five year investment in the project

• Leading the global automotive industry trend towards fuel efficient, environmentally friendly vehicles • Strong management experience in both the automotive industry and financial markets • Proprietary technology for a super engine and power train with excellent fuel economy and low

emissions, plus proprietary technology for next generation engines (nano-engines) beginning in 2020 • Excellent strategy to reduce manufacturing costs, making advanced technology vehicles affordable to

all customers • Innovative marketing: free natural gas for the first 50,000 miles • Significant state and county incentive packages for the project • Federal tax credits for alternative fuels, fuel efficiency and low emission vehicles • “American Power Act” introduced on May 12, 2010 and “The NAT GAS ACT” introduced on June 8,

2009, by both the Senate and US House of Representatives which will provide for federal subsidies, credits, and tax breaks for developing, manufacturing, and purchasing natural gas vehicles (up to $12,500 for light-duty vehicles)

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III. MANAGEMENT TEAM

HK Motors management team consists of a group of experienced global financial experts and auto makers. This team has learned from experience that the business of developing and building automobiles is complex and expensive, but the team has “done it before.” HK Motors executives have an excellent track record and will strive to win again in green transportation.

Dr. Yung Yeung Chairman and Founder Dr. Yung “Benjamin” Yeung, Chairman of Hybrid Kinetic Motors Corp. and Hybrid Kinetic Group Limited (formerly Far East Golden Resources Limited), is a well-known, highly successful automotive industrialist and pioneering international financier from China. Dr. Yeung led Brilliance China Automotive Holdings Ltd (“Brilliance China”) to its listing on New York Stock Exchange on October 9，1992. By 2001, Brilliance China ranked first in China in margins and return on equity and third largest in after-tax profits in the Chinese automotive industry. Under Dr. Yeung’s leadership, Brilliance China developed the “Zhonghua” sedan, the first Chinese indigenous car with its own intellectual property. By the time Dr. Yeung moved to the USA in 2002, Brilliance China

had established joint ventures with General Motors for SUV production, BMW for luxury car production, Mitsubishi for engine manufacturing, Renault for economy sedan manufacturing and licensing arrangement, and Toyota for minibus manufacturing. Brilliance China also forged a strategic alliance with the United Kingdom MG Rover Group. Dr. Yeung was ranked by Forbes Magazine as the third richest entrepreneur in China in 2003, and founded Hybrid Kinetic Motors Corp. in 2008.

Dr. Chunhua Huang Vice Chairman Dr. Chunhua “Charles” Huang is the Vice Chairman of Hybrid Kinetic Motors Corp. He started his investment banking career as a China equity analyst at James Capel (Asia) (now HSBC Securities) in Hong Kong covering China’s B shares, H shares and red chips in 1994. He was a senior member of the top-ranked China research team of Credit Lyonnais Securities Asia (CLSA) between 1996 and 2000. Dr. Huang joined Brilliance China to serve as Chief Financial Officer of Far East Golden Resources between August 2000 and May 2004 and as Deputy Chairman between November 2002 and August 2007. In May 2007 Dr. Huang returned to the brokerage industry to join BNP Paribas as Director of China Equity Research and a China Equity Strategist. After two extremely successful years at BNP

Paribas, Dr. Huang left the investment banking industry in April 2009 to rejoin Dr. Yeung’s business group.

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Dr. Chuantao Wang Chief Executive Officer, Board Member Dr. Chuantao Wang is the Chief Executive Officer of Hybrid Kinetic Motors Corp. With more than 29 years’ experience in the field of manufacturing engineering, Dr. Wang is an internationally recognized technologist and business leader in the development and implementation of advanced automotive body manufacturing using computer-aided engineering technology and production systems for digital die manufacturing and stamping for automotive applications. Before joining HK Motors, Dr. Wang was the Chief Die Engineer and GM Technical Fellow in the Global Die-Stamping-Manufacturing Engineering Technology Center at General Motors Corp., responsible for development and application of digital engineering technology in large scale automotive manufacturing. Dr. Wang has received

numerous international awards in recognition of his sustained, distinguished achievements and contributions for automotive applications. Among these, he received national honor as the “2008 Asian American Engineer of the Year.”

Dr. Shuguang Hong Chief Information Officer, Board Member Dr. Shuguang Hong is the Chief Information Officer of HK Motors. He is a seasoned information technology professional with both academic and industry experience reflecting solid technology fundamentals, entrepreneurship, strong leadership qualifications and “hands-on” technical expertise. Before joining HK Motors, he was an executive director of the Information Technology Department at China International Capital Corporation. Prior to that, he served as a director of application development and a chief architect at Automatic Data Processing (ADP) and was a co-founder of AtWork Technologies. Prior to joining the private sector, Dr. Hong was a professor in the Computer Information Systems Department at

Georgia State University. He has published more than 25 articles in scholarly journals and international conference proceedings and presented research results at more than 10 international conferences.

Peter Schippl Senior Vice President, Board Member

Peter Schippl serves as the Senior Vice President for Vehicle Manufacturing for Hybrid Kinetic Motors Corp. After studying Mechanical Engineering, he started his career in 1972 at FAG Kugelfischer as a specialist in grinding technology. In 1977 he joined the BMW Group and became responsible for engine production technology. Afterwards he held positions in engine production, motorcycle production, quality management, launch management, and plant management. His international experience includes responsibilities in the USA, India, South Africa, England, and China. After serving as Managing Director at BMW’s Rover Oxford plant in England, he moved to China to lead a team supporting Brilliance’s launch of their first Zhonghua sedan. He then was responsible for planning, establishing,

and running the BMW-Brilliance joint venture plant in Shenyang. Under his management, the Shenyang plant manufactured BMW 3 and 5 series, reaching the highest level of quality within the first year of production. After Peter Schippl fulfilled his contract with the BMW Group, he started a new career as Senior Consultant for Brilliance Jinbei, the joint venture partner of BMW. He joined HK Motors in August 2010.

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Larry Achram Senior Vice President, Board Member Larry Achram is a Product Development expert with over 35 years of global automotive experience. Before joining HK Motors as Senior Vice President for Product Development, Larry held several key senior executive positions at Chrysler, including Vice President of Advanced Vehicle Engineering and Vice President of the Large Car Platform Team. He led the design and development of many vehicles in all phases from concept to production, including such well known products as the first Jeep Grand Cherokee, the Chrysler 300 and its sibling vehicles, and the Chrysler Crossfire. Over the last several years, he has also worked on business development projects in the US and Asia with a special emphasis on Chinese automobiles, and was one of the co-leaders of the team that

achieved a long term partnership agreement for Chrysler with a major Chinese automotive company. Larry holds BSME and MSME degrees from Wayne State University and an MBA from Michigan State University.

Richard Chow-Wah Senior Vice President, Board Member Richard Chow-Wah serves as HK Motors Senior Vice President for Power Train Manufacturing. Before joining HK Motors, he was Vice President of Power Train Manufacturing for Chrysler since January 2002 and has been responsible for engine, transmission, and axle production. He served on the Board of Directors at GEMA, a joint venture between Chrysler, Hyundai and Mitsubishi to design and produce engines in their respective countries (United Stated, Korea and Japan), and also served on the Board of Directors at Tritec, a joint venture between Chrysler and BMW to produce engines in Brazil. Prior to this position, he was Vice President of Power Train in Chrysler’s Engine/Foundry/Axle Division. He joined Chrysler in 1994 as Operations Manager at Huntsville Electronics. Prior to

Chrysler he was employed with the Ford Motor Company Electronics Division in 1983, United Technologies’ Carrier Air Conditioning in 1981, and General Electric Canada in 1980.

Dr. Gang Lin Senior Vice President, Board Member Dr. Gang Lin currently serves as Senior Vice President for Corporate Management for HK Motors Corp. Dr. Lin started his career in automotive engineering and manufacturing. In July 1996, he joined General Motors and served in various positions, including Senior Engineer, Senior Analyst, and Senior Manufacturing Engineer. As a core team member of GM’s advanced tooling technology, Dr. Lin played an important role in GM’s historical transition from traditional tool making to science-based technology, and made many critical contributions. Dr. Lin left GM in April 2004, and returned to Chongqing, China, where he established an engineering company, Digidie System International (Chongqing) Inc (DSI). In March 2006, Dr. Lin became a board director, Deputy

General Manager and Chief Engineer for a joint venture between DSI and two partner companies and gained extensive experience in manufacturing and management. Through his many years in the US and Chinese automotive industries, Dr. Lin has built broad knowledge in automotive body engineering and manufacturing, and acquired extensive experience in business development and management.

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Dr. Wei Wang Senior Vice President, Board Member Dr. Wang currently serves as Vice President for Marketing, Sales, and Services. Prior to joining Hybrid Kinetic Motors, he served as Chief Representative in SeverStal Overseas Ltd.’s Beijing Representative Office and as General Manager for Strategic Raw Materials Development in SeverStal North America, Inc. Dr. Wang started his career in iron and steel research and development in 1994 at Inland Steel Company (now part of Arcelor-Mittal Steel), and assumed management responsibility for product development and application in 1999 at Rouge Steel Company (now part of SeverStal North America, Inc.). In 2004, he started to undertake commercial responsibilities for overseas strategic raw materials development and supply. Over the past 15 years, Dr. Wang has

accumulated extensive knowledge in engineering, engineering management, purchasing, global logistics, international trade, and new supplier development. Dr. Wang received his MBA from the University of Michigan with high distinction, his doctorate and masters in Materials Science and Engineering from Ohio State University, and his undergraduate degree from the University of Science and Technology in Beijing.

Dr. Junwen Hou Senior Vice President, Board Member Dr. Junwen Hou has served as Senior Vice President for Global Power Train Development since joining HK Motors Corp. in April, 2009. Prior to joining HKMC, Dr. Hou was a specialist in power train product engineering at Chrysler. During his fifteen-year tenure at Chrysler he had held various engineering and management positions with increasing responsibilities. He served as project manager responsible for engine and transmission sales to outside OEMs worldwide and business development. He led the corporate hypoid gear design and development for all axle programs as a gear development manager. He led and was involved in several new automatic transmission program launches in the capacities of manufacturing specialist and advanced manufacturing engineering

manager.

Jason Xu Vice President, Board Member Jason Xu currently serves as HK Motors Vice-President for Global Sourcing. He has 20 years’ experience in mechanical engineering and the automotive industry. Before joining HK Motors, Mr. Xu worked for Magna International Group to start his career in the automotive industry. He has extensive experience in product development, engineering management, product planning, purchasing and supplier management. Mr. Xu was involved in multiple projects for Asian and European automakers such as Nissan, Honda and Volkswagen. In 2008, Mr. Xu was assigned to Magna Closures (Kunshan) Automotive Corporation as engineering manager to establish its technical center in China. Mr. Xu has an in-depth understanding of the global automotive industry, particularly the Chinese automotive industry. From 1991 to 1999, Mr. Xu also worked for Structural

Dynamics Research Corporation (SDRC) China Branch as a Computer Aided Design and Engineering Specialist, and served as the Regional Manager. He was one of the key experts who developed the Chinese computer aided engineering industry in the 1990s.

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IV. PRODUCTS HK Motors is committed to producing green cars with great fuel economy that remain affordable to mainstream consumers. The company’s advanced technology vehicles will target customers that are energy and ecology conscious. To attract new customers, the company intends to offer them hybrid vehicles with energy efficiency, low emissions, strong consumer appeal, riding comfort, driving performance, and affordability. HK Motors products are characterized by:

• Unique multi-fuel electric-drive hybrid propulsion systems that enable energy-on-demand driving modes, i.e. consumers can select driving mode by the availability and cost of the fuels in different regions of the world (countries and local areas)

• High fuel economy: Minimum 80 MPGGE (Miles per Gasoline Gallon Equivalent) in hybrid driving mode, and minimum 45MPG using pure gasoline. HK Motors advanced technology vehicles consumes 60% less fuel than vehicles with the same horsepower

• Low CO2 emissions (60g/km) that meet and exceed the most stringent international standards (2012 EC 120g/km standard and 2015 US EPA 155 g/km)

• Full vehicle lineups: Car , CUV, SUV, Truck, and Van • One common engine platform: large volume production to lower vehicle cost • Integrated power boosting and hybrid technologies: max. power output up to 400 horsepower • Superior driving performance: 6 second acceleration from 0 to 60 mph (100km/hour) • Riding comfort: mid-size, full size, luxury vehicles • Safety: Satisfies Euro NCAP and US NCAP five star safety requirements

Comparison of HK Motors vehicle (E-class J2) with BENZ, BMW, AUDI and LEXUS

To meet the demands of various customer bases, HK Motors plans to provide a full product line of three vehicle groups: passenger cars, SUVs & vans, and light trucks. To further meet consumer demand, a number of models will be provided in each group. To a large extent, different models will share common parts, which will help to cut down production costs and make operations more flexible.

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V. TECHNOLOGIES

Primary Fuel Choice – Natural Gas After extensive research, it has been found that Natural Gas (“NG”) is the best and most available substitute for oil as an alternative energy source to power next-generation vehicles. Natural gas is the world’s second most common and cleanest fossil fuel source. Natural gas is abundant, clean, cheap, and energy-efficient. Worldwide proven natural gas reserves will last 200 years at the current vehicle market growth rate. The US is the world’s second largest NG producer. Proven domestic NG reserves as estimated in 2008 can power US houses and vehicles for 118 years (per American Clean Energy Foundation). A major discovery was made in May 2009 at the Marcellus gas formation in Appalachia, which is situated more than a mile underground and stretches southwest from New York, through Pennsylvania, and into West Virginia. It is estimated that the Marcellus formation, 5,000 square miles in area, may contain up to 1,300 trillion cubic feet of natural gas. This site alone can provide 60 years worth of NG supply for the nation.

U.S. Total Gas Supply Resource Base

Source: American Clean Energy Foundation

The price of natural gas is a fraction of the crude oil price. Crude oil is 6 (when oil price is low) to 25 (when oil price is high) times more expensive than NG (per DOE/EIA Feb. 2009 projections). The chart of fuel price for vehicles shows a much lower and more stable price for natural gas. This is one of the major financial benefits of driving NG vehicles.

Gasoline and natural gas Price comparison

Source: “International Energy Outlook 2009”, EIA/US Department of Energy

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Another advantage of using natural gas as an alternative fuel is the life cycle energy efficiency. Natural gas is the only fossil-based fuel that can be directly used to power a vehicle without costly processing as used in gasoline production. The following charts compare the total energy use and efficiency among different fuel and energy sources. Natural gas vehicles (NGV) use the least energy per driving unit of distance and have the highest efficiency among all fuel and energy sources.

NGV Competitiveness – Most Energy Efficient among All Alternative Fuel Choices

Source: The Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model 1.8b

Finally, natural gas is one of the cleanest burning alternative fuels and has less carbon than any other fossil fuel, thus producing lower CO2 emissions. Compared to a gasoline engine of the same capacity, a CNG engine can reduce CO2 emissions by 30 ~ 40% , carbon monoxide (CO) by 70-90%, nitrogen oxides (NOx) by 87%, non-methane organic gas (NMOG) by 87%, hydrocarbon by 50%, volatile organic compounds (VOC) by 10%, and emitted particulate matter (PM) by 80%. The HK Motors plan to develop, manufacture and market hybrid vehicles with natural gas as the primary fuel will support energy independence and national security, reduce greenhouse gases and emissions, and improve fuel efficiency. The world NGV market is rapidly developing and has reached a turning point. It is projected by IANGV (International Association of Natural Gas Vehicles) that there will be 65 million NGVs in the year 2020, when NGVs will account for 9% of the world vehicle market. Currently, there are around 7 million retrofit NGVs in the world, and 130,000 NGVs, primarily buses, in the US. By developing unique hybrid vehicles, HK Motors will be at the forefront of this new endeavor to produce clean, efficient, and affordable natural gas vehicles.

Source: IANGV (International Association of Natural Gas Vehicles)

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Multi-fuel Electric Drive Hybrid Propulsion Technology In HK Motors vehicles, the combustion engine will support multiple fuels, including CNG (Compressed Natural Gas), gasoline, and other hydro-carbon fuels. The primary power will be CNG, which can carry the vehicle for an extended range. Considering the density of CNG stations and charging stations is not as high as that of gasoline stations in the U.S., each vehicle will also be equipped with a 5-gallon reserve gasoline tank which will help drivers find a CNG station after the CNG has been completely consumed. Both fuels will share the same combustion engine.

In addition, each vehicle will be powered with a battery-electric motor. The battery can be recharged via a normal wall outlet. Discounted electric utility rates in the late evening in many locations will provide incentives to car owners to conduct overnight recharging. It will be a win-win situation for car owners, electric utilities companies, and society. With certain configurations, a fully-charged battery alone can achieve a driving range sufficient for the typical daily commuter in North America.

Moreover, the combustion engine will feature many energy-efficient optimization technologies, such as Weight Reduction, Start/Stop-System, Aerodynamic Improvement, and Heat Storage. These advanced technologies, together with alternative fuels, will enable the vehicle to achieve greater energy-efficiency by increasing the thermal utilization rate. Combined with CNG and electric power, the vehicle can reach an impressive fuel economy that is significantly higher than the average fuel economy in today’s market. Moreover, since it uses multiple energy sources - CNG, battery, and gasoline - the vehicle will have a long driving range, approximately 600 miles for a full tank of CNG with a fully charged battery and full tank of gasoline.

HK Motors Advanced Power Train System

High Performance Driving Technology In addition to the high energy efficiency of the vehicles, unlike most original equipment manufacturers (OEMs) that focus on downsizing both engine power and vehicle dimensions to improve limited fuel economy, HK Motors’ vehicles maintain ride comfort without downsizing vehicle dimensions, and improve driving performance using a combination of advanced boosting and hybrid technologies to improve power output to 400HP through a specially developed 1.5 liter engine. These boosting technologies include variable compression ratios (VCR), dynamic variable valve timing (DVVT), variable valve lifting (VVL), twin turbo charge (TTC), and spark ignition direct injection (SIDI).

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Low Emission Technology Another important objective that the company aims to achieve is emission reduction. HK Motors believes that increasingly lower emission standards provide a great opportunity for growth and innovation. The specially developed 1.5 liter CNG engine emits much less CO2 and other pollutants than benchmark gasoline vehicles with the same horsepower. The vehicles will engage battery-electric power at ignition, which can eliminate emissions entirely. In other words, the car will be a ZEV (Zero Emission Vehicle) in electric-driving mode. This will be a significant improvement to emission control, since starting a vehicle disproportionally generates a large amount of CO2. Furthermore, vehicle optimization features, such as Start/Stop System and Reduced Weight, will achieve additional emission reduction. The second-generation full battery-electric cars will be ZEVs (Zero Emission Vehicle), with no emissions from driving. Summary of HK Motors Advanced Technology Vehicles HK Motors advanced technology vehicles are developed by the finest engineering resources in the world. These vehicles satisfy EU and US requirements on safety, emission, fuel economy, and recycling. The characteristics of the vehicles include:

• Unique multi-fuel electric-drive hybrid propulsion systems that enable energy-on-demand driving modes, i.e. consumers can select driving mode by the availability and cost of the fuels in different regions of the world (countries and local areas)

• High fuel economy: Minimum 80 MPGGE (Miles per Gasoline Gallon Equivalent) in hybrid driving mode, and minimum 45MPG using pure gasoline. HK Motors advanced technology vehicles consumes 60% less fuel than vehicles with the same horsepower

• Low CO2 emissions (60g/km) that meet and exceed the most stringent international standards (2012 EC 120g/km standard and 2015 US EPA 155 g/km)

• Full vehicle lineups: Car, CUV, SUV, Truck, and Van • One common engine platform: large volume production to lower vehicle cost • Integrated power boosting and hybrid technologies: max. power output up to 400 horsepower • Superior driving performance: 6 second acceleration from 0 to 60 mph (100km/hr) • Riding comfort: mid-size, full size, luxury vehicles • Safety: Satisfies Euro NCAP and US NCAP five star safety requirements

HK Motors Advanced Vehicle Body Systems

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Specific advanced technologies (including trademarks and patents)

• Advanced power train technologies

o Variable Compression Ratio (VCR) o Dynamic Variable Valve Timing (DVVT) o Variable Valve Lift (VVL) o Twin Turbo o Turbo Charged Direct Injection (TCDI) for Gasoline and CNG o Piezo injectors for gasoline and solenoid injectors for CNG o Integrated Exhaust System o Controlled Auto Ignition (CAI) o 8 Speed Hybrid Automated Manual Transmission (8H-AMT) o New Concept for Hybrid System

• Advanced chassis technologies o Steering system of all versions in vehicle family of HK Motors will adopt electric power

system by wire o Electric braking system will be introduced into the chassis for all versions of HK Motors’s

vehicles o HK Motors Electric active suspension system o CVJ (Constant Velocity Joints) in front axle o Auxiliary frame (for mounting engine) will adopt integral construction using high intensity

magnesium light alloy

• Advanced body technologies o Lightweight multi-material body design using advanced high strength steels, ultra-high

strength steels, aluminum, magnesium alloys as well as fiberglass reinforced panels (FRP) to reduce the total vehicle weight by 25%

o Sheet material optimization to reduce scraps by 20% o Satisfy Euro NCAP, US NCAP and VCD Auto-Umwelt List (Germany) five star

requirements o Superior comfort and noise, vibration and harshness (NVH) performance o Vehicle models can be produced in modular production lines

• Advanced vehicle manufacturing technologies o Lightweight body manufacturing o Hot stamping for ultra-high strength steel structures o Advanced tube and sheet hydroforming o High pressure forming of Aluminum-Magnesium panels o Laser blazing and welding o EcoDryScrubber green solution to reduce painting energy usage by 60% and reduce

pollution o Offal usage to improve material utilization

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VI. MARKETING STRATEGIES HK Motors will fully utilize its technological strength and product advantages to market advanced technology vehicles by heavily promoting high energy efficiency, low emissions, high performance, ride comfort, affordable prices, and low driving costs. Favorable marketing advantages include: • Advanced technology vehicles with ride comfort, driving excitement and fuel economy, that are

environmentally friendly • Government policies and regulations in HK Motors’ favor • Consumers that are more educated and environment conscious • Economic driving: affordable purchasing after all government rebates and incentives, and superior savings

in driving cost • Most importantly, HK Motors offers free natural gas for 50,000 miles or 4 years, whichever comes first

The Department of Energy projects that oil prices will continue to climb towards $110/barrel or higher in 2015, and $130/barrel or higher in 2030. That correlates to a gasoline price of $3.5-$4.5/gallon, while the CNG price will remain around $1.5-$2/gge (gasoline gallon equivalent). Government incentives, tax credits, and rebates also exist for fuel efficient, low emission vehicles. HK Motors will deploy marketing strategies that focus first on the following primary states:

Sources: EIA; Natural Gas Monthly

• States that are more environment-conscious and have the most incentives and laws, such as California, New York, Texas, and large metropolitan areas.

2007 Residential Price of Natural Gas

Average price = $13 per thousand cf or $1.58/GGE (GGE: Gasoline Gallon Equivalent)1 GGE = 121.5 cf

Source: EIA

• States that are major natural gas producers, allowing for NG consumption at a lower cost. Experts now believe that the recently discovered Marcellus formation - situated more than one mile underground and stretching southwest from New York, through Pennsylvania, and into West Virginia - may contain up to 1,300 trillion cubic feet of natural gas. This site alone can provide 60 years worth of NG supply for the nation. This will make the states of Pennsylvania, New York, and West Virginia the nation’s premier natural gas production league.

State incentives and laws for Fuel Efficient and Low Emission Vehicles

Source: HK Motors

• States that have low NG consumer prices.

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VII. ALABAMA PROJECT HK Motors Alabama Operations is the company’s first US project for large volume production of advanced technology vehicles that use natural gas as alternative fuels and have high energy efficiency and low emissions. The highlights of the Project are summarized as follows:

• Three phases in capacity building: Phase One for 300,000 vehicles by 2013, Phase Two for 600,000 units by 2016, and Phase Three for 1,000,000 units by 2018

• Production schedule: start of production in 2013, full capacity by 2018 • Employees: 5890 direct employees in Phase One; 18,688 direct employees at full capacity by 2018 • Total (direct, indirect and induced) employees: 157,243 at full capacity • Maximum immigrant investors: 15,724 between 2010 and 2014 • Maximum proceeds (net of issuer expenses): USD$7.862 billion • Use of proceeds: development of engine and power train system, development of vehicles,

construction of plant, purchasing and installing vehicle manufacturing and assembly lines and equipment, working capital, contingency expenses

1. Joint Announcement

On Sept. 24, 2009, HK Motors and the State of Alabama had a joint press conference to formally announce the HK Motors Alabama Project.

HK Motors and State of Alabama Joint Announcement of HK Motors Project

(L-to-R: Alabama Governor Bob Riley, HK Motors Chairman Benjamin

Yeung, HK Vice Chairman Charles Huang, AL Lieutenant Governor Jim

Folsom, AL Speaker of the House Seth Hammett, HK CEO Chuantao Wang)

Governor Riley and Chairman Yeung unveil HK Motors Alabama Manufacturing Complex

In his speech, Dr. Chuantao Wang, CEO of HK Motors, stated “HK Motors aims to be the first large-scale manufacturer of energy-efficient and environmentally-friendly vehicles, which will reshape US automotive landscape and help revitalize the American automotive industry while protecting the environment and stimulating the local and national economy.” Utilizing a unique hybrid engine that employs compressed natural gas (CNG), electricity, and gasoline, the company’s three-in-one hybrid vehicles will provide unprecedented efficiency at affordable prices to consumers, while bringing thousands of

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environmentally-friendly new jobs to American workers. “Our cutting-edge multi-fuel hybrid power train system delivers excellent performance while reducing CO2 emissions to exceed Euro-2012 and future EPA guidelines,” said Chairman Yeung. In his speech, Governor Riley pointed out that “It didn’t take long for Alabama to become a leader in the automotive industry. Now as America and the world begin making a historic transition to a green economy, we look to make Alabama a leader in the production of next-generation, clean-tech automobiles.” He further emphasized that “our Alabama team, in cooperation with local officials in Baldwin County, has been working with HK Motors for several months on this project. We will continue to work with them as the company puts the financing in place to move forward.” Under the leadership of Chairman Yeung and an executive board with many years of combined automotive experience, HK Motors has chosen some of the world’s most renowned automotive companies to serve as its partners in this endeavor. Senior leaders from these suppliers were also present at the press conference.

2. Site Location HK Motors Alabama Operations will be located on a 3,000 acre site near Interstate-65 and Highway 287 in Baldwin County in southern Alabama. As one of many incentives from the state and local governments, Baldwin County will provide a 3,000-acre parcel (the Mega Site) to HK Motors to build the manufacturing complex. Local joint announcements of the site were conducted on September 24 and October 6, 2009.

HK Motors site location and map

Address: 49780 Rabun Rd, Bay Minette, Alabama, 36507

September 24 - Baldwin County

October 6 - Baldwin County

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3. Manufacturing Facilities

HK Motors Alabama Operations The World’s Largest and Most Advanced Green Vehicle Manufacturing Complex

HK Motors Alabama Operations will be the world’s largest and most advanced green manufacturing complex for green vehicles. There will be six manufacturing plants in the complex: stamping plant, body shop, paint shop, engine plant, transmission plant and vehicle assembly plant. These six plants will be equipped with the latest and the most advanced manufacturing technologies, processes and equipment. The manufacturing lines will be exceptionally energy efficient, using 25% less energy consumption than existing automotive plants, and environmentally friendly.

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Stamping Lines by Schuler

Body Shop by KUKA

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Advanced Paint Shop by DURR

Power Train Plant by MAG

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4. Manufacturing Plans

HK Motors production plans are divided into three phases. In Phase One, HK Motors will invest USD$1.530 billion, employ 5,890 people, and produce 300,000 vehicles per year. Through an intensive modular-building strategy, production capacity can be quickly and efficiently increased. By the end of 2018, the HK Motors Alabama manufacturing complex will reach its full capacity of 1,000,000 vehicles per year.

HK Motors Alabama Operations Production Planning

5. Concept Vehicles On January 21, 2010, Dr. Chuantao Wang, CEO of HK Motors, traveled to Baldwin County, Alabama, to unveil HK’s concept vehicle, a luxury utility vehicle (LUV) designed by EDAG of Germany.

A front view of the LUV

The rear of the LUV

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VIII. SUMMARY HK Motors will become a world leading enterprise in the developing, manufacturing, and marketing of advanced technology vehicles by attracting global talents, adopting world leading technologies, and developing innovative business and sales models.

Currently, car manufacturers are encountering three major challenges. The first challenge is the global recession and automotive industry crisis: as in many other industries, the car industry is in survival mode. The second challenge stems from the rapid rise of oil demands and shrinking supplies. Oil may only last 40-70 years using current auto volume and market growth. In addition, major suppliers of oil are in geopolitically unstable regions, and thus constitute a national security risk. The increase of oil and gasoline prices appears to be permanent and inevitable, and have become an economic growth constraint for all industries. The third challenge comes from increasingly stringent regulations and government mandates for fuel efficiency and greenhouse gas emissions, in response to global warming.

HK Motors’ advanced 3-in-1 hybrid vehicles using three energy sources - natural gas as primary fuel, battery, and gasoline for emergency use - provide an optimum solution to all of these challenges, because natural gas is the world’s second most abundant and cleanest fossil fuel source, and the best replacement for oil. More importantly, proven US natural gas reserves can power our homes and vehicles for more than 160 years. These natural gas-fueled, environmentally friendly green vehicles will meet and exceed all rigid regulations.

HK Motors Alabama Manufacturing Complex will become the world’s largest manufacturing base for advanced technology vehicles with low emissions, high fuel efficiency, high performance and high quality. As the world’s largest automotive production complex, it will create more than 18,000 direct and 157,000 total jobs (direct, indirect and induced). It will annually produce 1,000,000 advanced hybrid propulsion systems and green vehicles, and generate $35 billion in revenue. HK Motors Alabama Project will lead innovation in the automotive industry, create green jobs, stimulate state and local economies, harmonize the environment, and benefit society. This project will inevitably reshape the American automotive landscape, accelerate the green transition and strengthen Alabama’s leadership on the green transportation super-highway.

Highlights of Investment Advantages: • Unique opportunity for immigrant investors to become US permanent residents and invest in

America’s future • Innovative financing: EB-5 program backed by a public company, allowing investors a profitable exit

after a five year investment in the project • Leading the global automotive industry trend towards fuel efficient, environmentally friendly vehicles • Strong management experience in both the automotive industry and financial markets • Proprietary technology for a super engine and power train with excellent fuel economy and low

emissions, plus proprietary technology for next generation engines (nano-engines) beginning in 2020 • Excellent strategy to reduce manufacturing costs, making advanced technology vehicles affordable to

all customers • Innovative marketing: free natural gas for the first 50,000 miles • Significant state and county incentive packages for the project • Federal tax credits for alternative fuels, fuel efficiency and low emission vehicles • “American Power Act” introduced on May 12, 2010 and “The NAT GAS ACT” introduced on June 8,

2009, by both the Senate and US House of Representatives which will provide for federal subsidies, credits, and tax breaks for developing, manufacturing, and purchasing natural gas vehicles (up to $12,500 for light-duty vehicles)

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Appendix I: USCIS Approval of HK Motors Project A, LP

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Appendix II: Frequently Asked Questions

Once the investor’s EB-5 petition is approved, USCIS issues a “conditional green card.” What is a “conditional” green card? A “conditional” green card is valid for two years. A conditional green card holder has the same rights and privileges as a permanent green card holder. Its holder should file a petition to remove conditions three month before the second anniversary of issuance. If the investor successfully removes conditions, a ten-year permanent green card will be issued. What is the difference between “conditional” and permanent green cards? A permanent green card is valid for ten years without conditions. Both cards offer the same rights and privileges. Can my spouse and children also receive "green cards" under the EB5 visa program? Yes. Your spouse and minor children are eligible for the conditional immigrant visa that you applied for when you filed your I-526 petition. If I was denied a US visa, can I still apply for EB-5? Yes, an investor still can apply for an EB-5 immigrant visa, even if he or she has been denied a US visa in another category, unless the reasons for denial are related to immigration fraud or other major problems. It is most important that all criminal, medical, and U.S. immigration history problems be disclosed to ACFI and legal counsel in advance of your petition. Do I have to stay in the US once I receive my green card? According to immigration regulations, the green card holder must create a residence in the US, and spend at least 6 months a year in the US in order to keep permanent resident status. If family, employment, or business issues will not allow you to meet the residence requirement, you can apply for a re-entry permit. Re-entry permits are valid for two years and can be renewed after expiration.

For further information and access to ACFI’s approval letters and other documentation, please visit ACFI on the web at www.acfi-usa.com.

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Appendix III: Government Letters of Support

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Appendix IV: Progress Timeline – HK Motors Alabama Project

• 5/15/2009: $250 million hybrid power train development contract signed with FEV GmbH, a global leader in power train development, for development of eight vehicles;

• 9/24/2009: HK Motors and State of Alabama make joint announcement for HK Motors’ Alabama Project in Baldwin County, Alabama;

• 1/26/2010: HK Motors’ parent company, Hybrid Kinetic Group, Ltd. (HKG) - a publicly traded company on the Hong Kong exchange (symbol HKG:1188) - obtains shareholder approval to allow EB-5 investors to convert their investments in the HK Motors Alabama Project to HKG shares after five years;

• 2/12/2010: Hong Kong Stock Exchange authorizes HKG to increase stock issues for EB-5 exit strategy;

• 4/14/2010: Joint announcement by American Natural Gas Vehicle Alliance with APGA (American Public Gas Assn.), NGVA (Natural Gas Vehicles for America) and HK Motors to announce the formation of a strategic collaboration to promote the mass production and sales of natural gas-powered hybrid passenger vehicles;

• 5/3/2010: HK Group purchases GBS Energy, a company that specializes in the development and manufacturing of the high-power, high-energy LiFeMnPO4 battery pack suitable for electric and hybrid vehicle applications. GBS battery packs and control systems are currently employed by three leading contenders in the Progressive Automotive XPrize Competition;

• 6/1/2010: United States Citizenship and Immigration Services (USCIS) approves ACFI's HK Motors Proposal under the Immigrant Investor EB-5 Program. USCIS has determined that all HK Motors Agreements, Memorandums and Business Plan are in compliance with established EB-5 eligibility requirements. This approval will facilitate the approval of all I-526 petitions submitted by investors in the HK Motors Project A LP, as the investor petitioner will only have to provide biographic data and show the source and path of funds to be invested;

• 6/9/2010: HK Motors, ACFI, the State of Alabama, and Baldwin County hold joint conference in Beijing to introduce the HK Motors Alabama Project to nearly 200 participants, including immigration agents and potential investors from around China;

• 6/15/2010: USCIS approves an HK Motors investor’s petition less than two weeks after ACFI requested expedited processing. This quick turnaround is an unprecedented achievement for an EB-5 regional center;

• 6/29/2010: United States Securities and Exchange Commission accepts HK Motors Notice of Exempt Offering of Securities. This allows ACFI agents to offer and sell the HK Motors EB-5 investment without having to register with the SEC;

• 8/8/2010: HK Group announces a joint venture with Jianghuai Automobile Company for the purpose of eco-friendly engine research, development, design and manufacture.

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America’s Center for Foreign Investment 150 S. Los Robles Ave., Suite 860 Pasadena, CA 91101 USA: (888) 688-ACFI Tel: (626) 683-9120 Fax: (626) 683-7393 Website: www.acfi-usa.com

Hybrid Kinetic Motors Corp. 800 E. Colorado Blvd., Suite 888 Pasadena, CA 91101 Tel: (626) 683-7330 Fax: (626) 683-0693 Website: www.hkmotors.com