CHINA GROUND SOURCE ENERGY INDUSTRY GROUP LIMITED

(the “Company”)

BOARD DIVERSITY POLICY

1.   Purpose

This Policy aims to set out the approach to achieve diversity on the Company’s board of directors (the “Board”).

2.   Vision

The Company recognizes and embraces the benefits of having a diverse Board to enhance the quality of its performance.

3.   Scope of Application

This policy applies to the Board. It does not apply to diversity in relation to employees of the Company.

4.   Policy Statement

With a view to achieving a sustainable and balanced development, the Company sees increasing diversity at the Board level as an essential element in supporting the attainment of its strategic objectives and its sustainable development. In designing the Board’s composition, Board diversity has been considered from a number of aspects including, but not limited to, gender, age, cultural and educational background, professional experience, skills, knowledge and length of service. Candidates will be considered against objective criteria, having due regard for the benefits of diversity on the Board.

5.   Measurable Objectives

Selection of candidates will be based on a range of diversity perspectives including, but not limited to, gender, age, cultural and educational background, professional experience, skills, knowledge and length of service. The Company will also take into account factors based on its own business model and specific needs from time to time. The ultimate decision will be based on merit and contribution that the selected candidates will bring to the Board.

6.   Monitoring and Reporting

The nomination committee of the Company (the “Nomination Committee”) has the responsibility for identifying suitable qualified candidates to become members of the Board and, in carrying out this responsibility, will give adequate consideration to this Policy. The Nomination Committee will report in the Corporate Governance Report of the Company’s annual report, as appropriate, the Board’s composition under diversified perspectives, and monitor the implementation of this Policy.

7.   Review of this Policy

The Nomination Committee will review this Policy from time to time to ensure its continued effectiveness. The Nomination Committee will discuss any revisions that may be required, and recommend any such revisions to the Board for consideration and approval.

8.   Disclosure of this Policy

This Policy will be published on the Company’s website for public information.