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Kingold Jewelry Announces Sale of Common Stock to China-based Investors for $12.6 Million

 Kingold Jewelry Announces Sale of Common Stock to China-based Investors for
                                $12.6 Million

PR Newswire

WUHAN, China, Jan. 11, 2013

WUHAN, China, Jan. 11, 2013 /PRNewswire/-- Kingold Jewelry, Inc. (NASDAQ:
KGJI), ("Kingold" or the "Company"), one of China's leading manufacturers and
designers of high quality 24-karat gold jewelry, ornaments and
investment-oriented products,  today announced that the Company has entered
into a Subscription Agreement ("Agreement") with three individuals providing
for the sale of 7,000,000 shares of its common stock at a price of $1.80 per
share for gross proceeds of $12,600,000.

The Company also issued to the investors, on a pro rata basis, warrants to
purchase up to an additional 2,800,000 shares of its common stock at an
exercise price of $1.80, which warrant is not cashless exercise but is
exercisable at any time in whole or in part for twelve months following the
date of the Agreement. The Company intends to use the proceeds from this
transaction to purchase additional raw materials for its products, working
capital and other general corporate purposes.

Mr. Zhihong Jia, Chairman and CEO of Kingold Jewelry, Inc. stated, "We were
pleased to reach an agreement that will allow our Company to accelerate its
growth. While the terms were at a significant discount to the Company's book
value, the shares sold at a purchase price higher than our closing price. The
principle investors in this transaction have followed Kingold prior to its
initial public offering and have held a long-standing belief in the Company's
fundamentals and prospects in China's gold market.We look forward to keeping
investors apprised of our progress in the coming weeks."

About Kingold Jewelry, Inc.
Kingold Jewelry, Inc. (NASDAQ: KGJI), centrally located in Wuhan City, China's
fourth largest city, was founded in 2002 and today is one of China's leading
designers and manufacturers of 24-karat gold jewelry, ornaments and
investment-oriented products.The Company sells both directly to retailers as
well as through major distributors across China. Kingold has received numerous
industry awards and has been a member of the Shanghai Gold Exchange since
2003. For more information, please visit www.kingoldjewelry.com.

Business Risks and Forward-Looking Statements
This press release contains forward-looking statements that are subject to the
safe harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Readers are cautioned that actual results could differ
materially from those expressed in any forward-looking statements. In
addition, please refer to the risk factors contained in Kingold's SEC filings
available at www.sec.gov, including Kingold's most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to
place undue reliance on any forward-looking statements, which speak only as of
the date on which they are made. Kingold undertakes no obligation to update or
revise any forward-looking statements for any reason.

Company Contact
Kingold Jewelry, Inc.
Bin Liu, CFO
+1-847-660-3498 (US) / +86-27-6569-4977 (China)
bl@kingoldjewelry.com

INVESTOR RELATIONS
The Equity Group Inc.
Adam Prior, Vice President
(212) 836-9606
aprior@equityny.com

Katherine Yao, Account Associate
+86 10-6587-6435
kyao@equityny.com

SOURCE Kingold Jewelry, Inc.

Website: http://www.kingoldjewelry.com
 
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