China Development Group Corp. (CTDC)

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The Reporting Person is the beneficial owner of 3,322,260 shares of Common Stock, representing 17.2% of the Issuer’s outstanding Common Stock based on 19,280,057 shares of the Common Stock outstanding as of December 3, 2009, as reported on the Issuer’s Form 6-K filed on December 3, 2009.

On May 12, 2009, China Green Holdings Ltd. (“CGHL”), a wholly-owned subsidiary of the Issuer, issued a convertible note in the principal amount of $10,000,000 (the “Convertible Note”) to the Reporting Person. The Convertible Note was, at the Reporting Person’s option, either (a) convertible into outstanding ordinary shares of CGHL or (b) exchangeable for shares of the Issuer’s Common Stock.

In accordance with the terms of the Convertible Note, as amended, the Reporting Person exchanged the entire principal amount of the Convertible Note for 3,322,260 shares of Common Stock, which were issued to the Reporting Person on November 30, 2009 (the “Shares”). As of December 3, 2009, the Issuer had 19,280,057 shares of Common Stock issued and outstanding.

The Reporting Person holds the Shares for investment purposes. The Reporting Person may, from time to time, acquire additional shares of Common Stock in open market transactions. Additionally, the Reporting Person may, from time to time, sell the Shares in open market transactions or in negotiated block sales to one or more purchasers, consistent with its investment purpose. Subject to the foregoing, the Reporting Person has no current plans or proposals which relate to or would result in any of the events specified in Item 4 of Schedule 13D.