Liuyang Fireworks Limited Announces Upcoming Trading Halt Pending Special Meeting and Privatization

Toronto, Ontario--(Newsfile Corp. - September 11, 2015) - Liuyang Fireworks Limited (TSXV: FWK) (the "Company") announced that in connection with its special meeting of shareholders that is scheduled to be held on Friday September 18, 2015 at 10:00 a.m. (Vancouver time) (the "Meeting") the Company will request a halt on the trading of its common shares on the TSX Venture Exchange (the "TSX-V") effective after market close of September 14, 2015 pending the announcement of the Meeting results or completion of the privatization.

As set out in the Company news release dated August 18, 2015, the Company's common shares on the TSX-V is expected to be voluntarily halted at least three business days prior to the Meeting. This voluntary trading halt is intended to avoid or minimize settlement and entitlement issues in connection with the privatization of the Company. Details of the proposed privatization are set out in the Company's news release dated August 18, 2015.

If and when the privatization is completed, the common shares of the Company will be delisted from the TSX-V and the Company will also apply to the applicable Canadian securities regulatory authorities to cease to be a reporting issuer in each province in which it is a reporting issuer.

Shareholders and others considering trading in shares of the Company are cautioned that the completion of the Company's privatization remains subject to a number of conditions including, but not limited to, receipt of all regulatory and shareholder approvals and the availability of financing for the share purchase by the Company. There is no assurance that such financing will be available to complete the privatization. The completion of the privatization is subject to the satisfaction of certain other closing conditions customary in a transaction of this nature. If and when these conditions are satisfied, it is expected that the completion of the privatization will be completed following the special meeting and by mid-October 2015.

About Liuyang Fireworks Limited

Liuyang Fireworks Limited is a leading China-based manufacturer of fireworks distributed both domestically and within more than 15 countries in North America, South America and Europe. The Company has more than 17 years of experience in the fireworks industry and is a supplier to the world's top five fireworks wholesalers and retailers. The Company's ISO9001-certified manufacturing facilities are located in the Liuyang area of Hunan, China, where more than half of the world's fireworks are produced.

For further information, contact:

Jacky Long
Chief Financial Officer
Liuyang Fireworks Limited
Telephone: 647.350.8818
E-mail: jackylong@farocean.com

Forward-Looking Statements

This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this news release includes information relating to completion of the going private transaction. The forward-looking information is based on certain assumptions, which could change materially in the future. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risk that the necessary regulatory and shareholder approvals are not obtained, the financing for the share purchase is not available, the conditions to completing the transaction may not be met, or the transaction may be terminated or re-negotiated on different terms. These and other risks are further described under "Risk Factors" in the Company's Filing Statement dated May 27, 2009 and in the management information circular for the shareholders' meeting to be held on September 18, 2015, which are available on SEDAR and may be accessed at www.sedar.com. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.