China Keli Announces Lapse of Proposed Going Private Transaction

Vancouver, British Columbia--(Newsfile Corp. - January 24, 2018) - China Keli Electric Company Ltd. (TSXV: ZKL) (the "Company"), announces today of the expiry of the closing deadline of the proposed amalgamation with 1062560 BC Ltd., a corporation controlled by Sou Wa Wong, and the subsequent redemption of the preferred shares to be exchanged for the Company's common shares held by existing shareholders of the Company, other than those held by Ms. Wong and Lou Meng Cheong (collectively, the "Going Private Transaction"). As set out in the Company's earlier press releases, the Going Private Transaction had previously received the approval of the shareholders of the Company, but the closing deadline had been extended to October 2, 2017 as the Company had commenced due diligence and discussions with a third party regarding a possible transaction which, if successful, could have led to a restructuring of the Going Private Transaction. The Company regrets to announce that discussions with such third party failed to a lead to a transaction, and as the Company's financial results have continued to deteriorate, the valuation of the proposed Going Private Transaction could no longer be supported by 1062560 B.C. Ltd.. Consequently, the closing deadline expired without the transaction having been completed or extended, and the Company has not entered into any further extensions or amendments with respect to the Going Private Transaction.

The Company and its Special Committee continues to review its strategic options going forward.

About China Keli Electric Company Ltd.

China Keli Electric Company Ltd. specializes in the manufacturing and installation of electrical components and equipment, including pre-assembled mini substations, electrical controllers, pressurized and vacuumed switchgears and circuit breakers.

For further information, please contact:

CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
Email: philip@zkl.cc

For further company information please access our website: www.zkl.cc

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