HONG KONG, Feb. 21, 2014 /PRNewswire/ – ASIA PACIFIC BOILER CORPORATION (OTCQB:
PADR) (“Asia Pacific” or the “Company”) on February 14, 2014 entered
into a letter of intent regarding our proposed acquisition of Million
Place Investments Limited. (“Million Place”), a BVI corporation.
Million Place holds an option to purchase up to 51% of Inner Mongolia
Yulong Pump Production Co. Ltd. (“Yulong Pump”), a PRC corporation
engaged in the production and sale of industrial boilers. To date,
Million Place has completed the acquisition of 49% of Yulong Pump.

On its part, Yulong Pump has secured a commitment for its purchase of
Hohhot Devotion Boiler Ltd. (“Devotion Boiler”) by July 2014. Together,
Devotion Boiler and Yulong Pump are concurrently planning to begin
construction in March 2014 of a new state of the art Boiler
manufacturing factory with a planned investment of approximately US$250
million. The companies intend to commence staffing and training of the
new boiler plant employees concurrently with the start of construction.
Yulong Pump and Devotion Boiler will also seek to rezone for commercial
and residential use industrial land owned by Devotion Boiler in Inner
Mongolia. It is anticipated that successful rezoning will result in up
to a 500% increase in value of the property, which is currently valued
at an estimated RMB300 million (approximately US$49,600,000).

The parties have already made significant progress with their due
diligence in anticipation of the LOI, and we anticipate that the audits
of Million Place and Yulong Pump will be completed by the end March,
2014. Auditing of Devotion Boiler will follow with completion
anticipated prior to July, 2014. Provided that audit results are
satisfactory, we aim to establish parameters for a definitive agreement
well ahead of the March 31, 2014 deadline provided in the LOI. With
view toward financing the proposed transaction the Company is in the
process of securing a standby line of credit in the amount of US$300
million.

DISCLAIMER

This press release contains “forward-looking statements.” Statements in
this press release which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future, and specifically
references to the Company being able to finance or complete the
acquisition. The reader can identify these forward-looking statements
by forward-looking words such as “may,” “will,” “intend,” “seek,”
“anticipate,” “planning,” “estimated,” “in the process” or similar
words. The reader should read statements that contain these words
carefully because they discuss future expectations, contain projections
of future results of operations or of financial condition, or state
other forward-looking information. Forward-looking statements include,
but are not limited to, statements regarding financing arrangements,
due diligence and due diligence results, potential acquisitions, asset
valuations, expansion efforts, future plans and objectives of Asia
Pacific Boiler Corp. The risk factors listed in our disclosure
documents and the cautionary language on the Company’s website provide
examples of risks, uncertainties and events that may cause actual
results to differ materially from the expectations and projections
described by Asia Pacific Boiler Corp. in its forward-looking
statements. Actual results relating to, among other things, our
prospective acquisition of Million Place Investments Limited, Inner
Mongolia Yulong Pump, or Devotion Boiler, our planned business
activities or the activities and assets of the companies we are seeking
to acquire, or our ability to obtain financing for our business, could
differ materially from those currently anticipated in such statements.
Factors affecting forward-looking statements include but are not
limited to: results of due diligence, audits and valuations; changes in
economic conditions, foreign exchange and other financial markets;
changes of the interest rates on borrowings; litigation; legislation;
environmental, judicial, regulatory, political and competitive
developments in areas in which Asia Pacific Boiler Corp. operates;. The
reader should refer to the risk disclosures set out in the periodic
reports and other disclosure documents filed by Asia Pacific Boiler
Corp. from time to time with the Securities and Exchange Commission and
other regulatory authorities.

SOURCE Asia Pacific Boiler Corporation