Jiang Drill: Announcement of Administrative Submissions Received by Administrative Subsidiaries

Announcement on the “Administrative Punishment Decision” received by the holding subsidiary from Chengde City Safety Production Supervision Administration

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosure, and there are no false records, misleading statements or major omissions.

Jiangde Petroleum Drill Bit Co., Ltd., a subsidiary of Chengdejiang Diamond Oil Machinery Co., Ltd. (hereinafter referred to as “Chengdejiang Drilling”), recently received the signing of the “Safety Supervision and Punishment” issued by Chengde City Safety Production Supervision Administration. No. 003 "Administrative Punishment Decision" and (冀承) Security Regulation [2013] Vocational 045 "Administrative Punishment Decision", the specific situation is announced as follows:

First, the main content of the "Administrative Punishment Decision"

1, (冀承) security supervision [2013] Second Branch 003 "Administrative Punishment Decision" main content

Chengdejiang drill did not set up a full-time safety management agency overdue, and the temporary power operation permit was not completed. The above acts violate the provisions of Article 19, paragraph 2, of the Safety Production Law and Article 10, paragraph 2 of the Safety Production Law. The Chengde Municipal Safety Production Supervision Administration is based on Article 82 of the Safety Production Law. One of the provisions of the first paragraph of Article 44 of the Measures for Administrative Punishment of Safe Production Violations shall be given an administrative penalty of warning, suspension of production and business suspension, and a fine of 10,000 yuan.

2, (冀承) security supervision [2013] Ouwei No. 045 "Administrative Punishment Decision" main content

Chengde Jiang drilled to report to the safety supervision department a suspected occupational case found in the 2012 occupational health examination. The above acts violate the provisions of Article 51 of the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases. Chengde City Safety Production Supervision Administration gives warnings and fines according to the provisions of Article 75 of the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases. Administrative punishment of 10,000 yuan.

Second, rectification measures

Chengdejiang Drill has set up a full-time safety management organization to complete the temporary power operation permit. A suspected occupational case discovered in the 2012 occupational health checkup has been reported to the safety supervision department.

Third, the impact of this administrative punishment on Chengdejiang drill

This administrative penalty has not caused any significant adverse impact on the production and operation of Chengdejiang drill. At present, the production and operation of Chengdejiang drill are normally carried out.

Fourth, the documents for reference

Chengde City Safety Production Supervision Administration "Administrative Punishment Decision" ((冀承)安督罚 [2013]二科003号)

Chengde City Safety Production Supervision Administration "Administrative Punishment Decision" ((冀承)安督警法 [2013] Vocational 045)

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