Jewelry Questions Kingold Open Letter To Shareholders

Kingold Jewelry, Inc. (NASDAQ: KGJI) today released an open letter to shareholders of the company president, Zhihong Jia, to solve the recent attacks on society.

Dear Shareholders,

I am fully aware that the seller short attacks in the reports of Pete Long, titled "Jewels Kingold:? Fools Gold Kingold or" parts I and II. These reports, issued by a fictitious figure, were inaccurate and defamatory statements, all components and false accusations against Kingold.

I want to state clearly that has consistently failed Kingold data accurate, complete and timely with the Securities and Exchange Commission (SEC), which confirms the correctness of all official documents.

So far I have been reluctant to formally respond to the absurd allegations in the reports mentioned earlier that I did not feel that relationships with so little substance, that the writer is not even willing to disclose their identity, which contained the accusations ridiculous and inaccurate deserves an answer. However, repeatedly urged by investors to react and now feel the need to address the most egregious of these claims. I ignored the claims relating to matters that are not under our control.

Report says Pete Long Kingold (KGJI [Free Trend Analysis]) financial results that have been reported in Wuhan Conti inspection Tianli Partners ("Tianli"), differ radically different ones. Tianli Kingold mayor has never been in China or elsewhere, and have never had access to our documents or archives. The idea that a complete verification of Tianli Kingold without the knowledge of society and have no, or contact me or the company is impossible and absurd. SAIC Kingold filings are publicly available on the SAIC, and copies are available from our offices in Wuhan or New York. They are completely and entirely consistent with the financial statements and filings made to the SEC, which Kingold ready, and subject to verification of Friedman LLP. SAT Kingold tax deposits are fully compatible with our record of SAIC, and revised on a quarterly basis our auditor.

Kingold income can easily be validated by the amount of gold products that we sell our records directly related to buying gold with the Shanghai Gold Exchange, through which we purchase 100% of our raw materials. Copies of all purchase records are available for inspection at our offices in Wuhan and New York.

It seems that the "naked" short sellers have tried to manipulate the price of ordinary shares. Chuck Long and the balance of the fund, which works in a warehouse a short disclaimer Kingold is. They seek to profit from stock price falls because of their grossly misleading statements and / or prepare information Kingold.

I take this opportunity to emphasize our strong financial position and to reaffirm the forecast for 2011.

Specifically, as in Q2/2011 was Kingold actions of approximately $ 108 million and more than $ 5.5 million cash, no debt and less than $ 1 million debt. I also hereby reiterate our previously announced financial expectations for 800M-850 million in revenue and $ 32 to 34 million in net income for the calendar year of 2011