各　位 Notice of Awarding of Governmental Grant to Consolidated Subsidiary June 30, 2015 - Shanghai Genomics, Inc., a consolidated subsidiary of GNI Group Ltd., has been awarded a RMB 1,000,000 grant from the Shanghai Municipal Government for the F351 drug candidate Phase II clinical trials in China for the treatment of liver fibrosis. The grant has been awarded as part of the Shanghai Science and Technology Commission Biomedicine Support Program, with RMB 800,000 initially provided for the trials which began earlier this month (please refer to the Company's IR materials released on June 10, 2015) and the remaining RMB 200,000 to be received at the conclusion of the trials. The objective of the Phase II "proof-of-concept" (POC) trial is to evaluate the safety and efficacy of F351 in the treatment of liver fibrosis caused by chronic HBV infection. F351 will be provided to patients together with the anti-viral drug Entecavir.

The grant program commences from July 1, 2015. Accordingly, the received initial grant deposit is expected to be recorded in the 2015 second quarter disclosure as unearned revenue on the balance sheet.
It should be noted that the effects of this matter on the Company's consolidated earnings forecast are considered to be non-material.

About GNI

GNI Group Ltd. is a vertical integrated pharmaceutical company focused on research, development, manufacture, and commercialization of therapeutic agents for endemic diseases in Asia. In addition to its CFDA Class 1.1 approved drug Etuary®, the only approved therapy for Idiopathic Pulmonary Fibrosis, GNI has a robust drug development pipeline focused on innovative therapeutic agents for diseases including radiation pneumonitis, diabetic nephropathy, liver fibrosis (cirrhosis), acute-on-chronic liver failure (ACLF) and chronic obstructive pulmonary disease (COPD). GNI is listed on the Tokyo Stock Exchange Mothers Market, Code 2160, with headquarters in Tokyo and subsidiaries in Hong Kong, Shanghai, Beijing and the United States. For further information, please visit www.gnipharma.com.

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This press release contains "forward-looking" statements, including statements related to GNIG's plans to pursue development of product candidates and the timing thereof. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "continue," "expected to", "will" and similar expressions are intended to identify these forward-looking statements. There are a number of important factors that could cause GNIG's results to differ materially from those indicated by these forward-looking statements, including risks associated with the timing and success of clinical trials and the commercialization of product candidates. GNIG does not undertake any obligation to update forward-looking statements.

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