Debentureholders Approve Boyuan Construction Group Inc.'s Amendments to its Convertible Debentures

TORONTO, March 20, 2015 /CNW/ - Boyuan Construction Group, Inc., ("Boyuan" or the "Company") (TSX: BOY, BOY.DB.A), a growing construction company in China of commercial, residential and municipal infrastructure projects, is pleased to announce that the holders of its 10.0% Convertible Unsecured Subordinated Debentures due October 31, 2015 (the "Debentures") have approved the proposed amendments to the Debentures (the "Debenture Amendments") at a special meeting of debentureholders held today. As a result, the following changes will be implemented to the Debentures on the effective date of July 1, 2015:

(i)		The annual interest rate has been increased to 11.5% from 10.0%;
(ii)		Debentureholders have been provided a retraction right to require the Company to repurchase Debentures, at a price equal to 100% of the Debentures, on certain dates;
(iii)		The conversion price has been reduced from $2.60 to $1.00 per share of the Company;
(iv)		The maturity date of the Debentures has been extended from October 31, 2015 to October 31, 2018; and
(v)		The restricted redemption period has been extended to October 31, 2016.

"After working with debentureholders, we developed a collaborative solution that allows the company to continue the execution of its growth initiatives, while also providing investors with enhanced returns in exchange for their ongoing support." said Paul Law, Chief Financial Officer. "We are very excited about the added flexibility that will allow the company to capitalize on the attractive growth opportunities that we see on the horizon."

Following the meeting, the Company executed a supplemental indenture to the Debentures implementing the Debenture Amendments to take effect on July 1, 2015.

About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2014, Boyuan completed 45 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information visit www.boyuangroup.com.

Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. When used in this press release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes, but is not limited to, management's expectation to continue the execution of its growth initiatives; management's belief in the added flexibility that will allow the company to capitalize on the attractive growth opportunities; management's belief in the enhanced returns for Debenture holders; management's belief in holders' ongoing support of the company; and management's expectation on the growth opportunities in the future.  Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release have been identified in the Company's AIF for the fiscal year ended June 30, 2014 and in the Company's other public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.

SOURCE Boyuan Construction Group, Inc.

Boyuan Construction Group, Inc., Mr. Paul Law, CFO, +(852) 9329 5088, [email protected]; TMX Equicom, Renee Lam, [phone] ext. 258, [email protected]