Ephraim Fields of Echo Lake Capital Issues Letter to Board of China Advanced Construction Materials Group; Believes $2.65 Offer Is Grossly Inadequate

Mr. Ephraim Fields of Echo Lake Capital today announced he had issued the following letter to the Board of Directors of China Advanced Construction Materials Group, Inc. CADC. We are writing to (i) encourage all CADC shareholders to vote against the Chairman's proposed buyout of CADC at $2.65 per share and (ii) encourage CADC's Board of Directors (the "Board") to reassess its actions and reject the Offer. As we have previously expressed, we believe the Offer is opportunistic, insufficient and not in the best interests of shareholders. The Offer equates to a paltry 54% of book value and seems meager relative to company's attractive prospects. We remind CADC shareholders that in order for the deal to be approved, among other things, a majority of the disinterested shareholders must vote in favor of the deal. We believe that by voting against the Offer, shareholders will ultimately be rewarded with a significantly higher stock price. If the Offer were rejected, we believe the Chairman would increase his buyout offer. If he does not, we would expect the Board to explore other opportunities to maximize shareholder value, including liquidating the company. If neither of these scenarios occurs, we believe that if CADC were to remain public, its stock price would eventually trade significantly above $2.65. We encourage all parties to study the proposed buyout of Fushi Copperweld, Inc.. In that situation, the company's board of directors rejected as inadequate a $9.25 per share buyout offer by its chairman, and subsequently the chairman raised his bid to $9.50 per share. While it is too soon to tell if FSIN's board and shareholders will approve the increased offer, FSIN's stock is now trading at levels higher than it was before the $9.25 bid was rejected. We believe that if CADC's Board and/or shareholders reject the Offer, CADC's Chairman will raise his offer. We believe his current offer is so low that he can easily raise it and still make a significant profit on the buyout. We also believe he has spent millions of dollars on legal and financial advice to arrange the buyout, so he would be unlikely to abandon the deal simply because he had to offer additional consideration to shareholders.