UPDATE: Lihua Int'l Responds to Allegations of Attempted Diverting of Assets by Chair

The Board of Directors of Lihua International, Inc.

("Lihua" or the "Company"), is aware of a decline in the Company's stock price and published allegations that Mr. Zhu Jianhua, the Company's CEO and Chairman of the Company's Board, may have diverted or attempted to divert Company assets and as a result may have been the subject of action by local law enforcement. Although they have not yet been able to verify this information, the Board's Audit Committee is taking steps to determine the facts and will take appropriate action. If the allegations prove true, the Company's financial statements may contain material misstatements.