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YCI Announces Definitive Agreement for Investment by Koch Methanol in St. James Parish Methanol Project

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Yuhuang Chemical Industries Inc. (YCI), a wholly owned subsidiary of
Shandong Yuhuang Chemical Company, Ltd., announced today it has entered
into a definitive investment agreement with Koch Methanol Investments,
LLC (Koch Methanol), whereby Koch Methanol has acquired an indirect
minority equity interest in YCI Methanol One, LLC (YCI Methanol). YCI
Methanol is currently constructing a $1.85 billion methanol production
facility in St. James Parish, LA.

As part of its investment, affiliates of Koch Methanol will receive the
exclusive methanol offtake rights from the new facility, as well as
construct, own, and operate the methanol terminal assets for the
outbound flow of methanol via marine, rail, and truck logistics. YCI
Methanol's facility will be capable of producing approximately 1.7
million metric tons of methanol per year.

"The decision by Koch Methanol to invest in YCI Methanol sends a clear
signal to the industry about the strength of this facility," said Dr.
Charlie Yao, CEO of YCI. "The new facility is located in a region with
convenient access to natural gas, a highly skilled workforce, and world
class transportation infrastructure, allowing us to be very competitive
in our production and distribution. If viable, there is also sufficient
land to add a second and third plant."

"YCI has developed a strong execution plan for this project and we've
been impressed with the knowledge and dedication of the team driving it
forward," said Jim Sorlie, senior vice president with Koch Methanol.
"Our relationship with YCI will allow Koch Methanol to continue
providing our customers with a consistent and low-cost supply of IMPCA
quality methanol, both in the U.S. and in foreign markets, for years to
come. Koch Methanol seeks to build long-term, mutually beneficial
relationships and this investment is a good example of the opportunities
we look for and we're very excited to continue to build and grow this
relationship."

Supported by the syndication loan arranged and led by Bank of China,
construction on the new facility began in January 2017, and commercial
production of methanol is expected to begin in mid-2020.

"Bank of China is proud to facilitate the bilateral investment and trade
cooperation between U.S. and China," said Mr. Raymond Qiao, executive
vice president of Bank of China, New York Branch. "This plant will
create 100 permanent jobs, while construction of the facilities will
result in 1,000 construction jobs."

About YCI
YCI is building a methanol complex on more than
1,200 acres the Company purchased along River Road, between the
Mississippi River and La. 3127, in 2015 and on the former site of the
old St. James High School in St. James Parish. Construction of the $1.85
billion complex began in January 2017. Yuhuang Chemical first announced
the St. James project in St. James Parish, La. in 2014. http://yci-us.com/

About Koch Methanol, LLC
Koch Methanol, LLC and its
affiliates are committed to supplying methanol to a global customer base
in a competitive and timely manner. Methanol is used in the
manufacturing of countless everyday products, including plywood,
carpet, fuels and plastics. Koch Methanol, LLC is a subsidiary of Koch
Ag & Energy Solutions, LLC with offices in China, Houston, and Wichita,
KS. www.kochmethanol.com

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