Annual Financial Report

Northwest Investment Group Limited

("NWIG" or the "Company")

Financial Results for the year ended 31 December 2012

CHAIRMAN'S STATEMENT

On 9 June 2010, Northwest Investment Group Ltd. ("NWIG" or "the Company") raised 3 million pounds from the investors and was successfully listed on AIM of London Stock Exchange. Since then we have sought out investment opportunities in line with our investment policy namely the acquisition or investment in the hydropower energy market in Western China.

Whilst it was our intention to make a sizeable acquisition and we have commenced discussions with the relevant people and organisations in order to acquire or invest in hydropower projects, we have not yet concluded a deal due to the current financial environment. We will keep shareholders updated of progress as and when anything is announceable. As the Company has not substantially implemented its investment policy within 18 months of Admission then, in accordance with the AIM Rules, the Company's investment policy is subject to the approval of the Shareholders at the annual general meeting.

During 2012, the global economy has slowed, financial volatility and risk aversion have sharply increased, and performance remains uneven across regions. Despite this, China's economic performance continues to hold up well, especially in the energy market, which makes us confident in our implementation of investment policy and we will try our best to acquire the high-quality hydropower assets in the western area of China.

As the business develops, we will recruit more talented personnel so that we can realise our strategic objectives. I would like to extend my sincere thanks to my staff and board for their zeal, vision and dedication.

Kaifeng Li

Chairman

A copy of the Annual Report and Notice of AGM have been posted to shareholders and will shortly be made available on the Company's website http://www.northwestinv.com/

Contact details:

Northwest Investment Group Ltd. +86-(0)10 8724 6052

Kaifeng Li, Chairman

ZAI Corporate Finance Ltd +44-(0)20 7060 2220

Nomad and Broker

John Depasquale/Wei Wang

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

About NWIG

The Company's objective is to generate an attractive rate of return for Shareholders by taking advantage of opportunities to invest in the hydropower market in Western China. The Directors believe that Western China is relatively underdeveloped and therefore offers an attractive potential opportunity to invest in hydropower energy. The Directors also believe that it is likely that there will be continued governmental support for investment in hydropower projects in this region. The Company is seeking to make a sizeable acquisition before the next annual general meeting in 2013, which most likely would be deemed a Reverse Takeover and therefore would require shareholders' approval. It does not intend to make any other smaller acquisitions or investments before then. The Company will ultimately aim to acquire/invest in up to 2 power-generation projects with a capacity of approximately 200 megawatts. The Directors intend that the construction of these projects would be completed before the next annual general meeting in 2013. Before making an acquisition the Board or an independent third party will carry out a feasibility study report to check the environmental impact and to carry out a relevant profitability analysis for each potential project. The Board will only complete an acquisition if the project is considered environmentally friendly and economically profitable.

The Company will be a value and growth oriented investor, targeting opportunities with the ability for the Company to add value either through its access to capital, its network of contacts or by recruiting high quality personnel. The Company intends to be an "active" investor rather than a "passive" investor.

The Company does not have a fixed life but the Directors undertake to propose a resolution for the winding-up of the Company if no investments are made within three years of Admission. If such resolution is not passed, the Company will continue its operations and a similar resolution will be put to Shareholders each year thereafter if no investments have been made. In addition, pursuant to the AIM Rules for Companies, if the Company has not substantially implemented its investment policy before the next annual general meeting in 2013, the investment policy will be subject to approval by Shareholders at the next annual general meeting and annually thereafter.

As the Company's Investment Policy is, in the first instance, to seek an acquisition which would be deemed a Reverse Takeover and therefore result in the Company ceasing to be an "investing company" for the purposes of the AIM Rules and becoming a holding company of an operating business, it will not be relevant for the Company to undertake periodic reporting of its net asset valuation before such an acquisition is made. Full year and half yearly financial reporting will be undertaken in accordance with the AIM Rules.

The Company has been advised that there are no specific licences, consents or approvals required to carry on the Company's current activities in the BVI. The Company has also been advised that it does not require any specific licences in relation to its current activities in the PRC and that it has reasonable grounds to believe that it can obtain all necessary licences and permits at the relevant time in order to make the proposed acquisition detailed above.

It should be noted that the nature of the Company's activities is speculative and, being dependent on specific investment opportunities, uncertain, accordingly, an investment in the Ordinary Shares is designed only for investors who understand such risks and uncertainties and who can afford to bear the loss of their individual investment.