Annual Financial Report

NORTHWEST INVESTMENT GROUP LIMITED

("NWIG" or the "Company")

Final Results for the year ended 31 December 2010

Chairman's Statement

On 9 June 2010, Northwest Investment Group Ltd. ("NWIG" or "the Company") raised £3 million 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.

Although we have commenced discussions with the relevant people and organizations in order to acquire or invest in hydropower projects, we have not yet concluded a deal. Whilst it was our intention to make a sizeable acquisition, which would most likely be deemed a Reverse Takeover within the first 12 months following Admission, this is unlikely to occur. We will keep shareholders updated of progress as and when anything is announce-able.

During 2010, the global economy began to recover from the effects of the credit crisis. The Far East, including China, has weathered the storm better than other regions of the world. We believe this trend will continue and therefore present significant opportunities in our target market, namely the Chinese energy market. We continue to believe that we will be able to successfully implement our investment policy and that there is a good opportunity to acquire high-quality hydropower assets in the western area of China.

As the business develops, we will recruit more talented personnel so that we can realize 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

Contact details:

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2010

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2010

A copy of the Annual Report and Notice of AGM is being posted to shareholders shortly and will also be made available on the Company's website www.northwestinv.com 

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 within a year of Admission, 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 2012.

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 two 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 within eighteen months of Admission, 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.

Any material change to the Investment Policy will only be made by the Board following Shareholder approval in accordance with the AIM Rules.