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File: ZKL NR (May 26 2016).docx

CHINA KELI ELECTRIC COMPANY LTD.
Suite 900, 555 Burrard Street
                                  Vancouver, BC V7X 1M8

                                              NEWS RELEASE

China Keli Receives Updated Non-Binding Offer for Going Private Transaction

Vancouver, British Columbia  May 26, 2016 - China Keli Electric Co., Ltd. (TSX-V: ZKL) ("Keli" or the "Company") annou
--->nces that it has received an updated  non-binding letter of intent (the "Non-Binding Offer") from 1062560 B.C. Ltd. (t
--->he "Acquirer"), a corporation controlled by the Company's chairperson, Ms. Sou Wa Wong, to take the Company private by
---> way of amalgamation  (the  "Amalgamation").    As  proposed  under  the  Non-Binding  Offer, 1062560 B.C. Ltd. and th
--->e Company will amalgamate to create a new company and the Company's common shares held by existing shareholders of the
---> Company, other than those held by Ms. Sou Wa Wong and Mr. Lou Meng Cheong, will be exchanged for redeemable preferred
---> shares  of  the  amalgamated  company  and  be  redeemed  immediately  after  the Amalgamation at the redemption pric
--->e of $0.06 per share. Ms. Wong and Mr. Lou will be the only remaining shareholders of the amalgamated company.  The sp
--->ecial committee formed by the board of directors of the Company has engaged independent legal counsel and if deemed ap
--->propriate, engage other professionals, to assist in the review of the proposed Amalgamation and to negotiate with the 
--->Acquirer with a view of reaching a definitive agreement in relation to the proposed Amalgamation. 

The proposed Amalgamation is subject to a number of conditions, including the entering into of a definitive agreement 
--->no later than June 3, 2016, regulatory and shareholders'  approval,  and  other  conditions  customary  in  similar  g
--->oing  private transactions.  There is no assurance that the proposed Amalgamation will be completed.

About China Keli Electric Company Ltd.

China Keli Electric Company Ltd. specializes in the manufacturing and installation of electrical  components  and  equ
--->ipment,  including  pre-assembled  mini  substations, electrical controllers, pressurized and vacuumed switchgears and
---> circuit breakers.

For further information, please contact:
CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
Email: philip@zkl.cc



For further company information please access our website: www.zkl.cc

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press
---> release. This press release contains forward-looking statements based on current expectations. These forward-looking 
--->statements entail various risks and uncertainties that could cause actual results to differ materially from those refl
--->ected in these forward-looking statements. Risks and uncertainties about the Company's business are more fully discuss
--->ed in the Company's disclosure materials filed with the securities regulatory authorities in Canada. All amounts are s
--->tated in Canadian dollars unless noted otherwise.